RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2020

May 28, 2020

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD 29 May 2020

• Work Programme in DRC to commence this quarter
• Continues to assess new opportunities in gold and uranium sectors
• Successful capital raising funds RMX

Mukabe Kasiri Work Programme

Red Mountain Mining Ltd is pleased to advise that a work programme at its Mukabe-Kasari copper-cobalt project in the DRC has been designed. Recent difficulties with access and COVID-19 restrictions have proved challenging particularly in respect of logistics but the Company is working toward implementation and completion of the programme prior to the end of this quarter. Johannesburg based geological consultants Minrom Consulting have been appointed to manage the work programme.

New Ventures

The Company continues to review and assess opportunities that will add value to its portfolio. In particular, the Board is focused on opportunities in the gold-copper and uranium sectors.

The Company currently holds 5,595,652 shares in London listed Blue Bird Ventures Limited which is focused on its near term production gold project in South Korea. It retains its net smelter royalty over the Philippines located Batangas gold project.

Capital Raising – up to $540,000

RMX has received firm commitments to raise $240,000 via a share placement to professional and sophisticated investors (Placement). The Placement will be undertaken at 0.4 cents per share in a single tranche using the Company's available placement capacity (pursuant to Listing Rule 7.1A). One attaching option (exercisable at 0.8c per share, expiring 12 months from the date of issue) for every two Placement shares will be issued to participants.

The Company also plans to undertake a Share Purchase Plan to raise up to $300,000 on the same terms as the Placement (SPP). Holders of RMX shares with an address in Australia or New Zealand as at 5:00pm WST on 28 May 2020 may apply for up to $15,000 of shares at 0.4 cents per share. Each participant in the SPP will be entitled to receive one free attaching option for every two SPP shares issued to them under the SPP (exercisable at 0.8c per share, expiring 12 months from the date of issue). The SPP Offer document will be despatched to shareholders in due course.

Subject to ASX requirements, the Company intends to seek quotation of the attaching options under the Placement and the SPP. The attaching options will not be issued under the SPP Offer document – they will be issued under a separate disclosure document which will be lodged after close of the SPP Offer. If quotation of the attaching options cannot be obtained, they will remain as unquoted options.

An indicative timetable for the Placement and the SPP is set out in Annexure A to this announcement.

Xcel Capital Pty Ltd has been engaged to act as Lead Manager to the Placement and SPP. Fees payable are 6% across all funds raised, 7m options (same terms as attaching options) and a $10,000 management fee.

The issue of up to 74.5m attaching options and broker options will be undertaken using the Company's 15% placement capacity (pursuant to Listing Rule 7.1).

The SPP meets the requirements of Listing Rule 7.2 exception 5. Any shortfall SPP shares will be issued under the Company's remaining 15% placement capacity (pursuant to Listing Rule 7.1). If the Company decides to issue additional shortfall shares (over and above the Company's remaining Listing Rule 7.1 capacity), the Company will obtain prior shareholder approval for such issue.

The fundsraised from the Placement and the SPP will be directed towardsthe upcoming work programme at the Mukabi-Kasiri Project, assessment and due diligence in respect of new mineral assets, general working capital and costs of the offer.

Authorised for and on behalf of the Board.

Mauro Piccini Company Secretary

Annexure A – Indicative Timetable

Event	Date
Record Date for participation in SPP	Thursday 28May 2020
Announcement of SPP	Friday 29May 2020
Issue of Placement Shares	Tuesday 2 June 2020
Dispatch of SPP Booklet and release on ASX(SPP Offer opens)	Thursday4 June 2020
SPP Closes	Thursday 25 June 2020
Announce results of SPP Offer	Tuesday30June 2020
Issue and quotation of SPP shares	Friday 3 July 2020

Note: These dates are indicative only. Subject to ASX requirements, the Company may vary the dates (including bringing forward or extending the closing date) of the SPP in its discretion and without notice.