RED MOUNTAIN MINING LIMITED — Investor Presentation 2011

Oct 16, 2011

October 2011

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Company overview
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• Listed on ASX on 1 Sep 2011

• Gold focused company with two advanced projects in China

• Strategy to unlock potential of underdeveloped gold projects in China by introducing modern exploration techniques and mechanised mining methods

• Binding acquisition agreements to acquire

• 51% of Zhongqu project (operating gold mine + infrastructure)

• 90% of Diebu project (exploration)

RMX capital structure 1 Shares Options Number issued 79,060,026 31,264,778 Market Cap @ 17.5c A$11.7m Cash on hand A$ 6.9m

1 Options owned by Directors – 26.6%, exerc at @ 25c & 35c. Remainder exercisable at 20c

• Top 20 shareholders hold 44%

  • Directors 17.4%

• Contango Asset Management 5.2%

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Investment highlights
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• Experienced Board and management team with significant China and gold experience

• China market has attractive fundamentals and cost competitive operating environment

• Exposure to two exciting gold projects in major gold province

• Zhongqu project

• Operating mine, with significant production upside

• Existing non-JORC compliant Chinese resource (refer to Prospectus)

• Access to quality infrastructure

• →

• Plant has 400,000 tpa capacity no capex needed to scale up

• Stage 1 drilling intersected substantial gold mineralisation below current operations

• Stage 2 drilling program to commence shortly

• Diebu project

• Advanced exploration project, with existing exploration target

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Experienced Board
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Michael Wolley BE, MM, MAICD ; Resources and industrial Executive; 15 years Asia Pacific; previously COO Lynas Corporation and Chairman President BlueScope Steel China

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Neil Warburton MAusIMM, FAICD ; CEO Barminco (Australia’s largest underground mining contractor); former Managing Director Non-Exec Director Coolgardie Gold NL; 30 years in gold and base metal mining Bo Zhou BSc, PhD, MBA, MAusIMM ; Managing Director Qzcorp Ltd a resource consulting business; General Manager of Non-Exec Director Griffin Mining; 16 years in China resources sector

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Keith Rowe B App Sci, Grad Dip, MAICD ; Consultant to mining industry WA; 20 years in delivery and management of Executive Director resource sector OH&S systems; deep China experience

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Management team with China and gold
experience
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Andrew Richards, CEO BSc(Hons), DipEd, MAusIMM, MAIG ;

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Andrew is a geologist with 30 years mining industry experience, including 7 years in Resource Project Finance within a banking environment. Previously Chief Geologist at New Celebration and Telfer Gold Mines, he has worked extensively in Australia, China, Asia and South America. Andrew was Managing Director of Dragon Mountain Gold which listed in 2007 to develop the multi-million ounce Lixian Gold Project in China’s Gansu province

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Bruce Harris Exploration Manager Dianmen Chen Mining Engineer, China Advisor

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China – attractive market fundamentals
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• Largest gold producing country

• • Established, well-endowed but underexplored gold belts

• Low production costs

• Legal security and enforceability

• Opportunity to expand existing gold projects through partnerships

• • Foreign investment encouraged by PRC with foreign direct investment increasing

• • Track record of foreign gold mining in China (eg Sino Gold, El Dorado)

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SOURCE Figure 1: World Gold Council – Figure 2: Us-China Business Council

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China – operating cost benefits
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• Substantial comparative cost benefits in China as can be seen in the table below

• Attractive mine economics given operating cost benefits

Activity (US$)	China	Australia
Open pit mining	$1.43/t	$4.50/t
Decline development	$1,870/m	$5,500/m
Shaft sinking	$4,400/m	$25,000/m
Skilled mine operator	$22K pa	$130K pa
Senior geologist	$38K pa	>$140K pa

Note: Approximate estimates, contract rates for mining costs.

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Qinling belt – a major gold province
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• Qinling belt crosses Sichuan, Shaanxi and Gansu provinces

• Numerous gold deposits (see Appendix) with large scale mining operations and foreign companies already in province

Project	Owner	Resource
Liba	State Owned Enterprise	>10 m oz
Baguamiao	China National Gold	3 m oz
Lixian/Jinshan	Dragon Mountain	2.8 m oz
La’erma	Silk Road	>1 m oz
Shuangwang	China National Gold	1 m oz
Ma’anqiao	Gansu private	~0.5 m oz
Jiangchaling	Sino/Eldorado	~0.5 m oz

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Zhongqu – operating mine with
substantial potential
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• Operating underground gold mine

• Has produced at up to 30,000 oz Au pa

• Chinese non-JORC compliant resource[1]

• Exploration target estimate of 400,000 to 500,000 tonnes at 7.0 to 9.5 g/t Au[2]

• RMX drilling program underway to bring existing gold mineralisation into JORC compliance and seeking to grow the resource

• (1) Refer to RMX Prospectus of 4 July 2011

• (2) Potential quantity and grade of Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

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Zhongqu – significant scope to increase
production
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• Modern CIL plant with 400,000 tpa capacity – underutilised, spare capacity

• Mine production rate of 90,000 tpa due to manually intensive methods and hand bogging

• Significant scope to increase production through modern mining techniques

• Access to existing infrastructure including sealed roads, power, water, buildings and accommodation

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Zhongqu – successful drilling program
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Zhongqu – Stage 1 drilling intersected
significant gold mineralisation
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Results of drilling below Level 6 at Xinqu mine

• Intersected the main granodiorite-contact shear zone (31m at 4.61 g/t gold including 8m at 10.07 g/t gold)

• Also intersected previously unrecognised limestone-hosted gold mineralised structures (up to 14.3m at 4.5 g/t gold)

• Deposits located below current operating mine

• Ore body amenable to mechanised mining techniques

• Moving toward JORC compliant resource

• Preparations for Stage 2 drilling program commenced to build on success of Stage 1

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Zhongqu – drilling encountered two
mineralisations
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Historically mined hematitic, often brecciated ore in a sheared and faulted zone at a granodiorite-limestone contact ...

... but RMX drilling also intersected significant gold mineralisation in structural zones within limestone away from granodiorite – often brecciated & hematitic

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Zhongqu – Stage 2 drilling commenced
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• Drill site preparation has commenced and drilling teams to be mobilised

• Targeting main granodiorite contact mineralised zone as well as newly encountered limestone hosted mineralisation in hanging wall

• Plan 15 drill holes totalling approx. 2,430m

• Provision for additional holes to follow up encouraging drill intercepts

• Drilling aims to establish down-dip extension of main granodiorite contact shear zone and confirm orientation and tonnage potential of high-grade gold hematitic limestone structures

• Initial stage 2 drill results anticipated in 5-7 weeks time

Stage 2 drilling plan

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Zhongqu – exercise of acquisition
agreement driven by resource development
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Resource compliance and development

• Validate mineralisation and establish significant JORC compliant resource

• Substantial increase in resource from current Chinese reported resource

• Targeting 1.0-1.5m oz Au to drive acquisition pricing

Plant review

• Reliability assessment

• Recovery confirmation

• Safety and environmental compliance and liability

• Future expansion costs

Mine review

• Review options for mechanised mining upgrade

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Diebu – an advanced exploration project
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• Large mineralised system over 6km of strike length for gold and antimony

• Initial exploration target 400,000 - 500,000 tonne at 3.5 to 4.5 g/t Au

• Intend to apply for additional infill tenements with known mineralisation

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Summary
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• China market has attractive fundamentals underpinning long term growth

• Low production costs

• Established, well-endowed but underexplored gold belts

• RMX is unlocking the potential of two under-developed gold projects in China

• Introducing modern international standard exploration and mining methods

• Improving efficiencies to gain significant production and exploration upside

• Zhongqu project

• Stage 1 drilling program complete with intersection of significant gold mineralisation below current mining level

• Stage 2 drilling program has commenced

• Progressing towards JORC compliant resource

• Diebu project – advanced exploration project with known mineralisation and exploration target

• RMX is well placed to grow and create shareholder value

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Disclaimer
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The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. This presentation is not an offer of securities for sale in the United States, nor does this presentation constitute a prospectus or other offering document in the United States or any other jurisdiction in which it is being used. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from registration there from.

In providing this presentation, Red Mountain Mining has not considered the financial position or needs of the recipient. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial and legal advisors. These statements are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements.

These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Red Mountain Mining caution shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.

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Competent Person
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The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Andrew Richards, who is a member of The Australasian Institute of Mining and Metallurgy. He is a full time employee of Arc Resources Pty Ltd which is providing consulting services to Red Mountain Resources Ltd.

Andrew Richards has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew Richards consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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Suite 2, 2 Richardson Street West Perth, Western Australia, 6005 T +61 (08) 9226 5668 F +61 (08) 9322 1474 redmm.com.au

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Group structure
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Red Mountain Mining Ltd (Australia)

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100%

Red Mountain Mining (Hong Kong) Holdings Ltd

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100%

Zhongqu Binding Acquisition Agreement (51%)

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Diebu Binding Acquisition Agreement (90%)

Red Mountain Mining Consulting (Shenyang) Co Ltd

Zhongqu: RMX to exercise Acquisition Agreement by 30 April 2012

• Commits RMX to US$45m payment for 51% of all assets – payment in 2013

• CPs with JV partner on approvals and establishment of Co-operative JV

• RMX to evaluate and establish JORC resource, exploration underway

Diebu: RMX to exercise Acquisition Agreement by August 2012

• Commits RMX to US$4.2m payment for 90% of all assets – payment 2013

• CPs with JV partner on approvals and establishment of Cooperative JV

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China – production vs reserves
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SOURCE: Standard Chartered, Gold Fundamentals

• Lack of systematic modern exploration techniques

• Small scale “hand to mouth” mining focus

• Scope to introduce established modern techniques to boost production

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China – gold reserves
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The Qinling Belt – a prolific gold province
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ZHONGQU	DIEBU
		Hosts numerous gold deposits
			Several >2Moz Au

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Zhongqu – project prospects
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View to Zhongqu from Xinqu

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Zhongqu – stage 1 drilling highlights
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Highlights of RMX drill intercepts at XinQu mine	Highlights of RMX drill intercepts at XinQu mine	Highlights of RMX drill intercepts at XinQu mine	Highlights of RMX drill intercepts at XinQu mine
Hole No.	From	To	Intersection	Mineralisation style
XQ6L 002	22m	26m	4 m at 5.71g/t Au	Granodiorite contact
XQ6L 005	40m	47m	7 m at 5.70g/t Au	Granodiorite contact
XQ6L 009	37m	43m	6 m at 4.21g/t Au	Limestone hosted
XQ6L 010	48m 75m 79m	56m 77m 84m	8 m at 7.65 g/t Au 2 m at 5.07 g/t Au 5 m at 5.31g/t Au	Granodiorite contact Limestone hosted Limestone hosted
XQ6L 013	183.5m	192.5m	9 m at 5.59g/t Au	Limestone hosted
XQ6L 014 Including:	95m 95m 118m 134m	126m 99m 126m 135m	31 m at 4.61 g/t Au 4m at 9.51 g/t Au, and 8m at 10.07 g/t Au 1 m at 4.62 g/t Au	Granodiorite contact Granodiorite contact Granodiorite contact Limestone hosted
XQ6L 015 Including:	107.5m 107.5m 116m	121.8m 113.5m 119m	14.3 m at 4.50 g/ Au 6 m at 7.14 g/t Au, and 3 m at 6.27 g/t Au	Limestone hosted Limestone hosted Limestone hosted
XQ6L 017	120m	124.5m	4.5m at 6.33g/t Au	Limestone hosted

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Zhongqu – Xinqu operation
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Zhongqu – current mining techniques
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• Mining at 90,000 tpa, limited by manually intensive methods and hand bogging

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Zhongqu – mineralisation near
granodiorite contact
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Zhongqu – mineralisation hosted in
limestone structures
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Contact details
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Andrew Richards, CEO E: andrew.richards@redmm.com.au M: +61 423 044 879

Investor relations – Ronn Bechler E: ronn.bechler@marketeye.com.au M: +61 400 009 774

RMX head office Unit 2, 2 Richardson St West Perth WA 6005 P: +61 8 9226 5668 F: +61 8 9322 1474 E: info@redmm.com.au W: www.redmm.com.au

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