RED MOUNTAIN MINING LIMITED — Investor Presentation 2014

Sep 14, 2014

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RED MOUNTAIN MINING (ASX:RMX) COMPANY PRESENTATION September 2014

A Dual Strategy for Low Cost Gold Mine Development & Further High-Grade Gold-Silver Discovery

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DISCLAIMER, FORWARD LOOKING STATEMENTS AND JORC STATEMENT

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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.

This presentation contains certain 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” “potential” 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 cautions 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.

The Scoping Study referred to in this announcement is based on lower-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. There is a low level of geological confidence associated with inferred mineral resources (that represent 10% of the mining inventory in the Scoping Study) and there is no certainly that further exploration work will result in the determination of indicated Mineral Resources or that the production target itself will be realised. There is no certainty that the Scoping Study production targets or the forecast financial information derived from production targets, will be realised. All material assumptions underpinning the production targets and forecast financial information derived from the production targets, full details of which were released to ASX on 20 March 2014, continue to apply and have not materially changed. The Mineral Resources in this presentation have been updated to comply with the JORC Code 2012 (ASX release 30 June 2014). However the mining inventory and production targets reported as part of the Scoping Study have not been updated on the basis that the information has not materially changed since it was last reported.

The information in this report relating to Mineral Resources and Exploration Results is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 and 2012 Editions of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. For the information relating to Mineral Resources and post December 2013 Exploration Results, the Company confirms that the form and context in which the information is presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement. All material assumptions and technical parameters underpinning the Mineral Resource estimates continue to apply and have not materially changed. For the information in this report relating to pre December 2013 Exploration Results, Mr Dugdale takes responsibility for and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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MILESTONES TO PRODUCTION AND DISCOVERY

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1. Scoping Study: completed March 2014 on ideally located Batangas Gold Project. Confirmed potential for a strongly viable, low capital cost (US$15m), low operating cost (US$690/oz) initial gold mining and processing project producing 90,000oz of gold over initial 4.5 years.

2. Resource Upgrade: released 30 June 2014, total JORC 2012 Indicated and Inferred resources: 6.19mt @ 2.2 g/t Au for 444,000oz Au including Lobo Indicated and Inferred 604,000t @ 4.2 g/t Au for 82,000oz Au.

3. Definitive Feasibility Study: in progress, preliminary results indicate potential to initially produce 100,000oz in just over 5 years. CIL processing at Lobo, close to sealed road access, Lobo township accommodation and high grade South West Breccia open pit that will be the initial ore source. Ore will be hauled from Archangel, Kay Tanda West open pit, via coastal road from year 3.

4. Permitting : submitted 30 March 2014, on already granted MPSA’s (Philippines equivalent of Mining Licences). Declaration of Mining Project Feasibility and Environmental Compliance Certificate submitted, scheduled for approval by Q1 2015.

5. Exploration Potential : for additional high-grade resources based on continued sampling and drilling of priority targets for preserved high grade epithermal gold systems within the 15km strike of epithermal structures at Lobo, of which only 1km tested to date.

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THE PHILIPPINES: A GOLDEN OPPORTUNITY

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Far SE Cu-Au
(Gold Fields)
Didipio Cu-Au
(Oceana)
Manila
Philippines
Batangas
Red Mountain Masbate (B2Gold)
200koz pa
Batangas Gold
Project
Sianna (Red 5)
Co-O (Medusa), 80koz pa
• Outstanding prospectivity for gold and copper-gold
Tampakan
• Good mining laws, “grandfathered” on existing MPSA’s
(Xtrata/Indophil)
• Major low-cost mines including Masbate, Co-O and Didipio
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COMPANY STRUCTURE – PRE PLACEMENT AND RIGHTS ISSUE

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Red Mountain Mining Ltd	ASX: RMX
Listed Shares (30 June 2014)	686,947,994
Listed Options RMXOA 3c, exp. 30/6/16	97,839,477
Unlisted Options 20c, exp. 15/9/16	15,000,000
Performance Rights vesting at 5cps Performance Rights vesting at 10cps Performance Rights vesting at 15cps	7,000,000 10,500,000 10,500,000
Top 20 shareholders	31%
Share price (10/9/2014)	1.0 cps
Volume (average 2014 to date)	>16m sh/day
Market Capitalisation (@ 1.0 cps)	$6.9 million
Cash on hand (30/08/2014), no debt	~$1 million
Major Shareholders	M.Pishas 9% Directors 3%
Number of Shareholders (4/09/2014)	1,412

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Note: Subject to shareholder approval at 18 November 2014 AGM, Managing Director Short Term Incentive (STI) 40% of Annual Remuneration and Long Term Incentive (LTI) 70% of Annual Remuneration, subject to achievement of key milestones. See announcement dated 11 September 2014

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BATANGAS GOLD PROJECT:

MINERAL RESOURCES AND PLANNED PROJECT INFRASTRUCTURE

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120km to Manila
20km to Batangas
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BATANGAS GOLD PROJECT: SCOPING STUDY COMPLETED - DFS UNDERWAY

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• Scoping Study: based on only high-grade, open-pit, 90% Indicated Resources

• Projected C1 operating cash flow of ¹A$56 million over initial 4.5 years

	Cashflow at Varied Gold Price	Cashflow at Varied Gold Price	Cashflow at Varied Gold Price	Cashflow at Varied Gold Price
Gold Price US$ (A$/US$ 0.93)	$1,250	1$1,300	$1,350	$1,400
Total C1 Operating Cashflow 4.5 years A$	$51	$56	$61	$66
Total C3 Cashflow 4.5 yrs including Capital A$	$27	$31	$36	$40
Capital Pay Back (Years)	1.5	1.3	1.2	1.0

Key Scoping Study Project Parameters	Key Scoping Study Project Parameters
Mine Life(Processing)	4.5years
Recovered Ounces Gold(Au)	90,000 ozgold
Production rate	20,000 ozpa
Total C1 Cost/Oz	A$769/oz, US$692/oz
Pre-Production Capital	A$16.7m, US$15.0m

• DFS underway, incorporating new resources, indicates potential production increase to 100,000oz in just over 5 years, with potential to deepen planned pits based on improved metallurgy and steepened pit walls.

• Upside to expand production on further discovery and/or developing other resources

• Search for strategic minority partner at either Company or project level commenced.

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LOBO: STAGE 1

OPEN PIT MINING OF THE HIGH GRADE SOUTH WEST BRECCIA RESOURCE

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ARCHANGEL: STAGE 2 OPEN PIT MINING OF THE LOW STRIPPING RATIO KAY TANDA WEST

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LOBO PROSPECT : MULTIPLE TARGETS FOR HIGH GRADE EPITHERMAL GOLD-SILVER

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Five key targets identified within 15km strike on 5 parallel epithermal lode structures:

1. Camo: major flexure “look-a-like” target to South West Breccia (SWB), but with fully preserved silver-copper-gold silica cap. Target for silver-copper at surface and high grade gold at depth. Drilling in progress.

2. Signal : exceptionally high grade rock chip samples at surface lead into an area of preserved high silver-copper-gold in silica cap at analogous position to SWB. Trench excavations in progress before drilling is planned.

3. Pica: centre of the porphyry system at Lobo. Previous high grade epithermal vein intersections above porphyry Cu-Au zone, open in all directions. Target for high grade gold-base metals with porphyry Cu-Au underneath. Drill planning underway.

4. Ulupong: very strong soil anomalies and high-grade surface trenching results indicate gold zone exposed for 3km strike of structural corridor. Additional trenching in progress prior to drill planning.

5. South West Breccia lode extended: exceptional trenching results at surface from preserved extensions to SWB zone, extend to area of shallow limestone cover that may obscure extensions to the high grade lode. Drilling to be planned.

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LOBO PROSPECT : HIGH GRADE RESOURCES AND MULTIPLE TARGETS IN LARGE SYSTEM

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LOBO: SOUTH WEST BRECCIA CAMO EPITHERMAL TREND WITH PRIORITY TARGETS

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LOBO: SOUTH WEST BRECCIA - CAMO TREND LONGITUDINAL PROJECTION WITH PRESERVED GOLD-SILVER TARGETS

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BOARD AND EXECUTIVE TEAM: TRACK RECORD OF DISCOVERY AND DEVELOPMENT

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BOARD OF DIRECTORS

Neil Warburton 35 years a mining engineer and director. Former CEO of major mining contractor, Barminco. Chairman Also a director of Sirius Resources, Peninsula Energy and Australian Mines. Jon Dugdale 27 years a geologist with finance experience. Involved in several discoveries – all developed. Managing Director WMC, MPI Mines then Lion Selection before moving into Mindoro then RMX CEO roles. Michael Wolley Experienced director, currently Todd Corporation executive,. Previously ran Sino Steel. Non Executive Dir.

OPERATIONS	OPERATIONS
Geoff Boswell Country Manager	27 years a geologist, including >10 years in Philippines. Masbate feasibility and permitting role
Filipino staff	Key staff have 12 years experience on the project. Exploration & community relations expertise

OFFICE LOCATIONS

HEAD OFFICE PERTH, WESTERN AUSTRALIA OPERATIONS OFFICES MANILA AND LOBO (PHILIPPINES)

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OFFER TERMS

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• RMX is seeking to raise up to circa $1.95 million via a placement of up to 74.96m shares at 0.8¢ to raise $599,680 (“ Placement ”), to be followed by a pro-rata renounceable rights issue offering two (2) new shares for every nine (9) shares held at the Record Date, also at 0.8¢ per share (“ Rights Issue ”) to raise up to $1.35m.

• Subscribers to both Placement and Rights Issue will receive one (1) attaching option for every two (2) new shares subscribed for. The options will be exercisable at 1.2¢ per share on or before 31 March 2016. Application will be made for quotation of the options.

• Sub-underwriters will be entitled to receive one underwriter option for every three shares sub-underwritten.

• The Placement shares will be entitled to participate in the Rights Issue.

• The Placement options will issue with the Rights Issue and underwriter options

• Changes to the Company’s capital structure post Placement and Rights Issue are illustrated below:

	Shares	New Options	Amount Raised
ExistingShares	686,947,994
Share Issue to Consultant	1,610,000
Placement	74,960,000	37,480,000	$599,680
Sub Total	763,517,994	37,480,000	$599,680
Rights Issue(2:9)	169,670,665	84,835,333	$1,357,365
Underwriter Options		56,556,888
TOTAL	933,188,659	178,872,221	$1,957,045

• See page 4 for details relating to the proposed MD incentives.

** The company also has 97.8m Listed Options (RMXOA), 15m unlisted options and 28m Performance Rights

14

PROPOSED USE OF FUNDS

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Activity	Drilling	Metres	Cost
Diamond Drilling of 5 priority Targets, Lobo Prospect	30 holes	3,000m	$0.76m
DFS and Final Permitting Batangas Gold Project			$1.00m
Working Capital			$1.02m
Expenses of the Offer			$0.14m
TOTAL			$2.92m

Note: utilises $1.6m of the Company’s existing cash resources, including proceeds of Placement.

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PROPOSED USE OF FUNDS TIMETABLE

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Activity	Location	Total Exp.	Oct	Nov	Dec	Jan	Feb	Mar	April	May	June
		$ M	14	14	14	15	15	15	15	15	15
Exploration	1. Camo		0.20
	2. Signal			0.20
	3. Pica				0.20
	4. Ulupong					0.08
	5. SWB Extended					0.08
Total Exploration		0.76	0.20	0.20	0.20	0.16
Definitive Feasibility Study		0.70	0.16	0.22	0.12	0.20			Development >>>>>>
Permitting (DMPF, ECC)		0.30				0.10	0.10	0.10
Working Capital / Admin		1.02	0.16	0.15	0.15	0.15	0.15	0.15	0.15
Offer Expenses		0.14	0.14
TOTAL EXPENDITURE		2.92	0.66	0.57	0.47	0.61	0.25	0.25	0.15

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INDICATIVE TIMETABLE

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Event	2014
Trading Halt	Thursday 11 September
Announce Transaction to ASX	Monday 15 September
Placement Settled	Wednesday 17 September
Prospectus Lodged	Wednesday 17 September
Ex Rights – Rights Trading Commences	Monday 22 September
Record Date	Wednesday 24 September
Rights Trading Finishes	Wednesday 1 October
Closing Date	Thursday 9 October
Shortfall Notified	Monday 13 October
Rights Issue Securities (including Shortfall) Allotted	Thursday 16 October

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CONTACT DETAILS

Jon Dugdale, Managing Director jon.dugdale@redmm.com.au M: +61 402 298 026 Matt Birney, Investor - Media Relations matt@birneycorporate.com.au M: +61 419 217 090

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Red Mountain Mining Head Office Unit 1, 2 Richardson Street West Perth WA 6005

P: +61 8 9226 5668 F: +61 8 9322 1474 info@redmm.com.au www.redmm.com.au

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A GOLDEN OPPORTUNITY

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Red Mountain Batangas Gold ProjectGold

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