RED MOUNTAIN MINING LIMITED — M&A Activity 2012

Jun 25, 2012

ASX ANNOUNCEMENT

26 JUNE 2012

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Update: Proposed Acquisition of Mindoro Resources’ Copper-Gold Assets in the Philippines

Red Mountain Mining Limited (ASX: RMX) wishes to update shareholders on the due diligence process and timetable for the proposed acquisition of the Philippines based gold and copper/gold assets of Mindoro Resources Limited (ASX: MDO):

• Red Mountain Mining due diligence is expected to be completed by 29 June 2012;

• Following satisfactory completion of the due diligence, Red Mountain Mining expects to sign a binding Share Sale Agreement on or around 30 June 2012 for the acquisition of Mindoro’s gold and copper/gold assets in the Philippines;

• Drilling of interpreted high grade gold “feeder zones” underneath and adjacent to the existing resources at Archangel at the Batangas Project is planned to commence immediately following signing of a binding Share Sale Agreement;

• ASX has provided written approval for the acquisition to proceed, subject to Red Mountain Mining shareholder approval and Red Mountain Mining preparing a short form prospectus in relation to the transaction (but Red Mountain Mining will not have to re-comply with the new listing requirements in Chapters 1 and 2 of the ASX Listing Rules);

• ASX has also confirmed that the 100,000,000 ordinary Red Mountain Mining shares and 50,000,000 performance shares to be issued to Mindoro will be escrowed for 12 months from completion;

• In addition, the 50,000,000 performance shares will be voluntarily escrowed up to 12 months from vesting;

• A Red Mountain Mining shareholder meeting to seek approval for the acquisition is expected to be held in mid August 2012.

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Portfolio of projects in key mining districts

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MEYCAUAYAN QUEZON DENR / MGB CENTRAL
Manila Bay MANILA PORT VALENZUELAMALABONCALOOCAN M 2 CITY 2 MARIKINA San Mateo ANTIPOLO BATANGAS
(North & South Harbor)MRL MAKATI OFFICE MAKATI CITYMANILAPASAY 2 2 M MANDALUYONGTAGUIGPASIG CaintaTaytayAngonoBinangonanTeresaMorongBaras Tanay Real LOCATION MAP
INTERNATIONAL NINOY AQUINO NoveletaKawit CAVITE Bacoor  Las Piñas PARAÑAQUE Laguna De Bay Pililla MabitacSanta MariaFamySiniloan Luzon
AIRPORT Rosario Imus MUNTINLUPA Lake Pangil
Cardona Paete Manila
Tanza Gen. San Pedro Jalajala
Ternate MaragondonNaic TRECE MARTIRES Gen. Trias DasmariñasAlvarez Carmona BIÑAN 2 SANTA ROSA Cabuyao Pila Pagsanjan Cavinti Mauban Lamon Bay Visayas
Nasugbu MagallanesGen. Aguinaldo AlfonsoIndangMendezAmadeo TAGAYTAY Silang CALAMBA Los BañosBay CalauanVictoria NagcarlanMagdalenaLiliw MajayjayLuisianaLucban Sampaloc Mindanao
Talisay Santo Tomas
TANAUAN Rizal
Tuy Laurel Malvar Alaminos SAN PABLO Dolores TAYABAS
Lian LemeryAgoncilloTaal Mataas Na KahoyBalete Pagbilao Atimonan
Calatagan Balayan Calaca San NicolasSan JuanLakeSanta Teresita AlitagtagCuencaBukal LIPA Padre GarciaSan AntonioTiaong CandelariaManggalangSariaya LUCENA Agdangan Mindoro tenements / applicationsMineral deposit UnisanPlaridel
Balayan Bay Bauan San Pascual 2 Ibaan Taysan Rosario FORTUNE CEMENT Taysan DepositSan Juan Tayabas Bay 2 City hall locationCity / urban centerMunicipality
Mabini BATANGAS CITY BATANGAS Road N
BATANGAS LOBO : SW Breccia PROJECTS
PORT
Kay Tanda 0 20km
MRL LOBO OFFICE
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Acquisition price amendments

Red Mountain Mining has valued the interests in the Mindoro assets (“Assets”) that are being acquired at approximately $10 million to $15 million. This purchase price will be satisfied through the issue of:

• 100,000,000 fully paid ordinary shares in the capital of Red Mountain Mining; and

• 50,000,000 performance shares in the capital of Red Mountain Mining that convert into ordinary shares if, within 12 months of completion of the sale, both (a) the gold resource across the Assets increase to 600,000 ounces at a JORC Indicated level; and (b) a scoping study is completed on the Assets that confirms that the development of a mine is economically viable, where the scoping study must have a minimum of 50% conversion of the 600,000 ounces Indicated JORC Resource to Probable Reserves.

Mindoro intends to make an in specie distribution of the Red Mountain Mining initial 100,000,000 shares on a pro rata basis after 12 months of the sale. The 50,000,000 performance based Red Mountain Mining shares (if milestones are achieved) will be distributed in specie to Mindoro shareholders up to 24 months after the sale.

Following the transaction, current Red Mountain Mining shareholders will retain an approximate 35% to 44% interest in the expanded group (depending on the final number of shares issued).

Neil Warburton, Red Mountain Mining Executive Chairman and Acting CEO, said “The initial response to the proposed acquisition of Mindoro’s significant gold and copper-gold assets from existing major Red Mountain Mining and Mindoro shareholders had been very positive.”

“We look forward to providing further information to our shareholders about the proposed transaction ahead of the shareholder meeting. We are excited about the imminent drilling program which if successful will add significant contained gold resources and value to all shareholders,” concluded Mr Warburton.

Conditions Precedent

As announced previously, the conditions precedent to the transaction include:

• Completion of satisfactory due diligence by both parties;

• Board and required shareholder approval of both Red Mountain Mining and Mindoro;

• Board and executive appointments;

• Completion of the restructuring of Mindoro’s Philippines subsidiary MRL Gold Phils. Inc. whereby the assets and beneficial rights to the assets are transferred to another Mindoro subsidiary owned by MRL Gold (Australia) Pty Ltd;

• Toronto Stock Exchange approval of the sale of Mindoro assets for shares;

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• The entity which houses the projects, being MRL Gold (Australia) Pty Ltd (on a consolidated basis inclusive of their Philippines subsidiaries) having net positive working capital at the time of completion of the transaction;

• Red Mountain Mining preparing an Independent Expert’s Report and Prospectus.

Completion of the transaction is now expected to occur late rather than early August 2012, as originally advised. The parties have agreed that the working capital requirement for Red Mountain Mining will apply as at 30 June 2012, rather than completion as previously agreed, and will comprise approximately $4.2 million.

Updated indicative transaction timeline

• 28 June Mindoro AGM

• 29 June complete of Red Mountain Mining due diligence

• 30 June execute binding formal Share Sale Agreement

• 2 July lodge Red Mountain Mining shareholder meeting documents (incl IER) with ASX for approval

• 10 July dispatch of Red Mountain Mining shareholder meeting documents

• 24 July lodge Red Mountain Mining Prospectus documents with ASIC/ASX for approval

• 30 July dispatch of Red Mountain Mining Prospectus

• 8 August Red Mountain Mining shareholder meeting

• 24 August complete transaction and issue of new shares.

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ARCHANGEL PROJECT – KAY TANDA DRILL HOLE LOCATION
KT-100
CA-10 KTDH-19KTDH-17 KTDH-14 KT-94
KTDH-10KTDH-12 KT-104KTDH-15 KT-101 KT-83 KT-90KT-91 Taysan Porphyry Cu-Au Deposit BATANGAS PROJECTS
KTDH-18 KT-82
K T-60 KTDH-06 KT-92 KTDH-22
KTDH-03KT-103 KT-55 KT-50 K T-59 K T-53 KTD180 KT-40 KT -96 KTDH-05KT-97 KT-95KT-93KT-8 8 KT-85KT-86KT-65 LOBO
KT-102 KT-81KT-51 KT-44K T -99 KT-29KT-47 KT-39 K T-52 K T -06 PDH-193 CA-08 KTDH-04KT-72 KTD179KT-54KT-56 KT-98 KT-84 KT-87 Map Area
KTDH-16KT-58 KT-66 KT-62 KT-30 KT-106KT-20KT-04 KTDH-09 K TD182KT-41 KTD175KT-79CA-07 KT-64 PDH-194 KTDH-24KTD17KT-49 PDH-192 4 KT-35KKTD174T-26KT-37KT-15 KTD184KT-71KT-70 KT-73 KTDH-08KT-57 KT-89 Hydrothemal breccia / vein brecciaMAP KEY
KTD181KT-21 KT-28KTD178KT-19 KTD177KT-14KT-13KT-80 C KT-03A-09KTKTD176KT-42 - 105KT-61KTDH-23 K TDH-21 PDH-191 KTD183KT-48 KT-45KTDH-20 C KT-68A-04KTDH-01KT-22 KT KT-10-77 KT-23KT-25 CCA-05A-03 KTDH-13KT-24KT-05 veinDrill holePlanned holeCreekQuartz – Au – base metal
KT-11 KT-75 KT-02 KT-63 KT-78KT-08 Road
KTDH-07 KT-12 Historical mine working
KT-31 CA-06 CA-01 KT-43
KT-67 KTD-185KT-33 KT-18 KT-01 KT-07
KT-46
KT-27 KT-69KT-09 KTDH-02KT-16 N
KT-32
KT-17 KT-74 0 100m
CA-02
KT-36 KT-38 KT-76KT-34
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Plan of proposed drill holes targeting high grade feeder zones at Kay Tanda.

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ARCHANGEL PROJECT – LONGITUDINAL SECTION 9,900E
9700N 9800N 9900N 10000N 10100N 10200N
Taysan Porphyry BATANGAS
KT-03 KTD177 PDH - 191 Cu-Au Deposit PROJECTS
KT-105
KT-42 KTD176 PDH - 194
300 ASL KTD178 KT-14 KTD175 KT-49 KT-26
45.2 KT-41 44.3 KTD174
KT-72
200250 64 K 65.9 T-19 119.875.1 89.6 KT-79 62.2 80 99.2 78.3 KT-37 3 6.9 CA-08 88.3 KT-70 52.254.5 KTDH-04KT-54KTD179KT-88KT-93 40.9 KT-85KT-86 LOBO MAP KEY Map Area
124 1 21 90 Hydrothermal breccia / feeder zone
150 1 87 184 160 120 KTDH-08 127.582 128.6 KTDH-06 174.567.9 53.3 60.4 Quartz - basemetal veinPlanned hole
KTDH-09 152.2 4
100 207.3 180 KT-95 149.2
221.1 2 03.2 146.3
KTDH-05
219.2 187.1
284.6
218
319.4
3 04
350
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Section of proposed drilling.

For further information contact:

Neil Warburton Executive Chairman and Acting CEO Red Mountain Mining Limited Ph: (08) 9226 5668

Ronn Bechler – Investor Relations Managing Director Market Eye Ph: 0400 009 774

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About Red Mountain Mining

Red Mountain Mining is primarily a gold explorer and project acquisition company incorporated in Australia in May 2006 and which listed on the ASX in September 2011. The Company’s strategy is to unlock the potential of ‘under-developed’ gold and polymetallic projects by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.

Red Mountain Mining has spent more than five years examining potential project acquisitions in China. The Company recently expanded its search for advanced exploration and mining projects to the greater Asian region following several significant projects coming to its attention.

About Mindoro

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on nickel, gold and copper-gold exploration and development in the Philippines.

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