RED MOUNTAIN MINING LIMITED — Remuneration Information 2012

May 14, 2012

ASX ANNOUNCEMENT

15 MAY 2012

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Executive Chairman Remuneration Structure

Further to its announcement of 3 April 2012, Red Mountain Mining Limited (ASX: RMX) advises that it has finalised an Executive Service Agreement with Mr Neil Warburton, who assumed the role of Executive Chairman and Acting Chief Executive Officer on that date.

The material terms of Mr Warburton’s Executive Service Agreement are:

• Base Salary of $300,000 per annum, plus statutory superannuation;

• Subject to shareholder approval, a total of 4,000,000 options to be issued on the following material terms and conditions:

  • 2,000,000 options exercisable at 25 cents each on or before 1 July 2014. The options will vest if and when the trading price of the Company’s shares is 20 cents or greater (on a pre-consolidation basis) or at or above an equivalent post-consolidation price for more than 30 consecutive trading days on which the shares in the Company trade;

  • 2,000,000 options exercisable at 50 cents each on or before 1 July 2016. The options will vest on Mr Warburton completing 4 years continuous service as a Director or Chief Executive Officer from his commencement date of 3 April 2012.

For each tranche of options, the vesting condition will be deemed to have been satisfied in the event of a successful takeover bid where the bidder has acceptances for greater than 50% of the shares in the Company. The Company intends to wait to seek shareholder approval to the issue of the options until a shareholder meeting is required to be held for other transactional or annual business.

• The Executive Service Agreement may be terminated by either party on 2 month’s written notice. The Company may elect to pay 2 months Base Salary in lieu of notice.

The Executive Service Agreement contains other terms and conditions standard for an agreement of this nature.

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AUTHORISED BY

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Shannon Coates Company Secretary

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For further information about Red Mountain Mining please visit www.redmm.com.au or contact:

Company Investors Neil Warburton Ronn Bechler Executive Chairman Market Eye (+61) 408 935 014 (+61) 400 009 774 (+61 8) 9226 5668 (+61 3) 9591 8901

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