RED MOUNTAIN MINING LIMITED — Share Issue/Capital Change 2019

Feb 14, 2019

15 February 2019

Dear Shareholder

IMPORTANT NOTICE

Sale of your Unmarketable Parcel of Red Mountain Mining Limited Shares

I am writing to you to advise that Red Mountain Mining Limited (ACN 119 568 106) (ASX:RMX) (RMX or Company) has established a share sale facility (Facility) for holders of parcels of fully paid ordinary RMX shares valued at less than A$500 as at close of trade on Tuesday 12 February 2019 (Unmarketable Parcels).

The Company is offering this sale to assist holders of unmarketable parcels to sell their shares. Holders of Unmarketable Parcels who take advantage of the Facility will have their shares sold without having to use a broker or pay brokerage. The Company has appointed Xcel Capital Pty Ltd as the broker for shares sold under the Facility. The Company will pay for all the costs of the sale for shareholders who use the Facility, excluding tax consequences from the sale (which remain the shareholder's responsibility).

Our records show that you held an Unmarketable Parcel based on the Company's closing share price of $0.006 on Tuesday 12 February 2019 (Record Date). Unless you advise the Company that you DO NOT WISH to sell your shares within six (6) weeks of the date of this letter, the Company intends to sell your shares through the Facility in accordance with clause 2.10 of the Company's constitution and the ASX Listing Rules. Proceeds of the sale will be sent to you following settlement of the sale or otherwise as soon as is practicable.

The shares will be sold at the authorised price, being $0.004.

If you DO NOT WISH to sell your shares through the Facility, you must complete and return the enclosed Notice of Retention Form to the Company's share registry, Computershare by 5.00pm (WST) on Monday 1 April 2019 (Retention Date). Please read the instruction on your personalised Retention Form carefully before completing it.

If you wish to sell your shares through the Facility, you do not need to take any action.

By refraining from taking any action, after the expiration of the time prescribed by the ASX Listing Rules and the Company's Constitution, you will be deemed to have irrevocably appointed the Company as your agent:

• (a) to sell all of your shares at a price to be determined by when and how the shares are sold, and without any costs being incurred by you; and
• (b) to deal with the proceeds of the sale as set out in the attached information pack.

Important information

The Company has determined that you hold an Unmarketable Parcel, based on the Company's closing share price the Record Date.

If you have an Unmarketable Parcel as at the Record Date, then unless you complete and return the Notice of Retention Form, the Company will be entitled to sell your shares under the Facility.

The Company does not make any recommendations or provide any advice to you regarding whether to buy, sell or hold your shares, nor that this Facility is the best way to sell your shares. If you need help deciding what to do, or if you require information regarding the financial, legal or tax consequences of participating in the Facility, you should consult your legal, financial or taxation adviser.

The attached information pack sets out further details of the Facility, which you should read carefully before making any decision. If you require any further information you can also contact the Company's share registry Computershare on 1300 850 505 between the hours of 8:30 AM to 5:00 PM (AEST) Monday to Friday.

Yours sincerely,

Jeremy King

Chairman Red Mountain Mining Limited

RMX MR SAM SAMPLE UNIT 123 SAMPLE STREET SAMPLETOWN NSW 2001

Return your Form to the Company's share registry:

(within Australia) 1300 850 505 (outside Australia) +61 3 9415 4000

Notice of Retention Form

If you wish to retain your shares, your form must be received by Monday, 1 April 2019

This is an important document that requires your immediate attention. It can only be used in relation to the shareholding represented by the details printed overleaf. If you are in doubt about how to deal with this form, please contact your financial or other professional adviser.

Step 1: Shareholding Details

Use this form if you wish to retain your shares in Red Mountain Mining Limited. If you have recently bought or sold shares your shareholding may differ from that shown. If you have already sold all your shares in Red Mountain Mining Limited, do not complete or return this form. If you have more than one shareholding on Red Mountain Mining Limited's register and you do not wish to sell your shares under the Small Shareholding Sale Facility, you should consider consolidating them. For further advice on how to do this, contact Computershare Investor Services Pty Limited (CIS) on the number above.

Please check the details provided and update your address via www.investorcentre.com if any of the details are incorrect.

If you have a CHESS sponsored shareholding, please contact your Controlling Participant to notify a change of address.

Step 2: Signing Instructions

Individual: Where the shareholding is in one name, the shareholder must sign.

Joint Shareholding: Where the shareholding is in more than one name, all of the shareholders must sign.

Power of Attorney: Where signing as Power of Attorney (POA), you must attach an original certified copy of the POA to this form. Companies: Where the shareholding is in the name of a Company, this form must be signed in accordance with the Corporations Act, either as:

• a Sole Director and Sole Company Secretary OR a Sole Director (if no Company Secretary exists), OR
• • two Directors, OR
• • a Director and Secretary.

Overseas Companies: Where the shareholding is in the name of an Overseas company (companies incorporated outside Australia) the form must be signed as above, or documentation must be provided showing that the company can sign in an alternate manner.

Deceased Estate: Where the shareholding is in the name of a deceased estate, all executors must sign; and a certified copy or original, of the required documentation must accompany this form. Details of the documentation required can be found by searching "deceased estates" on our website www.computershare.com or by calling Computershare Investor Services Pty Limited on 1300 850 505 or +61 3 9415 4000. If the shareholding is in more than one name the surviving shareholder may sign the form and return it together with a certified copy of the death certificate of the other joint shareholder.

Step 3: Contact Details

Entering contact details is not compulsory, but will assist us if we need to contact you.

Turn over to complete the form è

*S000001Q01*

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Notice of Retention Form

STEP 1Shareholding Details		For your security keep your SRN/HIN confidential.
MR SAM SAMPLEUNIT 123SAMPLE STREETSAMPLETOWN NSW 2001		Change of address. If incorrect, markthis box and make the correction in thespace to the left. Shareholderssponsored by a broker (referencenumber commences with 'X') shouldadvise their broker of any changes.
Shares held as at Tuesday 12 February 2019:		2000
STEP 2Signature of Shareholder(s)that I/we understand that my/our SHARES WILL NOT BE SOLD under the Small Shareholding Sale Facility.Individual or Shareholder 1Sole Director and Sole Company Secretary/Sole Director (cross out titles as applicable)	This section must be completed.Shareholder 2Director	By signing and returning this form, in accordance with the requirements set out in 'Step 2: Signing Instructions' overleaf, I/we confirmShareholder 3Director/Company Secretary(cross out titles as applicable)
STEP 3Contact DetailsContactNameEmailAddress	ContactDaytimeTelephone	//Date

Privacy Notice

The personal information you provide on this form is collected by Computershare Investor Services Pty Limited (CIS), as registrar for the securities issuers (the issuer), for the purpose of maintaining registers of securityholders, facilitating distribution payments and other corporate actions and communications. In addition, the issuer may authorise us on their behalf to send you marketing material or include such material in a corporate communication. You may elect not to receive marketing material by contacting CIS using the details provided above or emailing privacy@computershare.com.au. We may be required to collect your personal information under the Corporations Act 2001 (Cth) and ASX Settlement Operating Rules. We may disclose your personal information to our related bodies corporate and to other individuals or companies who assist us in supplying our services or who perform functions on our behalf, to the issuer for whom we maintain securities registers or to third parties upon direction by the issuer where related to the issuer's administration of your securityholding, or as otherwise required or authorised by law. Some of these recipients may be located outside Australia, including in the following countries: Canada, India, New Zealand, the Philippines, the United Kingdom and the United States of America. For further details, including how to access and correct your personal information, and information on our privacy complaints handling procedure, please contact our Privacy Officer at privacy@computershare.com.au or see our Privacy Policy at http://www.computershare.com/au.