RIMFIRE PACIFIC MINING LIMITED — Capital/Financing Update 2012

Sep 2, 2012

31st August 2012 Company Announcements Platform Australian Securities Exchange

rimfire pacific mining nl a.c.n. 006 911 744

Exchange Tower Suite 411 530 Little Collins Street Melbourne Victoria Australia. 3000

Telephone 61 3 9620 5866 Facsimile 61 3 9620 5822 e-mail: rimfire@rimfire.com.au website: www.rimfire.com.au

COMPLETION OF SHARE PLACEMENT WIDER SORPRESA GOLD PROJECT AREA – NEW GOLD IN SOIL ZONES LOCATED 4KM SOUTH

The Board of Rimfire Pacific Mining NL is pleased to advise that the placement announced on 29th August 2012 has now been completed. Additionally, commensurate opportunity for investment in the Company is being offered to all Rimfire Shareholders, through a limited SPP, recognising the loyalty and support that has been offered by smaller shareholders in particular.

The Company also announces it has made important advancement in "discovery prospecting work" within the wider Sorpresa Area, 4km to the South and South West of Tr31 area. The expansion of the Au area is shown in Appendix 1.

Summary Highlights

• $1.69m raised through placement of approx. 10% of new shares at 3.0 cents per share
  • A limited SPP, capped at $450,000 is also being offered at 3.0 cents per share
    • o Directors will participate, the record date is 30th August 2012, the offer is open for 2 weeks
• An important New Gold in Soil anomaly is identified, 4km SSW of the Sorpresa main Tr31 work area
  • o 1km line of elevated Au results including some of the highest soil values (>0.3g/t Au) seen at the wider Sorpresa area
  • o Initial character of surrounding geology suggests a close affinity with the "Original Sorpresa Style"
• Drilling has recommenced at Sorpresa within Boundary Gate and Tr31 areas

Placement Details

The placement was assisted by RFCambrian as advisor to the issue. Details of the issue are:

Number of New Ordinary Shares Issued	56,333,333
Issue price	3.0 cents per share
Capital raised before costs	$1.69 Million

The placement represents an increase by approximately 10% of the Company existing number of shares and has been completed under the Company's 15% capacity pursuant to ASX Listing Rule 7.1. The new shares will rank pari passu with the existing ordinary shares.

The Board is encouraged by the level of support shown for the Company's projects as demonstrated by the take up of the new issue, by new and existing holders. Net proceeds will provide additional working capital and be applied to the Company's Fifield projects, including the major focus on the 8km2 wider Sorpresa Gold area, both for discovery and delineation programs. Drilling has now recommenced at Sorpresa after three weeks break due to weather, crewing and maintenance interruptions.

Mr John Kaminsky, the Executive Chairman, stated:

"This is an extremely exciting time for the Company. The Sorpresa Gold discovery made in late 2010 is now seen as only a small part of the much larger 8km2 area now identified for gold. We know how quickly we can add new important potential for gold in this area now, and the new results obtained 4km to the south are extremely noteworthy.

This new area has the black silica geology, large elevated Au geochemistry and co-incident rock chips with Au, up to 0.5g/t. At this stage, although still early, we see similarity in this southern area to the work that lead to the Sorpresa discovery 4km away, 2 years ago.

The new capital raised is timely, prudent and sufficient for the Company to continue to add value to the project areas.

We are very pleased with the support shown in the placement by existing and new shareholders. The Company makes efficient use of capital in its exploration and delineation work, with a demonstrated history of excellent ground coverage for expenditure undertaken, so these funds will be well deployed.

The SPP announced is not designed as a major funding source for the Company, but recognises that loyal shareholders should be afforded the participation right alongside the recent placement completed. Pricing for the SPP is identical to the placement. A significant number of existing shareholders have entered the placement, thus assuring a successful funding round. Directors and key management will participate in the SPP.

The Board is very appreciative of the participation shown in the placement and looks forward to the SPP."

Mr Colin Plumridge, the Head of Exploration, stated:

"We look to have important areas well to the south of Sorpresa that have Au in residual soil and creek sampling, with relevant associated geology, including black silica and shear zones in places.

The original Sorpresa gold area was discovered on the back of soil geochemistry and subsequent auger drilling in 2010 on a 54ppb Au in soil result. Tr31 was the breakthrough result that showed that we had a high grade gold area and this was confirmed in drilling during 2011/12. The black silica geology as a gold receptive horizon was recognised during this process.

With this background in mind, we treat very seriously, the observation of important familiar geology coupled with new Au in soil anomalies in this southern area, especially with results above 300ppb Au in places. You need to remember that a large portion of our 8km2 prospective area for Au in the rift basin at Sorpresa is covered with shallow alluvium, but we appear to see the re-emergence of the Sorpresa style system 4km to the south of Tr31.

It is still early, but we know how the original Sorpresa area unfolded, so we will be pursuing these new areas on a similar yet more knowledgeable basis".

Share Purchase Plan "SPP"

As mentioned, a limited SPP has been approved by the Board and offers will be sent to all shareholders shortly. The SPP will be capped at an aggregate total of $450,000. A brief outline of the key dates and terms of the SPP is as follows:

Record Date for Shareholders to be eligible	30th August 2012
Expected Despatch Date of Offer	th September 20125
Closing date for acceptance	17th September 2012
Limits per shareholder	Maximum $15,000 and Minimum $1,500 per holder application
Price	3.0 cents per share

Yours faithfully

JOHN KAMINSKY Executive Chairman Rimfire Pacific Mining NL

The information in the report to which this statement is attached that relates to Exploration Results is compiled by Mr Colin Plumridge, who is a Member of The Australian Institute of Mining and Metallurgy, each with over 40 years experience in the mineral exploration and mining industry. Mr Plumridge is employed by Plumridge & Associates Pty. Ltd. and is a consulting geologist to the Company. He has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which is being undertaken to qualify as Competent Persons as defined in the 2004 edition of the "Australian Code for Reporting of Mineral Resources and Ore reserves". Mr Plumridge consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Appendix 1 New Gold in Soil Anomaly 4km SSW of Sorpresa

Appendix 2

Project Locations at Fifield NSW within Lachlan-Cadia Lineament and Metal Zoning Interpretations at Rimfire Fifield Project Areas

Rimfire tenements shown in red (at left) within the Lachlan-Cadia Lineament.

Metal zoning interpreted (above) within key Rimfire Tenements at Fifield, making this an exciting location for discoveries.

Note the Black Silica areas (above) mapped as part of the Au receptive horizon inferred