SOUTHERN HEMISPHERE MINING LIMITED — Capital/Financing Update 2011

Feb 27, 2011

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PO Box 598 T: +61 8 9481 2122 West Perth F: +61 8 9481 2322 WA 6872 www.shmining.com.au

27 February 2011

Australian Securities Exchange Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Sir/Madam

Press Release

For disclosure purposes, please refer below for a press release issued in Canada by the Company. The release is in respect of stock options issued to directors and employees.

Yours faithfully SOUTHERN HEMISPHERE MINING LIMITED

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Derek Hall Company Secretary

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ASX: SUH

TSX-V: SH

Australian Office: PO Box 598 T: +61 8 9481 2122 West Perth F: +61 8 9481 2322 WA 6872 www.shmining.com.au Chilean Office: Minera Hemisferio Sur SCM Unit 1103, Roger de Flor 2907 Los Condes, Santiago

SOUTHERN HEMISPHERE ANNOUNCES STOCK OPTION GRANTS

February 25, 2011 – Southern Hemisphere Mining Limited (the “Company”) announces that on February 21, 2011, options have been granted under its existing Stock Option Plans to directors, officers and employees of the Company to purchase a total of 5,300,000 common shares at an exercise price of AUD$0.54 per share. 2,950,000 of these options have been granted to the Company’s directors. The options are exercisable until June 30, 2013 and will vest between July 7 and October 7, 2011 (as to 50%) and on January 7, 2012 (as to 50%). Under the rules of the Australian Securities Exchange, the grant of the options to directors is subject to approval by the Company’s shareholders.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Details

For further information please contact

Trevor Tennant (Southern Hemisphere Mining CEO) +56 (9) 7766 4688.