SOUTHERN HEMISPHERE MINING LIMITED — Capital/Financing Update 2012

Aug 15, 2012

NEWS RELEASE 16 August 2012

SOUTHERN HEMISPHERE SET FOR RESOURCE UPGRADE AT LLAHUIN COPPER PROJECT AFTER EXTENDING HIGH-GRADE CORE

More outstanding results support plan for early high-grade plant feed, further enhancing value of rapidly growing Llahuin Copper Project, Chile Highlights:

• Outstanding new intersections extend known size of the high-grade core at Llahuin Copper Project in Chile

 Results will help underpin resource upgrade scheduled for later this month

Latest results include:

DDH-LLA-027 326m @ 0.56% Cu Equivalent* from 70m Includes 128m @ 0.80% Cu Equivalent from 200m DDH-LLA-026 254m @ 0.52% Cu Equivalent from 168m Includes 192m @ 0.57% Cu Equivalent from 202m DDH-LLA-025 366m @ 0.63% Cu Equivalent from 102m (Part previously reported) Includes 324m @ 0.66% Cu Equivalent from 128m DDH-LLA-021 440m @ 0.75% Cu Equivalent from 2m (Previously reported) Includes 208m @ 1.20% Cu Equivalent from 108m

Southern Hemisphere Mining Limited (ASX: SUH, TSX-V: SH) (“Southern Hemisphere” or the “Company”) is pleased to report that more outstanding intercepts have extended the known size of the higher grade core within the Central Porphyry Zone of its flagship Llahuin Copper Project in Chile.

The Company considers the results to be important because they will help underpin a resource upgrade scheduled for later this month.

The results also support the plan to feed high-grade material into the plant in the early stages, boosting the project’s economics.

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ASX: SUH AUSTRALIAN OFFICE TSX-V: SH Suite 7, 1200 Hay Street www.shmining.com.au West Perth WA 6005 TEL: +61 8 9481 2122

CHILEAN OFFICE Minera Hemisferio Sur SCM Office 41, Zurich 255 Las Condes, Santiago TEL: +56 2 474 5071

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The current JORC Measured and Indicated Resource for Llahuin is 106 million tonnes grading 0.4% copper equivalent (0.3% Cu and 0.09 Au g/t) for an estimated 318,000 tonnes of contained copper and 307,000 ounces of gold (see the 3 April 2012 ASX and TSX-V News Release titled Llahuin Project – Maiden Resource) .

Southern Hemisphere Managing Director Trevor Tennant said the high-grade core was adding substantial value to Llahuin stating:

• “ Llahuin’s worth is growing rapidly on the back of these increases in the size of the high-grade zone ”

“ The ability to feed high-grade material to a plant in the early stages of production will boost the economics of the project significantly, both by increasing production and reducing costs. We are looking forward to finalising the resource upgrade, reporting further results from this high-grade zone and advancing the Llahuin project.”

Llahuin Central Porphyry Zone

Llahuin Central Porphyry Zone - location plan of the recent high grade drill holes:

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Llahuin Central Porphyry Zone – isometric projection of recent high grade drilling:

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Highlights from the recent drilling at the Central Porphyry Zone:

HOLE ID	Intersect (M)	From Surface (M)	%Cu	g/t Au	%Cu Eq*
RC-LLA-097 / DDH-LLA-025+ Includes	366 324	102 128	0.44 0.46	0.25 0.28	0.63 0.66
Which includes	50	234	0.56	0.55	0.96
RC-LLA-099 / DDH-LLA-026 Includes	254 192	168 202	0.33 0.36	0.26 0.30	0.52 0.57
Which includes	92	302	0.43	0.33	0.67
DDH-LLA-027 Includes	326 128	70 200	0.48 0.65	0.11 0.20	0.56 0.80

• Part previously reported without gold assays

Llahuin Central Porphyry Zone – drill core from DDH-LLA-026:

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Ferrocarril

The Llahuin Ferrocarril Zone is immediately south and adjacent to the Llahuin Cerro de Oro Zone. Work has progressed in mapping and better understanding the surface expression of the Ferrocarril porphyry. This porphyry is elongated with a surface foot print in the order of 1,200m in length and widths varying from 60m to 200m.

Highlights from the recent reverse circulation drilling at the Ferrocarril Zone:

Hole ID	Intersect m	From m	%Cu	g/t Au	%Cu Eq*
RC-LLA-112 Includes	78 8	0 70	0.28 0.66	0.12 0.26	0.37 0.85
RC-LLA-117	14	74	0.43	0.13	0.53
RC-LLA-120	10	38	0.39	0.09	0.46

The Company plans to gain better understanding of the copper/gold grade distribution at Ferrocarril by completing an induced polarization survey followed by a drill program, which will include diamond drill holes to test at depth.

Cerro de Oro Zone

Llahuin Cerro de Oro Zone is located approximately 1 km south of Llahuin Central Porphyry Zone. Analysis results from a deeper diamond drill hole have not yet been received. Highlights of additional reverse circulation drill holes are shown below:

Hole ID	Intersect (m)		From (m)	% Cu	g/t Au	%Cu Eq*
RC-LLA-111 Includes	42 14		38 48	0.25 0.31	0.15 0.14	0.36 0.42
RC-LLA-115 Includes	64 12		6 6	0.33 0.47	0.04 0.04	0.36 0.50
RC-LLA-115 Includes	54 14		104 140	0.41 0.73	0.05 0.05	0.45 0.77

Significant Intercepts

Other holes and intercepts in this News Release that are not highlighted were insignificant or generally had a copper equivalent of less than 0.24%. Anomalous intercepts of less than 10m and 0.40% copper equivalent were also not reported as highlights.

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Location Map showing the Llahuin Project: the Central Porphyry Zone; Cerro de Oro Zone and Ferrocarril Zone:

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Geology

Refer to the 18 July 2011 ASX and TSX-V News Release for Llahuin Copper Project geological information.

New Drill Hole Locations

All drill hole locations for the Llahuin resource drilling programs are available on the Company’s website at www.shmining.com.au.

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*Copper Equivalent (or “Cu Eq” or “Cu Equivalent”)

The copper equivalent calculations represent the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. It is the Company’s opinion that elements considered have a reasonable potential to be recovered as evidenced in similar multi-commodity natured mines.

Copper equivalent conversion factors and long-term price assumptions used are stated below:

Copper Equivalent Formula= Cu % + Au (g/t) x 0.72662 Price Assumptions- Cu (US$3.40/lb), Au (US$1,700/oz)

Sampling and Analysis Procedures

5kg samples were taken from each two metre interval. The samples are derived from riffle splitting each intercept. The samples were sent to Andes Analytical Assay Ltda (Chile) in Santiago for sample preparation and analysis. Duplicate samples were taken on a 1 in 20 basis. The cores from DDH holes were halved and each 2m interval of halved core submitted for analysis. Analysis was undertaken using fire assay (for gold analysis) with an atomic absorption spectrometry finish. Andes Analytical Assay Ltda (Chile) is an independent full service commercial laboratory accredited under ISO 9001:2008. Standard samples and repeat analyses were used by the laboratory to provide checks on the assay results.

-ENDS-

For further information please contact:

Trevor Tennant – (Managing Director - Southern Hemisphere Mining) +56 (2) 474 5071 Media Enquiries – Nicholas Read (Read Corporate) +61 (8) 9388 1474 Media Enquiries – Clark Kent (Corporate Communications) +1 (416) 883 3838

Neither the 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 News Release. This News Release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Competent Person / Qualified Person Statement

Mr Ian Dreyer, Principal Geologist of Andes Mining Services, is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy, is a ‘Competent Person’ as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a ‘Qualified Person’ under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'.

Mr. Dreyer has reviewed the design and conduct of this resource drilling campaign, supervised the preparation of the technical information in this release and has the relevant experience and competence of the subject matter.

Mr. Dreyer consents to the inclusion of exploration results and other such information in this News Release in the form and context in which it appears.

About Southern Hemisphere Mining Limited

Southern Hemisphere Mining Limited is listed on the Australian Stock Exchange (ASX Code “ SUH ”) and the Toronto Stock Exchange –Venture (TSXV Code “ SH ”). Southern Hemisphere has accumulated a diverse portfolio of assets in Chile, South America . The Company’s focus is the 100% owned Llahuin Copper Project where the objective is to build a bulk tonnage Copper/Gold operation . The Company also holds the 100% owned Chitigua Project , a 172 km[2 ] property located on the prestigious Western Fault which hosts Chile’s largest copper porphyry deposits. Further details on Southern Hemisphere can be found at www.shmining.com.au

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