SOUTHERN HEMISPHERE MINING LIMITED — Capital/Financing Update 2016

Feb 25, 2016

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26 February 2016

Expiry of Options

Southern Hemisphere Mining Limited (the “Company”) (ASX: SUH) notifies the holders of the Company’s 2,521,423 quoted options (exercisable at $0.675) (ASX: SUHO) (“Options”) that the Options will expire at 5.00 pm AEDT on 7 March 2016. The Company advises that the Options are deeply out of the money and the likelihood of holders exercising the Options is remote. Accordingly, option expiry notices will not be sent to holders.

In accordance with paragraph 6.1 of Appendix 6A of the ASX Listing Rules, the Company provides the following information:

• the number of options to which this notice applies is 2,521,423;

• each option exercised entitles the holder to receive one fully paid ordinary share in the Company. If all of the options were exercised, 2,521,423 fully paid ordinary shares in the Company would be issued;

• the exercise price for each option is $0.675;

• the due date for payment of the exercise price is 5.00 pm AEDT on Monday, 7 March 2016 (Expiry Date);

• If payment is not received before the Expiry Date, the Options will expire unexercised and all rights will cease;

• official quotation of the options will cease on 1 March 2016, being five business days before the Expiry Date;

• the market price of fully paid ordinary shares in the Company on 25 February 2016 (being the last trading day prior to the date of this notice) was $0.058;

• during the last three months preceding the date of this notice, the highest market price of fully paid ordinary shares in the Company was $0.07 ($0.0046 on a non-consolidated basis) on 7 January 2016 and the lowest market price is $0.004 ($0.06 consolidated basis) on 11 December 2015; and

• no underwriting agreement currently exists in respect of these Options.

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ASX: SUH AUSTRALIAN OFFICE CHILEAN OFFICE ABN: 17 140 494 784 PO BOX 598 Minera Hemisferio Sur SCM www.shmining.com.au West Perth WA 6872 Office 41, Zurich 255 TEL: +61 8 9481 2122 Las Condes, Santiago TEL: +56 2 474 5071