SOUTHERN HEMISPHERE MINING LIMITED — Major Shareholding Notification 2012

Oct 18, 2012

ASX RELEASE 19 OCTOBER 2012

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

Dear Sir/Madam

CHANGE IN EQUITY SECURITIES HELD BY SUBSTANTIAL HOLDER

Southern Hemisphere Mining Limited (the "Company") as part of admission to the Official List of the ASX in December 2009 undertook to inform the market on becoming aware of a change in the number of equity securities in which a substantial holder has a relevant interest within the meaning of section 608 of the Corporations Act 2001 of Australia.

In accordance with the undertaking, the Company has become aware that Mr Yang Xifu had a change in the number of equity securities in which he and any associates have a relevant interest on 1 October 2012. To the best of the Company's knowledge the change was brought about by an off market transfer to Mr Yang Xifu of 5,000,000 Chess Depositary Interests (“CDIs”) so that he and his associates now have a relevant interest in 19,500,000 CDIs of the Company. On the basis of 19,500,000 CDIs, Mr Yang Xifu currently has a voting power of 12.74% in the Company.

Yours sincerely

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Derek Hall Company Secretary

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ASX: SUH AUSTRALIAN OFFICE CHILEAN OFFICE TSX-V: SH Suite 7, 1200 Hay Street Minera Hemisferio Sur SCM www.shmining.com.au West Perth WA 6005 Office 41, Zurich 255 TEL: +61 8 9481 2122 Las Condes, Santiago TEL: +56 2 474 5071