Red Mountain Mining : Price Query and Response

12 January 2018

Sandra Wutete

Australian Securities Exchange Level 40, Central Park

152 St Georges Terrace PERTH WA 6000

BY EMAIL:[e-mail]

Dear Sandra,

Red Mountain Mining Limited (Company): Price Query

We refer to your letter dated 12 January 2018 querying the change in trading price of the Company's shares from a closing price of $0.018 on Wednesday, 10 January 2018 to an intra-day high of $0.025 today, Friday 12 January 2018 (Letter). In response to your questions outlined in the Letter, we provide the following information:

• 1. The Company is not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in the Company's securities.

• 2. Not applicable.

• 3. As previously announced on 6 November 2017, the Company commenced geochemical RAB/AC drilling in the South Eastern portion of the Mukabe-Kasari Cobalt-Copper Project tenure. The drilling program was designed to test for cobalt mineralisation in old rived-bed sediments at shallow depths. Due to the time of year, there have been significant delays in laboratory processing and analysis of the drill samples. The Company expects the drill results and analysis to be published in the near term, and will update the market as and when required in this respect. The Company notes that there is a high level of interest amongst investors seeking leverage given the recent price-highs in the commodity.

• 4. The Company confirms it is in compliance with the Listing Rules, in particular 3.1.

• 5. The Company confirms its responses to the above questions have been authorised and approved by its Board.

Please do not hesitate to contact me if further information is required.

Yours sincerely,

Mauro Piccini Company Secretary

1

ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Jeremy King Non-Executive Director Robert Parton Non-Executive DirectorCONTACT DETAILS

Lincoln Ho Non-Executive Director Mauro Piccini Company SecretaryRED MOUNTAIN MINING LTD Suite2 ,Level 1, 1 Altona Street West Perth Western Australia [e-mail]

12 January 2018

Mr Mauro Piccini Company Secretary

Red Mountain Mining Limited

By Email

Dear Mr Piccini

Red Mountain Mining Limited (the "Company"): Price Query

We note a change in the price of the Company's securities from a closing price of $0.018 on Wednesday, 10 January 2018 to an intra-day high at the time of writing of $0.025 today, Friday 12 January 2018.

We also note an increase in the trading volume of the Company's securities today to a level that is significantly above the average trading volume on days when the Company's securities are traded.

In light of this, ASX asks the Company to respond separately to each of the following questions and requests for information:

• 1. Is the Company aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?

• 2. If the answer to question 1 is "yes":

  • a) Is the Company relying on Listing Rule 3.1A not to announce that information under Listing Rule 3.1?

    Please note that the recent trading in the Company's securities would suggest to ASX that such information may have ceased to be confidential and therefore the Company may no longer be able to rely on Listing Rule 3.1A. Accordingly, if the answer to this question is "yes", you need to contact us immediately to discuss the situation.

  • b) Can an announcement be made immediately?

    Please note, if the answer to this question is "no", you need to contact us immediately to discuss requesting a trading halt (see below).

  • c) If an announcement cannot be made immediately, why not and when is it expected that an announcemant will be made?

• 3. If the answer to question 1 is "no", is there any other explanation that the Company may have for the recent trading in its securities?

• 4. Please confirm that the Company is in compliance with the Listing Rules and, in particular, Listing Rule 3.1.

ASX Compliance Pty Limited	Level 40, Central Park	www.asx.com.au
ABN 26 087 780 489	152-158 St Georges Terrace	Customer service 13 12 79
Perth WA 6000

5.

Please confirm that the Company's responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy or otherwise by its board or an officer of the Company with delegated authority from the board to respond to ASX on disclosure matters.

When and where to send your response

This request is made under, and in accordance with, Listing Rule 18.7. Your response is required as soon as reasonably possible and, in any event, by not later than 11:30 am (WST) today, Friday 12 January 2018. If we do not have your response by then, ASX will have no choice but to consider suspending trading in the Company's securities under Listing Rule 17.3.

You should note that if the information requested by this letter is information required to be given to ASX under Listing Rule 3.1 and it does not fall within the exceptions mentioned in Listing Rule 3.1A, the Company's obligation is to disclose the information "immediately". This may require the information to be disclosed before the deadline set out in the previous paragraph.

ASX reserves the right to release a copy of this letter and your response on the ASX Market Announcements Platform under Listing Rule 18.7A. Accordingly, your response should be in a form suitable for release to the market.

Your response should be sent to me copying [e-mail] should not be sent directly to the ASX Market Announcements Office. This is to allow me to review your response to confirm that it is in a form appropriate for release to the market, before it is published on the ASX Market Announcements Platform.

Listing Rules 3.1 and 3.1A

Listing Rule 3.1 requires a listed entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. Exceptions to this requirement are set out in Listing Rule 3.1A.

In responding to this letter, you should have regard to the Company's obligations under Listing Rules 3.1 and 3.1A and also to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 - 3.1B.

It should be noted that the Company's obligation to disclose information under Listing Rule 3.1 is not confined to, nor is it necessarily satisfied by, answering the questions set out in this letter.

Trading halt

If you are unable to respond to this letter by the time specified above, or if the answer to question 1 is "yes" and an announcement cannot be made immediately, you should discuss with us whether it is appropriate to request a trading halt in the Company's securities under Listing Rule 17.1.

If you wish a trading halt, you must tell us:

• • the reasons for the trading halt;

• • how long you want the trading halt to last;

• • the event you expect to happen that will end the trading halt;

• • that you are not aware of any reason why the trading halt should not be granted; and

• • any other information necessary to inform the market about the trading halt, or that we ask for.

We may require the request for a trading halt to be in writing. The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted.

You can find further information about trading halts in Guidance Note 16 Trading Halts & Voluntary Suspensions.

If you have any queries or concerns about any of the above, please contact me immediately.

Yours sincerely

[Sent electronically without signature]

Sandra Wutete

Senior Adviser, ASX Listings Compliance (Perth)