Ann: Company Update, page-7

Red Mountain Mining Limited (ASX:RMX) is pleased to advise that it has entered into a transaction with Philippines based company and 25% Batangas Gold Project joint venture partner, Bluebird Merchant Ventures Ltd (Bluebird), concerning RMX’s 75% interest in the Batangas Gold Project (Agreement). Under the terms of the Agreement, Bluebird shall acquire the remaining balance of the Batangas Gold Project in exchange for 1.25m fully paid ordinary shares in Bluebird plus a perpetual 1% net smelter production royalty over the Batangas Gold Project. Bluebird is a Philippines based company listed on the main board of the London Stock Exchange. Furthermore, should Bluebird sell 50% or more of the Bantagas Gold Project within 12 months of settlement under the Agreement then it shall share the net proceeds of such sale with RMX on a 50/50 basis. RMX currently holds approximately 6.1 million shares in Bluebird, which shall increase to circa 7.35 million upon settlement of the Agreement.