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MAJOR CHINESE CONSTRUCTION GROUP TO CONTRIBUTE US$214 MILLION TO CLONCURRY

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Framework Agreement signed between Altona and SRIG
SRIG to contribute US$214 million cash to the Cloncurry Project
Altona to contribute the project and US$38 million cash
Cloncurry Project funded to production through joint-venture
SRIG to hold 60% of joint-venture Altona to hold 40%
SRIG to pay US$2 million deposit

Overview

Altona Mining Limited (“Altona” or “The Company” - http://bit.ly/1NffIhu) is pleased to announce it has concluded a binding Framework Agreement with Sichuan Railway Investment Group (“SRIG”). The agreement is subject to certain conditions and is described more fully in the Appendix.

The parties have agreed to establish an incorporated joint venture holding Altona’s Cloncurry Project located in north-west Queensland, with SRIG to contribute cash of US$214.46 million and have a 60% interest in the joint venture. Altona will retain a 40% interest in the joint venture and is to contribute the Cloncurry Project and cash of US$38 million. The transaction values the Cloncurry Project on a pre-cash contribution basis at US$105 million.

Altona can meet its immediate obligations under the agreement from its existing A$47 million of cash resources.

The Cloncurry Project offers a large resource of 287 million tonnes at 0.6% copper, 0.04g/t gold for 1.65 million tonnes contained copper and 0.4 million ounces gold and is close to infrastructure.

The joint venture will seek to develop a mine at Little Eva which is situated within the Cloncurry Project. A Definitive Feasibility Study announced by Altona on 13 March 2014 for the Little Eva development anticipates the construction of a 7 million tonne per annum open-pit mine and flotation plant capable of producing 39,000 tonnes per annum copper and 17,000 ounces gold over an initial mine life of 11 years.

The cash to be contributed by the joint venture partners of US$252.46 million would exceed the estimated capital cost (A$294 million) of the Little Eva mine.

Altona’s 40% equity share of annual production from the Cloncurry Project would be substantial at approximately 15-16,000 tonnes of copper and 7,000 ounces of gold, representing significant cash flow attributable to Altona.

Please visit www.altonamining.com for a PowerPoint presentation and video presentation by Managing Director, Dr Alistair Cowden.

Commentary

Altona Mining Managing Director Dr Alistair Cowden said:

“We are delighted to announce this major partnership on the Cloncurry Project with SRIG. The contribution to be made by SRIG is based on an agreed value for the Project of US$105 million which clearly exceeds that implied by the company’s share price.

“On completion of the transaction, the project will be fully funded to production without recourse to equity or debt markets. The joint venture will have US$252 million in cash plus the Cloncurry Project which is valued at US$105 million by the proposed transaction.

“Once the project is in production it will sustain approximately 280 new direct jobs and Altona’s 40% interest will equate to 17,000 tonnes of copper equivalent production.”

“We are particularly pleased that this announcement comes 11 months after the announcement of the sale of our Finnish assets and only 3 months after the resulting dividend and return of capital.”

About SRIG

SRIG was established in 2009, is based in Chengdu in south-western China and is 100% owned by the Sichuan provincial government. The group’s principal businesses are in the road, bridge and rail construction and management sectors. SRIG had total assets of US$26.8 billion in 2014 and revenues over US$6 billion. It has more than 20,000 employees. SRIG has signalled its intention to diversify into other industries both within China and internationally.

SRIG has 24 operating subsidiaries including SRBG, listed in Shanghai which operates toll roads, bridges and hydropower stations. It has a market capitalisation of US$3 billion.

CCXI, a Moody’s company, rated SRIG as AA+ with a stable outlook for a 2014 bond issue of approximately US$320 million. CCXI noted SRIG’s expertise, highlighting that SRIG was the first Chinese enterprise to secure an overseas bridge construction contract (Norway).

Details of the Framework Agreement

SRIG will pay a US$2 million deposit to secure an 8 month exclusivity period. The deposit is refundable only in certain circumstances. A break fee of US$2 million is also payable by Altona in certain circumstances.

SRIG will contribute funds in two tranches. The first tranche of US$199.5 million will be paid after execution of formal documentation and satisfaction of all conditions precedent, which includes: SRIG confirmatory due diligence, completion of an independent valuation exceeding US$105 million, completion of formal documentation, Chinese regulatory approvals and approval from the Australian Foreign Investment Review Board (FIRB). The second tranche of US$14.96 million is to be paid 12 months later.

Altona will contribute the project and a total of US$38 million cash. This will be paid in two tranches of US$28 million and US$10 million matching SRIG’s contributions on completion and 12 months thereafter.

Altona will be the initial manager on establishment of the joint venture and the usual commercial arrangements applying to joint-ventures will apply.

The parties are targeting the execution of the formal agreements by 30 November 2015 and a close of the transaction prior to February 2016. Hartleys Limited is corporate advisor to Altona.

Further information on this agreement is appended to this release.

Please direct enquiries to:

Alistair Cowden David Tasker Jochen Staiger

Managing Director Professional Public Relations Swiss Resource Capital AG

Altona Mining Limited Perth Tel: +41 71 354 8501

Tel: +61 8 9485 2929 Tel: +61 8 9388 0944 js@resource-capital.ch

altona@altonamining.com david.Tasker@ppr.com.au

About Altona

Altona Mining Limited is an ASX listed company which recently sold its successful Outokumpu mine in Finland and is now focussed on a major copper development project in Australia.

The Cloncurry Copper Project near Mt Isa in Queensland is one of Australia’s largest undeveloped copper projects. The first development envisaged is the 7 million tonnes per annum Little Eva open pit copper-gold mine and concentrator. Little Eva is fully permitted with proposed annual production¹of 38,800 tonnes of copper and 17,200 ounces of gold for a minimum of 11 years. A Definitive Feasibility Study was published in March 2014. Total resources contain some 1.65 million tonnes of copper and 0.41 million ounces of gold.

Altona Mining is listed on the Australian Securities Exchange and the Frankfurt Stock Exchange.

¹Refer to the ASX release ‘Cost Review Delivers Major Upgrade to Little Eva’ dated 13 March 2014 which outlines information in relation to this production target and forecast financial information derived from this production target. The release is available to be viewed at www.altonamining.com or www.asx.com.au. The Company confirms that all the material assumptions underpinning the production target and the forecast financial information derived from the production target referred to in the above-mentioned release continue to apply and have not materially changed.

Competent Persons Statement

Information in this ASX Release that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Alistair Cowden BSc (Hons), PhD, MAusIMM, MAIG who is a full time employee of the Company and who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Alistair Cowden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Copper equivalence

When used, copper equivalent refers to copper in concentrate produced, or planned to be produced. It does not refer to metal contained within insitu resources, reserves or drill results. The copper equivalent grade is calculated by factoring the copper grade by revenue from all metals (NSR) being copper, gold and silver.

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MAJOR CHINESE CONSTRUCTION GROUP TO CONTRIBUTE US$214 MILLION TO CLONCURRY