Environmental Impact Statement Approved for Los Pumas Manganese Project, Northern Chile

Provides attractive option for Southern Hemisphere on future manganese production pending price recovery

Southern Hemisphere Mining Limited (ASX: SUH, TSX-V: SH)("Southern Hemisphere" or the "Company") is pleased to advise that it has received approval for the Environmental Impact Statement ("EIS") at its Los Pumas Manganese Project ("Project"), located in the far north of Chile, clearing the way for development of the Project to proceed.

The EIS was lodged in 2011 and finally received a unanimous vote of approval by Servicio de Evaluacion Ambiental ( SEA ) - Comision de Evaluacion, de la Region de Arica Parinacota on August 19, 2013

The Los Pumas Project forms part of the extensive portfolio of mineral projects which Southern Hemisphere has assembled in Chile. A Preliminary Economic Assessment based on a project development producing 300,000 tonnes of manganese product per annum over an initial 7 year mine life, was completed in 2011, - refer ASX and TSX-V Technical Report dated February 2, 2011. Also an easement agreement has been executed with the local community.

The Los Pumas Project contains a Measured and Indicated Resource comprising 18.3 million tonnes grading 7.6% Mn, plus an additional Inferred Resource of 5.4 million tonnes grading 8.6% Mn. - refer table below

While Southern Hemisphere has progressed low-level work on the Project, current manganese market conditions have reduced the priority of this Project in the Company's exploration and development plans, particularly given its strong focus on copper-gold exploration in Chile, with its key alliance partners, Lundin Mining Corporation and Anglo American plc.

Southern Hemisphere's main focus is the development of a substantial copper/gold hub based around its flagship Llahuin Copper/Gold Project in the Coquimbo region of central Chile.

Southern Hemisphere's Managing Director Mr Trevor Tennant said the Company was delighted to have received final EIS approval for Los Pumas, putting it in a position to proceed with development of the Project in the future, should market conditions justify it.

"Los Pumas is an attractive project with excellent logistics and the ability to deliver a premium quality product with beneficiation," Mr Tennant said. "While the manganese price has been strengthening recently, it has still not yet reached the price level used in our Preliminary Economic Assessment."

"Our strategic focus remains on copper-gold projects in Chile, including our strategic alliances with key partners. However, this gives us a very good future option on manganese production, should we decide to pursue it," Mr Tennant said.

Mr Tennant has extensive previous experience in the manganese industry, having worked as General Manager of BHP's Groote Eylandt manganese operations in the Northern Territory and having been a founding Director of both Portman Mining Limited (Woodie Woodie) and OM Holdings Limited (Bootu Creek). This means he has had direct involvement in all three of Australia's producing manganese mines.

ENDS

For further information please contact:

Trevor Tennant - (Managing Director, Southern Hemisphere Mining) +56 (2) 474 5071

Media Enquiries - Nicholas Read (Read Corporate) +61 (8) 9388 1474

Media Enquiries - Clark Kent (Corporate Communications) +1 (416) 883 3838 xt. 700

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this News Release. This News Release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

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----------------------------------------------------------------------------- |LOS PUMAS MANGANESE PROJECT JORC COMPLIANT RESOURCE ESTIMATION – | |FEBRUARY 2011 | | | |---------------------------------------------------------------------------| | |Resource |Tonnes (Mt)|Mn |SiO 2 |Fe 2 O |Al (%) |P | | | | | (%) |(%) |3 (%) | | (%) | |---------------------------------------------------------------------------| |Cutoff |Measured |5.27 |7.39 |57.85 |2.78 |5.56 |0.05 | |+4% Mn | | | | | | | | |Grade | | | | | | | | | | | | | | | | | | |------------------------------------------------------------------| | |Indicated|13.06 |7.65 |55.00 |2.96 |5.64 |0.05 | | |------------------------------------------------------------------| | |Measured |18.33 |7.58 |55.82 |2.91 |5.62 |0.05 | | |plus | | | | | | | | |indicated| | | | | | | | |------------------------------------------------------------------| | |Inferred |5.39 |8.59 |51.44 |2.72 |5.49 |0.06 | -----------------------------------------------------------------------------

About Southern Hemisphere Mining Limited

Southern Hemisphere Mining Limited is listed on the Australian Stock Exchange (ASX Code "SUH") and the Toronto Stock Exchange -Venture (TSX-V Code "SH").Southern Hemisphere has accumulated a diverse portfolio of assets in Chile, South America. The Company's focus is the Llahuin Copper/Gold Project where the objective is to build a bulk tonnage Copper/Gold operation. The Company also holds the 100% owned Chitigua Project, a 172 km2 property located on the prestigious Western Fault which hosts Chile's largest copper porphyry deposits. Further details on Southern Hemisphere can be found at www.shmining.com.au.