Lundin Mining Commits to Next US$10m Phase of Llahuin Copper/Gold JV after Completing Initial Earn-In

Updated resource estimate for Llahuin Copper/Gold Project on track for June 2013

Highlights:

-Lundin Mining Corporation (TSX: LUN, OMX: LUMI) completes initial expenditure commitments at Llahuin Copper/Gold Project.

-Lundin Mining now holds a 20% interest in the Project after contributing US$3M as part of a jointly funded US$6M initial phase.

-Next phase encompasses US$10M of sole funded expenditure by Lundin to earn an additional 31% of the Project.

-Updated Mineral Resource estimate for the Project due later this Quarter.

Southern Hemisphere Mining Limited (ASX: SUH, TSX-V: SH) ("Southern Hemisphere" or the "Company") is pleased to advise that its joint venture partner at the Llahuin Copper/Gold Project ("Llahuin Project") in central Chile, Lundin Mining Corporation (TSX: LUN, OMX: LUMI) ("Lundin Mining") has now completed its initial expenditure commitments at the Project and committed to the next phase of sole funded exploration expenditure.

Lundin Mining has earned a 20% interest in the Chilean joint venture company, Minera Llahuin SCM, after completing its initial expenditure commitment of US$3 million.

This funding commitment forms part of an initial phase comprising US$6 million of committed funds which were jointly provided by Lundin Mining and Southern Hemisphere.

Lundin Mining has also advised that it has decided to continue with the next phase of investment and development of the Llahuin Project, comprising US$10 million of project expenses which it will sole fund to earn an additional 31% of the project by November 2015. In total, Lundin Mining can earn up to 75% of the Llahuin Project in three phases by spending a total of US$35 million (sole funded) by November 2018.

Lundin Mining also said "it is very pleased with the quality, efficiency and results of the work conducted so far by Southern Hemisphere at Llahuin. We remain positive that the development of Llahuin would add significant value to both companies."

Southern Hemisphere's Managing Director, Mr Trevor Tennant, noted the joint venture between the two companies was working extremely well, with the Technical JV Committee currently focusing on work required to complete an updated JORC compliant Mineral Resource estimate. He said:

"This estimate will include the results of all of the drilling completed since the previous resource estimate in September last year.

We have so far completed around 54,000m of drilling with the most recent drilling to be incorporated in an update to the current Measured and Indicated Resource.

We are looking forward to the completion of this resource upgrade, which will lay the foundations for the next phase of work for the joint venture in the second half of 2013"

Llahuin Copper/Gold Project

The Llahuin Project is located within the Coquimbo region of central Chile, approximately 250km north of Santiago and 17km south of the mining town of Combarbala. The Llahuin Project is located at an altitude of 1,300m, situated on the coastal cordillera, and is approximately 56km from the Pacific Ocean.

Lundin Mining Corporation

Lundin Mining is a diversified Canadian base metals miner which holds a strategic 11.5% stake in Southern Hemisphere. It has operations in Portugal, Sweden, Spain and Ireland producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes an expansion at its Neves-Corvo mine in Portugal and an equity stake in the world class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo, which is currently undergoing a major expansion.

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

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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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 100% owned 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