KING RIVER RESOURCES LIMITED — Capital/Financing Update 2015

Feb 8, 2015

9 February 2015

ABN 67 100 714 181

254 Adelaide Tce Perth WA 6000

PO Box Z5518, Perth WA 6831

PHONE: +61 (0)8 9221 8055 FAX: +61 (0)8 9325 8088 WEB: www.kingrivercopper.com.au

Dear Optionholder,

PRO-RATA NON-RENOUNCEABLE RIGHTS OFFER

As announced on 9 February 2015, King River Copper Limited ("Company") is seeking to raise up to $1,771,900 by a pro-rata non-renounceable rights offer ("Offer") of up to approximately 177,190,069 shares on the basis of 1 new share for every 1 share held at an issue price of 1 cent per share. The Company expects to lodge an offer document for the Offer ("Offer Document") with ASX on 19 February 2015.

Optionholders are not entitled to participate in the Offer. Should optionholders with a registered address in Australia or New Zealand wish to participate in the Offer they should exercise their options in accordance with the terms and conditions of the options in a timely manner and in any event to ensure the exercise and issue of the shares is completed by the Record Date of 16 February 2015.

The funds raised under the Offer will be used to advance the exploration of the copper and gold potential of its East Kimberley tenement, for working capital and to meet Offer expenses.

The Offer is not underwritten. Minimum subscription under the Offer is $250,000.

The timetable for the Offer is as follows:

Pro-rata Offer announced	9 February 2015
Shares quoted on an "ex" basis(date from which the Shares commence trading without the entitlement toparticipate in the Offer).	12 February 2015
Record Date(date for identifying Shareholders entitled to participate in the Offer).	16 February 2015
Offer Document with Entitlement Form sent to Eligible Shareholders	19 February 2015
Offer opens	19 February 2015
Closing Date(last date for lodgement of Entitlement Forms and Application Money)	13 March 2015
Trading of New Shares commences on a deferred settlement basis	16 March 2015
Company to notify ASX notified of the Shortfall (if any)	18 March 2015
Issue of New Shares and issue of transaction confirmation statements forNew Shares	20 March 2015
Normal trading of New Shares on ASX	23 March 2015

Subject to the Listing Rules, the above dates may be changed without notice.

The Offer will be made to the Company's shareholders with a registered address in Australia or New Zealand on the Record Date ("Eligible Shareholders").

Assuming that no Options are exercised before the Record Date, the effect of the Offer on the Company’s issued share capital at Minimum Subscription and Full Subscription is shown in the following table:

Shares	MinimumSubscriptionFull Subscription
Existing SharesNew Shares issued under the OfferTotal Shares on issue aftercompletion of the Offer	177,190,069177,190,06925,000,000177,190,069
	202,190,069354,380,138

It is anticipated that the Offer Document offering shares for subscription will be mailed to Eligible Shareholders on 19 February 2015.

Application will be made to ASX for official quotation of the shares. No shareholder approval is required to the Offer.

If you have any questions please do not hesitate to contact the Company.

Yours faithfully

Greg MacMillan Director and Company Secretary

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