KINGSROSE MINING LIMITED — Annual Report 2012

Sep 6, 2012

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7 September 2012

Company Announcements Office Australian Securities Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

**Kingsrose

posts record annual net profit of $17.6m**

_**Cash

costs of US$254/oz versus average realised gold price of US$1,675/oz**_

Highlights

• Net profit after tax attributable to Kingsrose: A$17.6m (2011: A$12.2m)

• Earnings per Kingsrose Mining share (fully diluted): 6.42 cents (2011: 4.54 cents)

• Way Linggo Project production: 37,650 ounces of gold and 432,754 ounces of silver

• Project sales revenue: US$62.4 from the sale of 37,260 ounces of gold

• Cash operating cost after silver credits: US$254/oz

• Cash at bank: A$30.1m at June 30, 2012

Kingsrose Mining Ltd (ASX:KRM) is pleased to report a record after-­‐tax profit of A$17.6 million for the year to 30 June 2012, up 44% from the previous corresponding period.

The result reflected an outstanding 12 months at the Company’s 85% owned Way Linggo Project in Sumatra, Indonesia. Production at Way Linggo totalled 37,650oz of gold and 432,754oz of silver.

The strong cash flow generated at Way Linggo was highlighted by cash costs after silver credits of US$254/oz compared with the average realised gold price of US$1,675/oz.

Kingsrose also enjoyed a highly successful exploration program at Way Linggo during the year, culminating in substantial resource upgrade. (Refer ASX Announcement dated 4,September 2012).

Resources at the Way Linggo Project increased by 25% to 485,869oz of gold and 3,183,278oz of silver. This was underpinned by a 73% increase in resources at the project’s second mine, Talang Santo, to 287,489oz of gold and 894,951oz of silver.

The increasing production at Talang Santo is expected to more than offset reductions in the tonnages from the more mature Way Linggo mine. As a result, Kingsrose remains on track to meet its production target of more than 40,000oz of gold this financial year.

Suite 2, Level 9 | 12 – 14 Thelma Street West Perth WA 6005 ABN: 49 112 389 910

T + 61 8 9486 1149 | F + 61 8 9486 1151 www.kingsrosemining.com.au info@kingsroseminig.com.au

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On 23 May 2012, the Company declared a maiden dividend of 4 cents per ordinary share to those shareholders registered on 19 June 2012. The unfranked dividend of $11.6 million was paid to shareholders on 4 July 2012.

“ It has been a superb year on every front for Kingsrose, ranging from the record profit and maiden dividend to the exploration success and development at Talang Santo. The upcoming year is looking even better as we further position the Company as a low cost gold miner offering excellent returns to shareholders.” Kingsrose Managing Director Chris Start said.

Yours Faithfully

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**CHRIS

START MANAGING DIRECTOR KINGSROSE MINING LIMITED**

For more information please contact: Investors: Chris Start Managing Director +61 8 9486 1149

Media: Paul Armstrong Read Corporate +61 8 9388 1474

www.kingsrsosemining.com.au info@kingsrosemining.com.au

**About

Kingsrose Mining Limited:**

Kingsrose Mining Limited is a gold producer that has an 85% interest in the Way Linggo mine in South Sumatra, Indonesia. The project has emerged as a small but highly profitable miner from its high grade gold and silver mine, largely due to its low operating costs. The Way Linggo project hosts a JORC compliant resource of 2,188,500 tonnes with a grade of 6.91/t gold containing 485,900 ounces and 135.6g/t silver containing 3,183,200 ounces, and is targeting production of +40,000 ounces of gold and +250,000 ounces of silver per annum at cash costs of

circa US$300oz after silver credits.

Kingsrose owns a highly prized 4th Generation contract of work (mining title of 10,000 hectares) in Indonesia which regionally sits on the pacific rim of fire and in close proximity to the prolifically mineralised Trans-­‐Sumatra Fault.

The area is considered highly prospective for low-­‐sulphidation epithermal gold-­‐silver deposits. Kingsrose has recently made a second high grade epithermal gold discovery at its Talang Santo Prospect, 7km NNE of the Way Linggo mine and has already commenced trial mining of that ore system to supplement and sustain its gold production.

At the end of the June 2012 quarter, Kingsrose had $34 million in cash and bullion. The Company’s operations generate strong free cash flow and importantly, the Company has just paid a maiden interim dividend.

www.kingsrosemining.com.au