KINGSROSE MINING LIMITED — Capital/Financing Update 2012

Nov 27, 2012

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28
November
2012

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

**WAY

LINGGO
PROJECT
UPDATE**

• Production
  scheduled
  to
  resume
  at
  Talang
  Santo
  in
  February
  2013

• Production
  forecast
  to
  return
  to
  annualised
  rate
  of
  +40,000
  ozs
  of
  gold
  by
  end
  of
  this financial
  year

Kingsrose
Mining
Limited
(ASX:KRM)
(“Kingsrose”
or
“the
Company”)
advises
that
is
now
in
a
position
to provide
additional
information
on
the
status
of
activities
at
the
Way
Linggo
Project
located
in
southern Sumatra,
Indonesia.

**RESUMPTION

OF
MINING
ACTIVITIES
AT
TALANG
SANTO**

Indonesia’s
Mines
Department
has
advised
Kingsrose’s
85%
owned
Indonesian
subsidiary,
PT
Natarang Mining
(“PTNM”)
of
the
steps
it
needs
to
take
to
allow
full
mining
activities
to
resume
at
the
Talang
Santo mine
at
Way
Linggo.
These
are:

• Prepare
  an
  updated
  Way
  Linggo
  Project
  Feasibility
  Study,
  including
  Talang
  Santo.

• Prepare
  an
  updated
  AMDAL
  (environmental
  impact
  study)
  covering
  the
  Way
  Linggo
  Project, including
  Talang
  Santo.

• Obtain
  a
  second
  forestry
  permit
  to
  cover
  Talang
  Santo
  and
  associated
  infrastructure.

• Provide
  an
  emergency
  evacuation
  plan
  for
  both
  portals
  (to
  be
  included
  in
  feasibility
  study).

• Employ
  or
  contract
  the
  services
  of
  a
  Geotechnical
  Engineer.

PTNM
expects
to
complete
these
requirements
by
mid-­‐January
2013
and
to
receive
approval
from
the
Mines Department
to
commence
full
mining
activities
in
Talang
Santo
in
February.

In
the
meantime,
plans
were
submitted
last
week
outlining
the
development
work
to
be
undertaken
in relation
to
establishing
a
water
sump
and
pumping
station
at
the
bottom
of
the
external
shaft
that
extends from
surface
to
Level
3.
This
work
is
expected
to
commence
within
the
next
few
weeks.

PTNM
already
has
a
forestry
permit
for
the
Way
Linggo
mine
and
associated
infrastructure,
including
the process
plant,
tailings
storage
facility
and
camp.
A
permit
is
now
required
for
associated
infrastructure, including
the
road
between
Way
Linggo
and
Talang
Santo.

Suite
9,
Level
2
|
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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In
its
forestry
permit
application
process,
PTNM
has:

• Received
  the
  support
  of
  the
  local
  communities
  and
  authorities.

• Obtained
  approval
  from
  the
  Bupati
  (Mayor)
  of
  the
  Tanggamus
  Regency,
  based
  on
  the technical
  assessment
  and
  recommendation
  by
  the
  local
  Forestry
  section
  (Tanggamus Regency)
  that
  the
  application
  be
  approved.

• Obtained
  approval
  and
  a
  letter
  of
  recommendation
  from
  the
  Governor
  of
  Lampung
  Province based
  on
  technical
  assessment
  and
  recommendation
  by
  the
  Provincial
  Forestry
  section, Secretary
  of
  the
  Governor
  and
  Provincial
  Mines
  Section
  that
  the
  application
  be
  approved.

• • Submitted
  all
  required
  documentation
  to
  the
  Forestry
  Ministry.

The
permit
application
now
requires
the
authorisation
of
the
Forestry
Minister
as
the
final
step.

PTNM
has
every
reason
to
expect
that
the
forestry
permit
should
be
approved
soon
due
to:

• The
  Contract
  of
  Work
  (“CoW”)
  containing
  Way
  Linggo
  and
  Talang
  Santo
  was
  one
  of
  13
  CoWs included
  in
  a
  Presidential
  Decree
  No
  41/12
  in
  May
  2004
  that
  permits
  PTNM
  to
  carry
  out mining
  activities
  in
  a
  protected
  forest
  area.

• A
  forestry
  permit
  for
  the
  Way
  Linggo
  mine
  and
  surrounding
  infrastructure
  has
  already
  been approved.

• The
  area
  surrounding
  Talang
  Santo
  has
  already
  been
  deforested
  by
  logging
  companies
  and
  is now
  subjected
  to
  coffee
  farming.

• PTNM
  has
  the
  support
  of
  the
  locals
  and
  their
  approval
  along
  with
  the
  approval
  of
  the Lampung
  Province
  Forestry
  Department,
  the
  Bupati
  (Mayor)
  of
  the
  local
  Regency
  and
  the Governor
  of
  Lampung
  Province.

A
legal
review
has
now
been
completed
on
the
forestry
permitting
process
being
followed
by
PTNM.

The
emergency
evacuation
plan
has
been
completed
and
will
be
included
in
the
Feasibility
Study.

PTNM
has
employed
a
Junior
Geotechnical
Engineer
to
take
geotechnical
measurements
and
has
engaged the
services
of
LAPI-­‐ITB
to
provide
the
services
of
a
Senior
Geotechnical
Engineer
to
analyse
and
interpret the
data.
Meanwhile,
PTNM
is
interviewing
candidates
to
fill
the
role
of
Senior
Geotechnical
Engineer.

**PRODUCTION

GUIDANCE
FOR
FY13**

As
a
result
of
the
delays
to
the
resumption
of
mining
at
Talang
Santo,
Kingsrose
believes
that
total production
at
the
Way
Linggo
Project
(Way
Linggo
mine
plus
Talang
Santo
mine)
this
financial
year
will
be 16,000
–
20,000
ounces
of
gold.
This
forecast
is
based
on
the
likely
timeframes
associated
with
the
above.

Production
is
expected
to
return
to
an
annualised
rate
of
more
than
40,000
ounces
of
gold
by
the
end
of
this financial
year.

www.kingsrosemining.com.au

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**CASH

CONSERVATION**

The
Company
has
taken
measures
to
minimise
expenditure,
including
reducing
personnel
numbers,
ceasing non-­‐essential
activities
and
placing
all
exploration
drill
rigs
on
standby.

An
unsecured
US$5
million
short-­‐term
bridging
loan
was
drawn
down
in
October
and
is
repayable
from surplus
funds
exceeding
US$2
million
per
month
or
if
more
than
US$9
million
is
raised
via
debt
or
equity.

The
cash
and
bullion
on
hand
at
the
end
of
November
is
expected
to
be
approximately
$9.4
million.

Yours
faithfully KINGSROSE
MINING
LIMITED

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**CHRIS

START MANAGING
DIRECTOR KINGSROSE
MINING
LIMITED**

For
more
information
please
contact:

Investors:

Media:

Chris
Start,
Managing
Director +61
9
486
1149

Paul
Armstrong,
Read
Corporate +61
8
9388
1474

www.kingsrosemining.com.au