KINGSROSE MINING LIMITED — Capital/Financing Update 2012

Sep 3, 2012

==> picture [30 x 800] intentionally omitted <==

==> picture [52 x 45] intentionally omitted <==

4
September
2012

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

**TOTAL

PROJECT
RESOURCE
INCREASES
BY
25%.**

**TALANG

SANTO
RESOURCE
INCREASES
BY
73%.**

**CURRENT

QUARTER
PRODUCTION
BEHIND
DUE
TO
DELAYS
AT
TALANG
SANTO. KINGSROSE
ON
TRACK
TO
MEET
FY13
PRODUCTION
TARGET
OF
40,000oz
+.**

Kingsrose
Mining
(ASX:KRM)
is
pleased
to
advise
that
its
exploration
drilling
has
continued
to
extend
and
upgrade the
Talang
Santo
Prospect.

The
latest
total
JORC-­‐compliant
Mineral
Resource
estimate
(as
at
June
30,
2012)
for Talang
Santo
increased
by
73
per
cent
to
287,489
ounces
of
gold
and
894,951
ounces
of
silver.
Furthermore,
over 59%
of
this
has
now
been
upgraded
into
the
Indicated
category.

The
June
30,
2012
total
Mineral
Resource
for
the
Way
Linggo
mine
including
depletion
from
mining
and
an allowance
for
non-­‐recoverable
blocks
contains
198,380
ounces
of
gold
and
2,288,326
ounces
of
silver.

The
total
Project
ounces
have
increased
by
25%
to
485,869
ounces
of
gold
and
3,183,278
ounces
of
silver
as
at
30 June,
2012.

The
Mineral
Resource
(as
at
30
June,
2012)
by
category
is
summarised
below:

Classification	Deposit	Tonnes	Au g/t	Ag g/t	Au ounces	Ag ounces
Measured	Way Linggo	339,215	14.45	174.84	157,592	1,906,804
Indicated	Way Linggo	174,145	6.30	61.09	35,273	342,036
Inferred	Way Linggo	14,120	12.15	86.98	5,516	39,486
SUB-TOTAL	Way Linggo	527,480	11.71	135.05	198,380	2,288,326
Indicated	Talang Santo	863,625	6.19	16.25	171,873	451,200
Inferred	Talang Santo	797,335	4.51	17.31	115,616	443,751
SUB-TOTAL	Talang Santo	1,660,980	5.39	16.77	287,489	894,951
GRAND TOTAL	PROJECT	2,188,460	6.91	45.24	485,869	3,183,278

_**Competent

Person
Statement**_

The
information
in
this
report
that
relates
to
exploration
results,
mineral
resources
and
ore
reserves
is
based
on
information compiled
by
Mr.
Peter
G.
Cook, BSc
Applied
Geol,
MSc
(Min
Econ), who
is
a
Member
of
the
Australasian
Institute
of
Mining
and Metallurgy
and
a
consultant
to
Kingsrose
Mining
Limited.
Mr.
Cook
has
sufficient
experience
that
is
relevant
to
the
styles
of mineralisation
and
types
of
deposits
and
to
the
activity
he
is
undertaking
to
qualify
as
a
Competent
Person
as
defined
in
the 2004
edition
of
the
Australasian
Code
for
Reporting
of
Exploration
Results,
Mineral
Resources
and
Ore
Reserves
(“JORC
Code”). Mr.
Cook
consents
to
the
inclusion
in
this
report
of
the
matters
based
on
his
information
in
the
form
and
context
in
which
it appears.

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

==> picture [30 x 800] intentionally omitted <==

Since
the
virgin
discovery
of
Talang
Santo
(7km
due
north
of
Way
Linggo)
in
June
2011,
Kingsrose
has
worked swiftly
to
bring
the
project
into
production
with
the
development
of
a
shaft,
construction
of
an
adit
and development
of
2
level
at
Talang
Santo.
Production
of
development
ore
for
processing
at
the
Way
Linggo
plant commenced
in
June
this
year.

The
Way
Linggo
mine
has
entered
a
phase
of
lower
monthly
production
as
pillar recovery,
stope
filling
and
accessing
of
deeper
lower
grade
zones
commences.

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.

The
transition
from
shaft
development
to
ore
development
and
stoping
at
Talang
Santo
has
encountered
minor delays
creating
a
situation
where
ore
production
in
the
current
quarter
has
been
impacted.
The
coincidence
of
this delay
and
the
mining
of
lower
grade
development
ore
on
the
4
level
at
Way
Linggo
means
total
gold
production
in the
September
Quarter
is
expected
to
be
5,000
oz.
Silver
production
is
expected
to
be
in
excess
of
50,000oz.

However,
production
is
forecast
to
ramp
up
in
subsequent
quarters
as
the
large
amount
of
development
and preparation
over
the
past
nine
months
enables
Kingsrose
to
increase
mined
tonnages
and
to
access
higher
grade ore.

Hence,
Kingsrose
believes
it
remains
on
track
for
its
annual
target
of
more
than
40,000oz
of
gold
and 250,000oz
of
silver.

Yours
Faithfully

==> picture [91 x 35] intentionally omitted <==

**CHRIS

START MANAGING
DIRECTOR KINGSROSE
MINING
LIMITED**

For
more
information
please
contact:

Investors: Chris
Start Managing
Director +618
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