KINGSROSE MINING LIMITED — Capital/Financing Update 2012

Jul 25, 2012

==> picture [27 x 806] intentionally omitted <==

==> picture [55 x 47] intentionally omitted <==

26 July 2012

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

**KINGSROSE

TO BE QUOTED ON THE INTERNATIONAL OTCQX**

_**Listing

of ADRs will increase gold miner’s access to US capital markets and help attract new investors**_

Kingsrose Mining (ASX: KRM) (“Kingsrose” or “the Company”) is pleased to announce that it will be quoted on the US-­‐based exchange OTCQX International through the American Depositary Receipt (ADR) program as from 9:30am(EDT) on Wednesday, 25 July 2012.

Kingsrose believes that the ADR listing will assist in attracting new investors to the Company and will help provide greater access to US capital markets.

The ADRs will be tradable through licensed US brokers in the ordinary course of trading in the Over-­‐The-­‐Counter (OTC) Markets in the US. Each ADR represents five ordinary shares listed on the ASX under the symbol KRM.

Investors can find real-­‐time quotes, disclosure and financial information at www.otcqx.com. The ticker assigned to Kingsrose is KGRSY .

Other Australian resource companies quoted on OTCQX include Fortescue Metals Group, Lynas Corporation and OZ Minerals.

Kingsrose Managing Director Chris Start said “the ADR listing was consistent with the Company’s aggressive growth agenda, which was underpinned by the outstanding production and financial results being achieved at its 85 per cent-­‐owned Way Linggo Gold-­‐Silver Project in Indonesia.”

Kingsrose expects to produce 40-­‐50,000oz in FY13 at a cash cost of between $200 and $300 an ounce after silver credits. Some of this growth will come from the start of production at its second mine, Talang Santo.

It recently declared a 4c dividend and is also pushing ahead with a $14 million exploration program involving 12 rigs.

Kingsrose has appointed Bank of New York Mellon (BNYM) as the Depositary Bank to establish the ADR facility. Queries in relation to the ADR facility should be directed to BNYM via its website -­‐ www.adrbnymellon.com -­‐ or by telephone, as follows:

Toll Free

for

• Domestic calls: 1 888 BNY ADRS or – 1888 269 2377

• • International calls: 1 201 680 6825

U.S Investment Bank, Dahlman Rose & Company, has been engaged as the Company’s Principal American Liaison (PAL) on the OTCQX International, responsible for providing guidance on the Company’s OTCQX International listing requirements and arranging a comprehensive suite of US capital market services.

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@kingsrosemining.com.au

==> picture [27 x 797] intentionally omitted <==

“We are very pleased to be working with Kingsrose Mining to make the best of their OTCQX listing,” said Stephen Nash, Managing Director and Co-­‐Head of OTCQX Markets Group.

Yours Faithfully

==> picture [77 x 29] intentionally omitted <==

CHRIS N. START MANAGING DIRECTOR

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 mine hosts a JORC compliant resource of 710,000 tonnes with a grade of 10.24g/t gold containing 230,030 ounces and 135.6g/t silver containing 3,076,800 ounces, and is targeting production of 45,000 ounces of gold and 400,000 ounces of silver per annum at cash costs of < 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. The current year exploration budget is $14 million and aggressive works with 12 diamond drilling rigs continue on 17 prospects within the project area, exploring for a 3rd mining front.

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.

**About

Dahlman Rose and Co:**

Dahlman Rose & Co., LLC (MEMBER:FINRA/SIPC) is a research-­‐driven investment bank focused on energy, transportation, infrastructure, and other industries that compose he global supply chain. The firm’s industry-­‐leading analysts, bankers, and traders offer unique insight into the companies and markets that provide the building blocks of the global economy. Dahlman Rose provides institutional sales and trading equity research, mergers and acquisitions advisory, and underwriting services. For more information regarding Dahlman Rose, please visit www.drco.com.

**About

OTCQX International:**

The OTCQX marketplace is the premier tier of the U.S. Over-­‐the-­‐Counter (OTC) market, providing investors with an objective measure to distinguish the best OTC-­‐traded companies.

Investor-­‐focused companies use the quality-­‐controlled OTCQX platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-­‐dealers.

The innovative OTCQX platform offers companies and their investors a level of marketplace services formerly available only on a U.S. exchange. OTCQX provides the highest level of visibility and access to U.S. Investors possible in the OTC Market.

**For

more information, please visit www.otcqx.com.**

Some of the statements contained in this announcement are forward-­‐looking statements, such as estimates and statements that describe future plans, objectives or goals, including words to the effect that Kingsrose Mining Ltd implies a stated condition or it forecasts certain results could occur. Because forward-­‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, reserves, resources, results of exploration, reclamation and other post-­‐closure costs, capital costs and mine production costs could differ materially from those currently forecast in such statements by reason of factors such as changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals, litigation, legislative, environmental and other judicial, regulatory, technological and operation difficulties encountered in connection with mining activities, labour relations matters, cost and changing foreign exchange rates. This list is not exhaustive of the factors that may affect any of the forward-­‐looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on Kingsrose Mining Limited statements

www.kingsrosemining.com.au