KINGSROSE MINING LIMITED — Capital/Financing Update 2013

Feb 11, 2013

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12 February 2013

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

**US$15

MILLION FINANCING FROM CREDIT SUISSE TO ACCELERATE PRODUCTION RAMP-­‐UP AT TALANG SANTO**

Kingsrose Mining Limited (ASX:KRM, OTCQX: KGRSY) (“Kingsrose” or “the Company”) is pleased to advise that Credit Suisse (“CS”) is extending its support of the Company’s Way Linggo Project by agreeing to provide US$15 million in funding to accelerate the production ramp-­‐up at the Talang Santo mine.

The funds will used expedite mine development at Talang Santo once the Indonesian Mines Department has provided final permission for full mining activities to recommence. This is anticipated to occur next month.

Some of the funds will go towards drilling to further define and expand the Talang Santo resource, test nearby targets and for general working capital purposes. The Company does not anticipate requiring any further funding for the Way Linggo Project.

The funding will be provided via a two-­‐part prepaid gold transaction to PT Natarang Mining (“PTNM”), an 85% owned subsidiary of Kingsrose and operator of the Way Linggo Project, which includes Talang Santo.

Kingsrose Managing Director Chris Start said the financing was a vote of confidence from Credit Suisse in the Way Linggo Project. “ This funding will allow us to ramp up production at Talang Santo as quickly as possible and ensure that the Project generates maximum income for both Kingsrose shareholders and for Indonesia, particularly for the people of Lampung Province, Sumatra”.

The pre-­‐paid transaction essentially involves PTNM delivering specified quantities of gold ounces (determined upon trade execution) on a monthly basis starting in January 2014 and ending in July 2015. CS will pay the sales proceeds to PTNM at the time of trade execution of each of the two tranches;

a) the first tranche of US$4 million will be executed on completion of the transaction documentation, expected to occur this month, and,

b) the second tranche of US$11 million will be executed upon permission being given to resume full mining activities at Talang Santo, including receipt of a forestry “borrow & use” permit, and review by Credit Suisse of an updated cash forecast.

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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The combined quantity of gold effectively priced and committed to delivery in the two transactions will represent less than 20% of expected production during the delivery months. The Company will disclose the exact quantity of ounces committed upon completion of the second tranche.

PTNM entered into a similar transaction structure with Credit Suisse using silver in December 2010 that provided A$13 million. These funds were used primarily to retire loans inherited upon the acquisition of PTNM. One remaining delivery of silver (20,005 ounces) is required to be made on 28 February 2013, delivery of which will complete the silver prepaid transaction.

Yours faithfully KINGSROSE MINING LIMITED

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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 owns 85% of the Way Linggo Project in South Sumatra, Indonesia. The Project has emerged as small but highly profitable due to its high gold and silver grades and low operating costs. The Way Linggo Project hosts a JORC compliant resource of 2,188,500 tonnes with a grade of 6.9/t gold containing 485,900 ounces and 135g/t silver containing 3,183,200 ounces. Management are 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.

The Way Linggo Project, held under a highly prized 4[th] Generation Contract of Work agreement with the Indonesian government (mining title of 10,000 hectares), sits on the prolifically mineralised Trans-­‐Sumatra Fault which is part of the Pacific Rim of Fire. The area is considered highly prospective for low-­‐sulphidation epithermal gold-­‐silver deposits. Kingsrose made a second high grade epithermal gold discovery in mid-­‐2011, named Talang Santo, 7km NNE of the Way Linggo mine and has commenced development of that ore system to supplement and sustain its gold production.

www.kingsrosemining.com.au