KINGSROSE MINING LIMITED — Capital/Financing Update 2013

Jan 29, 2013

==> picture [24 x 797] intentionally omitted <==

==> picture [50 x 42] intentionally omitted <==

30 January 2013

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

**PARTIAL

RESUMPTION OF OPERATIONS AT TALANG SANTO**

v **Limited

activities permitted to commence at Talang Santo**

First review of updated Way Linggo Project Feasibility Study & AMDAL (environmental

v

**impact

study) completed by the relevant Government departments**

Full mining activity at Talang Santo expected to resume in March; production continuing

v

**at

the Way Linggo mine**

v Geo-­‐technical Infill drilling highlights high grade zones at Talang Santo

Ø 4.2m @ 40.2g/t Au and 35g/t Ag from 302.4m

including 1.0m @ 97.0g/t Au and 77g/t Ag from 302.4m

• Ø 1.3m @ 15.4g/t Au and 9g/t Ag from 73.6m

Kingsrose Mining Limited (ASX:KRM, OTCQX:KGRSY) (“Kingsrose” or “the Company”) is pleased to provide the following update in relation to the status of activities at its 85% owned Way Linggo Project located in southern Sumatra, Indonesia.

**RESUMPTION

OF LIMITED MINING ACTIVITIES AT TALANG SANTO**

Kingsrose’s 85% owned Indonesian subsidiary, PT Natarang Mining (“PTNM”) has received permission to commence various development activities pertaining to maintenance and safety at the Talang Santo mine. The work will include:

• Completion of a water sump and pumping station at the bottom of the external underlay shaft on Level 3;

• Development of an emergency egress system including the use of an evacuation man-­‐cage;

• Completion of underground evacuation shelters.

Permission to undertake this work is important because it will enable ore production to ramp up rapidly once full mining activities are underway.

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

==> picture [25 x 806] intentionally omitted <==

**RESUMPTION

OF FULL MINING ACTIVITIES AT TALANG SANTO**

The Indonesian authorities have outlined a series of measures that must be completed prior to full mining activities to resume at the Talang Santo mine at Way Linggo (Refer ASX Announcement dated 28 November 2012). As part of this, Kingsrose pleased to advise that the updated Way Linggo Project Feasibility study and updated AMDAL (environmental impact study) to include Talang Santo have been submitted to the relevant government departments and the first review of the Feasibility Study by the technical section of the Indonesian Mines Department has been completed.

The full reviews of the Feasibility Study and the AMDAL are expected to be completed by the end of February with a view to resuming full mining activities in March.

**GEOTECHNICAL

DRILLING RESULTS**

Three drill holes, for 914m were completed at Talang Santo to provide geo-­‐technical data as part of the feasibility. The locations of the three holes were designed to provide representative samples of the different rock types likely to be encountered during mining.

Significant Intercepts from the 3 holes include:

• DDH-­‐GTC-­‐01 1.75m @ 6.32g/t Au and 8.88g/t Ag from 268.55m 1.20m @ 4.62g/t Au and 23.05Ag from 276.90m 2.1m @ 1.59g/t Au and 4.12 g/t Ag from 282.90m

DDH–GTC-­‐02 1.25m @ 15.4g/t Au and 9.10g/t Ag from 73.60m 2.65m @ 4.34g/t Au and 10.34g/t Ag from 285.50m

DDH-­‐GTC-­‐03 4.15m @ 40.18g/t Au and 35.38g/t Ag from 302.40m including 1.00m @ 96.96g/t Au and 76.90g/t Ag from 302.40m

A table of all significant drilling intersections is attached as Appendix A.

Yours faithfully KINGSROSE MINING LIMITED

==> picture [90 x 35] intentionally omitted <==

**CHRIS

START MANAGING DIRECTOR KINGSROSE MINING LIMITED**

_**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. Andrew Spinks, B.App.Sc (Geology), Grad.Dip (Mining) and is a member of AusIMM who is a Director of Kingsrose Mining Limited. Mr. Spinks has sufficient experience, which 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. Spinks consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

www.kingsrosemining.com.au

==> picture [25 x 806] intentionally omitted <==

For more information please contact:

Investors: Chris Start Managing Director +61 8 9486 1149

Media: Paul Armstrong Read Corporate +61 8 9388 1474

Principal American Liason Christopher Weekes/Stephen Nash OTCQX International Market (US) + 1 (212) 372 5766

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 4[th] 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.

www.kingsrosemining.com.au

APPENDIX A “ ”

All significant geo technical drill hole intercepts. (Note: significant means with a vein that assays above 1g/t gold).

Hole	Prospect	N	E	RL	Dip/Azimuth	Intercept	Au	Ag	Depth	True
No							Grade	Grade	From	Width
						0.65m	1.74g/t	8.23g/t	232.45m	0.56m
DDH-GTC-01	TalangSanto	19633.36	14888.37	1270.47	-59/203	0.95m1.75m1.20m	1.92g/t6.32g/t4.62g/t	4.18g/t8.88g/t23.05g/t	254.65m268.55m276.90m	0.73m1.34m0.92m
						2.10m	1.59g/t	4.12g/t	282.90m	1.82m
						1.25m	15.4g/t	9.10g/t	73.60m	1.08m
DDH-GTC-02	TalangSanto	19370.09	15017.20	1315.09	-52/210	0.20m1.25m0.50m	2.17g/t5.86g/t1.69g/t	4.90g/t12.22/t1.60g/t	276.80m278.10m283.60	0.17m0.96m0.32m
						2.65m	4.34g/t	10.30g/t	285.60m	2.03m
DDH-GTC-03	TalangSanto	19098.96	15140.50	1372.80	-77/206INCLUDING INCLUDING	3.70m0.10m4.15m1.00m	2.78g/t11.3g/t40.18g/t96.96g/t	3.66g/t8.61g/t35.38g/t76.90g/t	297.30m298.50m302.80m305.60m	3.20m2.41m