KINGSROSE MINING LIMITED — Capital/Financing Update 2016

Dec 13, 2016

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ASX Announcement 14 December 2016

Kingsrose appoints Voluntary Administrator as part of Ongoing Restructuring Process

The Board of Kingsrose Mining (ASX: KRM)( Kingsrose or the Company ) has resolved to appoint Michael Ryan and Ian Francis of FTI Consulting as voluntary administrators ( Administrators ) as part of continued efforts to restructure the Company, its financial arrangements and operations at the Way Linggo Project in Indonesia.

The appointment is intended to assist Kingsrose to continue with recapitalisation efforts, including exploring options to raise capital and reduce the Company’s debt with a view to providing it with sufficient funding to allow the implementation of operational changes at the Talang Santo Mine to better position the mine for a long and profitable future.

In order for the Company to do this, the Talang Santo Mine will initially be placed on care and maintenance to allow the Administrators to independently investigate the affairs of the Company and recommend options for its future.

Mr Ryan said: “In the case of Kingsrose, the voluntary administration process will provide the Company and its stakeholders with the necessary breathing space and protections to make the decisions about the future of the Company in a considered way.

“As part of the restructuring process, Kingsrose’s 85% owned subsidiary, PT Natarang Mining will commence the process to apply for PKPU (Suspension of Debt Payment Obligations) in Indonesia. FTI Consulting’s Jakarta practice will assist the company with the PKPU process and will work in conjunction with the Administrators to attempt to restructure and recapitalise the Company as soon as practicable.

“As administrators, we will work closely with the management team to identify all potential options and opportunities available to Kingsrose, including options relating to a potential recapitalisation of the Company.

Furthermore, our role as Administrators is to keep all stakeholders fully informed of progress in relation to the voluntary administration process. We will maintain communication with key stakeholders, including employees, shareholders, creditors and local communities, and will provide more detail to these stakeholders as it becomes available,” Mr Ryan concluded.

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----- Start of picture text ----- 8/150 Hay Street, Subiaco WA 6008 | P (08) 9381 5588PO Box 8326, Subiaco East WA 6008info@kingsrosemining.com.au | www.kingsrosemining.com.au | ASX: KRMABN: 49 112 389 910----- End of picture text -----

The Administrators will hold a first meeting of creditors within eight business days, in accordance with the requirements of the Corporations Act 2001 . Creditors will receive further information by mail.

-ENDS-

Enquiries: Michael Ryan, Ian Francis & Eileen Chan FTI Consulting +61 8 9321 8533

Media Enquiries: Paul Armstrong Read Corporate +61 9388 1474

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----- Start of picture text ----- 8/150 Hay Street, Subiaco WA 6008 | P (08) 9381 5588PO Box 8326, Subiaco East WA 6008info@kingsrosemining.com.au | www.kingsrosemining.com.au | ASX: KRMABN: 49 112 389 910----- End of picture text -----