KINGSROSE MINING LIMITED — Interim / Quarterly Report 2011

Jan 24, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

**Appendix

5B Mining
exploration
entity
quarterly
report**

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of Entity Kingsrose Mining Limited	Quarter ended:	Quarter ended:
ABN 49 112 389 910	31 December 2011
Consolidated statement of cash flows Cash flows related to operating activities	Current quarter $A’000	Year to date (6 months) $A’000
1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material)	21,921 (3,492) (1,767) (7,555) (761) - 282 (13) - -	37,563 (7,887) (2,423) (13,784) (2,229) - 481 (15) - -
Net Operating Cash Flows	8,615	11,706

Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other(provide details if material)	- - (944) - - 153 - - -	- - (2,457) - - 153 - - -
Net investing cash flows	(791)	(2,304)
1.13 Total operating and investing cash flows	7,824	9,402
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16a Intercompany borrowings 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19a Other (Royalty Settlement)	872 - - - - - -	1,464 - - - - - -
1.19b Other(Repayment of hirepurchases)	(68)	(140)
Net financing cash flows	804	1,324
Net increase / (decrease) in cash held	8,627	10,725
1.20 Cash at beginning of period/year to date 1.21 Exchange rate adjustments to item 1.20	26,234 (11)	23,951 174
1.22 Cash at end ofquarter	34,850	34,850

• See chapter 19 for defined terms.

29/04/2011 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

Payments
to
directors
of
the
entity
and
associates
of
the
directors Payments
to
related
entities
of
the
entity
and
associates
of
the
related
entities

1.23 Aggregate amount of payments to the parties included in item 1.2	Current quarter $A'000
	285
1.24 Aggregate amount of loans to the parties included in item 1.10	0

• 1.25 Explanation
  necessary
  for
  an
  understanding
  of
  the
  transactions Nil

**Non-­‐cash

financing
and
investing
activities**

• 2.1 Details
  of
  financing
  and
  investing
  transactions
  which
  have
  had
  a
  material
  effect
  on consolidated
  assets
  and
  liabilities
  but
  did
  not
  involve
  cash
  flows

60,015
ounces
of
silver
were
delivered
to
Credit
Suisse
during
the
quarter
as
part
of the
Company's
obligation
under
the
prepaid
silver
forward
sale
transaction
entered into
in
December
2010.

==> picture [48 x 85] intentionally omitted <==

• 2.2 Details of outlays made by other entities to establish or increase their
  share
  in
  projects
  in
  which
  the
  reporting
  entity
  has
  an
  interest

Nil

**Financing

facilities
available**

Add
notes
as
necessary
for
an
understanding
of
the
position.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements Nil	Amount available $A’000	Amount used $A’000
	- - - -

**Estimated

cash
outflows
for
next
quarter**

Estimated cash outflows for next quarter
	$A’000
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	2,909 1,980 5,640 600
Total	11,129

• See chapter 19 for defined terms.

29/04/2011 Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

**Reconciliation

of
cash**

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A'000	Previous quarter $A'000
5.1 Cash on hand and at bank	4,950	3,234
Deposits at call 5.3 Bank overdraft Other (provide details) 5.2 5.4	29,900 - -	23,000 - -
Total: cash at end ofquarter(item 1.22)	34,850	26,234

**Changes

in
interests
in
mining
tenements**

6.1	Interests in mining tenements relinquished,
	reduced or lapsed
6.2	Interests in mining tenements acquired or
	increased

Tenement reference	Nature of interest (Note 2)	Interest at beginning of quarter	Interest at end of quarter
Nil
Nil

• See chapter 19 for defined terms.

29/04/2011 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

**Issued

and
quoted
securities
at
end
of
current
quarter**

Description
includes
rate
of
interest
and
any
redemption
or
conversion
rights
together
with
prices
and
dates.

		Total number	Total number	Number quoted	Issue price per security (See Note 3) ($)	Amount paid up per security (See Note 3) ($)
7.1 7.2	+Preference securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs,redemptions	-	-	-	-	-
		- -	- -	- -	- -	- -
7.3 7.4	+Ordinary securities Changes during quarter (a) Increase through exercise of options (b) Increase through issues (c) Release from escrow (d) Decreases through returns of capital, buy-backs	KRM	271,487,968	271,487,968	-	-
		KRM - - -	4,264,242 - - -	4,264,242 - - -	- - - -	- - - -
7.5	+Convertible debt securities	-	-	-	-	-
7.6	Changes during quarter
	(a) Increases through issues	-	-	-	-	-
	(b) Decreases through redemption of securities.	-	-	-	-	-
7.7	Options	Unlisted	Unlisted		Exercise price ($)	Expiry date
7.8 7.9 7.10		KRMAI KRMAK KRMAM KRMAO KRMAS KRMAQ KRMAU KRMAY KRMA??	700,000 75,000 150,000 3,500,000 500,000 2,000,000 3,000,000 250,000 1,000,000	- - - - - - - - - -	0.20 1.59 0.73 0.25 0.14 1.59 1.54 1.42 $1.53	29/12/2014 31/12/2012 8/03/2015 31/12/2012 16/02/2014 various various 22/12/2013 various
			11,175,000
		Listed KRMO	Listed 15,837,062	15,837,062	0.20	31/12/2012
			15,837,062
	Issued during quarter Exercised during quarter Expired(cancelled)during quarter	KRMA??	1,000,000		$1.53	various
		KRMAA	(100,000)		0.00	0/01/1900
		KRMAW	(250,000)	-	-	-
7.11	Debentures (totals only)	-	-	-	-	-
7.12	Unsecured notes (totals only)	-	-	-	-	-

• See chapter 19 for defined terms.

29/04/2011 Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

**Compliance

statement**

• 1 This
  statement
  has
  been
  prepared
  under
  accounting
  policies
  which
  comply
  with
  accounting
  standards
  as defined
  in
  the
  Corporations
  Act
  or
  other
  standards
  acceptable
  to
  ASX
  (see
  note
  5).

• 2 This
  statement
  does
  give
  a
  true
  and
  fair
  view
  of
  the
  matters
  disclosed.

==> picture [103 x 66] intentionally omitted <==

Sign
here: ............................................................
Date:
31
JANAURY
2012 (Company
Secretary)

Print
name: JEANNETTE
P
SMITH

Notes

1 The
quarterly
report
provides
a
basis
for
informing
the
market
how
the
entity’s
activities
have
been
financed
for the
past
quarter
and
the
effect
on
its
cash
position.
An
entity
wanting
to
disclose
additional
information
is encouraged
to
do
so,
in
a
note
or
notes
attached
to
this
report.

• 2 The
  “Nature
  of
  interest”
  (items
  6.1
  and
  6.2)
  includes
  options
  in
  respect
  of
  interests
  in
  mining
  tenements acquired,
  exercised
  or
  lapsed
  during
  the
  reporting
  period.
  If
  the
  entity
  is
  involved
  in
  a
  joint
  venture
  agreement and
  there
  are
  conditions
  precedent
  which
  will
  change
  its
  percentage
  interest
  in
  a
  mining
  tenement,
  it
  should disclose
  the
  change
  of
  percentage
  interest
  and
  conditions
  precedent
  in
  the
  list
  required
  for
  items
  6.1
  and
  6.2.

• 3 Issued
  and
  quoted
  securities The
  issue
  price
  and
  amount
  paid
  up
  is
  not
  required
  in
  items
  7.1
  and
  7.3
  for
  fully paid
  securities .

• 4 The
  definitions
  in,
  and
  provisions
  of, AASB
  6:
  Exploration
  for
  and
  Evaluation
  of
  Mineral
  Resources and AASB
  107: Statement
  of
  Cash
  Flows apply
  to
  this
  report.

• 5 Accounting
  Standards ASX
  will
  accept,
  for
  example,
  the
  use
  of
  International
  Financial
  Reporting
  Standards
  for foreign
  entities.
  If
  the
  standards
  used
  do
  not
  address
  a
  topic,
  the
  Australian
  standard
  on
  that
  topic
  (if
  any)
  must be
  complied
  with.

==
==
==
==
==

• See chapter 19 for defined terms.

29/04/2011 Appendix 5B Page 5