PATRONUS RESOURCES LIMITED — Capital/Financing Update 2015

Feb 24, 2015

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ASX Code: KIN

Board of Directors

Terry Grammer Chairman

Trevor Dixon Managing Director

Emerging Producer, Kin Secures $1M in Funding

Fritz Fitton Technical Director

Joe Graziano

Non-Executive Director & Company Secretary

• Up to $1m in funding secured to fast-track mining opportunity at Lewis prospect, within the larger Cardinia resource.

Contact Details

• Cardinia is part of the Leonora Gold Project acquired by Kin only 1 year following listing on ASX.

Post

PO Box 565 Mount Hawthorn Western Australia 6915

Office 342 Scarborough Beach Road Osborne Park Western Australia 6017

• Kin is an emerging producer in the vicinity of world class gold mines

Kin Mining NL (ASX: KIN) is very pleased to announce that it has signed a Binding Term Sheet for an investment of up to $1,000,000 to take advantage of an early stage mining opportunity at the “Lewis Prospect” within the Cardinia Project Area (Figure 1).

Phone

08 9242 2227

Fax

08 9242 1277

Email

info@kinmining.com.au

Kin acquired the Leonora Gold Project only 1 year after listing on the ASX, after Navigator Resources Ltd appointed voluntary administrators due to operating difficulties at the Bronzewing Mine. The Leonora Gold project has indicated and inferred resources of 12.29Mt at 1.9g/t Au for 745,000oz Au (as announced by Navigator Resources Ltd – June 2012 Quarterly Report).

Website

www.kinmining.com.au

Shares on Issue: 46,614,690 (KIN) 48,285,357

The Cardinia Project Area (part of the Leonora Gold Project) hosts the Cardinia resource (which totals 4.8Mt @ 1.3 g/t for 200,000oz – refer ASX announcement on 8 April 2014), and is a low cost entry point to production.

Options on Issue:ASX : KIN 19,362,512 at $0.30 Expiring 31 January 2015

ASX: KIN

KIN Mining NL ACN 150 597 541 342 Scarborough Beach Road, Osborne Park WA 6017 www.kinmining.com.au

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ASX Code: KIN

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Figure 1 – Location of the Lewis Trial Pit within the Leonora Gold Project (LGP).

Kin has identified start-up pits known as “Lewis East and Lewis West” (M37/86 and M37/227), located within the existing Cardinia resource (Figure 2).

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Figure 2 – Eastern and Western starter pit shells (blue) inside the greater Lewis deposit (brown) at Cardinia.

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The gold mineralisation is hosted in a supergene blanket that covers the entire Lewis resource which is laterally extensive and predominantly sits between 6m and 25m below surface.

The Lewis starter pits are located within this larger supergene deposit and represent a shallow, free dig scenario which eliminates blasting costs. The two starter pits are designed to generate cash flow as they focus on higher grade ore close to surface.

Extensive close spaced grade control RC drilling on 5m by 8m centres has been completed from surface covering the entire starter pits, further reducing start-up costs.

On site leaching is envisaged as the quickest and lowest cost treatment option.

Kin’s Managing Director said, “ This funding arrangement allows Kin to take advantage of an early stage mining opportunity at the Lewis prospect. Our focus is to transition Kin to a gold producer in a gold precinct that is renowned for gold production. The Lewis trial mining area represents an outstanding opportunity which has undergone extensive preliminary mine planning, providing a clearly defined pathway to production. Previous mining at Cardinia was extremely successful as the mined grades were better than expected .”

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by Mr Paul Maher who is a Member of the Australian Institute of Mining and Metallurgy. Mr Maher is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Maher has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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A summary of the terms agreed are provided and are subject to various approvals from Waterton Global Value LP ( “Waterton”), Regulatory Authorities and Shareholders as required.

Investment andConvertible Note	The Investor agrees to invest up to $1,000,000 in three tranches in accordance with aSubscription Agreement and Convertible Note Funding Facility to be executed betweenthe parties as soon as practicable following the execution of this Term Sheet . The threetranches will be as follows:1.Tranche 1 – Placement of 833,333 Ordinary Shares at $0.12c for an investment of$100,000 on execution of the Subscription Agreement.2.Tranche 2 – A $400,000 Convertible Note Facility based upon 400,000Convertible Notes convertible into ordinary shares in Kin. Tranche 2 will bepayable on Kin receiving formal mining approval from the Department of Minesand Petroleum for the proposed mining operations to be undertaken by thecompany at the “Lewis Prospect” which forms part of the Cardinia Project Areaand the approval of Waterton.3.Tranche 3 – A $500,000 Convertible Note Facility based upon 500,000Convertible Notes convertible into ordinary shares in Kin. Tranche 3 will bepayable on Kin completing the construction of the infrastructure required and Kincommencing mining operations at the “Lewis Prospect”.
Maturity Date	The convertible note will mature after 2 years
Security	A 2ndRanking charge over the shares in Navigator Mining Pty Ltd. Furthermore, theSecurity offered will be subject to approval by Waterton and the Shareholders of Kin at aGeneral Meeting to be convened as soon as practicable once the formal documentationhas been executed.The advance of Tranches 2 and 3 shall be subject to and conditional upon the approvalby Waterton and shareholders of Kin.
Conversion PriceMechanism	Each convertible note converts into one fully paid ordinary share in Kin as follows:1.If Kin’s share price exceeds $0.18c at the time of conversion then the note holdermay convert all or part of their Convertible Note to Fully Paid Ordinary Shares at a15% discount to the 30 day VWAP;2.If Kin’s share price is between $0.12c and $0.18c at the time of conversion thenthe note holder may convert all or part of their Convertible Note to Fully PaidOrdinary Shares at a 20% discount to the 30 day VWAP;3.If Kin’s share price is below $0.12c at the time of conversion then the note holdermay convert all or part of their Convertible Note to Fully Paid Ordinary Shares at25% discount to the 30 day VWAP

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ASX Code: KIN

Incentive	Kin agrees to the following incentive as key terms to this agreement:1.Kin agrees to provide $1,200,000 over the 2 year term either through the right tothe physical Gold ounces extracted and processed from the current resourceinventory from the “Lewis Prospect” within the Cardinia Project Area or cash aspart consideration for the combined investment and Convertible Note
Interest	The obligation of Kin to deliver any physical Gold subject to and conditional upon Kinrepaying the outstanding loan to Waterton from the cash-flow generated by the miningproject and the release of the associated security documents by Waterton.
Condition	1.The obligation of Kin to deliver any physical Gold subject to and conditional uponKin repaying the outstanding loan to Waterton from the cash-flow generated by themining project and the release of the associated security documents by Waterton.2.Kin reserves the right to retire the unconverted principal amount at any time duringthe two year period.

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