PATRONUS RESOURCES LIMITED — Capital/Financing Update 2016

Aug 7, 2016

info@kinmining.com.au |Tel: 08 9242 2227 |ACN: 150 597 541 342 Scarborough Beach Road, Osborne Park WA 6017

==> picture [166 x 71] intentionally omitted <==

8 August 2016

Dear Shareholder

PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

We are writing to you as a registered holder of shares in Kin Mining NL ( Company ).

As announced to ASX on 1 August 2016, the Company is undertaking a pro rata non-renounceable offer of ordinary fully paid shares ( Shares ) to eligible shareholders. The offer is on the basis of one (1) new share ( New Share ) for every four (4) Shares held by eligible shareholders of the Company as at 5.00pm WST on 19 August 2016 ( Record Date ) at an issue price of $0.22 per Share, to raise approximately $4,976,559 ( offer )

The Company is making the Offer available to eligible shareholders, being persons who are registered as shareholders of the Company on the Record Date and have a registered address in Australia, New Zealand and Singapore. In calculating entitlements under the Offer, fractions will be rounded down to the nearest whole number. Shareholders who, at the Record Date, do not have an address registered in either Australia, New Zealand or Singapore will not be eligible to participate in the Offer.

New Shares issued pursuant to the Offer will rank equally to existing Shares currently on issue. The Company has applied for official quotation of the New Shares. The Rights Issue is not underwritten.

An Offer Document in relation to the Offer has been lodged with ASX setting out the timetable for the Offer, as shown below. A copy of the Offer Document is available on the ASX website at www.asx.com.au (ASX code: KIN) and on the Company's website at www.kinmining.com.au.

Use of Proceeds

Proceeds from the Offer will be applied to further development of the Leonora Gold Project including additional drilling and commencement of the Definitive Feasibility Study. Furthermore, the Company will pay the final balance to the Secured Creditor, Waterton Global Value LLP for the acquisition of the Leonora Gold Project and for the Company's administration, meet its current commitments and working capital purposes. The cash costs of the Offer will be approximately $20,000 (assuming full subscription) and before any commissions that may be payable for any proposed shortfall subscription.

Capital Structure

The capital structure of the Company following completion of the Offer is summarised below:

Shares	Numbers
Shares on Issue at date of the Offer	90,482,891
New Shares offered under the Offer2	22,620,723
Total Shares on issue at completion of the Offer1	113,103,614
Options	Numbers
Options Currentlyon issue at date of the Offer	13,955,000
Unlisted Options exercisable at$0.20 on or before 31 August 2017	13,955,000
Options offered under the Offer	Nil
**Total Options on issue at completion of the Offer **	13,955,000

Notes:

1. The number of Shares on issue assumes that no Options currently on issue are exercised prior to the Record Date.

2. The number of New Shares issued assumes that the Offer is fully subscribed and that no Options currently on issue are exercised prior to the Record Date.

==> picture [596 x 73] intentionally omitted <==

info@kinmining.com.au |Tel: 08 9242 2227 |ACN: 150 597 541 342 Scarborough Beach Road, Osborne Park WA 6017

==> picture [166 x 71] intentionally omitted <==

Timetable

The Offer is proposed to be conducted according to the following timetable:

Event	Date
Appendix 3B & Section 708AA Notice to ASX	5 August 2016
Notice sent to Shareholders	8 August 2016
“Ex” Date (date from which shares commence trading without the entitlement toparticipate in the Offer)	18 August 2016
Record Date 5.00pm (WST)(date for determiningEntitlements of Eligible Shareholders toparticipate in the Offer)	19 August 2016
Offer Document with personalized entitlement and acceptance forms dispatched toEligible Shareholders	22 August 2016
Offer OpeningDate	22 August 2016
Last date to extend the Offer ClosingDate	30 August 2016
Offer ClosingDate 5.00pm(WST)	2 September 2016
Securitiesquoted on a deferred settlement basis	5 September 2016
ASX notified of under subscriptions	7 September 2016
Issue date and deferred settlement tradingends	9 September 2016
Dispatch of HoldingStatements	9 September 2016
Tradingof New Shares expected to commence	12 September 2016

Note: Subject to the Listing Rules and other applicable laws, the Directors reserve the right to vary these dates.

As soon as practicable following the Record Date, the Company will dispatch an Offer Document together with a personalised Entitlement and Acceptance Form to eligible shareholders. If you are eligible and wish to participate in the Offer, you will need to complete this personalised Entitlement and Acceptance Form and return it with the appropriate application monies to the Company's share registry before 5.00pm (WST) on the anticipated closing date of 2 September 2016.

The Offer Document includes details of the Offer and the risks associated with investing in the Company. It is recommended that you read the Offer Document carefully and, if you are interested in participating in the Offer, seek independent professional advice.

For further information please contact the Company on (08) 9242 2227 during normal business hours.

==> picture [123 x 52] intentionally omitted <==

Joe Graziano Company Secretary

==> picture [596 x 73] intentionally omitted <==