PATRONUS RESOURCES LIMITED — Capital/Financing Update 2016

Jul 10, 2016

==> picture [361 x 210] intentionally omitted <==

==> picture [205 x 94] intentionally omitted <==

----- Start of picture text -----

ASX Code: KIN
----- End of picture text -----

July 11[th] 2016

Board of Directors

Terry Grammer Chairman

Trevor Dixon Managing Director

Fritz Fitton Technical Director

Joe Graziano Non-Executive Director & Company Secretary

Contact Details

Post PO Box 565 Mount Hawthorn Western Australia 6915

Office 342 Scarborough Beach Road Osborne Park Western Australia 6017

Phone 08 9242 2227

Fax 08 9242 1277

Significant Multiple Gold Intersections at Merton’s Reward

Highlights

• Merton’s Reward recent significant drill results include :

• A wide gold zone of 22m @ 2.7g/t Au from 74m, including a higher grade core of 8m @ 4.7g/t Au from 85m with a second zone of 8m @ 1.6g/t Au from 158m including 1m @ 4.5g/t Au (MR16RC011)

• Multiple zones of mineralisation in MR16RC010, 9m @ 2.2g/t Au from 90m including 4m @ 3.7g/t Au, 7m @ 1.7g/t Au from 115m and 7m @ 1.9g/t Au from 190m including 1m @ 7.5g/t Au

• Multiple shallow zones of mineralisation in MR16RC014, 6m @ 1.6g/t Au from 37m including 1m @ 5.8g/t Au, 6m @ 2.5g/t Au from 54m including 1m @ 9.5g/t Au and 5m @ 1.6g/t Au from 72m

• Gold Intersections confirm the T2 lode extends 100m further down plunge than previously modeled

Email info@kinmining.com.au Website www.kinmining.com.au

Shares on Issue: 46,614,690 (KIN) 89,512,891 Unlisted Options: 14,925,000

• Mineralisation at Merton’s Reward remains open both along strike and down plunge, with good potential for shear hosted gold mineralisation to persist at depth

Kin Mining NL (ASX: KIN) is pleased to announce further multiple gold intersections from its highly successful drill program at Merton’s Reward. The latest results extends the T2 lode 100m down plunge and confirms that the new geological model is robust. All 14 drillholes at Merton’s Reward drilled to date by Kin Mining have intersected multiple zones of gold mineralisation that is expected to have a positive effect on an upcoming revised resource calculation for Merton’s Reward.

ASX: KIN

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

Five Reverse Circulation holes have been completed for a total of 882 metres, the recently completed drilling is part of an ongoing campaign at Merton’s Reward with the intention to expand the current Merton’s Reward Resource of 1.08 Mt @ 2.6 g/t Au for 91,000 oz (Table 1).

The drill program was designed to intersect extensions of the Merton’s Reward ore shoots as well as the poorly tested lode under the Mertondale 2 Pit.

Drillhole MR16RC011 intersected a wide gold zone of 22m @ 2.7g/t Au from 74m, including a higher grade core of 8m @ 4.7g/t Au from 85m. The intersection is interpreted to be the extension of the main gold lode that was mined in the Mertondale 2 Pit. The wide and consistent nature of the gold lode is highly encouraging and will be a focus area for future drill campaigns. The intersection sits at the base of the current pit design and highlights the possibility to extending the lode beyond the current pit design (Figure 1).

Drillhole MR16RC011 intersected a second zone of mineralisation of 8m @ 1.6g/t Au from 158m including 1m @ 4.5g/t Au. This zone of mineralisation is in line with the down plunge extension of the Merton’s Reward T2 lode (Figure 1).

Multiple zones of gold mineralisation in MR16RC010 were intersected with the widest being 9m @ 2.2g/t Au from 90m including a higher grade zone of 4m @ 3.7g/t Au from 90m. A separate high grade zone of 2m @ 5.2g/t Au was also intersected from 78m. Other significant zones of mineralisation were intersected from 104m and 115m with results of 5m @ 1.1g/t Au and 7m @ 1.7g/t Au respectfully. Interpretation of these zones is ongoing, early indications suggests a stacked gold lode system could exist directly north of the main gold lode in the Mertondale 2 Pit.

Drillhole MR16RC011 also intersected and deeper zone of mineralisation of 7m @ 1.9g/t Au from 190m including 1m @ 7.5g/t Au. This zone of mineralisation is highly encouraging as it is in line with the down plunge extension of the Merton’s Reward T2 lode gold and confirms the T2 lode extends 100m further down plunge than previously modeled.

Drillholes MR16RC012 to MR16RC014 were designed to intersect both the T1 and T2 lodes where infill drilling was required. All three holes intersected significant gold mineralisation, with MR16RC014 the standout of the three holes. MR16RC014 intersected multiple zones of shallow mineralisation, 6m @ 1.6g/t Au from 37m including 1m @ 5.8g/t Au, 6m @ 2.5g/t Au from 54m including 1m @ 9.5g/t Au and 5m @ 1.6g/t Au from 72m.

The results correlate with previously announced intersections and confirm that both the T1 lode and the T2 lode are extensive mineralised lodes that remain open down plunge and at depth. The latest results confirm that the new geological model is robust and a revised resource calculation using the new geological model has commenced. The new resource calculation will incorporate all new drill data and is expected to be complete after the current phase of drilling at Merton’s Reward is complete.

Managing Director Trevor Dixon said “ The latest drilling confirms that mineralisation at Merton’s Reward persists much deeper than previously thought. The drilling has been highly targeted to extend the known mineralisation at depth and the latest results demonstrate that mineralisation extends down at least another 100m than what is currently modeled. Drilling behind the Mertondale 2 pit has resulted in some very positive results which will require follow up work. Merton’s Reward is proving to be a very large ore body and we believe that there is more gold to be discovered. Kin are very encouraged by the latest results as we have defined considerable amounts of gold outside our current pit design.”

Table 1KIn Mining Leonora Gold Project Combined 2012 JORC compliant Resources.

	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area	Mineral Resources - Mertondale Area
	Lower cut-off	Indicated			Inferred			Total Resource
Project Area
	grade (g/t) Au	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
MERTONDALE		(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)
Mertondale 3/4	0.7	870,000	2.3	65,000	660,000	2.1	45,000	1,530,000	2.2	110,000
Merton’s Reward	0.7	1,010,000	2.7	87,000	70,000	1.7	4,000	1,080,000	2.6	91,000
Tonto	0.7	970,000	1.9	60,000				970,000	1.9	60,000
Eclipse	0.7	620,000	1.8	35,000	250,000	1.7	14,000	870,000	1.8	49,000
Mertondale 5	0.7	320,000	3.2	33,000	160,000	2.7	13,000	480,000	3	46,000
Quicksilver	0.7	550,000	1.8	31,000	110,000	2.1	8,000	660,000	1.8	39,000
TOTAL		4,340,000	2.2	311,000	1,250,000	2.1	84,000	5,590,000	2.2	395,000
	Bruno-Lewis-Kyte Deposits - Cardinia Area
	Lower cut-off	Indicated			Inferred			Total Resource
Project Area
	grade (g/t) Au	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
BRUNO - LEWIS - KYTE		(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)
Oxide	0.7	1,405,000	1.2	53,400	1,869,000	1.3	81,100	3,274,000	1.3	134,500
Transition	0.7	35,000	1.1	1,300	57,000	1.2	2,200	92,000	1.2	3,500
Fresh	0.7	1,000	1.5	100	31,000	1.3	1,300	32,000	1.3	1,400
TOTAL		1,441,000	1.2	54,800	1,957,000	1.3	84,600	3,398,000	1.3	139,400
	Helen's and Rangoon Deposit - Cardinia Area
	Lower cut-off	Indicated			Inferred			Total Resource
Project Area
	grade (g/t) Au	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
HELENS and RANGOON		(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)
Oxide	0.7	382,000	1.3	15,800	245,000	1.2	9,200	627,000	1.2	24,900
Transition	0.7	455,000	1.4	20,800	103,000	1.2	4,100	558,000	1.4	24,900
Fresh	0.7	67,000	1.5	3,300	15,000	1.6	800	82,000	1.5	4,100
TOTAL		904000	1.4	39,900	363000	1.2	14,100	1,267,000	1.3	53,900
Michelangelo – Leonardo, Forgotten Four and Krang Deposits - Raeside Area
	Lower cut-off	Indicated			Inferred			Total Resource
Project Area
	grade (g/t) Au	Tonnes	Au	Au	Tonnes	Au	Au	Tonnes	Au	Au
RAESIDE		(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)	(t)	(g/t)	(Ounces)
Michelangelo-Leonardo	0.7	1,280,000	2.7	111,000				1,280,000	2.7	111,000
Forgotten 4	0.7	70,000	3	7,000	100,000	2.1	7,000	170,000	2.5	14,000
Krang	0.7	110,000	2.6	9,000				110,000	2.6	9,000
TOTAL		1,470,000	2.7	127,000	100,000	2.1	7,000	1,570,000	2.6	134,000
	Reportable Resources(0.7g/t Au cut-off inside$2,000per ouncepit shell)
Combined 2012 JORC compliant Resource of 11.825Mt@ 1.9g/t Au for 722,300 ozs

==> picture [814 x 369] intentionally omitted <==

----- Start of picture text -----

Mert 2 OpenCut Pit
MR15RC011 22m @ 2.7 g/t
MR16RC014 6m @ 1.6 g/t
Au incl 8m @ 4.7g/t Au
Au incl 1m @ 5.8g/t Au
NMRC412 11m @ 3.4 g/t Au
incl 2m @ 11.9g/t Au
MR16RC014 6m @ 2.5 g/t
Au incl 1m @ 9.5g/t Au
MR16RC010 2m @ 5.2 g/t Au
MR16RC014 5m @ 1.6 g/t Au NMRC112 7m @ 7.2 g/t Au
MR16RC010 9m @ 2.2 g/t
Au incl 4m @ 3.7g/t Au
$1500 Pit Optimisation MR16RC010 5m @ 1.1 g/t Au
MR16RC010 7m @ 1.7 g/t Au
NMRC112 20m @ 4.4 g/t Au
NMRC412 1m @ 27.3g/t
incl 9m @ 7.8g/t Au
NMRC412 5m @ 2.9g/t Au
MR15RC003 29m @ 1.4g/t Au incl
10m @ 1.7g/t Au and 7m @ 1.8g/t Au
MR16RC011 8m @ 1.6 g/t Au
incl 1m @ 4.5g/t Au
MR16RC010 7m @ 1.9 g/t
Au incl 1m @ 7.5g/t Au
----- End of picture text -----

Figure 1 Long Section looking west, highlighting Merton's Reward Underground workings with historic (black text) and new intercepts (blue text). Interpreted extension of the Merton’s Reward north plunging ore shoot and the Mert2 pit extension (dashed orange). With all resource drilling (0-0.5g/t Au= Black, 0.5-1g/t Au= Cyan, 1-3g/t Au= Red and >3g/t Au = Magenta)

.

Table 2 Recent Drillhole Details

HOLE ID	Northing	Easting	Depth(m)	Dip	Azimuth
MR16RC010	6827472	357720	233	-90	0
MR16RC011	6827469	357721	220	-62	200
MR16RC012	6827202	357723	160	-60	230
MR16RC013	6827188	357655	120	-60	265
MR16RC014	6827157	357697	149	-60	265

Table 3 Reported significant gold assay intersections (using a 0.5 g/t Au cut) are reported using 1m intervals (unless otherwise stated) with up to 1m of internal dilution. True widths of the high grade shear zone remain unclear and is therefore regarded as not true width.

Hole ID	Depth From	Depth To	Interval(m)	Grade(g/t Au)
MR16RC010	40	44	4	2.0
	61	62	1	2.7
	70	73	3	1.2
	78	81	3	3.7
	90	99	9	2.2
			Including 4m from 90m	3.7
	104	109	5	1.1
	115	122	7	1.7
	157	160	3	1.5
	167	169	2	1.4
	181	183	2	1.4
	190	197	7	1.9
			Including 1m from 192m	7.5
	212	214	2	1.4
MR16RC011	36	39	3	0.9
	58	60	2	1.3
	65	67	2	0.9
	74	96	22	2.7
			Including 8m from 85m	4.7
	99	100	1	1.2
	106	112	6	1.3
	115	116	1	1.3
	131	134	3	2.1
	139	140	1	2.6
	146	147	1	4.0
	158	166	8	1.6
			Including 1m from 164	4.5
	176	180	4	0.6
	185	186	1	1.2
	189	190	1	1.1
	203	205	2	1.1
	217	219	2	0.6
MR16RC012	39	45	6	1.4
			Including 2m from 41m	2.5

Hole ID	Depth From	Depth To	**Interval(m) **	**Grade(g/t Au) **
	89	91	2	0.6
	105	106	1	1.0
	112	113	1	0.7
	130	131	1	0.6
MR16RC013	0	4	4(4m composite sample)	0.9
	12	16	4(4m composite sample)	1.1
	22	24	2	3.6
	30	31	1	0.8
	44	45	1	5.3
	60	61	1	0.6
	78	81	3	1.3
	91	92	1	0.8
	99	100	1	1.3
	108	111	3	0.6
	115	116	1	0.8
MR16RC014	32	34	2	2.5
	37	43	6	1.6
			Including 1m from 41	5.8
	54	60	6	2.5
			Including 1m from 58	9.5
	67	69	2	2.4
	72	77	5	1.6
			Including 1m from 75	3.5
	98	99	1	1.0
	101	104	3	0.8
	121	122	1	0.7
	128	131	3	0.7
	135	138	3	1.2

Competent Persons Statement

The information contained in this report that relates to mineral resources and exploration results is based on information compiled and reviewed by Paul Maher who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and Mr. Simon Buswell-Smith who is a Member of the Australian Institute of Geoscientists (MAIG), both are employees of the company and fairly represent this information. Mr. Maher and Mr. Buswell-Smith have sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the “JORC Australian code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Maher and Mr. Buswell-Smith consent to the inclusion in this report of the matters based on information in the form and context in which it appears.

Forward Looking Statements

Certain information in this document refers to the intentions of Kin Mining NL, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Kin Mining NL’s actual results, performance or achievements to differ from those referred to in this announcement. Accordingly, Kin Mining NL, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this announcement will actually occur as contemplated

Appendix A Company Announcement SECTION 1 – Sample Techniques and Data

Criteria	Commentary
Sampling techniques	Sampling of drill holes are comprised of one metre (1m) riffel split samples, as drilled.. Samples were collected over one metre intervals as individual split metres. Approximately 3.5kg of sample was collected over each sampled interval. All samples are drill spoil collected via a riffel splitter attached to the rig (at 1m intervals). Historic RC drilling, within the target zones, was drilled, sampled and compiled by previous project owners; these samples were also collected over 1m intervals and fire assayed. Sampling techniques, past and present, are considered to be in line with the standard industry practice of the day and are considered to be representative. Once received at the assay laboratory Kin samples were dried, crushed, pulverised and split to a representative 50grams then fire assayed. All drill holes are accurately located and referenced with grid coordinates recorded in the standard MGA94 Zone51 grid system. Samples are collected using a standard face hammer, they are split/bagged/logged at the drill site. Samples were Fire Assayed (50 gram charge) for Au only. All samples and drilling procedures are conducted and guided by Kin Mining protocols, QA/QC procedures are implemented as per industry standard.
Drilling techniques	Surface drilling is completed by a standard Reverse Circulation (RC) drilling technique. RC drilling was conducted by Orbit Drilling using a Hydco 350 8x8 Actross drilling rig with a 350psi/1250cfm air capacity, a support booster compressor 900psi/1300cfm was utilised in the deeper sections of the drill holes. RC drilling used a face-sampling hammer over a 140mm diameter drill holes. The holes have been surveyed using a multi-shot downhole camera (data not available at the time of reporting) Holes are surveyed on surface using a hand held GPS (accuracy ±3m).
Drill sample recovery	Sample recovery is measured and monitored by the drill contractor and Kin Mining representatives, bag volume is visually estimated and sample recovery was generally very good. No recovery issues were encountered. For historic drilling, sample recovery data has not been assessed. The sample collected for assay is considered to represent a composite sample. Sample recovery is maximized by using best-practice drill techniques, the hammer is pulled back at the completion of each metre and the entire 1m sample is blown back through the rod string. The riffel splitter is cleaned with compressed air at the end of each metre and at the completion of the hole. In the case of 1m samples a riffel splitter attached to the rig is used to collect the sample, duplicate 1m samples and a standard are inserted every 20m. The vast majority of samples were collected dry however on occasion wet samples were encountered in MR16RC012 (3 separate metres). The intersections reported were collected over dry intervals; sampling equipment was cleaned periodically to reduce cross bag contamination. Samples are stored in numbered calico bags. It’s confirmed by existing reports that historic drilling and sampling methodologies were conducted to industry standards of the day. No relationship was observed between sample recovery and grade.
Logging	Kin’s procedure for geological logging of sample includes recording the colour, lithology, sulphide mineralisation content, veining, alteration, oxidation, grid coordinates, sample interval and hole depth. Data is physically stored and electronically logged. The level of logging detail is considered appropriate for exploration drilling. Logging of geology and colour are interpretative and qualitative, whereas logging of mineral percentage is quantitative. All drill holes are logged entirely, at 1m intervals, to the end of hole. All drill hole logging data is digitally captured, data is validated prior to being uploaded to the data base.
Sub- sampling techniques and sample preparation	See Sampling techniques in the above section. The sample collection methodology is considered appropriate for RC drilling and is within today’s standard industry practice. Split one metre sample (1m) results are regarded as reliable. RC samples are split with a riffel splitter at one metre intervals as drilled. Analysis was conducted by SGS Mineral Services Laboratories in Kalgoorlie. At the laboratory samples are dried, crushed and pulverised until the sample is homogeneous. Analysis technique for gold (only) was a Fire Assay 50 gram charge AAS finish (Lab method FAA505). The vast majority of samples were collected dry; on occasion ground water was encountered and a minimal number of samples were collected wet. Some residual moisture was present as some samples were collected however it’s regarded as minimal and not of sufficient concentration to affect the sampling process. Periodicallyfield standards and duplicate samples were submitted with the sample batch,the assay

Criteria	Commentary
	laboratory (SGS) also included their own internal checks and balances consisting of repeats and standards; repeatability and standard results were within acceptable limits. No issues have been identified with sample representatively. The sample size is considered appropriate for this type of mineralisation style.
Quality of assay data and laboratory tests	Geochemical analysis was conducted by SGS Laboratories in Kalgoorlie. Sample preparation included drying samples (105°C) and pulverising to 95% passing 75µm. Samples were riffle split to secure a sample charge of 50 grams. Analysis was via Fire Assay (FAA505) with AAS finish. Only gold analysis was conducted (ppm detection). The analytical process and the level of detection are considered appropriate for this stage of exploration. Fire assay is regarded as a complete digest technique. No geophysical tools were used to determine any element concentrations. Internal laboratory quality control procedures have been adopted. Certified reference material in the form of standards and duplicates are periodically imbedded in the sample batch by Kin at a ratio of 1:10.
Verification of_sampling _and assaying	The reported significant intersections have been verified by at least two company geologists. All the logged samples have been assayed; the assay data has been/will be stored physically and electronically in the company database using Kin Mining’s protocols. The sampling and assay data has been compiled, verified and interpreted by company geologists who are the competent persons. No holes were twined. No adjustments, averaging or calibrations are made to any of the assay data recorded in the database. QA/QC protocol is considered industry standard with standard reference material submitted on a routine basis.
Location of data points	Drill hole collars were located and recorded in the field using a hand held GPS with a three metre or better accuracy. The grid coordinate system utilised is (GDA94 Zone51). Hole locations were visually checked on ground and against historic plans for spatial verification. No topographic control (i.e. RL) was required.
Data spacing and distribution	The drill hole spacing is project specific; the RC drilling patterns employed were dependent on previous drilling, geological interpretation and proximity to old workings. The sample spacing is considered close enough to identify significant zones of gold mineralisation. The drill programme is a follow up/ongoing exploration exercise that was designed to identify areas of geological interest and extensions to known mineralisation at Merton’s Reward (T2). A closer spaced drill programme, on surrounding cross sections, is required to determine the extent, size and geometry of the identified zones of gold mineralisation. Drill spacing and drill technique is sufficient to establish the degree of geological and grade continuity appropriate for the mineral resources and ore reserve estimation procedures and classifications applied however the mineralised system remains open and additional infill drilling is required to close off and confirm its extent.
Orientation of data in relation to geological structure	The sheared Mertondale greenstone sequence displays a NNE to North trend. The tenement package is contiguous; the sampling programme was designed to provide, as best as practicable, an unbiased location of drill sample data. The chance of sample bias introduced by sample orientation is considered minimal. No orientation sampling bias has been identified in the data thus far. The vast majority of historical drilling is orientated at 270°. Gold mineralisation occurs in the hanging wall of the steep westerly dipping MSZ. Gold occurs where mineralised shears define Z-shaped asymmetric bends. Gold is associated with brittle fracture, sulphides (pyrite and arsenopyrite) and shallow east dipping quartz veins in altered basalt. Ore shoots plunge approximately 20° to the NE, colinear with boudins and intersection lineations.
Sample security	Samples were collected daily in the field and stored in a secure location in Leonora. Upon completion of drill holes all samples were transported to Kalgoorlie by a SGS transport contractor. The samples were then stored at their lab in a secure lockable building. They were checked against the field manifest, sorted and prepared for assay. Samples were then assayed under the supervision of SGS at their Kalgoorlie laboratory. Once in the laboratories possession adequate sample security measures are utilised.

Criteria

Commentary

Sampling methodologies and assay techniques used in this drilling programme are considered to be mineral Audits or exploration industry standard and any audits or reviews are not considered necessary at this early reviews exploration stage. No audits or reviews have been conducted at this stage apart from internal reviews and field quality control.

Section 2 Reporting of Exploration Results

Criteria	Commentary
Mineral tenement and land tenure status	The RC drill programme was conducted on tenement M37/1284; the area is referred to as Merton’s Reward. The tenement is held in the name of Navigator Mining Pty Ltd, a wholly owned subsidiary of Kin Mining NL. The tenements are managed, explored and maintained by Kin Mining NL. The tenements drilled represent a small portion of the larger Cardinia-Mertondale Project (300sqkm) which hosts the 722,300oz Leonora Gold Project (LGP) Resources. The tenement is located within the Shire of Leonora in the Mt Margret Mineral Field in the centre of the North Eastern Goldfields. The holding is located approximately 35km NE of Leonora. There is no known heritage or environmental impediments over M37/1284.
Exploration done by other parties	Gold was initially discovered in the area in 1899 by Mr. Fred Merton. The Merton’s Reward (MR) underground gold mine was the direct result of his discovery. The main mining phase at MR was 1899- 1911. Historic underground production records to 1942 yield 88,991t @ 20.8g/t Au (60,520oz). Between 1981-1984 Telluride Mining NL, Nickel Ore NL, International Nickel (Aust) Ltd and Petroleum Securities Mining Co Pty Ltd conducted exploration programmes in the Mertondale area. Hunter Resources Ltd began actively exploring the region 1984-1989, Hunter submitted a NOI in 1986 and established a JV with Harbour Lights to treat ore from Mertondale 2 and Mertondale 3. Between 1996- 1988 the Mertondale 4 pit was mined. Harbour Lights acquired the project in 1989 from Hunter. Ashton Gold eventually gained control of Harbour Lights. Mining was completed in 1993 with the mining of the Mertondale 5 pit. In 1993 Ashton’s interest was transferred to Aurora Gold who established a JV with MPI followed by Sons of Gwalia who entered into a JV with Aurora. Sons of Gwalia (SGW) eventually obtained control of the project in 1997 but conducted limited drilling; in 2004 Navigator Mining Pty Ltd (NAV) acquired the tenement holding from the SGW administrator. Navigator conducted the majority of exploration drilling in the area. Kin Mining acquired the project from the (NAV) administrator in late 2014. Historic production from the Mertondale open pits totals 270,000oz. Drilling has been conducted in the immediate area surrounding the two Kin drill holes by several previous owners. The data base has been interrogated and scrutinised to a level where the LGP gold resources are JORC 2012 compliant (ASX announcement 11 May 2015). Visual validation, using 3D software, has been conducted as well as cross referencing with historic reports. Mineralisation between cross sections is cohesive and robust, suggesting that the data is valid.
Geology	The regional geology comprises a suite of NNE-North trending greenstones positioned on the Mertondale Shear Zone (MSZ), a splay limb of the Kilkenny Lineament. The MSZ denotes the contact between Archaean felsic volcanoclastic and sediment sequences (west) and Archaean mafic volcanics (east). Proterozoic dykes and Archaean felsic porphyries have intruded the altered mafic basalt/felsic volcanoclastic/sedimentary sequence of the MSZ. The Hanging Wall of the MSZ is mineralised with gold. Two different types of lode have been identified at Merton’s Reward; shear hosted lodes and intershear lodes. Exploration is targeting extensions to modest sized but high grade dilational intershear lodes and/or shear hosted gold mineralisation similar to other deposits in the local district.
Drill hole Information	The location of the hole collars is presented as a table in the body of this report. Gold intersections are plotted on relevant plans and also reported in the table. All hole depths refer to down hole depth in metres. All hole collars are MGA94 Zone51 positioned. Elevation is a nominal estimate. Drill holes are measured from the collar of the hole to the bottom of the hole.

Criteria	Commentary
Data Aggregation methods	No averaging of the raw assay data was applied. Raw data was used to determine the location and width of gold intersections and anomalous gold trends. Geological assessment and interpretation was used to determine the relevance of the plotted intersections with respect to the sampled medium. Individual grades are reported as down hole length weighted averages. Only RC intersections >0.5g/t are regarded as significant. Anomalous intersections are tabled in the body of this report. No upper cuts were applied to determine anomalous gold areas.
Relationship Between Mineralisation widths and intercept lengths	The orientation, true width and geometry can be determined by interpretation of historical drilling and existing cross sections, however the varied orientation of the lodes and true widths of the high grade shear zone remain unclear and therefore drilling is regarded as not true width. Drilling on an Azimuth of 270° is regarded as best practice to intersect close to true width as possible at this stage. However due to existing old workings and open pits this may not always be possible. Mineralised intercepts are interpreted as extensions of the existing gold resources however they are outside the current parameters of the Merton’s Reward ore body (91,000oz) resource calculation. The maximum and minimum sample width within the mineralised zone is 1m.
Diagrams	Relevant “type example” plans and diagrams are included in this report.
Balanced Reporting	Detailed assay results are diagrammatically displayed and tabled in this report. Only the significant gold results are discussed and reported. The available historic database includes a large inherited data set compiled by previous project owners dating back to 1982. There are limitations in the amount of information provided in the data set. It has not been possible to fully verify the reliability and accuracy of a substantial portion of the data however it appears that no serious problems have occurred and validation check results were within acceptable limits. In general the recent data is more reliable than historic data. More than 50% of the drill data for the Merton’s Reward model is sourced from Navigator with a substantial portion sourced from Hunter. Considering the complex history of grid transformations there must be some residual risk in converting old grids to GDA94 although generally the survey control appears to be accurate and satisfactory. In the case of the existing LGP resource calculation there is always an area of technical risk associated with resource tonnage and grade estimations.
Other Substantive exploration data	Regarding the results received no other substantive data is currently considered necessary. Long section diagram illustrates all resource drilling to date
Further work	The potential to increase the existing resource is viewed as probable, however committing to further work does not guarantee that an upgrade in the resource would be achieved. Kin mining intend to drill more holes at Merton’s Reward with the intention to increase the resource at Merton’s Reward.