PATRONUS RESOURCES LIMITED — Capital/Financing Update 2017

Apr 25, 2017

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Figure
ASX Code: KIN
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26 April 2017

Board of Directors

Trevor Dixon Chairman

Kin Secures Processing Facility for $2.5M

Don Harper Managing Director

David Sproule Technical Director

Joe Graziano Non-Executive Director & Company Secretary

HIGHLIGHTS

• Due diligence confirms the Lawlers Processing Facility is in very good condition and will provide a rapid and cost-effective pathway to gold production at Kin’s 100% owned Leonora Gold Project in WA

• Kin executes option agreement to purchase the Lawlers processing plant from Agnew Gold Mining Company Pty Ltd (Gold Fields) for $2.5M

Contact Details

• Acquisition price includes the $100,000 exclusivity fee paid by Kin to Agnew Gold Mining Company Pty Ltd (Gold Fields) on 24 November 2016

Post

PO Box 565 Mount Hawthorn Western Australia 6915

• First payment to Gold Fields of $1.2M due at settlement, which is expected to be in July 2017, with a second and final payment of $1.2M due 12 months after settlement

Office

342 Scarborough Beach Road Osborne Park Western Australia 6017

Phone

08 9242 2227

Fax 08 9242 1277

Email

info@kinmining.com.au

Website www.kinmining.com.au

Shares on Issue: 124,720,309

Unlisted Options : 23,625,000

ASX: KIN

• Kin will relocate the Lawlers plant to the Cardinia Mining Centre at the Leonora Gold Project

Kin Mining NL ( ASX: KIN ) is pleased to announce that it has entered into an Option to Purchase Agreement with Agnew Gold Mining Company Pty Ltd (Gold Fields) to acquire the Lawlers Processing Facility. The Lawlers Plant will be relocated and upgraded to meet Kin’s processing requirements at its Leonora Gold Project (LGP).

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Figure 1: Lawlers Processing Plant

Due diligence by Kin has established that the Lawlers plant is ideal for the LGP as it provides a large proportion of the key processing equipment, ancillary items and infrastructure required to establish the project.

The purchase agreement requires Kin to make a first payment of $1.2M upon settlement. A second and final payment of $1.2M is due at the first anniversary of settlement, likely to be mid-2018. The Company has already paid Gold Fields $100,000 as part of the exclusivity fee, which forms part of the total purchase price.

The plant, which has been on care and maintenance for 21 months, has a capacity of approximately 800,000 tpa. The plant was decommissioned well by Gold Fields and includes a significant inventory of spare parts. Inclusive of the purchase will be the laboratory, warehouse, administration buildings along with plant design and construction drawings, which will save engineering costs and time.

Bond Work Index (ore hardness) determinations are being generated for the various LGP ore types as part of the Definitive Feasibility Study which will allow the optimum throughput to be achieved with the planned ore blends to the plant. Kin plans to relocate the Lawlers plant, located approximately 130km north of the LGP, to the Cardinia Mining Centre where Kin recently announced outstanding drilling results from the Lewis[1] , Helens[2 ] and Fiona[3] deposits.

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Figure 2: Lawlers Processing Facility, showing crushing circuit (foreground), and leach tanks (back right).

Kin Managing Director Don Harper said:

“The Lawlers Processing plant option offers Kin a cost effective and rapid pathway to early gold production. We are planning to optimise the Lawlers plant by carefully evaluating the metallurgical characteristics of the various potential LGP ore types. Following the recent discovery of the Lewis primary ore zone, we are confirming the optimal process flowsheet and throughput given the likely enhancement in grade to be presented to the Cardinia mill.”

“Securing the Lawlers Processing Plant provides a boost to the development of the LGP and demonstrates the Company’s commitment to maximising shareholder value, by taking such opportunities to fast-track gold production,” Mr Harper said.

1 19 April 2017, Kin Makes Spectacular Primary Gold Discovery at Lewis

2

3 April 2017, Confidence Builds in Resource Base at Leonora Gold project

3 23 March 2017, Kin Makes New Shallow High Grade Discovery with hits of up to 283 g/t Au

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Figure 3. Proposed Processing Plant Location at the central Cardinia Mining Centre

-ENDS-

For further information, please contact:

Don Harper Paul Armstrong/Nicholas Read Managing Director Kin Mining NL Read Corporate +61 8 9242 2227 +61 (0) 8 9388 1474

About Kin Mining

Kin Mining NL (ASX: KIN) is an emerging gold development company with a significant tenement portfolio in the NorthEastern Goldfields of Western Australia. The immediate focus of the company is the (100% Kin), Leonora Gold Project (LGP) which contains a JORC resource of 721 koz Au.

Kin’s priority is to complete a Feasibility Study for the LGP by mid-2017. Drilling is in progress with the objective of converting the Inferred Mineral Resources in the mine plan to Indicated Mineral Resources. Metallurgical, geotechnical, and environmental work is currently underway to support the Definitive Feasibility Study, which will form the basis for a decision to mine.

Competent Persons Statement

The information contained in this report relates to information compiled or 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 Competent Persons 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.

		Leonora Gold Project Mineral Resources
Project Area	Lower cut-off Grade	Indicated Resources			Inferred Resources			Total	Resources
	g/t Au	Mt	g/t Au	koz Au	Mt	g/t Au	koz Au	Mt	g/t Au	koz Au
Mertondale*
Mertondale 3-4	0.7	0.87	2.3	65	0.66	2.1	45	1.53	2.2	110
Merton’s Reward	0.7	1.01	2.7	87	0.07	1.7	4	1.08	2.6	91
Tonto	0.7	0.97	1.9	60				0.97	1.9	60
Eclipse (Tonto North)	0.7	0.62	1.8	35	0.25	1.7	14	0.87	1.8	49
Mertondale 5	0.7	0.32	3.2	33	0.16	2.7	13	0.48	3.0	46
Quicksilver (Tonto South)	0.7	0.55	1.8	31	0.11	2.1	8	0.66	1.8	39
Subtotal Mertondale		4.34	2.2	311	1.25	2.1	84	5.59	2.2	395
Cardinia**
Bruno-Lewis Exploration	0.7	1.04	1.1	37	1.52	1.3	63	2.56	1.2	100
Helen’s North	0.7	0.63	1.2	24	0.13	1.1	5	0.76	1.2	29
Kyte	0.7				0.31	1.6	16	0.31	1.6	16
Rangoon	0.7	0.09	1.8	5	0.23	1.3	9	0.31	1.4	14
Lewis Grade Control***	0.7	0.29	1.4	12				0.29	1.4	12
Bruno Grade Control	0.7	0.11	1.4	5	0.03	1.1	1	0.15	1.3	6
Helen’s South	0.7	0.19	1.8	11	0.01	1.3	0	0.20	1.7	11
Lewis South	0.7				0.10	1.3	4	0.10	1.3	4
Subtotal Cardinia		2.35	1.3	94	2.33	1.3	98	4.68	1.3	192
Raeside
Michelangelo- Leonardo	0.7	1.28	2.7	111				1.28	2.7	111
Forgotten Four	0.7	0.07	3.0	7	0.10	2.1	7	0.17	2.5	14
Krang	0.7	0.11	2.6	9				0.11	2.6	9
Subtotal Raeside		1.47	2.7	127	0.10	2.1	7	1.57	2.6	134
TOTAL		8.16	2.0	532	3.7	1.6	189	11.8	1.9	721

Table of Kin Mining Mineral Resources (Refer ASX announcement 11[th] May 2015). The Company confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

Totals may not tally due to rounding of values.

* Resource estimate by McDonald Speijers, 2009 with Merton’s Reward depleted by McDonald Speijers in 2010. ** Resource estimate by Runge Limited, 2009 with Bruno Grade Control depleted by Runge in 2010. Notes: Assay top cuts for Mertondale and Raeside are variable but generally between 10-20 g/t Au and are 15g/t Au at Cardinia. No allowance has been made for dilution or ore loss. All resources are constrained by open pit shells optimised at A$2,000/oz.

*** Resource Estimate at Lewis depleted by 999oz from Lewis Pit Trial Mining completed in June 2016 (ASX announcement 5 October 2016). Production targets include depletion.