PATRONUS RESOURCES LIMITED — Capital/Financing Update 2017

Feb 28, 2017

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A.C.N: 150 597 541
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1 March 2017

Board of Directors

SUBSCRIPTION AGREEMENT – MR DAVID SPROULE

Trevor Dixon Chairman

Don Harper Managing Director

David Sproule Non-Executive Director

Kin Mining NL (ASX: KIN) is pleased to announce that it has executed a Subscription Agreement with Meadowhead Investments Pty Ltd as trustee for The Sproule Family Trust (Subscriber).

Joe Graziano

Non-Executive Director/ Company Secretary

Contact Details

The Subscriber, Mr David Sproule has recently joined the Kin Board and has agreed to invest up to $800,000 in Kin by way of subscription for Shares and free attaching Options forming part of any shortfall arising under the Share Purchase Plan (SPP).

Post

PO Box 565 Mount Hawthorn Western Australia 6915

Office

As a Director of the Company Mr Sproule is a Related Party and as such the subscription of securities contemplated under the Subscription Agreement is conditional upon Kin shareholders approving the subscription of shares and options.

342 Scarborough Beach Road Osborne Park Western Australia 6017

Phone

08 9242 2227

Email info@kinmining.com.au

Website

www.kinmining.com.au

Mr Sproule said “I am pleased to be assisting Kin with the development of its Leonora Gold Project. It is an exciting and robust project that should deliver low cost ounces well in excess of those currently defined. The project will not only create further enterprise within the North-Eastern Goldfields but also unlock significant value for Kin shareholders.”

Shares on Issue: 46,614,690 (KIN) 118,110,309 Unlisted Options : 13,445,000

Joe Graziano

Company Secretary

ASX: KIN

-ENDS-

For further information, please contact:

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

About Kin Mining

Kin Mining NL (ASX: KIN) is an emerging gold development company with a significant tenement portfolio in the North-Eastern 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. The outcomes of the Pre-Feasibility Study at the LGP, confirmed the potential for Kin to become a lowrisk, high-margin gold producer. Gold production is targeted for mid-2018.

Please refer to the announcement dated 15 December 2016 titled “PFS Confirms Leonora Gold Project as a High Margin Project”. Furthermore the Company confirms in accordance with the PFS announcement lodged on 15 December 2016 that all the material assumptions underpinning the annual production targets as provided in that Report continue to apply and have not materially changed.

The Project has forecast production of approximately 50,000 oz Au per annum, once established, over an initial 6.5-year mine life. Mining will be undertaken at 3 open pit mining centres, feeding a new 750 ktpa conventional carbon-in-leach processing plant, to be located at Cardinia. The plant is scheduled to be upgraded to 1.2 Mtpa in Year three. A total of 6.8 Mt of ore grading 1.5 g/t Au are scheduled to be processed over the life of the operation, yielding 309 koz of recovered gold. There is significant exploration upside in the Project area, which may increase the lifetime of the Project.

The robust economics of the Project are underpinned by a low pre-production capital cost, of only A$35M (including 15% contingency), and an operating cash flow of A$105M. The capital payback period is notable at only 18 months from first gold production, which demonstrates the low risk, high margin profile of the operation. The life-of-mine All In Sustaining Cost (AISC) is projected to be A$1,084 / oz Au. The Pre-Feasibility Study also identified several areas where opportunities exist to improve the economic and operational performance of the Project, such as securing a good quality second-hand processing plant, improving metallurgical recoveries, and further optimisation of mine designs.

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 scheduled or currently underway to support the DFS, which will form the basis for a decision to mine.

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Leonora Gold Project tenure with Mineral Resources & Prospects

		Leonora Gold Project Mineral Resources	Leonora Gold Project Mineral Resources	Leonora Gold Project Mineral Resources	Leonora Gold Project Mineral Resources	Leonora Gold Project Mineral Resources	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

Rounding errors may occur.

* 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 10-20g/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 Target includes depletion.