PATRONUS RESOURCES LIMITED — Capital/Financing Update 2017

Feb 23, 2017

A.C.N: 150 597 541

Board of Directors

SPP TIMETABLE UPDATE

Trevor Dixon

Non-Executive Chairman

Don Harper Managing Director

David Sproule Non-executive Director

Joe Graziano

Non-Executive Director/ Company Secretary

Contact Details

Post

PO Box 565 Mount Hawthorn Western Australia 6915

On 13 February 2017, Kin Mining Limited (KIN) announced a Share Purchase Plan (SPP) allowing eligible shareholders to acquire up to $15,000 worth of fully paid ordinary shares in Kin Mining Limited at an issue price of $0.20 per share together with one free attaching option for every two shares subscribed for and issued (Offer).

Under the SPP, the Company will seek to issue a maximum of 34,000,000 Shares at an issue price of $0.20 per Share and 17,000,000 attaching Options. The Company will raise up to $6,800,000 from the issue of the Shares, with the potential for further funds to be raised if the attaching Options are exercised. In the event less than $6,800,000 is applied for, the balance will revert to shortfall offer which will continue beyond the closing date of the Offer (Shortfall Offer).

The Board intends to seek Shareholder approval for the purposes of ASX Listing Rule 7.1 for the issue of the Shares and Options the subject of the Offer and the Shortfall Offer during the three (3) months after the General Meeting (or a longer period of allowed by the ASX), without using the Company’s 15% placement capacity.

As a result of the above, KIN has delayed the Offer Open and SPP Prospectus, Terms and Conditions and a personalised Application Form to be distributed to all eligible shareholders dispatch date to Monday 6 March 2017.

Office

342 Scarborough Beach Road Osborne Park Western Australia 6017

Phone

08 9242 2227

Fax

08 9242 1277

Email

The revised key dates for the SPP are as follows[1] :

vised key dates for the SPP are as follows1:
Event	Date
Record Date (5.00pm WST)	10 February 2017
Announcement of Share Purchase Plan	13 February 2017
Offer Opens & SPP Prospectus Document Dispatch	6 March 2017
Offer Closes (5.00pm WST)	27 March 2017
Issue Date of new shares	14 April 2017
1 KIN reserves the right to vary these times and dates in its absolute discretion.

info@kinmining.com.au

Website

www.kinmining.com.au

The purpose of the SPP is to place KIN in a position to fast track the Leonora Gold Project Definitive Feasibility Study, secure opportunistic infrastructure acquisitions as they arise and provide additional working capital. Further more detailed information regarding the purpose of the SPP will be outlined in the SPP Terms and Conditions.

Shares on Issue:

46,614,690 (KIN)114,360,309

Unlisted Options : 13,445,000

ASX: KIN

The new shares issued under the SPP will rank equally with existing KIN shares.

Yours sincerely

Joe Graziano Company Secretary

-ENDS-

For further information, please contact:

Don Harper Paul Armstrong/Nicholas Read CEO 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 low-risk, 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.

==> picture [479 x 686] intentionally omitted <==

==> picture [364 x 10] intentionally omitted <==

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

Figure 1 Leonora Gold Project tenure with Mineral Resources and Prospects
----- End of picture text -----

	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	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

Table of Kin Mining Mineral Resources (Refer ASX announcement 11[th] May 2015)

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.