PATRONUS RESOURCES LIMITED — Capital/Financing Update 2017

Jan 16, 2017

17 January 2017

Board of Directors

TerryGrammer 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

Email info@kinmining.com.au

Website www.kinmining.com.au

46,614,690 (KIN) Shares on Issue: 114,360,309

Unlisted Options: 13,445,000

ASX: KIN

Impressive intercept of 37m @ 3.0 g/t Au at Mertondale 3-4 as strong drilling results continue at Leonora

Drilling continues to reinforce potential for increase and upgrade in Resources

Highlights

• Further wide high-grade results returned from in-fill and extensional drilling at the Mertondale 3-4 deposit within the Leonora Gold Project.
• Significant intercepts both within and outside the current PFS mine plan include:
  • 37m @ 3.0 g/t Au (142-179m) incl. 6m @ 10.7 g/t Au (MT16RC034)
  • 40m @ 1.5 g/t Au (106-146m) incl. 16m @ 2.3 g/t Au (MT16RC035)
  • 18m @ 3.0 g/t Au (99-117m) incl. 3m @ 10.9 g/t Au & 1m @ 25.3 g/t Au also 15m @ 2.1 g/t Au (MT16RC033)
  • 29m @ 1.5 g/t Au (70-99m) incl. 16m @ 2.1 g/t Au (MT16RC029)
  • 15m @ 1.9 g/t Au (135-150m) incl. 6m @ 3.1 g/t Au (MT16RC031)
  • 18m @ 1.3 g/t Au (26-44m) (MT16RC028)
• The drill results further support the potential to upgrade and increase the Project's Resources for inclusion in the Definitive Feasibility Study (DFS) due for completion by mid-2017.

Kin Mining NL (ASX: KIN) is pleased to report further strong drilling results from the Mertondale 3-4 deposit, part of its 100%-owned Leonora Gold Project in WA, where in-fill and extensional drilling has returned impressive new results including a wide intercept of 37m grading 3.0 g/t Au including a high-grade zone of 6m @ 10.7 g/t Au.

Reverse Circulation (RC) drilling has returned further significant wide gold intersections both from inside and outside the current Pre-Feasibility Study (PFS) pit design at Mertondale 3-4, reinforcing the potential both to increase and upgrade the existing Mineral Resources.

Figure 1 Plan view of the southern end of Mertondale 3-4 and the Pre-Feasibility Study open pit shell (light blue), latest drill results highlighting significant intersections in red, recently announced intersections in blue, MT16RC037-040 awaiting assays

The latest results from Mertondale 3-4 continue to confirm grade continuity and the structural interpretation, with the mineralisation remaining open at depth and along strike.

Figure 2 Long Section looking west highlighting plunge direction of the extensive mineralisation (red arrow) with new and recent significant drill intersections below the current pit design in brown (red discs=1-5 g/t Au and magenta discs= >5 g/t Au).

The ongoing drilling program at the Leonora Gold Project is designed to increase the gold resources and upgrade the Inferred Resources to the Indicated category for inclusion in the current Definitive Feasibility Study (DFS), which is on track for completion by mid-2017.

The addition of the latest campaign of drilling, comprising drill holes MT16RC027-036 for an advance of 1,645m, has the potential to increase the mining volumes and the gold inventory at the Mertondale 3-4 deposit. The Mertondale 3-4 open pit historically produced an estimated 179,300oz of gold from 1.30Mt of ore at a recovered grade of 4.3 g/t Au. Kin's mine plan includes an extension or cut-back to the south of this historical pit, with the recent drilling designed to evaluate this southern pit extension (Figure 1 and 2).

The program at Mertondale is now almost completed. Results from holes MT17RC037-040 are awaited, and all the results will be incorporated in the new Resource calculation.

The RC drill programme is ongoing. The drill rig has now moved on to Cardinia (the Kyte Prospect), where shallow oxide drilling for an advance of 2,180m is planned over the deposit to upgrade the Inferred Mineral Resources to the Indicated category.

Kin Chief Executive Officer Don Harper said the latest drilling results continue to demonstrate substantial upside at the Leonora Gold Project.

"The presence of such wide zones of high-grade mineralisation, close to surface, shows that we have just really scratched the surface in terms of identifying potential extensions to the existing resource inventory at Leonora," he said.

"The current drilling programmes represent an integral part of the Definitive Feasibility Study, due for completion by mid-year, which will allow us to deliver on our strategy of becoming a significant new Australian gold producer in 2018."

"Having our own processing facility will put the Company in the enviable position of being able to maximise value through further resource expansion and exploration success, with the cash-flow generated allowing us to undertake an aggressive near-mine exploration strategy to delineate further mill feed."

-ENDS-

For further information, please contact:

CEO Read Corporate +61 8 9242 2227

Don Harper Paul Armstrong/Nicholas Read Kin Mining NL +61 (0) 8 9388 1474

Table of Significant Intersections

Table 1 Reported significant gold intersections (using a 0.5g/t Au cut) are quoted as 1m intervals with up to 1m of internal dilution (<0.1g/t Au). Intersections of mineralised porphyry are not regarded as true width. Intersections are rounded to one decimal place

Hole ID	HoleDepth	EastingMGA	NorthingMGA	Azimuth &Dip	From(m)	To(m)	Width(m)	Grade(g/t)Au
MT16RC027	110m	357811	6827892	270°/-60°	7	8	1	0.6
					10	14	4	1.2
					18	19	1	1.3
					31	36	5	2.5
					53	55	2	1.0
					57	79	22	1.0
				including	59	62	3	1.5
				and	73	78	5	1.9
MT16RC028	118m	357822	6827914	270°/-60°	2	6	4	0.7
					14	15	1	1.5
					26	44	18	1.3
				including	26	28	2	3.0
				and	43	44	1	5.6
					66	67	1	0.6
					70	74	4	0.7
MT16RC029	178m	357885	6827911	270°/-60°	26	30	4	0.6
					38	39	1	1.1
					41	44	3	1.0
					53	54	1	0.5
					63	64	1	0.9
					65	66	1	0.6
					67	68	1	0.7
					70	99	29	1.5
				including	83	99	16	2.1
			and		91	99	9	3.2
			and		92	96	4	4.9
					110	120	10	0.7
				including	112	114	2	1.2
				and	116	118	2	1.3
					145	157	12	2.0
				including	154	157	3	4.8
MT16RC030	180m	357889	6827924	270°/-60°	29	30	1	0.6
					33	35	2	0.9
					62	63	1	0.9
					65	73	8	0.6
					75	76	1	0.6
					81	82	1	1.3
					90	91	1	0.4
					156	158	2	0.6
MT16RC031	200m	357925	6827925	270°/-60°	24	25	1	0.5
					57	58	1	3.1
					126	128	2	0.9

Hole ID	HoleDepth	EastingMGA	NorthingMGA	Azimuth &Dip	From(m)	To(m)	Width(m)	Grade(g/t)Au
					135	150	15	1.9
				including	144	150	6	3.1
					159	173	14	1.0
				including	162	172	10	1.2
					186	187	1	0.5
MT16RC032	70m	357860	6827932	270°/-60°	1	2	1	0.6
					3	4	1	0.4
					11	12	1	1.5
					15	17	2	0.7
					26	27	1	0.6
					30	34	4	1.6
MT16RC033	200m	357917	6827937	270°/-60°	19	20	1	2.6
					30	32	2	0.9
					73	74	1	0.6
					75	77	2	1.2
					99	117	18	3.0
				including	99	102	3	10.9
				including	100	101	1	25.3
				including	104	117	13	1.6
				including	109	114	5	2.8
					123	124	1	0.7
					132	147	15	2.1
					133	140	7	2.8
				including	138	140	2	5.7
					156	160	4	2.7
					162	164	2	1.5
					180	184	4	1.4
					185	186	1	0.5
MT16RC034	172m	357956	6827943	270°/-60°	22	23	1	1.3
					30	31	1	0.5
					56	57	1	1.4
					75	76	1	0.6
					120	121	1	0.5
					127	128	1	0.5
					132	137	5	1.0
					142	143	1	1.2
					142	179	37	3.0
				including	152	158	6	10.7
				including	157	158	1	19.5
				and	167	168	1	8.8
					189	194	5	3.9
				including	189	191	2	8.3
					196	198	2	5.9
					199	200	1	0.7
MT16RC035	225m	357970	6827977	270°/-60°	11	12	1	1.2
					16	17	1	0.5
					26	27	1	0.6
					66	68	2	0.9
					70	71	1	8.5

Hole ID	HoleDepth	EastingMGA	NorthingMGA	Azimuth &Dip	From(m)	To(m)	Width(m)	Grade(g/t)Au
					106	146	40	1.5
				including	113	118	5	2.6
			including		130	146	16	2.3
					130	132	2	6.3
MT16RC036	190m	357902	6827932	270°/-60°	2	3	1	0.5
					70	73	3	0.6
					77	79	2	1.4
					93	95	2	0.7

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 represents 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.

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.

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.

Leonora Gold Project tenure with Mineral Resources and Prospects

Leonora Gold Project Mineral Resources
Project	Lowercut-offGrade	Indicated Resources			Inferred Resources			Total Resources
Area	g/tAu	Mt	g/tAu	kozAu	Mt	g/tAu	kozAu	Mt	g/tAu	kozAu
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-LewisExploration	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 GradeControl***	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
MichelangeloLeonardo	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 11th 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.

SECTION 1 – Sample Techniques and Data

Criteria	Commentary
Samplingtechniques	Sampling of drill holes are comprised of one metre (1m) riffle split samples, as drilled. Samples werecollected as individual split metres intervals. Approximately 3.0-3.5kg of sample was collected over eachsampled interval. All samples are drill spoil collected via a riffle splitter attached to the rig and collected/splitas drilled. Sampling techniques are considered to be in line with the standard industry practice and areconsidered to be representative. Once received at the assay laboratory drill samples were dried, crushed,pulverised and split to a representative 50gram sample then fire assayed.
	All drill holes are accurately located and referenced with grid coordinates recorded in the standard MGA94Zone51 grid system. Samples are collected using a standard face hammer, they are split/bagged/logged atthe drill site. Samples were analysed via Fire Assayed (50 gram charge) for Au only.
	Only the drill results contained in the table of significant intersections are considered in this document. Allsamples and drilling procedures are conducted and guided by Kin Mining protocols, QA/QC procedures areimplemented as per industry standard.
Drillingtechniques	Surface drilling is completed by standard Reverse Circulation (RC) drilling techniques. RC drilling wasconducted by Orbit Drilling Pty Ltd using a Hydco 350 8x8 Actross drilling rig with a 350psi/1250cfm aircapacity, a support booster compressor 900psi/1300cfm was utilised in the deeper sections of the drillholes. RC drilling used a face-sampling hammer over 140mm diameter drill holes. The holes have beensurveyed using a multi-shot downhole camera. In clear drill holes surveying was completed in the open holeotherwise surveying was conducted inside stainless steel rods at the end of the drill string. The deeper(>100m) drill holes tended to lift (-60° to -50°) and swing to the north (-270° to -275°).Holes are surveyed on surface using a hand held Garman 72 GPS (accuracy ±3m).
Drill samplerecovery	Sample recovery is measured and monitored by the drill contractor and Kin Mining representatives, bagvolume is visually estimated and sample recovery was generally very good. The volume of sample collectedfor assay is considered to represent a composite sample. Sample recovery is maximized by using bestpractice drill techniques, the hammer is pulled back at the completion of each metre and the entire 1msample is blown back through the rod string, the cyclone is then sealed and the sample interval collected.The riffle splitter is cleaned with compressed air at the end of each metre and at the completion of the hole.The riffle splitter is attached to the rig cyclone. Duplicate 1m samples and known standards are inserted atconstant intervals at a rate of five per one hundred samples.
	The vast majority of samples were collected dry however on rare occasions wet or damp samples wereencountered. The intersections reported were collected over dry intervals; sampling equipment wascleaned periodically to reduce cross bag contamination. Samples are collected and stored in numberedcalico bags and removed from the field on a daily basis.No relationship was observed between sample recovery and grade.
Logging	Kin's procedure for geological logging of sample includes recording the colour, lithology, sulphidemineralisation content, veining, alteration, oxidation, grid coordinates, sample interval and depth. Data isphysically and electronically logged and stored. The level of logging detail is considered appropriate forexploration drilling. Logging of geology and colour are interpretative and qualitative, whereas logging ofmineral percentage is quantitative.All drill holes are logged in their entirety, at 1m intervals, to the end of hole. All drill hole logging data isdigitally captured, data is validated prior to being uploaded to the data base.
Subsamplingtechniquesand samplepreparation	See Sampling techniques in the above section.The sample collection methodology is considered appropriate for RC drilling and is within today's standardindustry practice. Split one metre sample (1m) results are regarded as reliable and representative. RCsamples are split with a riffle splitter at one metre intervals as drilled. Analysis was conducted by SGSMineral Services Laboratories. At the laboratory samples are dried, crushed and pulverised until the sampleis 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 minimalnumber of samples were collected wet. Some residual moisture was present as some samples werecollected however it's regarded as minimal and not of sufficient concentration to affect the samplingprocess. Periodically field standards and duplicate samples were submitted with the sample batch, the assaylaboratory (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 forthis type of mineralisation style.

Criteria	Commentary
Quality ofassaydata andlaboratorytests	Geochemical analysis was conducted by SGS Laboratories in Kalgoorlie and Perth. Sample preparationincluded drying the samples (105°C) and pulverising to 95% passing 75µm. Samples were then riffle split tosecure a sample charge of 50 grams. Analysis was via Fire Assay (FAA505) with AAS finish. Only gold analysiswas conducted (ppm detection). The analytical process and the level of detection are consideredappropriate 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 formof standards and duplicates are periodically imbedded in the sample batch by Kin Mining at a ratio of 1:20.
Verificationof samplingandassaying	The reported significant intersections have been verified by at least two company geologists. All the loggedsamples have been assayed; the assay data has been stored physically and electronically in the companydatabase using Kin Mining's protocols. The sampling and assay data has been compiled, verified andinterpreted by company geologists.No holes were twined. No adjustments, averaging or calibrations are made to any of the assay data recordedin the database. QA/QC protocol is considered industry standard with standard reference materialsubmitted on a routine basis.
Location ofdata points	Drill hole collars were located and recorded in the field using a hand held GPS with a three metre or betteraccuracy. The grid coordinate system utilised is (GDA94 Zone51). Hole locations were visually checked onthe ground and against historic plans for spatial verification. No topographic control (i.e. RL) was required,a nominal field RL of 475m is assumed for the ground surface.
Data spacinganddistribution	The drill hole spacing is project specific; the RC drilling patterns employed were dependent on previousdrilling, geological interpretation and proximity to old workings. The sample spacing is considered closeenough to identify significant zones of gold mineralisation. The drill programme is a follow up/ongoingexploration exercise that was designed to identify areas of geological interest and extensions to knownmineralisation at Mertondale 3-4. Closer spaced drilling on surrounding cross sections maybe required tofurther delineate the extent, size and geometry of some areas within the identified zones of goldmineralisation.
	Drill spacing and drill technique is sufficient to establish the degree of geological and grade continuityappropriate for the mineral resources and ore reserve estimation procedures and classifications appliedhowever the mineralised system remains open and additional infill/extension drilling is required to closeoff and confirm its full extent, particularly at depth.
Orientationofdata inrelationto geologicalstructure	The sheared Mertondale greenstone sequence displays a NNE to North trend. The tenement package iscontiguous; the drilling and sampling programme was designed to provide, as best as practicable, anunbiased location of drill sample data.The chance of sample bias introduced by sample orientation is considered minimal. No orientation samplingbias has been identified in the data thus far.The vast majority of historical drilling is orientated at 270°.Gold mineralisation at Merts Reward occurs in the hanging wall of the steep westerly dipping MertondaleShear Zone. Gold occurs where mineralised shears define Z-shaped asymmetric bends. Gold is associatedwith brittle fracture, sulphides (pyrite and arsenopyrite) and shallow east dipping quartz veins in shearedaltered (carbonated) basalt. Ore shoots plunge approximately 20° to the NE, collinear with boudins andintersection lineations. At Mertondale 3-4 gold occurs within and along the contact of a sheared felsicporphyry intrusive.
Samplesecurity	Samples were collected daily in the field and stored in a secure lockable location in Leonora. Uponcompletion of several drill holes batches of samples were transported to Kalgoorlie by an SGS transportcontractor. The samples were then stored at their lab in a secure lockable building. Samples are checkedagainst the field manifest, sorted and prepared for assay. Samples were then assayed under the supervisionof SGS at their Kalgoorlie or Perth laboratory. Once in the laboratories possession adequate sample securitymeasures are utilised.
Audits orreviews	Sampling methodologies and assay techniques used in this drilling programme are considered to be mineralexploration industry standard and any audits or reviews are not considered necessary at this particularexploration stage. No audits or reviews have been conducted at this stage apart from internal reviews andfield quality control.

Section 2 Reporting of Exploration Results

Criteria	Commentary
Mineraltenement andland tenurestatus	The RC drill programme was conducted on tenements M37/81 and M37/82; the area is referred to asMertondale 3-4. The tenement is held in the name of Navigator Mining Pty Ltd, a wholly owned subsidiaryof Kin Mining NL. The tenements are managed, explored and maintained by Kin Mining NL. The tenementdrilled represents a small portion of the larger Cardinia-Mertondale Project (300sqkm) which hosts the721,000oz Leonora Gold Project (LGP) Resources. The tenement is located within the Shire of Leonora inthe Mt Margret Mineral Field in the centre of the North Eastern Goldfields. The holding is locatedapproximately 35km NE of Leonora.There is no known heritage or environmental impediments over the holding.
Explorationdone byother parties	Gold was initially discovered in the Mertondale area in 1899 by Mr. Fred Merton. The Mertons Reward(MR) underground gold mine was the direct result of his discovery. The main mining phase at MR was1899-1911. Historic underground production records to 1942 yield 88,991t @ 20.8g/t Au (60,520oz) whichrepresents the only mining conducted at Mert's Reward.Between 1981-1984 Telluride Mining NL, Nickel Ore NL, International Nickel (Aust) Ltd and PetroleumSecurities Mining Co Pty Ltd conducted exploration programmes in the Mertondale area. HunterResources Ltd began actively exploring the region 1984-1989, Hunter submitted a NOI in 1986 andestablished a JV with Harbour Lights to treat ore from the adjoining Mertondale 2 and Mertondale 3 pits.Between 1986-1988 the Mertondale 4 pit was mined. Harbour Lights acquired the project in 1989 fromHunter. Ashton Gold eventually gained control of Harbour Lights. Mining in the region was completed in1991 with the mining of the Mertondale 5 pit. In 1993 Ashton's interest was transferred to Aurora Goldwho 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. In2004 Navigator Mining Pty Ltd (NAV) acquired the tenement holding from the SGW administrator.Navigator conducted the majority of recent exploration drilling in the Mertondale area. Kin Miningacquired the project from the (NAV) administrator in late 2014. Historic production from all theMertondale open pits totals 270,000oz of gold.Drilling has been conducted in the immediate area surrounding the Kin drill holes by several previousowners. The data base has been interrogated and scrutinised to a level where the LGP gold resources areJORC 2012 compliant (ASX announcement 11th May 2015). Visual validation, using 3D software, has beenconducted as well as cross referencing with historic reports. Mineralisation between cross sections iscohesive and robust, suggesting that the data is valid.
Geology	The regional geology comprises a suite of NNE-North trending greenstones positioned on the MertondaleShear Zone (MSZ), a splay limb of the Kilkenny Lineament. The MSZ denotes the contact betweenArchaean felsic volcanoclastic and sediment sequences (west) and Archaean mafic volcanics (east).Proterozoic dykes and Archaean felsic porphyries have intruded the altered mafic basalt/felsicvolcanoclastic/sedimentary sequence of the MSZ. The Hanging Wall and Foot Wall of the porphyry (thehost rock) is mineralised with gold at Mertondale 3-4.Exploration is targeting extensions to modest sized but high-medium grade dilational intershear lodes andlower grade shear hosted gold mineralisation at Merts Reward. Mineralisation at Mertondale 3-4 is hostedby felsic porphyry.
Drill holeInformation	The location of all drill hole collars is presented as part of the significant intersection table in the body ofthis report. Significant down hole gold intersections are presented in the cross-section and also reportedin the table of intersections. All hole depths refer to down hole depth in metres. All hole collars are MGA94Zone51 positioned. Elevation is a nominal estimate. Drill holes are measured from the collar of the holeto the bottom of the hole.
DataAggregationmethods	No averaging of the raw assay data was applied. Raw data was used to determine the location and widthof gold intersections and anomalous gold trends. Geological assessment and interpretation was used todetermine 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 greater thanor close to 0.5g/t are regarded as significant. Anomalous intersections are tabled in the body of this report.Reported mineralised zones have a cut-off grade of 0.5g/t Au and no more than 1m of internal dilution(<0.1g/t Au).No upper cuts were applied to determine anomalous gold areas.
RelationshipBetweenMineralisationwidths andinterceptlengths	The orientation, true width and geometry can be determined by interpretation of historical drilling andexisting cross sections, however the varied orientation of the lodes and true widths of the high gradeshear zones remain unclear and therefore drilling is regarded as close to but not true width. Drilling on anAzimuth of 270° and an angle of -60° is regarded as best practice to intersect as close to true width aspossible. Mineralised intercepts are interpreted as extensions of the existing gold resources however theyare outside, and have not yet been incorporated into, the current parameters of the Mertondale 3-4(1.5Mt @2.2g/t Au for 110,000oz) resource calculation or the Merts Reward resource calculation (1.08Mt@ 2.6g/t Au for 91,000oz). The maximum and minimum sample width within the mineralised zone is 1m.

Criteria	Commentary
Diagrams	A relevant "type example" plan and long section is included in the body of this report.
	Detailed assay results are diagrammatically displayed and tabled in this report. Only the significant goldresults are discussed and reported.
BalancedReporting	The available historic database includes a large inherited data set compiled by previous project ownersdating back to 1982. There are limitations in the amount of information provided in the data set. It hasnot been possible to fully verify the reliability and accuracy of a substantial portion of the data howeverit appears that no serious problems have occurred and validation check results were within acceptablelimits. In general the recent data is more reliable than historic data. More than 50% of the drill data forthe Mertondale 3-4 model is sourced from data compiled by the recent tenement owner, NavigatorMining, with a substantial portion sourced from Hunter Resources.Considering the complex history of grid transformations there must be some residual risk in convertingold 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 withresource tonnage and grade estimations.
OtherSubstantiveexplorationdata	Regarding the results received no other substantive data is currently considered necessary. All meaningfuland material is or has been previously reported
Further work	The potential to increase the existing resource is viewed as probable, however committing to further workdoes not guarantee that an upgrade in the resource would be achieved. Kin mining intend to drill moreholes at Mertondale 3-4 and Merts Reward with the intention of increasing the Mertondale resources.