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PATRONUS RESOURCES LIMITED Capital/Financing Update 2018

Oct 11, 2018

65620_rns_2018-10-11_965a906d-0df0-41c5-84a7-26f8c233e60a.pdf

Capital/Financing Update

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[email protected] |Tel: 08 9242 2227 |ACN: 150 597 541 342 Scarborough Beach Road, Osborne Park WA 6017

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12 October 2018

Dear Shareholder

PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

We are writing to you as a registered holder of shares in Kin Mining NL ( Company ).

As announced to ASX on Tuesday, 9[th] October 2018, the Company is undertaking a pro rata non-renounceable offer of ordinary fully paid shares ( Shares ) to eligible shareholders. The offer is on the basis of two (2) new shares ( New Shares ) for every five (5) Shares held by eligible shareholders of the Company as at 5.00pm WST on Wednesday, 17[th] October 2018 ( Record Date ) at an issue price of $0.08 per Share, to raise approximately A$10.4 million ( offer )

The Company is making the Offer available to eligible shareholders, being persons who are registered as shareholders of the Company on the Record Date and have a registered address in Australia, Hong Kong, New Zealand, Germany and Singapore. In calculating entitlements under the Offer, fractions will be rounded up to the nearest whole number. Shareholders who, at the Record Date, do not have an address registered in either Australia, Hong Kong, New Zealand, Germany or Singapore will not be eligible to participate in the Offer.

New Shares issued pursuant to the Offer will rank equally to existing Shares currently on issue. The Company has applied for official quotation of the New Shares.

An Offer Document in relation to the Offer has been lodged with ASX setting out the timetable for the Offer, as shown below. A copy of the Offer Document is available on the ASX website at www.asx.com.au (ASX code: KIN) and on the Company's website at www.kinmining.com.au.

Use of Proceeds

Proceeds from the Offer will be applied to the development of the Leonora Gold Project, to exploration programs and to repay and retire the outstanding current Sprott facility as well as provide for the expenses of the offer and working capital.

Capital Structure

The capital structure of the Company following completion of the Offer is summarised below:

Shares Numbers
Shares on Issue at date of the Offer1 324,730,577
New Shares offered under the Offer2 129,892,231
Total Shares on issue at completion of the Offer1 454,622,808
Options Numbers
Options Currently on issue at date of the Offer 37,335,750
Unlisted Options exercisable at $0.3220 on or before 21 November 2018 100,000
Unlisted Options exercisable at $0.4000 on or before 31 March 2019 12,235,750
Unlisted Options exercisable at $0.2700 on or before 10 April 2020 5,000,000
Unlisted Options exercisable at $0.7500 on or before 15 September 2020 9,000,000
Unlisted Options exercisable at $1.0000 on or before 15 September 2021 6,000,000
Unlisted Options exercisable at $1.2500 on or before 15 September 2022 4,000,000
Unlisted Options exercisable at $0.36 on or before 15 January 2020 1,000,000
Options offered under the Offer Nil
Total Options on issue at completion of the Offer 37,335,750

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[email protected] |Tel: 08 9242 2227 |ACN: 150 597 541 342 Scarborough Beach Road, Osborne Park WA 6017

Notes:

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1. The number of Shares on issue assumes that no Options currently on issue are exercised prior to the Record Date.

2. The number of New Shares issued assumes that the Offer is fully subscribed and that no Options currently on issue are exercised prior to the Record Date.

Timetable

The Offer is proposed to be conducted according to the following timetable:

Event Date
Announcement of Offer 9 October 2018
Appendix 3B and cleansingnotice lodged with ASX 12 October 2018
Offer Document lodged with ASX 12 October 2018
Letter to Option Holders and Shareholders 12 October 2018
S708AA 2(f)Notice 12 October 2018
“Ex” Date 16 October 2018
Record Date to determine Entitlement to New Shares 17 October 2018
Dispatch of Offer Document and Application Form and announcement that 22 October 2018
dispatch completed.
Offer opens for receipt of Applications 22 October 2018
ClosingDate for Applications andpayment in full 31 October 2018
New Sharesquoted on a deferred settlement basis 1 November 2018
ASX notified of under subscriptions 5 November 2018
Dispatch date of holding statements, New Shares entered into the holders’ 7 November 2018
security holdings
Tradingcommences for New Shares on a normal basis 8 November 2018

Note: Subject to the Listing Rules and other applicable laws, the Directors reserve the right to vary these dates.

As soon as practicable following the Record Date, the Company will dispatch an Offer Document together with a personalised Application Form to eligible shareholders. If you are eligible and wish to participate in the Offer , you will need to complete this personalised Application Form and return it with the appropriate application monies to the Company's share registry before 5.00pm (WST) on the anticipated closing date of Wednesday, 31[st] October 2018.

The Offer Document includes details of the Offer and the risks associated with investing in the Company. It is recommended that you read the Offer Document carefully and, if you are interested in participating in the Offer, seek independent professional advice.

For further information please contact the Company on (08) 9242 2227 during normal business hours.

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Stephen Jones Company Secretary

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