PATRONUS RESOURCES LIMITED — Capital/Financing Update 2021

Jun 1, 2021

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ASX Announcement 2 June 2021

KIN MINING PURCHASES 1.5% NET SMELTER ROYALTY OVER CARDINIA GOLD PROJECT, WA

Acquisition of third-party royalty from previous financing arrangement streamlines future development options, enhances project economics and reduces administrative costs

Highlights

• Kin Mining purchases the existing 1.5% Net Smelter Royalty (NSR) over the first 100,000oz of gold production at the Cardinia Gold Project.

• The royalty was owned by Sprott Private Resource Lending and was put in place as part of the previous US$27m financing for the project in 2017 (ASX release, 6 December 2017).

• Purchase price of US$600,000 cash represents 22c in the dollar face value of the NSR at the current US$1,912/oz gold price.

• Royalty remains on foot and assigned to a Kin Mining entity for possible future financing options.

• Pivotal step in advancing Cardinia and maximising its value for shareholders.

Kin Mining NL (ASX: KIN) (“ Kin ” or “the Company ”) is pleased to advise that it has reached agreement with Sprott Private Resource Lending ( Sprott ) to purchase the 1.5% Net Smelter Royalty (NSR) over the first 100,000oz of gold production from its 100%-owned Cardinia Gold Project ( CGP ) near Leonora in WA.

The 1.5% NSR formed part of the US$27 million financing package provided by Sprott as part of the original development plan for the Leonora Gold Project (now CGP) in 2017 (refer Kin Mining Announcement, 6 December 2017).

The Company has agreed to purchase the royalty for US$600,000 cash, which is equivalent to 22c in the dollar face value of the NSR based on the current spot gold price of US$1,912/oz. The royalty remains on foot and has been assigned to a Kin Mining entity, enhancing the Company’s future options with regard to funding for the CGP.

Commenting on the transaction, Kin Mining Managing Director Andrew Munckton said: “This is an important step for us in advancing the Cardinia Gold Project to the next stage and ensuring we maximise the value of the project for our shareholders.

“We have been able to negotiate a purchase price which equates to around 22% of the face value of the royalty – a good result in the current strong gold price environment. Plus, the transaction has a number of benefits for Kin Mining in terms of our development and growth as a company.”

ASX Code: KIN Kin Mining NL Shares on issue: 799.2 million 342 Scarborough Beach Road Market Capitalisation: $104 million (at 13cps) Osborne Park WA 6017 Cash: $12.4 million (31 March 2021) P : +61 9 9242 2227 E info@kinmining.com.au kinmining.com.au

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“The purchase enhances the project economics by increasing the margin on the first 100,000oz of gold production. It removes a security held by third parties over key mining tenure within the project linked to the royalty. And finally, it streamlines and enhances our future development, financing and transaction ability by simplifying the structure and reducing future administrative costs.

“The royalty remains on foot and has been assigned to a Kin Mining owned entity, which means it can be utilised in the future should we need to do so as part of our potential financing arrangements.”

-ENDS-

Authorised for release by the Board of Directors

For further information, please contact: Investor enquiries Media enquiries

Andrew Munckton Managing Director, Kin Mining NL +61 8 9242 2227

Nicholas Read Read Corporate +61 419 929 046

FOLLOW US ON SOCIALS

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• https://www.linkedin.com/company/kin mining https://www.kinmining.com.au

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ABOUT KIN MINING NL

Kin Mining NL (ASX: KIN) is a West Australian based gold development and exploration company. Kin’s key focus is its 100% owned Cardinia Gold Project (CGP) located in the highly prospective North-Eastern Goldfields region of Western Australia. The CGP has a 1.23Moz gold Mineral Resource (see Table A1) defined in both oxide and deeper primary mineralisation with considerable potential to grow this resource with further drilling.

Kin’s exploration effort is the systematic program of exploration across the Cardinia Mining Centre that seeks to advance a number of targets in parallel while developing a pipeline of exploration targets for ongoing Mineral Resource expansion.

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Figure A1 – KIN’s Project areas close to Leonora, Western Australia.

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Table A1. Mineral Resource Estimate Table May 2021[1]

				Cardinia Gold Project: Mineral Resources: May 2021
	Project Area	Resource Gold Price (AUD)	Lower Cut off (g/t Au)	Measured Resources			Indicated Resources			Inferred Resources			Total Resources			Date Announced
				Tonnes (Mt)	Au (g/t Au)	Au (k Oz)	Tonnes (Mt)	Au (g/t Au)	Au (k Oz)	Tonnes (Mt)	Au (g/t Au)	Au (k Oz)	Tonnes (Mt)	Au (g/t Au)	Au (k Oz)
	Mertondale
	Mertons Reward	$2,600	0.4				0.9	2.17	66	1.9	0.65	41	2.9	1.15	106	26-Nov-20
	Mertondale 3-4	$2,600	0.4				1.4	1.85	81	1.0	0.97	31	2.3	1.48	111	26-Nov-20
	Tonto	$2,600	0.4				1.8	1.14	67	1.1	1.24	43	2.9	1.18	111	26-Nov-20
	Mertondale 5	$2,600	0.4				0.5	1.67	26	0.8	1.24	32	1.3	1.40	59	26-Nov-20
	Eclipse	$2,600	0.4							0.6	1.01	19	0.6	1.01	19	26-Nov-20
	Quicksilver	$2,600	0.4							1.1	1.10	39	1.1	1.10	39	26-Nov-20
	Subtotal Mertondale						4.6	1.61	240	6.5	0.98	205	11.1	1.24	445
	Cardinia
	Bruno*	$2,600	0.4	0.3	1.26	10	2.8	1.13	102	1.1	1.05	36	4.1	1.12	148	10-May-21
	Lewis*	$2,600	0.4	0.6	1.24	20	4.7	1.00	151	2.1	0.80	55	7.4	0.95	226	10-May-21
	Kyte	$2,600	0.4				0.3	1.53	17	0.1	0.92	3	0.4	1.38	20	26-Nov-20
	Helens	$2,600	0.4				0.7	2.14	50	0.3	1.94	19	1.0	2.08	69	26-Nov-20
	Fiona	$2,600	0.4				0.6	1.35	25	0.2	1.21	8	0.8	1.32	32	26-Nov-20
	Rangoon	$2,600	0.4				0.5	1.24	21	0.3	1.07	12	0.9	1.17	32	26-Nov-20
	Hobby*	$2,600	0.4							0.5	1.31	22	0.5	1.31	22	10-May-21
	Cardinia Hill*	$2,600	0.4							1.2	1.66	61	1.2	1.66	61	18-Dec-20
	Subtotal Cardinia			0.8	1.16	30	9.6	1.18	364	5.8	1.15	216	16.3	1.17	611
	Raeside
	Michaelangelo	$2,600	0.4				1.1	2.00	73	0.4	2.19	25	1.5	2.04	98	26-Nov-20
	Leonardo	$2,600	0.4				0.4	2.39	30	0.2	2.20	14	0.6	2.32	44	26-Nov-20
	Forgotten Four	$2,600	0.4				0.1	2.09	7	0.1	1.96	6	0.2	2.03	14	26-Nov-20
	Krang	$2,600	0.4				0.3	1.74	17	0.0	2.59	2	0.3	1.80	19	26-Nov-20
	Subtotal Raeside						2.0	2.04	128	0.7	2.17	47	2.6	2.07	175
	TOTAL			0.8	1.16	30	16.2	1.41	732	13.0	1.12	468	30.0	1.28	1231

Table A1: Mineral Resource Estimate Table May 2021. Mineral Resources estimated by Jamie Logan, and Mike Millard and reported in accordance with JORC 2012 using a 0.4g/t Au cut-off within AUD2,600 optimisation shells. Note BrunoLewis, Cardinia Hill and Hobby estimated by Mike Millad of Cube Consulting.

1The company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Announcement of 17 May 2021 “Cardinia Gold Project Mineral Resource Increases to 1.23Moz”, and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

COMPETENT PERSON’S STATEMENT

The information contained in this report relating to exploration results relates to information compiled or reviewed by Glenn Grayson. Mr. Grayson is a member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the company. Mr. Grayson has sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Grayson consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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