PATRONUS RESOURCES LIMITED — Interim / Quarterly Report 2015

Jan 28, 2016

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ASX Code: KIN
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ASX Code: KIN
January 29 [th] 2016
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December Quarterly Activities Report

Board of Directors

for the period ending December 31[st] 2015

Terry Grammer Chairman

Trevor Dixon Managing Director

Kin Mining NL is pleased to present a summary of Quarterly activities for the three months to December 31[st] 2015.

Fritz Fitton Technical Director

HIGHLIGHTS

Joe Graziano

Non-Executive Director and 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

Email info@kinmining.com.au

Website www.kinmining.com.au

• Gwalia and Tower Hill style exploration targets identified at Gwalia South, located immediately south (2.5km) of the 7Moz Sons of Gwalia Mine and hosted by the prospective southern extensions of both the Gwalia Mine sequence and the Tower Hill greenstone sequence.

• Priority drill targets selected at Gwalia South. Programme of Work approved by DMP.

• New open pit optimisation completed for the Lewis trial mining operation generating a more robust economic mining schedule.

• Share Purchase Plan raises in excess of $1M. Funding earmarked to progress the Leonora Gold Project and exploration drilling at Gwalia South.

• Exploration RC drilling around Mert’s Reward, Mertondale 2 and Mertondale 3/4 pits confirms the geological model encountering high grade and wide lower grade gold intersections including:

• 5m @ 7.99 g/t Au from 59m including 1m @ 24.7 g/t Au

• 25m @ 0.54 g/t Au from 166m

• 29m @ 1.35 g/t Au from 155m including 10m @ 1.73 g/t Au and 7m @ 1.83 g/t Au

Shares on Issue: 77,512.890

Unlisted Options: 14,925,000

• 10m @ 2.97 g/t Au from 205m including 2m @ 11.94 g/t Au

Recent RC drilling at Mertondale, for an advance of 840m, targeted the T1, T2 and T3 targets. All drill holes returned significant gold intercepts.

ASX: KIN

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ASX Code: KIN
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GWALIA SOUTH

High priority drill targets have been defined at Gwalia South. Target definition studies focused on multiple north-west (310°) orientated structural displacements that truncate the Leonora greenstone sequence. These faults are interpreted as the controlling structures that represent the plumbing system responsible for localising gold mineralisation in the Leonora district.

The target areas have been poorly tested by previous exploration, and historical drilling is limited to sparse shallow blade refusal aircore, generally spaced on 400m sections. Historical exploration drilling confirms the immediate strike extensions of the gold bearing Gwalia Mine sequence as continuing south through Kin’s tenement holding at Gwalia South. Despite some exploration being undertaken over the area, it is clear that:

• Historic drilling failed to intersect the North-West faults

• Historic drilling has not drilled through the prospective lithological contacts

• Historic drilling has not adequately tested the target sequences at depth.

Outcrop is scarce, however rock chip sampling of a 400m long exposure covering the Gwalia slate/chert returned anomalous gold results, peaking at 0.52g/t Au, with 12 of 31 samples returning gold results >0.1g/t Au.

Identified target zones include the primary Sons of Gwalia type target (Gwalia Mine sequence) and the secondary Tower Hill type (granite-ultramafic contact) styles of mineralisation. Both mineralisation styles have been selected as drill targets and a follow up drilling programme is planned in the near term. A recently submitted programme of work (POW) application for Gwalia South has been approved by the Department of Mines and Petroleum.

A large portion of the prospective target areas are subject to limited access due to heritage places and cultural sites. The initial planned drill programme has taken these sensitivities into account and the Stage 1 proposed drill holes are located on unrestricted portions of the holding. Following favourable results negotiations with indigenous custodians will be scheduled.

The highly prospective host sequence encompassing the Sons of Gwalia (7Moz) underground mine and the Tower Hill pit (1Moz) on the granite-ultramafic contact, both present as priority target horizons. The Gwalia South tenements are positioned between 2.5km and 5.5km south of the Sons of Gwalia mine.

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Sons of
Gwalia
(7Moz) Open
Drill collars
cut pit out line
Gwalia Deeps ore zone
Gwalia Slate Horizon
Historical old
Workings (pink) along
Gwalia Slate sequence
Intersecting NW
faults and Gwalia
Mine sequence
Tower Hill granite-
ultramafic contact
Intersecting NW
faults and Gwalia
Mine sequence
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Figure 1 – Gwalia South Prospect: Geology with interpreted north-west faults and drill targets

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ASX Code: KIN
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LEWIS TRIAL OPEN PIT

Progress continues at the Bruno-Lewis deposit with completion of a new pit optimisation study. The revised input parameters generated a more economically robust mine schedule incorporating significantly less waste.

Mining and processing studies have returned positive outcomes with tighter mining constraints that incorporate more than 30% less waste than previous open cut designs.

The Lewis trial mining operation is viewed as a low start-up cost open cut mining exercise that will effectively test a portion of the larger Bruno-Lewis Cardinia supergene resource (>120,000oz Au) and the economic viability of extraction and processing.

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Figure 2 –Plan view of the refined Lewis trial Pits with ore blocks. Resource blocks coloured by Au grade (green 0.62-1.0 g/t, red 1-3 g/t and pink >3 g/t Au).

The ore zone occurs between 2-25m below surface. The ore is essentially free dig with drill and blast and crushing components expected to be minimal.

Site works have commenced and the metallurgical parameters of the test ore parcels are currently being tested.

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ASX Code: KIN
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The Cardinia Resource is an integral asset of the overall JORC 2012 Gold Resources of the Leonora Gold Project (11.825Mt @ 1.9 g/t Au for 722,500 oz Au).

FUNDING SECURED AND RAISED

The Company finalised the share issue in accordance with the Share Purchase Plan, raising further capital via the shortfall which totaled $1,170,000 to complete the raising. The placement included shares issued at $0.10 with a 1 for 2 Option exercisable at $0.20 by 31[st] August 2017. Furthermore, the company placed shares under Listing Rule 7.1 totaling $500,000 during the quarter.

HIGH GRADE INTERSEPTS AT MERTONDALE

The Eastern Branch of the Mertondale Shear Zone (MSZ) surrounding Mert’s Reward, Mertondale 2 and Mertondale 3/4 open cut mines was RC drilled with the objective of testing the new geological model and identifying gold mineralisation below and along strike of the current Mertondale Resource (2.61Mt for 201,000oz).

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Mert’s Reward
Mertondale 2 Mert 3/4
1.7kmStrike
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Figure 3 –Long Section from Mert’s Reward to Mert 3/4, Targets T1 to T5 and significant mineralisation intersections compiled from historic drilling.

The November drill campaign is regarded as successful with each of the four RC holes drilled intersecting significant gold mineralisation at predicted depths. All returned intersections are outside the current JORC 2012 Resource envelope and the newly discovered mineralisation will be incorporated into the existing Leonora Gold Project resource calculation.

RC drilling has identified the eastern extensions to the rich Mert’s Reward Intershear Lode (historic production 88,891t @ 21g/t Au) and the Shear Lode at Mertondale 2 (historic production 20,000t @ 3.5g/t Au) and Mertondale 3/4 (historic production 1.3Mt @ 4.3g/t Au). In all cases the mineralised system remains open at depth and along strike.

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ASX Code: KIN
Mertondale 3/4
T3
MT15RC001 5m @ 5.47g/t Au
Including 2m @ 11.95g/t Au
And 6m @ 1.91g/t Au
Mertondale 2
MR15RC003 29m @ 1.35g/t Au
Including 10m @ 1.73 and
7m @ 1.83g/t Aug/t Au
T2
T1
MR15RC001 25m @ 0.54g/t Au
Including 4m @ 1.65g/t Au
Mert’s
Reward
MR15RC002 5m @ 7.99g/t Au
Including 1m @ 24.70g/t Au
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Figure 4 –Plan View of Figure 3 with Mert’s Reward, Mertondale 2 and Mertondale 3/4. Targets T1, T2 and T3 with significant RC intersections returned from the November 2015 drill campaign and maximum down hole gold values from existing holes. Green diamonds indicate collar location

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ASX Code: KIN
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Merton’s Reward
Mert 2 OpenCut Pit
Mined Stopes
Merton’s Reward
Underground
MR15RC002 5m @ 7.99g/t Au incl 1m @ 24.70g/t
MR15RC001 25m @ 0.54g/t Au incl 4m @ 1.65g/t Au
MR15RC003 4m @ 2.36g/t Au incl 1m @ 6.56g/t Au
MR15RC003 29m @ 1.35g/t Au incl 10m @ 1.73g/t Au and 7m @ 1.83g/t Au
250m
T1 Target
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Figure 5 Long Section looking west, highlighting Merton's Reward Underground workings with recently announced drill intercepts (blue and red text). Interpreted extension of the Merton’s Reward north plunging ore shoot (T2 target, dashed orange). With all Resource drilling (0-0.5g/t Au= Black, 0.5-1g/t Au= Cyan, 1-3g/t Au= Red and >3g/t Au = Magenta

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ASX Code: KIN
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Significant intersections from RC drilling (T1, T2 and T3) in November 2015 included:

• 10m @ 4.16g/t Au from 59m including 5m @ 7.99g/t Au which included 1m @ 24.7g/t Au

• 25m @ 0.54g/t Au from 166m including 4m @ 1.65g/t Au

• 29m @ 1.35g/t Au from 155m including 10m @ 1.73g/t Au and 7m @ 1.83g/t Au

• 10m @ 2.97g/t Au from 205m including 5m @ 5.47g/t Au which included

• 2m @ 11.94g/t Au

• 4m @ 2.36g/t Au from 126m including 1m @ 6.56g/t Au

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MR15RC002 5m @ 7.99g/t Au
incl 1m @ 24.70g/t Au
MR15RC001 25m @ 0.54g/t Au
incl 4m @ 1.65g/t Au
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Figure 6 Cross Section (6827250mN) of the T1 target zone looking north with the modelled Merton’s Reward Resource (1.08Mt @ 2.6g/t Au for 91,000oz) highlighting the significant drill intercepts (0-0.5g/t Au= Black, 0.5-1g/t Au= Cyan, 1-3g/t Au= Red and >3g/t Au = Magenta) and the successful recent T1 Target intersections, positioned outside the current Resource

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ASX Code: KIN
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MR15RC003 4m @ 2.36g/t Au incl
1m @ 6.56g/t Au
MR15RC003 29m @ 1.35g/t Au incl
10m @ 1.73g/t Au and 7m @ 1.83g/t
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Figure 7 Cross Section (6827370mN) of the T2 target zone looking south with the modelled Merton’s Reward Resource (1.08Mt @ 2.6g/t Au for 91,000oz) highlighting the significant drill intercepts (0-0.5g/t Au= Black, 0.5-1g/t Au= Cyan, 1-3g/t Au= Red and >3g/t Au = Magenta) and the successful recent T2 Target intersections, positioned outside the current Resource

Further drilling along strike is required to determine the length and geometry of both the rich eastern ore shoot at Mert’s Reward, one of the highest grade deposits in the Eastern Goldfields, and the traditional north-south vertical Mertondale Shear at Mertondale 2 and Mertondale 3/4. Findings to date confirm that mineralisation extends beyond the existing resource envelope and also endorses the new geological model which will assist future drill programme planning.

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ASX Code: KIN
Southern end of Mert 3
OpenCut Pit
MT15RC001 6m @ 1.91g/t Au from 195m
MT15RC001 5m @ 5.47g/t Au incl 2m @ 11.95g/t Au
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Figure 8 Cross Section (6827940mN) of the T3 target zone looking south-west with the modeled Mertondale Resource (1.53Mt @ 2.2g/t Au for 110,000oz) highlighting the significant drill intercepts (0-0.5g/t Au= Black, 0.5-1g/t Au= Cyan, 1-3g/t Au= Red and >3g/t Au = Magenta) and the successful recent T3 Target intersections, positioned outside the current Resource within the T3 target zone

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ASX Code: KIN
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Competent Persons Statement

The information contained in this report relates to information compiled or reviewed by Mr. Paul Maher who is a member of the (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 a Competent Person as defined in the 2012 edition of the “JORC Australian code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Both 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.

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ASX Code: KIN
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KIN MINING NL TENEMENT SCHEDULE AS AT 31 DECEMBER 2015

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

DESDEMONA - 20 kms South of Leonora Townsite

Tenement ID	Ownership at end of Quarter	Change During Quarter
E37/1152	100%
E37/1156	100%
E37/1201	100%
E37/1203	100%
E40/283	100%
E40/285	100%
E40/323	100%
M40/330	100%
P37/8350	100%
P37/8390	100%
P37/8500	100%
P37/8504	100%
P40/1263	100%
P40/1283	100%
P40/1284	100%
P40/1285	100%
P40/1286	100%
P40/1287	100%

IRON KING / VICTORY - 45 kms North North West of Leonora

Tenement ID	Ownership at end of Quarter	Change During Quarter
P37/7175	100%
P37/7176	100%
P37/7177	100%
P37/7194	100%
P37/7195	100%
P37/7196	100%
P37/7197	100%
P37/7198	100%
P37/8455	100%
P37/8458	100%
P37/8459	100%
P37/8460	100%
P37/8461	100%

MT FLORA - 50 kms East North East of Leonora

Tenement ID	Ownership at end of Quarter	Change During Quarter
P39/4617	100%
P39/4618	100%
P39/4619	100%
P39/4620	100%
P39/4621	100%
P39/4912	100%
P39/4960	100%
P39/4961	100%
P39/5181	100%
P39/5182	100%
P39/5183	100%
P39/5185	100%
P39/5463	100%

MURRIN MURRIN - 50 kms East of Leonora

Tenement ID	Ownership at end of Quarter	Change During Quarter
M39/279	100%
P39/4913	100%
P39/4914	100%
P39/4915	100%
P39/4916	100%
P39/4980	100%
P39/5112	100%
P39/5113	100%
P39/5164	100%
P39/5165	100%
P39/5176	100%
P39/5177	100%
P39/5178	100%
P39/5179	100%
P39/5180	100%

MERTONDALE - 35 kms North East of Leonora Townsite

Tenement ID	Ownership at end of Quarter	Change During Quarter
P37/7171	100%	New Agreement 1.12.15

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ASX Code: KIN
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KIN MINING NL TENEMENT SCHEDULE AS AT 31 DECEMBER 2015 Cont’d TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

RANDWICK - 45 kms North East of Leonora

REDCASTLE - 65 kms South West of Laverton

Tenement ID	Ownership at end of Quarter	Change During Quarter		Tenement ID	Ownership at end of Quarter	Change During Quarter
P37/7283	100%			P39/4550	100%
P37/7284	100%			P39/4593	100%
P37/7806	100%			P39/4834	100%
P37/7995	100%			P39/4839	100%
P37/7996	100%			P39/5097	100%
P37/7997	100%			P39/5098	100%
P37/7998	100%			P39/5099	100%
P37/7999	100%			P39/5100	100%
P37/8000	100%			P39/5101	100%
P37/8001	100%			P39/5102	100%
				P39/5103	100%
				P39/5105	100%
				P39/5267	100%

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ASX Code: KIN

AVIGATOR MINING PTY LTD TENEMENT SCHEDULE 31 DECEMBER 2015+A70:G96A70:G116

(a wholly owned subsidiary of Kin Mining NL) TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

CARDINIA/MERTONDALE - 35 kms East and North East of Leonora Townsite

Tenement ID	Ownership at end of Quarter	Change During Quarter		Tenement ID	Ownership at end of Quarter	Change During Quarter
L37/106	100%			P37/7254	100%
L37/127	100%			P37/7255	100%
L37/128	100%			P37/7256	100%
L37/195	100%			P37/7257	100%
L37/196	100%			P37/7258	100%
L37/65	100%			P37/7259	100%
M37/1284	100%			P37/7260	100%
M37/223	100%			P37/7261	100%
M37/227	100%			P37/7262	100%
M37/231	100%			P37/7263	100%
M37/232	100%			P37/7264	100%
M37/233	100%			P37/7265	100%
M37/277	100%			P37/7266	100%
M37/299	100%			P37/7267	100%
M37/300	100%			P37/7268	100%
M37/316	100%			P37/7269	100%
M37/317	100%			P37/7270	100%
M37/422	100%			P37/7271	100%
M37/428	100%			P37/7272	100%
M37/487	100%			P37/7273	100%
M37/594	100%			P37/7274	80%
M37/646	80%			P37/7275	80%
M37/720	100%			P37/7276	80%
M37/81	100%			P37/7277	100%
M37/82	100%			P37/7655	100%
M37/86	100%			P37/7656	100%
M37/88	100%			P37/7657	100%
P37/7241	100%			P37/7658	100%
P37/7242	100%			P37/7659	100%
P37/7243	100%			P37/7660	100%
P37/7244	100%			P37/7661	100%
P37/7245	100%			P37/7662	100%
P37/7246	100%			P37/7663	100%
P37/7247	100%			P37/7664	100%
P37/7248	100%			P37/7665	100%
P37/7249	100%			P37/7666	100%
P37/7250	100%			P37/7667	100%
P37/7251	100%			P37/7668	100%
P37/7252	100%			P37/7669	100%
P37/7253	100%			P37/7670	100%

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ASX Code: KIN

CARDINIA/MERTONDALE - 35 kms East and North East of Leonora Townsite

Tenement ID	Ownership at end of Quarter	Change During Quarter
P37/7671	100%
P37/7672	100%
P37/7673	100%
P37/7674	100%
P37/7675	100%
P37/7697	100%
P37/7698	100%
P37/7699	100%
P37/7700	100%
P37/7701	100%
P37/7702	100%
P37/7703	100%
P37/7704	100%
P37/7705	100%
P37/7706	100%
P37/7707	100%
P37/7708	100%
P37/7711	100%
P37/7712	100%
P37/7713	100%
P37/7714	100%
P37/7715	100%
P37/7716	100%
P37/7736	100%
P37/7737	100%
P37/7738	100%
P37/7756	100%
P37/7757	100%
P37/7758	100%
P37/7759	100%
P37/7760	100%
P37/7761	100%
P37/7805	100%
P37/7891	100%
P37/7892	100%
P37/7893	100%
P37/7953	100%
P37/7954	100%

Tenement ID	Ownership at end of Quarter	Change During Quarter
P37/7969	100%
P37/7970	100%
P37/7971	100%
P37/7972	100%
P37/7973	100%
P37/7974	100%
P37/7975	100%
P37/7976	100%
P37/7977	100%
P37/7978	100%
P37/7979	100%
P37/7980	0%	Expired 22.10.15
P37/7981	0%	Expired 22.10.15
P37/7982	0%	Expired 22.10.15
P37/7983	0%	Expired 22.10.15
P37/7984	0%	Expired 22.10.15
P37/7985	0%	Expired 22.10.15
P37/7986	0%	Expired 22.10.15
P37/7987	0%	Expired 22.10.15
P37/7988	0%	Expired 22.10.15
P37/7990	0%	Expired 22.10.15
P37/8007	100%
P37/8057	100%
P37/8196	100%
P37/8199	100%
P37/8209	100%
P37/8210	100%

RAESIDE - 8 kms East of Leonora Townsite

Tenement ID	Ownership at end of Quarter	Change During Quarter
E37/1103	100%
E37/868	100%
L37/125	100%
L37/77	100%
M37/1298	100%

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