PEPPERMINT INNOVATION LIMITED — Capital/Financing Update 2009

May 24, 2009

Churchill Court Suite 9/232 Churchill Court Subjaco WA 6008

NEW HIGH-GRADE GOLD DISCOVERY 'SPONGELITE' PROSPECT - PIONEER PROJECT (WA)

HIGHLIGHTS

• Interception of significant high-grade gold mineralization at shallow depths $\bullet$
• Results include:
  • $21m$ @ 4.80 g/t Au from $49m 70m$ (CSRC016) $\bullet$
  • 9m @ 4.88 g/t Au from 38m 47m (CSRC003) $\bullet$
  • 16m @ 2.29 g/t Au from $31m 47m$ (CSRC015) $\bullet$
  • $8m$ (a) 2.08 g/t Au from $34m 42m$ (CSRC012)
  • $17m$ @ 1.71 g/t Au from $42m 59m$ (CSRC013) $\bullet$
• Presence of gold mineralization is open in all directions and at depth.
• Drilling also intersected massive quartz veining up to 12 metres in thickness. $\bullet$
• Other previously defined anomalous gold target horizons are also located along the same 2 kilometre long north-south trending corridor, suggesting that further strike extensions may be possible
• Planning is now underway for early commencement of follow-up Stage 2 RC $\bullet$ drilling programme at this Prospect

Chrysalis Resources Limited (ASX: CYS) is pleased to report that 1662 metres of drilling conducted during May 2009 has resulted in the definition of a significant new zone of gold mineralisation at the 'Spongelite' Prospect, part of the Pioneer Gold Project in Western Australia. (see Appendix 1 for a Table of Significant Results.)

The 'Spongelite' Prospect is located approximately 30 kilometres north of the town of Norseman. Other nearby gold mining operations include the Avoca Resources Limited (ASX: AVO) 'Higginsville' Mining Operations and Gold Treatment Plant, which is located approximately 20 kilometres north along the sealed Coolgardie/Esperance Highway.

In total, 22 holes were drilled over an area 120 metres long by 50 metres wide. The area investigated during this campaign was only a small part of the overall Project package, with a further 2 kilometres of possible strike extensions at this location yet to be fully investigated by the Company.

Currently, the presence of gold mineralization is open in all directions and at depth.

The style of mineralisation in the Project area has been interpreted as northerly trending, intensely sheared felsic volcanics that exhibits alteration, including bleaching and silicification.

The drilling also intersected massive quartz veining up to 12 metres in thickness.

Below the supergene zone (greater than 50 metres), the mineralisation appears to be associated with steeply dipping to sub vertical quartz sulphide veins.

Compilation of the data will now be undertaken to address the appropriate nature and scope of the Stage 2 exploration programme. The Company intends to undertake this activity immediately, with a view to returning back to the 'Spongelite' Prospect to undertake a further RC drilling programme at the earliest possible opportunity.

The Board looks forward to keeping shareholders informed on future developments at the 'Spongelite' Prospect as they come to hand.

ell1

Dr Neale Fong Executive Chairm.

NEW HIGH-GRADE GOLD DISCOVERY 'SPONGELITE' PROSPECT - PIONEER GOLD PROJECT (WA)

Appendix 1

Table Of Significant Results

The drilling at the 'Spongelite' Prospect has produced a number of significant intersections that are summarized in the table below:

Hole ID	Nth	Easting	From	To	Interval	Au $(g/t)$
CSRC001	6466160	374125	32	38	6	1.2
CSRC001	6466160	374125	69	71	$\overline{2}$	3.94
CSRC002	6466160	374140	36	39	3	1.4
CSRC003	6466160	374150	48	49	1	3.24
CSRC003	6466160	374150	38	47	9	4.88
CSRC004	6466160	374160	31	33	$\mathbf{2}$	6.72
CSRC005	6466140	374120	NSR
CSRC006	6466140	374130	NSR
CSRC007	6466140	374140	34	37	3	3.36
CSRC008	6466140	374150	36	42	6	1.64
CSRC009	6466040	374150	39	42	3	1.15
CSRC010	6466040	374160	56	61	5	2.37
CSRC011	6466040	374130	42	44	$\overline{2}$	1.45
CSRC012	6466080	374130	34	42	8	2.08
					$\mathbf{3}$	4.32
CSRC013	6466080	374140	36	39
CSRC013	6466080	374140	42	59	17	1.71
CSRC014	6466080	374170	37	40	3	2.33
CSRC014	6466080	374170	49	53	$\overline{4}$	1.63
CSRC014	6466080	374170	62	64	$\overline{2}$	2.46

NEW HIGH-GRADE GOLD DISCOVERY 'SPONGELITE' PROSPECT - PIONEER GOLD PROJECT (WA)

CSRC015	6466060	374130	31	47	16	2.29
CSRC016	6466060	374140	30	35	5	3.29
CSRC016	6466060	374140	49	70	21	4.8
CSRC017	6466060	374150	NSR
CSRC018	6466060	374120	32	35	3	1.42
CSRC019	6466100	374120	NSR
CSRC020	6466100	374140	27	30	3	2.04
CSRC020	6466100	374140	38	45	$\overline{7}$	1.9
CSRC020	6466100	374140	54	56	$\overline{2}$	2.13
CSRC021	6466120	374130	37	41	4	1.83
$CSRC022*$	6466120	374140	28	48	20	1.63

Appendix 1 (continued)

* includes some 4m composite samples.

Competent Persons:

The information within this report relating to exploration activities on the Company's projects is based on information compiled by Nicholas Revell who is a member of the Australasian Institute of Mining and Metallurgy. Mr Revell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Revell has consented to the inclusion in the report of the information on the Pioneer Gold Project in the form and context represented above

For further particulars in respect to Chrysalis Resources Ltd, please contact:

Dr Neale Fong Executive Chairman phone: (08) 9388 3802