PEPPERMINT INNOVATION LIMITED — Capital/Financing Update 2011

Sep 5, 2011

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CHRYSALIS RESOURCES LTD NON-RENOUNCEABLE RIGHTS ISSUE

6 September 2011

Chrysalis Resources Limited (“ Chrysalis ”) has today announced that it will undertake a 1 for 2 nonrenounceable pro-rata rights issue of ordinary shares at 5 cents per share ( Rights Issue ) to shareholders to raise approximately $1.122 million.

Funds raised from the issue will be applied to:

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• Carry out further exploration programs at the Pioneer, West Angeles and Doolgunna Projects.

• Fund the costs associated with the Offer; and

• Fund general working capital

Chrysalis’ two major shareholders Mr Adrian Paul (and Director) and Mr David Nasir Yusoff representing 13.7% of the issued capital of the company have indicated that they intend to subscribe for their full entitlement under the Rights Issue. The other directors have also agreed to take up their entitlements.

Overview of Rights Issue

Eligible Chrysalis shareholders will be entitled to subscribe for 1 new Chrysalis ordinary share for every 2 existing Chrysalis ordinary shares held at 5.00pm on 16 September 2011, at a price of 5 cents per share. The offer price of 5 cents per share represents a 48% discount to the closing price of Chrysalis ordinary shares on 5 September 2011 (the last date of trading in Chrysalis ordinary shares prior to the announcement of the Rights Issue). All new ordinary shares issued will rank equally with existing ordinary Chrysalis shares.

If shareholders do not wish to take up any part of your entitlement they are not required to. That part of a shareholders entitlement not taken up will form part of the shortfall. The shortfall will be placed at the discretion of the directors.

The Rights Issue is non-renounceable and entitlements will not be tradeable on the ASX or otherwise transferable. Chrysalis shareholders who do not take up their entitlements in full will not receive any value for those entitlements that they do not take up.

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Chrysalis Resources Limited Company Snapshot Company Structure Board Management
Level 1 Listed on ASX 27 May 2008 No of Shares on Issue 44,895,801 Dr Neale Fong
331 Hay Street Executive Chairman
SUBIACO WA 6008 ASX Share Code CYS No of Options on Issue 35,036,327
Mr Adrian Paul
PO Box 226, Wembley WA 6913 Sector Mining Cash (as at 31st Jul 11) $0.28M Non-Executive Director
Phone: 618 9380 4430 Mr Grant Kidner
Fax: 618 9481 5044 Non-Executive Director
E: info@chrysalisresources.com.au
www.chrysalisresources.com.au Mel Cotterell
Company Secretary
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An offer document setting out the terms of the Rights Issue will be lodged with ASX on 8 September 2011. Eligible shareholders will also be sent a copy of the offer document and application form on 22 September 2011.

Event	Date
Announcement of Rights Issue	6 September 2011
The latest of release of Offer Document, Cleansing Statement and Appendix 3B to ASX	8 September 2011
Notice sent to SecurityHolders	9 September 2011
Ex Date (date from which securities commence trading without the entitlement to participate in the Rights Issue)	12 September 2011
Record Date (date for determining entitlements of eligible shareholders to participate in the Rights Issue)	16 September 2011
Offer Document Dispatched to Shareholders (expected date of dispatch of offer document, entitlement and acceptance forms)	22 September 2011
Companyannounces that the Offer Document has been dispatched	22 September 2011
Entitlement Issue opens	22 September 2011
ClosingDate* 5pm(WST)	6 October 2011
Securitiesquoted on a deferred settlement basis **	7 October 2011
Companyto notifyASX of under subscriptions(if any)**	11 October 2011
Dispatch holdingstatements **	14 October 2011

• Subject to the Listing Rules, the Directors reserve the right to extend the Closing Date for the Offer at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue for the New Shares.

• ** These dates are indicative only and are subject to change. Chrysalis reserves the right to amend this indicative timetable without notice.

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Dr Neale Fong Executive Chairman

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Mel Cotterell Company Secretary