PEPPERMINT INNOVATION LIMITED — Capital/Financing Update 2012

Aug 7, 2012

CHRYSALIS RESOURCES LTD NON-RENOUNCEABLE RIGHTS ISSUE

8 th August 2012

Chrysalis Resources Limited ("Chrysalis") wishes to announce it will undertake a four (4) for five (5) non-renounceable pro-rata rights issue of ordinary shares at 5 cents per share ("Rights Issue") to shareholders to raise approximately $3.013 million.

Funds raised from the issue will be applied to:

• Conduct exploration programs on the newly acquired Zambian Copper Project
• Settle the acquisition of the Zambian Copper Project
• Repayment of an unsecured loan for $500,000 drawn to fund exploration on the Zambian Copper Project and general working capital
• Carry out further exploration programs at Pioneer and West Angelas
• Fund the costs associated with the Offer; and
• Fund general working capital

Chrysalis' two major shareholders Mr Adrian Paul (Director) and Mr David Nasir Yusoff together representing 15.54% 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, Mr Grant Kidner and Dr Neale Fong, have also agreed to take up their full entitlements which represent 9.86% of the Company's issued capital.

Overview of Rights Issue

Eligible Chrysalis shareholders will be entitled to subscribe for four (4) new Chrysalis fully paid ordinary shares for every five (5) existing Chrysalis ordinary shares held at 5.00pm on 20 August 2012, at a price of 5 cents per share. The offer price of 5 cents per share represents a 33.33% discount to the closing price of Chrysalis ordinary shares on 30th July 2012 (the last date of trading in Chrysalis ordinary shares prior to announcement of the Rights Issue). All new ordinary shares issued will rank equally with existing ordinary Chrysalis shares.

Chrysalis Resources Limited	Company Snapshot		Company Structure		Board Management
A.B.N 56 125 931 964Level 1	Listed on ASX	27 May 2008	No of Shares on Issue	75,343,702	Dr Neale FongExecutive Chairman
331 Hay StreetSUBIACO WA 6008	ASX Share Code	CYS	No of Options on Issue	35,036,327	Mr Grant Kidner
PO Box 226, Wembley WA 6913	Sector	Mining	Cash (as at 30th June 2012) $0.29M		Executive Director
Phone: 618 9380 4430					Mr Adrian PaulNon-Executive Director
Fax: 618 9481 5044E: info@chrysalisresources.com.au					Mel Cotterell
www.chrysalisresources.com.au					Company Secretary

If shareholders do not wish to take up any part of their entitlement they are not required to do so. The 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.

An Offer document setting out the terms of the Rights Issue will be lodged with ASX on 9 August 2012. Eligible shareholders will also be sent a copy of the Offer document and application form on 24 August 2012.

Overseas holders

The offer of shares under the Rights Issue is limited to eligible shareholders with registered addresses in Australia and New Zealand. With the exception of New Zealand shareholders, overseas shareholders will not be offered new shares.

Important dates

Event	Date
Announcement of Rights Issue and lodgment of Appendix 3B	8 August 2012
The latest of release of Offer Document and Cleansing Statement to
ASX	9 August 2012
Notice sent to Security Holders	10 August 2012
Ex Date
(date from which securities commence trading without the	13 August 2012
entitlement to participate in the Rights Issue)
Record Date
(date for determining entitlements of eligible shareholders to	20 August 2012
participate in the Rights Issue)
Offer Document Despatched to Shareholders
(expected date of dispatch of offer document, entitlement and	24 August 2012
acceptance forms)
Company announces that the Offer Document has been dispatched	24 August 2012
Entitlement Issue opens	24 August 2012
Closing Date*5pm (WST)	7 September 2012
Securities quoted on a deferred settlement basis **	10 September 2012
Company to notify ASX of under subscriptions (if any) **	12 September 2012
Despatch holding statements **	17 September 2012

Company Snapshot		Company Structure		Board Management
Listed on ASX	27 May 2008	No of Shares on Issue	75,343,702	Dr Neale FongExecutive Chairman
ASX Share Code	CYS	No of Options on Issue	35,036,327	Mr Grant Kidner
Sector	Mining	Cash (as at 30th June 12)	$0.29M	Executive Director
				Mr Adrian Paul
				Non-Executive Director
				Mel CotterellCompany Secretary

* Subject to the ASX Listing Rules, the Directors reserve the right to extend the Closing Date of the Rights Issue 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

Dr Neale Fong Executive Chairman

Mel Cotterell Company Secretary

Chrysalis Resources Limited	Company Snapshot		Company Structure		Board Management
A.B.N 56 125 931 964Level 1	Listed on ASX	27 May 2008	No of Shares on Issue	75,343,702	Dr Neale FongExecutive Chairman
331 Hay StreetSUBIACO WA 6008	ASX Share Code	CYS	No of Options on Issue	35,036,327	Mr Grant Kidner
PO Box 226, Wembley WA 6913	Sector	Mining	Cash (as at 30th June 12)	$0.29M	Executive Director
Phone: 618 9380 4430					Mr Adrian PaulNon-Executive Director
Fax: 618 9481 5044
E: info@chrysalisresources.com.auwww.chrysalisresources.com.au					Mel CotterellCompany Secretary