PEPPERMINT INNOVATION LIMITED — Capital/Financing Update 2012

Mar 14, 2012

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CHRYSALIS FINALISES ACQUISITION OF ZAMBIAN COPPER PROJECT

15[th] March 2012

The Directors of Chrysalis Resources Limited are pleased to advise they have reached an out of court settlement with the Zambian Government that has allowed Chrysalis to finalise its acquisition of 100% of Zambian Copper Pty Ltd and 99.9% of Sedgwick Resources Limited (a Zambian company) which owns in excess of 3,000km[2] of exploration ground which consists of:

1. The Northern Projects of Shikila and Kabwima North and South, are located between Lumwana (Barrick Mines formerly Equinox) and Kansanshi (First Quantum’s) and Kansanshi and Chingola respectively, (total area 2,200km[2] ), Figure 1.

2. The Central Zambian Project Mwongo (pending) and Bulala Hills (as highlighted on the map) are within 15km and 50km respectively of Blackthorn Resources Mumbwa Project (ASX Code BTR) (Total Area 838km[2] ). Figure 1.

The Directors have been encouraged by Blackthorn’s recent announcement to the ASX regarding their drilling results near our central tenements. Planned exploration activity in our central Zambian tenements together with the better understood northern Lufilian Arc will commence as soon as is practicable to maximise the dry season.

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BLACKTHORN RESOURCES
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Figure One: Geology of Zambia showing significant deposits and Zambian’s Tenements

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Chrysalis Resources Limited Company Snapshot Company Structure Board Management
A.B.N 56 125 931 964 Listed on ASX 27 May 2008 No of Shares on Issue 67,343,702 Dr Neale Fong
Level 1 Executive Chairman
331 Hay Street ASX Share Code CYS No of Options on Issue 35,036,327
SUBIACO WA 6008 Mr Adrian Paul
Sector Mining Cash (as at 31 [st] Jan 12) $0.89M Non-Executive Director
PO Box 226, Wembley WA 6913
Mr Grant Kidner
Phone: 618 9380 4430 Non-Executive Director
Fax: 618 9481 5044
E: info@chrysalisresources.com.au Mel Cotterell
www.chrysalisresources.com.au Company Secretary
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CHRYSALIS FINALISES ACQUISTION OF ZAMBIAN COPPER PROJECT

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The planned exploration activities over the next 12 months will be based around the following:

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• Airborne Geophysics

• Ground Geophysics

• RC Drilling and targeted Diamond Drilling

• Satellite Image Analysis

We will also immediately put in place steps to have our licence application at Mwongo converted from Pending to Granted.

Due diligence has been completed to the satisfaction of Chrysalis. The Share Sale Agreement between the parties has been executed and settlement will take place at Chrysalis’ office 7 business days after satisfaction or waiver of the last of the conditions precedent of the Share Sale Agreement, which are mainly procedural and expected to be completed within 4 weeks.

TERMS OF THE OUT OF COURT SETTLEMENT

1. Granting of Ministerial approval for the transfer from Sedgwick Resources Limited to Zambian Copper Pty Ltd;

2. An extension of the licence for 2 years from the date of expiry of the current licence;

3. Exploration expenditure of up to $7 million will be expended on the licence over the next 2 years;

4. If successful in our exploration programs Chrysalis will convert the prospecting licence to a Large Scale Mining Licence; and

5. Throughout the tenure of the prospecting licences, Chrysalis will work closely with the Chiefs for each area, and endeavour to establish community development programmes that will assist in improving schools and health infrastructure with the local communities.

It is also a current Government policy initiative that the Mining Act be reviewed and amended to allow all licences to be extended for a term of 11 years compared to the current 7 years. This would automatically give Chrysalis a further 2 years of exploration.

KEY TERMS OF SHARE SALE AGREEMENT

Chrysalis has signed a Share Sale Agreement to purchase 100% of the issued shares of Zambian Copper Pty Ltd. Zambian Copper Pty Ltd owns all but one of the shares in Sedgwick Resources Ltd (a company incorporated in the Republic of Zambia). Sedgwick Resources Ltd is the registered holder of the following projects:

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	Chrysalis Resources Limited		Company Snapshot		Company Structure		Board Management
	A.B.N 56 125 931 964 Level 1 331 Hay Street SUBIACO WA 6008 PO Box 226, Wembley WA 6913 Phone: 618 9380 4430 Fax: 618 9481 5044 E: info@chrysalisresources.com.au www.chrysalisresources.com.au		Listed on ASX 27 May 2008 ASX Share Code CYS Sector Mining		No of Shares on Issue 67,343,702 No of Options on Issue 35,036,327 Cash (as at 31stJan 12) $0.89M		Dr Neale Fong Executive Chairman Mr Adrian Paul Non-Executive Director Mr Grant Kidner Non-Executive Director Mel Cotterell Company Secretary

CHRYSALIS FINALISES ACQUISTION OF ZAMBIAN COPPER PROJECT

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KEY TERMS OF SHARE SALE AGREEMENT (CONT)

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• Issue of 5 million ordinary shares in Chrysalis to the shareholders of Zambian Copper.

• Payment of AUD $300,000 to the shareholders of Zambian Copper.

• Appointment of 1 board member to Chrysalis nominated by Zambian Copper.

• Upon receiving a JORC compliant mineral resource of 100 million tonnes of copper, at potentially economic grade, Chrysalis will issue AUD $1,000,000 in shares to the shareholders of Zambian Copper.

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Dr Neale Fong Executive Chairman

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Mel Cotterell Company Secretary

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Chrysalis Resources Limited Company Snapshot Company Structure Board Management
A.B.N 56 125 931 964 Listed on ASX 27 May 2008 No of Shares on Issue 67,343,702 Dr Neale Fong
Level 1 Executive Chairman
331 Hay Street ASX Share Code CYS No of Options on Issue 35,036,327
SUBIACO WA 6008 Mr Adrian Paul
Sector Mining Cash (as at 31 [st] Jan 12) $0.89M Non-Executive Director
PO Box 226, Wembley WA 6913
Mr Grant Kidner
Phone: 618 9380 4430 Non-Executive Director
Fax: 618 9481 5044
E: info@chrysalisresources.com.au Mel Cotterell
www.chrysalisresources.com.au Company Secretary
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CHRYSALIS FINALISES ACQUISTION OF ZAMBIAN COPPER PROJECT

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ABOUT THE PROJECTS

1. SHIKILA AND KABWIMA NORTH AND SOUTH TENEMENTS – LIFILIAN PROJECT AREA

The Lufilian Project Area, which includes the Shikila and Kabwima North and South tenements, is located in the North Western Province of Zambia, approximately 400km north of the national capital, Lusaka, and bordering the Democratic Republic of Congo (DRC).

Previous Exploration

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• Shikila Prospect – mineralisation continues down dip from drilling carried out in late 1960’s.

• Kabwima North – Copper intersections in a new area in a range of 0.2% and 1% Cu.

• Kabwima South – Surface gossans discovered returned analyses with range of 0.5% and 9% Cu.

• Kabwima North Mashimba – Surface gossans from pyritic mineralisation returning assays in a range of 8 to 2,181 ppm Cu and 57 to 1,401 ppm Co with co-incident soil anomalies.

The tenements are located along strike from Equinox’s Lumwana Mine (measured and indicated resources of 342.5 million tonnes of ore grading 0.74% Cu, plus inferred resources of 563.1 million tonnes at 0.63% Cu. (Source http://www.equinoxminerals.com/Development/Lumwana-Project) and First Quantum’s Kansanshi Mine (as of the 31[st] December 2009, total measured and indicated resources is 383.8 million tonnes at 1.1% Cu and 0.18 g/t Au at a 0.3% Cu cutoff, inferred resources 161.9 million tonnes at 0.76% Cu and 0.04 g/t Au at a 0.3% Cu cut off, (Source http://www.first-quantum.com/i/pdf/NR-10-14.pdf) and west of the Copperbelt. The tenements are located within the outer Lufilian Arc which is host to a variety of Copper-Zinc (eg Kipushi DRC), Copper-Gold (eg Kansanshi and Lumwana), Cobalt (eg Nama) and Uranium (eg Lumwana) mineral deposits.

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• The Shikila Project (413km[2] ) is 30km southwest of the Equinox Lumwana Mine (measured and indicated resources of 342.5mt @ 0.74% Cu, plus inferred resources of 563.1mt @ 0.63% Cu) and 20km west of First Quantum’s Kansanshi Mine (measured and indicated resources of 383.8mt @ 1.1% Cu and 0.18 g/t Au, inferred resources 161.9mt @ 0.76 Cu and 0.04 g/t Au)

• The Kabwima Project (1,768km[2] ) is 30km southeast of First Quantum’s Kansanshi Mine (see below) and 60km northwest of Ndola in the Copperbelt (>1,000mt @ 3.5% Cu).

2. MWONGO PROJECT AREA

The Mwongo Project Area is located approximately 150km west of Lusaka in the Central Province of Zambia and has an area of 459.2km[2] .

Previous Exploration

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• Drainage geochemical samples in the range of 100 to 2,000 ppm Cu with some coincident Zn and Co.

• A massive sulphide gossan with assays of 0.43% Cu and 0.38% Zn and a pyritic gossan with 0.3% Co.

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Chrysalis Resources Limited Company Snapshot Company Structure Board Management
A.B.N 56 125 931 964 Listed on ASX 27 May 2008 No of Shares on Issue 67,343,702 Dr Neale Fong
Level 1 Executive Chairman
331 Hay Street ASX Share Code CYS No of Options on Issue 35,036,327
SUBIACO WA 6008 Mr Adrian Paul
Sector Mining Cash (as at 31 [st] Jan 12) $0.89M Non-Executive Director
PO Box 226, Wembley WA 6913
Mr Grant Kidner
Phone: 618 9380 4430 Non-Executive Director
Fax: 618 9481 5044
E: info@chrysalisresources.com.au Mel Cotterell
www.chrysalisresources.com.au Company Secretary
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CHRYSALIS FINALISES ACQUISTION OF ZAMBIAN COPPER PROJECT

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3. BULALA HILLS PROJECT AREA

The Bulala Hills Project Area is located approximately 150km west of Lusaka in the Southern Province of Zambia and has an area of 379.0km[2] .

Previous Exploration

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• Geological mapping has delineated a large scale oxidised hydrothermal system associated with acid volcanics.

• Soil sampling defined copper anomalies stretching of 14km with values in a range of 25 and 1,000 ppm Cu associated with magnetite and haematite alteration.

• 2 rock samples of volcanic fragments have assays of 3% Cu.

Competent Person’s Statement:

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John S Noakes, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Geological Society of London. Mr Noakes is a director of Zambian Copper Pty Ltd. in which he has a beneficial interest in shares. Mr Noakes 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 Noakes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

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Chrysalis Resources Limited Company Snapshot Company Structure Board Management
A.B.N 56 125 931 964 Listed on ASX 27 May 2008 No of Shares on Issue 67,343,702 Dr Neale Fong
Level 1 Executive Chairman
331 Hay Street ASX Share Code CYS No of Options on Issue 35,036,327
SUBIACO WA 6008 Mr Adrian Paul
Sector Mining Cash (as at 31 [st] Jan 12) $0.89M Non-Executive Director
PO Box 226, Wembley WA 6913
Mr Grant Kidner
Phone: 618 9380 4430 Non-Executive Director
Fax: 618 9481 5044
E: info@chrysalisresources.com.au Mel Cotterell
www.chrysalisresources.com.au Company Secretary
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