XREF LIMITED — Capital/Financing Update 2007

Apr 12, 2007

King Solomon Mines Ltd ("KSO") consolidated balance sheet and pro forma balance sheet

The pro forma consolidated balance sheet as at 31 October 2006 is provided below.

	Audited as at 31 October 2006 NZ \$	Audited as at 31 October 2006 AUD \$	Unaudited pro forma as at 31 October 2006 NZ ŝ	Unaudited pro forma as at 31 October 2006 AUD \$
Current assets
Cash assets	376,349	324,616	11,367,703	10,026,580
Other receivables	55,749	48,086	55,749	48,086
Other current assets	12.096	10,433	12,096	10,433
Total current assets	444,194	383,135	11,435,548	10,085,099
Non-current assets
Plant and equipment Exploration and evaluation	120,083	103,577	120,083	103,577
expenditure	714,517	616,299	714,517	616,299
Total non-current assets	834,600	719,876	834,600	719,876
Total assets	1,278,794	1,103,011	12,270,148	8,861,975
Current liabilities
Other payables	153,542	132,436	153,542	132,436
Total current liabilities	153,542	132,436	153,542	132,436
Total liabilities	153,542	132,436	153,542	132,436
Net assets	1,125,252	970,575	12,116,606	10,672,539
Equity
Issued capital	2,145,977	1,823,862	13,176,977	11,560,826
Reserves	183,894	202,569	183,894	202,569
Retained losses	(1, 204, 619)	(1,055,856)	(1, 244, 265)	(1,090,856)
Total equity	1,125,252	970,575	12,116,606	10,672,539

Source: KSO audited financial statements for the year ended 31 October 2006 and pro forma adjustments as noted below

The pro forma balance sheet should be read in conjunction with the following pro forma adjustments.

Pro forma adjustments:

• ^1. In presenting the pro forma balance sheet set out above an exchange rate of 1 Australian Dollar = 1.13276 New Zealand Dollar at 12 April 2007 has been applied to the capital raising and offer costs.
• ² After 31 October 2006, KSO completed the following share allotments:
• the issue of 55,000 new shares at \$2.55 (NZD \$2.90) per share to raise \$140,082 (NZD $$159,500$ :
• the issue of 44,000 new shares at \$2.54 (NZD \$2.90) per share to raise \$111,881 (NZD $\bullet$ $$127,600$ );
• the issue of 8,000 new shares at \$2.50 (NZD \$2.83) per share to raise \$20,000 (NZD $$22,601$ ;
• the issue of 20,000 new shares at \$2.50 (NZD \$2.82) per share to raise \$50,000 (NZD $$56,440$ :
• the issue of 40,000 new shares at \$2.50 (NZD \$2.83) per share to raise \$100,000 (NZD \$113,200).
• ³. The pro forma balance sheet reflects the issue of 50,000,000 new shares at \$0.20 per share to raise \$10,000,000 (NZD \$11,327,600).
• ⁴ Expenses associated with the offer of \$720,000 (NZD \$815,587) have been charged against share capital \$685,000 (NZD \$775,941) and retained earnings \$35,000 (NZD \$39,646).