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XREF LIMITED Capital/Financing Update 2011

Mar 21, 2011

66097_rns_2011-03-21_47c842e8-140c-4a32-9096-ba08660d98e6.pdf

Capital/Financing Update

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King Solomon Mines Limited

22 March 2011

Share Purchase Plan closes oversubscribed

Share Purchase Plan

The Director ’ s of King Solomon Mines Ltd are pleased to advise that the company ’ s Share Purchase Plan ( “ SPP ” ) has closed oversubscribed. The company raised approximately $2.2 million from the SPP which was the maximum amount possible.

This brings to $5.3 million the total amount raised firstly from placements undertaken by Bell Potter Securities Limited in November and February and secondly from the SPP. The company is now in a strong position to follow up immediately on success from drilling during the current field season.

Drilling

Diamond drilling has now commenced at King Solomon ’ s Mud-house prospect (Sonid North Gold project). The current hole is the first in a program of approximately 2,400 m of diamond drilling. A complementary program of RC drilling is currently being organised following completion of a high-resolution magnetic survey undertaken to assist with hole positioning.

The arrival of a deep capacity diamond drill-rig at the company ’ s Whitehorse porphyry copper prospect at Bu Dun Hua, means that drilling of the first of two planned 1,000m (approximate) diamond-holes can be expected to commence over the next 2-3 days.

Stephen McPhail Managing Director

Phone +64 21 897 667

[email protected]

www.kingsolomonmines.com.au ARBN 122 404 666

King Solomon Mines Limited