XREF LIMITED — Interim / Quarterly Report 2011

Apr 27, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

King Solomon Mines Limited

ABN 34122404666	Quarter ended (“current quarter”)
34122404666	31 March 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 1.2 Receipts from product sales and related debtors Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year (12 months) $A’000
	218 (285) - - (99) 13 - (5) (15)	249 (1,862) - - (443) 52 - 29 (100)
	(173)	(2,075)
Cash flows related to investing activities 1.8 Payment for purchases of:(a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (17) - - - - - -	- - (59) - - 28 - - -
	(17)	(31)
	(190)	(2,106)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(190)	(2,106)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	4,165 - - - - -	5,060 - - - - -
	4,165	5,060
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	3,975 1,174 (20)	2,954 2,198 (23)
	5,129	5,129

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		208
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	1.1 $31,000 represents a royalty for Iron Ore Mining in the Wuritu prospect. $218,000 is from sale of prospects: Ie RMB 1,000,000 is from the sale of Beyinhar North RMB 500,000 is advance payment for sale of Wiritu in April RMB 73,000 is carrying costs of Amoyitele previously sold. 1.14 This represents 47,686,784 shares issued at $A 0.07c each = $3,338,000 Plus 14,225,728 shares issues at $NZ 0.0921 each = $ 967,000 Less Placement costs of $140,000. 1.6 This represents Resident & Non Resident withholding tax deducted. The bulk of the deductions are expected to be recovered on filing of annual tax returns. 1.7 This is FX on consolidation of the Chinese subsidiary. 1.23 This is for fees, salaries and reimbursement of expenses (including GST).

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Not Applicable

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not Applicable

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Not Applicable	Not Applicable
	Not Applicable	Not Applicable

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	1,419
	-
	-
	141
Total	1,560

• See chapter 19 for defined terms.

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Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,251	271
	2,878	903
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	5,129	1,174

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	Not Applicable
	Not Applicable

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	Nil
	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	166,287,552	166,287,552
	61,912,512	61,912,512
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	6,279,999 3,100,000		Exercise price 30 10	Expiry date 4 May 2011 29 July 2014
	Nil
	Nil
	Nil
7.11 Debentures (totals only)	Nil

• See chapter 19 for defined terms.

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7.12 Unsecured Nil notes (totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

28/4/11 Sign here: ............................................................ Date: ............................ (Director/Company secretary) Print name: Stephen McPhail..............

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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