XREF LIMITED — Interim / Quarterly Report 2012

Apr 26, 2012

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King Solomon Mines Limited

QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2012

• Drilling resumes at Bu Dun Hua

• Mud-house resource potential clarified

BU DUN HUA PORPHYRY COPPER PROJECT (King Solomon 100%)

BDH029, the first drill-hole of the 2012 season at Bu Dun Hua, was collared on the recentlyidentified Nomad target (Fig 1) on 2 April. Approximately 40m of unstable sand and mud cover meant a slow start but at the time of writing the hole was at a depth of approximately 180m in silicified rhyolitic fragmental rocks. The hole is being drilled from the west side of the large magnetic low that defines this target and is approaching the anticipated western wall.

Access is currently being organised for holes BDH030 and BDH031 at the Ghenghis and Northern Deeps targets. The Ghenghis hole will be following up encouraging copper and gold mineralised intercepts encountered in 2011 in holes BDH025 and BDH028.

The Northern Deeps hole will be testing a positive magnetic anomaly that lies on a favourable geological and geochemical trend curving north-eastward to eastward from Whitehorse and passing through Ghenghis .

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Figure 1 Northeast quadrant of the BDH tenement showing current (BDH029) and planned (PDH2, PDH3) diamond drill-holes.

In addition, strongly altered outcrops in the area of the Whitehorse Extended magnetic anomaly are currently being evaluated as another prospective drill site. Previous drill-holes around the margins of this anomaly have yielded narrow zones of strongly anomalous base metals and silver.

The first assay results for the current drill program are expected late May.

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SONID NORTH GOLD PROJECT (King Solomon 100%)

Analysis of data from the 2011 Mud-house diamond drill campaign is now complete. It has resulted in a lift in understanding of the internal detail of the previously-reported southsouthwest dipping package of variably gold-mineralised veins.

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Figure 2 Mud-house prospect showing location of potential resource block with diamond drill-hole intercepts greater than 1.0g/t Au listed alongside their respective drill-hole collar numbers.

Most importantly, it has shown that significant gold intercepts are concentrated within a 600m section of the 1.1km of strike of the package drill-tested to date. Off-sets of a prominent granite/diorite contact within this section (Fig 2) show that this is a zone of cross-faulting. Thirteen intercepts (previously reported) of better than 1g/t Au from ten drill-holes in this section average 1.9m in width and 3.35g/t Au in grade. Best values include 0.7m @ 8.0g/t Au and 4.0m @ 11.3g/t Au. The thirteen intercepts are accompanied by numerous additional intercepts in the 0.10 to 0.99g/t Au range. Outside of this area, gold intercepts are still common but rarely exceed 0.5g/t Au.

There is a consequent potential for a modest underground narrow vein resource in this central section. Drill-hole spacing is as yet too coarse to quantify the potential. Although restricted to a 600m strike length, the zone remains open down-dip and there is a possibility of plunge to the west or east. In addition there is the possibility of repeats of this style of mineralisation where similar cross-faulting may occur further along strike of the gold anomalous vein package. There is room for several kilometres of strike continuity across the Sonid North and adjacent Marmot tenements. Much of this ground is sand-covered and would require scout drilling to identify suitable cross-faulting targets.

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Figure 3. Project location map

GENERAL

During the quarter, the company received approximately $80,000 in lease income from an iron ore miner from its Marmot ridge tenement. At the end of the March quarter, the Company had cash on hand of $1.4 Million.

Stephen McPhail Managing Director

Enquiries may be directed to Stephen McPhail at phone 1800 061 569 (from Australia), +6421 897 667 (from elsewhere) or email stephen@kingsolomonmines.com .

The information on mineralisation contained in this announcement accurately reflects information compiled by A B Bell, BSc, F AusIMM(CP), Executive Director, a Competent Person (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves), who has relevant experience in relation to such mineralisation and has consented to the inclusion of such information in this announcement.

www.kingsolomonmines.com.au

King Solomon Mines Limited ARBN 122 404 666

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