Kingsrose Mining has completed an initial first pass exploration orientation-drilling program of three holes at the Talang Toha prospect and one hole at the Mitra Jaya prospect, part of the Way Linggo project.

The drilling was designed to test the geology in the vicinity of the anomalies defined by soil geochemistry at both prospects.

Initial results at Talang Toha have been very encouraging with the first hole testing the blind mineralisation returning 1.55m @ 7.23 g/t Au and 6.82 g/t Ag from 65 metres down hole in a brecciated clay quartz zone with geology similar to the recent holes drilled near surface above the proximal Talang Santo deposit.

A review of the results including a hole drilled below DDH-417 which intersected altered andesitic volcanics and the fact that the intersection in DDH-417 was encountered much earlier than anticipated indicates the mineralised structure may be in a different orientation. Whilst it is still at an early stage, it is considered very encouraging as it represents one of the most significant intersections outside of the known mineralisation.

The preliminary stratigraphic hole at Mitra Jaya was targeting a potential source of the near surface gold anomalism identified by soils and trenching.

The hole did not return any indications of primary mineralisation and has refocused efforts in understanding the fluid pathway for the silicified cap which appears to be spatially related to the broad zone of gold anomalism which has been identified and potentially related to a feeder zone from deeper mineralisation.

A review of the results is being undertaken prior to planning the next phase of drilling. Project scale geochemical sampling is continuing at other priority targets which is intended to increase the target inventory once the work is completed.

Project Update

Talang Santo

Development on the 4 Level advanced 229m in July comprising 174m of horizontal development and 55m of vertical development which is required for the establishment of stoping blocks. Delays in advance were experienced relating to the influx of water directly at the working faces. Lateral development directly to the East and West remains a priority as the primary source of water inflow is directly at the extremities of the ore body. The total volume of water on the Level has been and continues to be pumped from the mine with production areas currently being established in the central areas where water rates have been reduced as a result of drawdown.

5 Level Shaft

Development of the haulage shaft to the 5 Level remains on schedule which will allow access to the higher grade sections of the orebody. The installation of the headframe and winder is nearing completion and advance of the shaft has continued in conjunction with these activities.