Kingsrose MiningKingsrose MiningKingsrose Mining Kingsrose Mining LimitedLimitedLimitedLimited

Way Linggo Project UpdateWay Linggo Project UpdateAugust 2010August 2010

Kingsrose Mining LimitedKingsrose Mining Limited

OBJECTIVEOBJECTIVE

“Aggressively develop into a significant gold producer based on our proven in-house expertise in underground mining, exploration and now gold processing.”

FOCUS

“C ld / il d ti ith i di t f t“Commence gold / silver production, with immediate focus tostreamline our processes to optimize recoveries and $ /oz.”

Way Linggo Project - South Sumatra, Indonesia

Way Linggo Project OverviewWay Linggo Project - Overview

• Construction of 140,000 tonnes per annum underground gold mine and processing facility completed without a LTI.

• Commissioning commenced July 2010

• Stockpiled ore on surface, 25,700t - metal value US$21 Mil.

• Significant recent prospects of near surface epithermal system with high grade float of up to 33.5 g/t gold and 200 g/t silver

• Projected 45,000 oz Au and 750,000 oz Ag annual production from 2010.

Way Linggo Project - Site Power generationWay Linggo Project - Site Power generation

statistics:

Engines – 6 of C i 6V28Cummins 6V28

Generating capacity 3capacity - 3 megawatt

Total operationTotal operation power draw 1.4 mW

Power house located down at Mine Ore Pad

Way Linggo Project Process PlantWay Linggo Project - Process Plant

Relevant Information:

400 tonnes per day design400 tonnes per day designcapacity

Merrill – Crowe Process

Cyanide leach and zinc precipitation of Au and Ag

Suitable high grade Au and Ag ores.

Mineral amenable to rapid leaching with high fine gold sizing distribution.g

Way Linggo Project - Design Process Flow Sheet

Way Linggo Project Project SnapshotWay Linggo Project - Project Snapshot

Mining

� Well advanced with 25,717 tonne,@ 18.3 g/t Au and 214 g/t Ag stockpiled.

� On target to achieve fullO ta get to ac e e uproduction of 400 tonnes per-day in early October. Planned to coincide with commencement of level 2 long hole stoping and level 3 ore body access.

� Strongly Positive Reconciliationsg y� Target of 20 – 25,000t ore

stockpiled achieved for plant start upup

Way Linggo Project Project SnapshotWay Linggo Project - Project Snapshot

Plant

� Construction completed –pcost $US5.5m

� 140,000 tpa conventional cyanide leach with Merrill-cya de eac t eCrowe zinc precipitation to maximise silver recovery

� Metallurgically simple > 90%� Metallurgically simple > 90%recovery,

� Impressive gold particle sizing and distributionand distributioncharacteristics of the ore with upside to plant throughput and low cost processing.and low cost processing.

Way Linggo Project - Plant CommissioningWay Linggo Project - Plant Commissioning

Progress:

� Crushing circuit – fully commissioned, performance affected by sticky clays

� Milling circuit - 100% operational� Milling circuit 100% operational� Leach circuit - 100% operational� CCD circuit - 100% operational � Merrill Crowe - Challenges with design and function of

clarifier. � Goldroom – 100% operational

Outstanding:Outstanding:� Merrill Crowe circuit – suffering low flow and requires

additional process to pre condition pregnant liquor before presenting to leaf clarifier.

�Redesign / replace leaf clarifier

Major Issues:Merrill Crowe circuit Leaf

�Management and loss prevention of microscopic high grade gold

Merrill Crowe circuit - Leaf clarifier

Way Linggo Project Production ChallengesWay Linggo Project - Production Challenges

Understand and control fine fraction goldUnderstand and control fine fraction gold� Benefit to be gained by reduced portion as mill feed

� Reduced run off losses to environment = higher return� Reduced run-off losses to environment = higher return

� High potential for reduced treatment costs

� Evaluate and implement engineered solutions� Evaluate and implement engineered solutionsSolutions

� Cover all ore sources – stockpiles, conveyors, hoppersp y pp

� Build downstream silt traps

� Reduce water from mining operationg p

� Improve procedures of ore stockpile management

� Implement wet screening processp g p

Way Linggo Project - Gold size distributionWay Linggo Project - Gold size distribution

G ld Di t ib ti

50,025,0

Gold Distribution

Au (g/t) Au dist (%)

30 0

40,0

15 0

20,0

(%)

t)

20,0

30,0

10,0

15,0

Dis

tribu

tion

(

Gra

de (g

/t

0,0

10,0

0,0

5,0

-38 38 53 75 106 150 212 300 425 600 850 1180 2360 4000 6700 950038 38 53 75 106 150 212 300 425 600 850 1180 2360 4000 6700 9500

Particle Size (microns)

Medium grade ore characteristics with 54% of gold content reporting to <150 �m fraction.

Way Linggo Project - Gold size distributionWay Linggo Project - Gold size distribution

6060

Gold Distribution

Au (g/t) Au dist (%)

40

50

40

50

%)

20

30

20

30

Dis

tribu

tion

(%

Gra

de (g

/t)

0

10

0

10

-38 38 53 75 106 150 212 300 425 600 850

Particle Size (microns)

High grade ore characteristics with 41% of gold content reporting to <150 �m fraction.

Way Linggo Project - Engineered SolutionsWay Linggo Project Engineered Solutions

Proposed Double deck screen

40% of gold reporting directly to leach tanks

Wet scrubber addition for crushing / milling circuit

Way Linggo Project - Adjusted Process Flow Sheet – Merrill Crowe

Pre clarifier added to removePre clarifier added to remove micro fine clays/scale

Additional clarifier pre conditioning hopper required to achieve Merrill Crowe design flow

Way Linggo Project TSF ConstructionWay Linggo Project - TSF Construction

TAILINGS STORAGETAILINGS STORAGEFACILITY

Engineered Earth Dam inEngineered Earth Dam in final stage of completion. Storage capacity 525,000 t

Government Permitted Design built to compliance.

Project Environmental Impact Statement, Env. Monitoring Plan and Env. Management Plan to schedule and compliance.

Way Linggo Project Project PerformanceWay Linggo Project - Project Performance

Ore Stock Pile By March 2010 25,000 Tonnes @ 18,3 g/t Au

Mill Throughput 140,000 Tonnes p.aMill Throughput 140,000 Tonnes p.a

Budgeted Grade For 18 Months 12 g Au/t

Pl t I P d ti A t 2010Plant In Production August 2010

Mill Recovery Rate 90%

Mill Availability 92%

Steady State Annualised Production 45,000 oz Au per Annum750 000 A A750,000 oz Au per Annum

25,717 tonnes @ 18.3 g/t Au and 214 g/t Ag*

* This ore has been extracted as part of development mining and comes from the previously reported JORC compliant measured and indicated resource.

Way Linggo Project – CAPEXWay Linggo Project – CAPEX

Asset acquired with capitalised Exploration & Evaluation of USD13m

Capital Expenditure To Date:Capital Expenditure To Date:� Process Plant (including power station) U$D 6m� Other Plant & Equipment U$D 3m� Mine Development Mar09 to Aug10 U$D 3m� Mine Development Mar09 to Aug10 U$D 3m� Total Capitalised Expenditure spent by KRM U$D 12m

� Upcoming Capital Expenditure – to June 2011:� Upcoming Capital Expenditure to June 2011:� Plant & Equipment (approx 25% under finance) U$D 2.4m*� Exploration U$D 4.9m

Way Linggo Project – Operating CostsWay Linggo Project – Operating Costs

Once in Steady State Production – Operating Costs� Mining (including development) U$D152/oz � P i U$D125/� Processing U$D125/oz� Dore transport/refining costs U$D 23/oz� Overheads U$D 39/oz

Sub total U$D 316/ozSub-total U$D 316/oz

� Less silver credits (USD18/toz Ag) (U$D 216/oz)� Add Royalties (govt other) U$D 25/oz� Add Royalties (govt, other) U$D 25/oz

Cash cost per gold ounce U$D 147/oz

Operating cash margin per ounce U$D 1 003/toz*Operating cash margin per ounce U$D 1,003/toz* (based on U$D1,150 / oz Au)

General Disclaimer

This presentation has been prepared by Kingsrose Mining Limited (“Kingsrose” or the “Company”). It should not be considered asan offer or invitation or inducement to subscribe for or the purchase of any securities in the Company. This presentation containsforecasts and forward looking statements Such forecasts projections and information are not a guarantee of futureforecasts and forward looking statements. Such forecasts, projections and information are not a guarantee of futureperformance, involve unknown risks and uncertainties. Actual results and developments may differ materially from thoseexpressed or implied. Kingsrose has not audited or investigated the accuracy or completeness of the information, statements andopinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Kingsrosemakes norepresentation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility andassume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from anyinformation statement or opinion contained in this presentation This overview of Kingsrose does not purport to be all inclusiveinformation, statement or opinion contained in this presentation. This overview of Kingsrose does not purport to be all inclusiveor to contain all information which its recipients may require in order to make an informed assessment of the Company’sprospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to theaccuracy and completeness of the information, statements and opinions contained in this presentation before making anyinvestment decision.

Competent Person Statement

The information in this presentation report that relates to exploration results, mineral resources and ore reserves is based oni f i il d b D Mi h l A d B S (h ) Ph D h i F ll f h A l i I i f Mi i dinformation compiled by Dr Michael Andrews B.Sc.(hons) Ph.D., who is a Fellow of the Australasian Institute of Mining andMetallurgy, and a Director of Kingsrose Mining Ltd. Dr Andrews has sufficient experience which is relevant to the styles ofmineralization and types of deposits and to the activity which he is undertaking to qualify as a Competent Person as defined in the2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). DrAndrews consents to the inclusion in this report of the matters based on this information in the form and context in which itappears.