Kingsrose Mining : Quarterly Activities and Cashflow Report - June 2022

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Quarterly Report for the Period Ended June 30, 2022

Kingsrose Mining Limited (ASX: KRM) ("Kingsrose" or the "Company") is pleased to provide an update on its

activities for the June 2022 quarter.

HIGHLIGHTS

• Cash balance of A$27.6m at June 30, 2022 (March 31, 2022: A$26.6m)
• Announcement of JORC Exploration Target at Penikat
• Geophysics and resampling of drill core at Porsanger underway
• Further drill results and entry into a process deed for the sale of Way Linggo

EXECUTIVE SUMMARY

During the quarter, the Company announced an independently prepared JORC compliant Exploration Target for the Penikat project in Finland. This produced an Exploration Target range of 21 to 32 million tonnes at 4.0 to

7.4 g/t 6E for a total of 2.8 to 7.7 million ounces 6E. This places Penikat among the highest-grade PGE dominant exploration projects globally and demonstrates the significant scale potential of the project. Work at Penikat is focused on obtaining drilling permits for late 2023, as well as mapping and exploration drill planning.

At the Porsanger project in Norway, exploration has advanced with the commencement of an electromagnetic (EM) geophysical survey which is intended to identify conductors that may represent massive sulphide bodies to be targeted in future exploration drilling. Drilling permit applications and related stakeholder engagement has been a key focus for the Company and is well underway. It is anticipated that drilling will commence in the Norwegian springtime following the completion of various regulatory approvals, and the requisite cultural and environmental surveys.

Kingsrose has entered into a 60-day exclusivity arrangement and process deed for the sale of the Way Linggo project, Indonesia during the quarter. Additional drilling, (including due diligence drilling funded by the potential purchaser), has returned further encouraging results from the Maul Vein area. The Company intends to enter into a binding sale and purchase agreement prior to the conclusion of the exclusivity period.

The Company remains well financed, with A$27.6 million in cash as at June 30, 2022, and continues to assess additional project acquisition and target generation opportunities.

SAFETY

During the quarter, the Company's detailed COVID-19 Management Protocol was rigorously adhered to, ensuring the continued health and safety of all employees.

The Way Linggo site experienced no lost time, restricted duty or medically treated injuries in the quarter. The 12-month moving average Lost Time Injury Frequency Rate (LTIFR) was 4.83 (March 2022 quarter: 4.91). The Total Recordable Injury Frequency Rate (TRIFR) for the site at the end of the quarter was 4.83 (March 2022 quarter: 4.83).

OPERATIONS

The Company's Care and Maintenance Plan at Way Linggo continued during the quarter, with the aim of ensuring all major components of the plant are preserved and to reduce the requirements for regular maintenance. Additional care and maintenance activities, including reducing personnel on site, were undertaken to further reduce ongoing costs.

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Geotechnical assessments were routinely undertaken during the quarter to ensure all mine areas were stable. Siphoning of the Talang Santo pit and the construction of a spillway was undertaken to reduce water levels and improve the pit stability during periods of high rainfall.

EXPLORATION

Way Linggo Project, Indonesia

During the quarter, assay results were received for five holes totalling 988.3 metres at the Maul Vein Drilling which intercepted mineralisation at the Maul Vein over 550 metres along strike and from surface to at least 200 metres deep, which remains open in all directions. The Company completed an additional four holes totalling

436.1 metres during May and June 2022, with assay results announced to the ASX in July 2022. To date, 14 holes totalling 2,241.1 metres have been completed at the Maul Vein (Figure 1).

Significant intercepts at the Maul Vein to date include:

• 3.1 metres at 13.0 g/t gold, 21.9 g/t silver (from 78.2 metres, DDH-597)
• 4.3 metres at 6.0 g/t gold, 8.6 g/t silver (from 41.2 metres, DDH-596)
• 2.7 metres at 6.7 g/t gold, 8.9 g/t silver (from 8.1 metres, DDH-595)
• 11.7 metres at 4.0 g/t gold, 39.6 g/t silver (from 137.4 metres, DDH-602), including o 0.9 metres at 7.6 g/t gold, 169 g/t silver (from 140.0 metres), and
  o 1.6 metres at 12.8 g/t gold, 62 g/t silver (from 143.9 metres)
• 5.0 metres at 4.1 g/t gold, 22 g/t silver (from 97.6 metres, DDH-601), including

• 1. 0.3 metres at 13.2 g/t gold, 60 g/t silver (from 97.6 metres)
• 4.2 metres at 4.6 g/t gold, 17 g/t silver (from 97.4 metres, DDH-603), including
• 1. 2.0 metres at 7.3 g/t gold, 21 g/t silver (from 97.6 metres)

Entry into Process Deed for the Potential Sale of Way Linggo

Kingsrose entered into a process deed with PT Kreasi Cemerlang Lestari (Registration No. AHU- 10.04847.PENDIRIAN-PT.2014) (PTKCL) for the potential acquisition by PTKCL or its related body of the Way Linggo gold project, via the sale of the entire issued capital of Natarang Offshore Pty Ltd ACN 007 006 877 (Process Deed). The Process Deed provides for:

• good faith negotiation of transaction documents to implement the potential transaction;
• a focussed due diligence programme to be undertaken by PTKCL;
• a drilling programme, prepared in collaboration with and funded by PTKCL, involving four drill holes into the 'Maul Vein' area, for a total of 436.1 metres (Drilling Programme), which has been completed with assay results announced to ASX in July 2022;
• a deposit of any agreed purchase of US$100,0000 (Deposit); and
• a 60-day exclusivity period.

In the event the Company breaches the Process Deed, the Company must repay the Deposit, all drilling and other costs incurred by PTKCL in connection with the Drilling Programme and reimburse PTKCL's external costs up to a maximum of US$150,000.

The Company will keep the market informed of any material developments in accordance with its continuous disclosure obligations and shareholders are reminded that there is no certainty that final terms will be agreed with PTKCL nor that any transaction will take place.

During the quarter total exploration costs associated with the drilling program were A$84,483.

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FIGURE 1: Map showing location of holes DDH-600 to DDH-604 which were completed in February and March 2022.

Penikat Project, Finland

In February 2022, the Company submitted all samples within significant intercepts greater than 1 g/t 3E (Platinum + Palladium + Gold) from the resampling program for determination of the full Platinum Group Element (PGE) six-element suite by nickel sulphide collection fire assay with ICP-MS finish. These results were received during the current quarter and confirmed the presence of high value precious metals including rhodium and iridium within the previously reported palladium, platinum, gold and base metal mineralised intervals. Significant rhodium grades were returned for all intervals, with the SJ Reef averaging 0.25 g/t Rh, and the AP and PV Reefs averaging 0.10 g/t Rh based on the resampling data available to date.

The results of resampling, historical data review and geological interpretation have been used to estimate an independent Exploration Target (Table 1 and Figures 2 and 3) in accordance with the JORC Code, which ranks the Penikat project as one of the highest-grade PGE projects globally.

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Table 1: Penikat Exploration Target

		Tonnes		4E		4E	6E		6E
		(millions)		(g/t)		(Moz)	(g/t)		(Moz)
				PV Reef
Lower Limit	3.2		2.4		0.3	2.5		0.3
Upper Limit	4.6		6.1		0.9	6.4		0.9
				SJ Reef
Lower Limit	18		4.1		2.4	4.3		2.5
Upper Limit	28		7.2		6.4	7.6		6.7
				Total
Lower Limit	21		3.8		2.7	4.0		2.8
Upper Limit	32		7.0		7.3	7.4		7.7
Notes:
1.	All tabulated data have been rounded and as a result minor computational discrepancies may occur.
2.	No economic viability is implied.
3.	The potential quantity and grade of the PGE mineralisation at Penikat is conceptual in nature, there has been
	insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the
	estimation of a Mineral Resource.
4.	The Exploration Target is reported as a range of grade and tonnages for the project based on drillhole data statistical
	confidence limits and various assumptions of continuity.
5.	4E = Pt+Pd+Rh+Au in proportions estimated as
	PV Reef	53% Pt, 36% Pd, 2% Rh, 9% Au
	SJ Reef	42% Pt, 53% Pd, 4% Rh, 1% Au
6.	6E = Pt+Pd+Rh+Au+Ru+Ir. In proportions estimated as
	PV Reef	51% Pt, 34% Pd, 1% Rh, 8% Au 1% Ru, 3% Ir
	SJ Reef	40% Pt, 51% Pd, 4% Rh, 1% Au, 2% Ru, 2% Ir

Porsanger Project, Norway

Porsanger is prospective for feeder-conduit style massive sulphide deposits, and the shallow parts of the outcropping intrusions have been proven to contain disseminated sulphide associated with copper, PGE and weak nickel mineralisation (refer to ASX announcement dated 10 November 2021).

The Company is planning to conduct a ground-based electromagnetic geophysical survey at the Porsanger project (Figures 2 and 4), to explore for the potential presence of copper, nickel and PGE bearing massive sulphide deposits located at the base of the mafic-ultramafic intrusions at Porsvann and Karenhaugen (Figure 4). The survey was delayed from the June Quarter to July 2022, due to earlier than expected snow melt causing inadequate access.

Resampling and logging of historical drill core has been completed, with samples submitted to the laboratory in June 2022. Historical results only include analyses for palladium, platinum and copper. Kingsrose will obtain a multielement suite of analyses to include, but not limited to, palladium, platinum, rhodium, gold, copper and nickel to better understand the polymetallic nature of the intrusion, and review lithogeochemical data to aid with exploration targeting. Results are pending.

During the quarter, Kingsrose submitted a drill permit application for the Porsvann area and are awaiting permission to be granted from the Directorate for Mineral Management.

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FIGURE 2: Location of the Penikat Project and Porsanger Project within Scandinavia