Kingsrose Mining : Quarterly Activities and Cashflow Report - March 2022

Quarterly Report for the Period Ended March 31, 2022

Kingsrose Mining Limited (ASX: KRM) ("Kingsrose" or the "Company") is pleased to provide an update on its activities for the March 2022 quarter.

HIGHLIGHTS

• • Cash balance of A$26.6m at March 31, 2022 (December 31, 2021: A$28.2m)

• • Addition of key management appointments including Head of Exploration and Head of Sustainability

• • High-grade PGE-nickel-copper-gold results of historical drill core resampling received

• • Geophysical survey at Porsanger due to commence in May

• • Drilling at the Maul Vein target and strategic review for a transaction on the Way Linggo project both ongoing

EXECUTIVE SUMMARY

During the quarter, the Company continued the evolution of its business to a focus on responsible and high-quality mineral exploration. The addition of key management appointments including Andrew Tunningley as Head of Exploration, Katariina Koikkalainen as Head of Sustainability, and Peter Dodds as Exploration Manager, Scandinavia, all of whom are experts in their field.

At the Penikat project in Finland the Company is focused on the granting of exploration licences to commence drilling. This involves completing wide-ranging species and habitat surveys, as well as the preparation of detailed exploration plans both of which, are well underway to obtain exploration licences and commence drilling in 2023. Additional resampling of historical drill core returned exceptional high-grade PGE-nickel-copper-gold grades and provides encouragement as to the potential scale and high-grade potential of the Penikat project. The Company's technical team continues to develop our understanding of the project, with further analysis for the full suite of six PGEs as well as mineralogical studies expected to complete in the next quarter.

In January 2022 Managing Director Fabian Baker and Katariina Koikkalainen held initial stakeholder meetings in the town of Lakselv near the Company's Norwegian Porsanger project. The Company is working closely with the local authorities and land users, in particular reindeer herding communities, and intends to complete a geophysical survey in May to identify potential for massive sulphide accumulations at depth, prior to drilling late in the European summer.

At the Way Linggo project in Indonesia, continued drilling success on the recently discovered Maul Vein has led to an increased drill programme to expand the currently known limits of gold mineralisation. Further assay results are expected during the June quarter. Meanwhile, the Company continues to assess strategic opportunities to realise value for the project through a potential transaction.

Kingsrose remains well capitalised with A$26.6 million in cash on hand and continues to assess further opportunities to expand its exploration portfolio and work programmes.

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.

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 4.91 (December 2021 quarter: 3.94). TheTotal Recordable Injury Frequency Rate (TRIFR) for the site at the end of the quarter was 4.91 (December 2021 quarter: 3.94).

OPERATIONS

The Company's Care and Maintenance Plan at Way Linggo continued 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.

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

Exploration continued at the Maul Vein with an additional five holes for 988.3 metres completed in February and March 2022. The holes were designed to test the along strike and down dip continuity of mineralisation, with assay results pending.

The Maul Vein is a newly discovered, largely concealed vein breccia system located 500 metres west of the Talang Santo open pit. Trenching has exposed the vein beneath one to three meters of alluvial cover, over a strike length of at least 300 metres, and the vein strikes under deep alluvial cover to the southeast.

Results from the trenching were announced on 1 November 2021, including significant intercepts of:

• • 4.5 metres at 1.2 g/t gold, including 0.2 metres at 4.7 g/t gold (TR-MV-03)

• • 8.0 metres at 0.6 g/t gold, including 2.0 metres at 1.3 g/t gold (TR-MV-02)

Five diamond drill holes totalling 816.7 metres were completed in November and December 2021 and have proven the vein over 160 metres of strike length and to a depth of 120 metres down dip. Mineralisation remains open in all directions. Significant intercepts include (refer to ASX announcement dated 20 January 2022):

• • 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)

During the quarter total exploration costs associated with the drilling program were A$283,206.

FIGURE 1: Map showing prospects and deposits, Way Linggo Project.

FIGURE 2: Map showing location of holes DDH-600 to DDH-604 which were completed in February and March 2022.

Penikat Project, Finland

On 14 March 2022 the Company announced results of continued resampling from historical drill core at Penikat (Figures 3 and 4). The results demonstrated:

• • excellent repeatability of high-grade palladium, platinum and gold intercepts with variable base metal values, from the PV Reef and SJ Reef;

• • thicker than historically reported intercepts from some parts of the SJ Reef; and

• • newly discovered zones of mineralisation from historically unsampled parts of the SJ Reef.

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 will provide the Company with information on the concentrations of rare but potentially important and high-value by-product PGEs (rhodium, ruthenium, iridium and osmium), as well as platinum and palladium. These results are pending..

ALS Metallurgy, Perth, has been retained to conduct a mineralogical study to determine the mode of occurrence for Platinum Group Minerals in each of the PV and SJ Reefs. This information will guide future metallurgical test programs. The study is due to commence in May 2022.

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Porsanger Project, Norway

The Company is planning to conduct a ground-based electromagnetic geophysical survey at the Porsanger project (Figure 3), 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 5). The survey will be completed in the June quarter 2022, pending the grant of certain permits from the local authorities.

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).

In May 2022 the Company is planning to geologically log and resample historical drill core held in storage by the Norwegian Geological Survey (NGU), with the aim of updating geological interpretations and obtaining a multi-element suite of geochemical analyses.

FIGURE 3: Location of the Penikat Project and Porsanger Project within Scandinavia