Kingsrose Mining Limited is pleased to advise that Credit Suisse is extending its support of the Company’s Way Linggo Project by agreeing to provide US$15 million in funding to accelerate the production ramp-up at the Talang Santo mine. The funds will used expedite mine development at Talang Santo once the Indonesian Mines Department has provided final permission for full mining activities to recommence. This is anticipated to occur next month.  Some of the funds will go towards drilling to further define and expand the Talang Santo resource, test nearby targets and for general working capital purposes. The Company does not anticipate requiring any further funding for the Way Linggo Project.

The funding will be provided via a two-part prepaid gold transaction to PT Natarang Mining, an 85% owned subsidiary of Kingsrose and operator of the Way Linggo Project, which includes Talang Santo. Kingsrose Managing Director Chris Start said the financing was a vote of confidence from Credit Suisse in the Way Linggo Project. “This funding will allow us to ramp up production at Talang Santo as quickly as possible and ensure that the Project generates maximum income for both Kingsrose shareholders and for Indonesia, particularly for the people of Lampung Province, Sumatra”.

The pre-paid transaction essentially involves PTNM delivering specified quantities of gold ounces (determined upon trade execution) on a monthly basis starting in January 2014 and ending in July 2015.  CS will pay the sales proceeds to PTNM at the time of trade execution of each of the two tranches;
a) the first tranche of US$4 million will be executed on completion of the transaction documentation, expected to occur this month, and,
b) the second tranche of US$11 million will be executed upon permission being given to resume full mining activities at Talang Santo, including receipt of a forestry “borrow & use” permit, and review by Credit Suisse of an updated cash forecast.

The combined quantity of gold effectively priced and committed to delivery in the two transactions will represent less than 20% of expected production during the delivery months.  The Company will disclose the exact quantity of ounces committed upon completion of the second tranche. PTNM entered into a similar transaction structure with Credit Suisse using silver in December 2010 that provided A$13 million. These funds were used primarily to retire loans inherited upon the acquisition of PTNM.  One remaining delivery of silver (20,005 ounces) is required to be made on 28 February 2013, delivery of which will complete the silver prepaid transaction.