Corporate Directory - kingsrosemining.com.au · Jl. Jendral Sudirman Kav. 29-31 Jakarta 12920,...

Corporate DirectoryDirectorsJohn MorrisNon-Executive Chairman

Timothy SpencerManaging Director

J. William PhillipsNon-Executive Director

Andrew SpinksNon-Executive Director

Jeannette SmithCompany Secretary

Registered Office - AustraliaSuite 9, Level 212-14 Thelma StreetWest Perth WA 6005Tel: + 61 8 9486 1149Fax: +61 8 9486 1151Email: [email protected]: www.kingsrosemininig.com.au

Indonesian OfficePT. Natarang MiningJL. Ciputat Raya 16Pondok Pinang, Kebayoran LamaJakarta Selatan 12310, IndonesiaTel: + 62 21 7510 125Email: [email protected]

Bankers - AustraliaHSBC Bank Australia188 – 190 St Georges TerracePerth WA 6000

Bankers – IndonesiaHSBC Bank IndonesiaWorld Trade CentreJl. Jendral Sudirman Kav. 29-31Jakarta 12920, Indonesia

Auditors - AustraliaErnst & Young Australia11 Mounts Bay RoadPerth WA 6000

Auditors – IndonesiaErnst & YoungIndonesia Stock Exchange BuildingTower 2, 7th FloorJl. Jend. Sudirman Kav. 52-53Jakarta 12190, Indonesia

Solicitors – AustraliaEMK LawyersSuite 4, 236 Naturaliste TerraceDunsborough WA 6281

Ralph Legal Suite 9, 16 Phillimore StreetFremantle WA 6160

Solicitors - IndonesiaSoemadipradja & TaherWisma GKBI, Level 9Jl. Jendral Sudirman No. 28Jakarta 10210, Indonesia

Share RegistryAdvanced Share Registry Limited150 Stirling HighwayNedlands WA 6998Tel: +61 8 9389 8033Fax: +61 8 9389 7871

Level 6, 255 Clarence StreetSydney NSW 2000Tel: + 61 2 8096 3502Website: www.advancedshare.com.au

Domicile & Country of IncorporationAustralia

Stock Exchange ListingsASX – AustraliaKingsrose Mining Limited is listed on the Australian Securities Exchange Limited(Home Branch – Perth)

ASX Code: KRMACN: 112 389 910

Contents Chairman’s Address 2

The Way Linggo Project / A Profile 4

Review of Operations 5

JORC Resource Statement as at 30 June 2013 16

Financial Report

Directors’ Report 17

Auditor’s Independence Declaration 37

Corporate Governance Statement 38

Consolidated Income Statement for the year ended 30 June 2013 48

Consolidated Statement of Comprehensive Income for the year ended 30 June 2013 49

Consolidated Statement of Financial Position as at 30 June 2013 50

Consolidated Statement of Cash Flows for the year ended 30 June 2013 51

Consolidated Statement of Changes in Equity for the year ended 30 June 2013 52

Notes to the Financial Statements for the year ended 30 June 2013 53

Directors’ Declaration 105

Independent Audit Report 106

Shareholder Information 108

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KINGSROSE MINING LIMITED ANNUAL REPORT 20132

Chairman’s AddressDear fellow Shareholder,

The 2013 financial year proved to be a challenging one for the Company as well as for the gold mining sector in general. After a strong start to the year the progress of the Way Linggo Project was severely impacted in September 2012 by a very tragic mining accident at Talang Santo, the Company’s second underground mine. The ensuing nine months saw the Company focus its efforts on completing the steps required to allow full mining activities to resume at Talang Santo, whilst still mining at the Way Linggo mine, albeit at a reduced rate.

It is important to recognise that the long-term fundamentals of the Project have not changed with the extensive and prolifically mineralised Way Linggo Project held by a secure title and as production at the Talang Santo mine is forecast to ramp up over the coming months, the Company is set to once again enjoy some of the lowest costs and most robust margins in the industry. Furthermore, the recent completion of a capital raising, strongly supported by leading institutional and sophisticated investors was not only an immense vote of confidence in the Company and the Project, but will also facilitate the rapid ramp up of development activities and ensure the Company is fully funded to production.

Suffice to say, the foundations for an exciting year ahead have now been laid and as soon as cash flow allows, the Company intends to restart its exploration activities with the aim of not only expanding the Talang Santo ore body, but also on the numerous already defined epithermal targets with the intention of locating a third mining front on the Project area.

The Company’s commitment to Sumatra and the communities surrounding the Way Linggo Project never wavered and despite the challenges faced during the year we continued to actively participate in the provision of long lasting, sustainable community development initiatives. As a result, the Company’s 85% owned Indonesian subsidiary, PT Natarang Mining (PTNM) was the recipient of a regional award in relation to its efforts and the achievements of its community development program.

The outlook for the 2014 financial year remains positive, with a renewed and disciplined focus on Talang Santo, and with the combination of increased mining rates and production and the return of low costs and increased exploration activities these factors set to underpin the Company’s future growth. We are confident that the Company is now well positioned to build on the foundations laid during 2013, which in turn will lead to substantial returns for both shareholders and stakeholders.

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KINGSROSE MINING LIMITED ANNUAL REPORT 2013 3

I would like to take this opportunity to pay tribute to the dedicated and hardworking team at Kingsrose and PTNM for their on-going commitment and support throughout this difficult period. Furthermore, I would like to acknowledge the contribution of Chris Start, who stepped down as Managing Director in June. Chris played an important part in overseeing the Company’s transition from explorer to producer during his tenure with the Company.

On behalf of my fellow Board members, I’d like to sincerely thank shareholders for their continued support and patience during this financial year and I look forward to sharing in the next chapter of the Company’s growth with you.

John Morris Chairman

9 September 2013

Aerial

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The Way Linggo Project | A Profile

• Established Project (85% owned)• Two operating gold mines and a processing plant on 100km2 of secure title

• Resources Rich location• “Rim of Fire” in Sumatra, Indonesia

• Outstanding Grades• High grade, narrow vein low sulphidation epithermal gold & silver deposits

• Simple, Cost Effective Mining Methods• Underground, non mechanised and low impact mining methods

• Significant Growth Potential• Large exploration footprint, numerous defined epithermal targets

• Socially Responsible Operations• Strong local community engagement & employment

“Our philosophy is to mine orebodies for maximum profit and return excess cash generated to shareholders via dividends. Kingsrose conducts its operations in a socially responsible manner and strongly believes in providing education and employment opportunities in the communities in which we operate. Our mining methods have minimal surface impact and we uphold the highest environmental standards.”

Project location map

Way Linggo SUMATRA

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Review of OperationsWhile facing numerous challenges during the 2013 financial year, the period ended on a strongly positive note with recommencement of mine development at the Project’s second mine, Talang Santo. Following a tragic mining accident, mining activities were suspended at the mine for the better part of a year and mining rates fell at the Way Linggo mine, resulting in production and exploration activities (to preserve cash) being severely curtailed.

During this difficult period, the Company undertook a comprehensive review of its mining operations and exploration targets. A re-start of activities in earnest from July this year is focussed on the recommencement of mining development at Talang Santo and the foundations are now in place for a significant increase in the nature and scale of its operations in 2014 and the years to come.

The Talang Santo MineThe discovery of Talang Santo in June 2011 was an exciting milestone achieved by the Company and work quickly commenced to advance its development. Talang Santo is located to the north of the Way Linggo mine and the processing plant. Access is provided via a 17km all-weather road.

Exploration and development completed to date indicates that the Talang Santo deposit has potential to be significantly larger than the Way Linggo deposit and remains open along strike and depth. It is anticipated that production from the Talang Santo mine will in time surpass that of the Way Linggo mine and subsequently underpin the future growth of the Company.

Applying the same approach taken at the highly successful Way Linggo mine, the Company swiftly commenced preparations to move Talang Santo from an advanced exploration phase to a development phase. Initial activities provided access to the mineralised structure on what is now known as Level 2 and to allow selective trial mining. This was achieved in June 2012, only 12 months after the initial discovery drill hole. A total of 3,401 tonnes of ore were extracted at an average grade of 7.1g/t gold and 22g/t silver for the September 2012 Quarter.

View of the Talang Santo mine


Face samples taken from the exposed areas of the vein structure returned grades higher than were originally indicated from diamond drilling intercepts. Sampling to date indicates that the Talang Santo ore body contains low-sulphidation epithermal fissures and veins within a zone of intense argillic alteration. Very fine clays are present, containing high to very high grades of gold and silver. This is very similar to what occurred in the Way Linggo mine, where the grades of areas mined that contained clay tended to assay significantly higher than resource definition drilling projected for that area. This is evidenced by the fact that the Project-to-date (to 30 June 2013) feed grade through the process plant of 12g/t gold and 151g/t silver compares to the 2008 (pre-mine development) JORC Mineral Resource grade

View of the adit entry to Level 1 at the Talang Santo mine

Review of Operations (continued)

estimates for the Way Linggo resource of 8.4g/t gold and 129g/t silver.

In September 2012, a very unfortunate mining accident occurred at the Talang Santo mine, resulting in the cessation of all development and mining activities there. The Indonesian Mines Department advised PT Natarang Mining (“PTNM”), the Company’s 85% Indonesian subsidiary and operator of the Way Linggo Project, of several steps it was required to complete prior to the resumption of full mining activities. These included the preparation of an updated Way Linggo Project Feasibility Study (to include Talang Santo), an updated AMDAL (environmental impact study) and obtaining a second forestry permit to cover Talang Santo and associated infrastructure.

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Interim permission was granted that allowed limited activities pertaining to maintenance and safety at the mine. This mine development work included the completion of a water sump and pumping station at the bottom of the external underlay shaft on Level 3, development of an emergency egress system and completion of underground evacuation shelters.

Undertaking this work was important as it enabled development activities to be fast tracked once the updated approval was given in June 2013 by the Indonesian Mines Department for mining activities to recommence in accordance with Indonesian mining regulations. Other ancillary approvals are in the process of being completed in parallel.

Development activity has been focused on completion of the underground infrastructure in the vicinity of the base of the 120 metre external shaft that connects from Level 3 to surface. The main development drift on Level 3 follows the footwall and over 40 metres was driven in an easterly direction in competent rock (up to 30 June). The hanging wall and intermediate zone was exposed in several places and sampling has confirmed the presence of high grade zones.

Results included:

• 1.1m @ 18.0 g/t Au and 49 g/t Ag;• 2.2m @ 25.7 g/t Au and 63 g/t Ag; and• 1.9m @ 34.9 g/t Au and 76 g/t Ag.

The width of the mineralisation will vary as the vein is developed but within the eastward development witnessed thus far the ore zone is estimated to be between six and nine metres with the higher grades present in breccia quartz vein material with a clay matrix in the intermediate and hanging wall zones.

Development ore was stockpiled and will be processed through the mill when it starts in October. Mill throughput will begin at an initial rate of approximately 300 tonnes per day, stepping up from there in line with mine production. It is anticipated that mill throughput will reach 400 tonnes per day by mid 2014 at which rate, based on a head grade of 11 g/t gold, will result in an annualised production rate of 40,000 ounces of gold per annum with the latest financial modelling indicating “all-in cash costs” to be in the vicinity of US$650 once that production rate is reached.


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The Way Linggo MineProduction characterised by high grades and low costs from the Way Linggo mine allowed the Company to enjoy some of the most robust operating margins in the industry in the 2011 and 2012 financial years. During the 2013 financial year, however, the mine entered a more mature phase of operation with grade and production levels declining. The Way Linggo mine produced a total of 33,674 tonnes of ore at a grade of 8.6g/t gold and 91g/t silver in the Reporting Period.

Following a comprehensive review of mining at the Way Linggo mine in June 2013, the decision was made to suspend all normal mining activities and a geological review will be undertaken to identify nearby structures with potential to host extensions and repetitions of the Way Linggo deposit. Further discussion is provided in the next section of this report.

Exploration ActivitiesThe Way Linggo Project encompasses an area of 10,540 hectares and is held under a highly prized 4th generation Contract of Work (“CoW”) Agreement with the Indonesian Government. It is located on the prolifically mineralised Trans-Sumatra Fault, which is part of the Pacific Rim of Fire. The area is considered highly prospective for low-sulphidation epithermal gold-silver deposits with several multi-million ounce deposits located along it.

Over 15 areas of interest have been delineated within the CoW and an aggressive exploration and drill programme was underway at the start of the Reporting Period, continuing the very successful programme undertaken in 2011 that resulted in the discovery of Talang Santo. This programme was curtailed in October 2012 as part of a broader cash conservation strategy. Exploration activities will resume in earnest in the latter part of the 2013 calendar year on a number of the exciting exploration targets already identified within the Project area with higher priority given to the areas surrounding the two mines.

Talang Santo Mine & Surrounding AreaExploration work to date indicates that the area surrounding the Talang Santo mine has the potential to host additional high-grade epithermal veins. An extensive mapping programme has identified multiple structures out-cropping at surface within a two kilometre radius of the mine.

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Talang Santo Resource ExtensionResource definition drilling completed at the beginning of the Reporting Period was able to extend the vein structure both horizontally and vertically with the strike length currently over 1.2 kilometres in length and remaining open in all directions. Drilling results further confirmed that mineralisation continues strongly at depth and down plunge.

Intersections included:

• DDH-372 2.2m @ 4.0 g/t Au; 13 g/t Ag from 124.6m


• DDH-379 3.0m @4.6 g/t Au; 24 g/t Ag from 269.3m

• DDH-388 2.5m @11.2 g/t Au; 58 g/t Ag from 294.3m


• DDH-396 0.3m @ 14.9 g/t Au; 23 g/t Ag from 261.6m and; 1.7m @ 4.1 g/t Au; 8 g/t Ag from 261.6m and; 1.0m @ 4.9 g/t Au; 7 g/t Ag from 314.9m

Geotechnical drilling was completed at Talang Santo in March 2013. Three drill holes, totalling 914 metres, were completed with the locations of the holes designed to provide representative samples of the different rock types likely to be encountered during mining. The holes confirmed high-grade zones at Talang Santo and included the following intercepts:

• DDH-GTC-01 1.8m @ 6.3 g/t Au and 9 g/t Ag from 268.6m 1.2m @ 4.6 g/t Au and 23 g/t Ag from 276.9m 2.1m @ 1.6 g/t Au and 4 g/t Ag from 282.9m

• DDH–GTC-02 1.3m @ 15.4 g/t Au and 9 g/t Ag from 73.6m 2.7m @ 4.3 g/t Au and 10 g/t Ag from 285.5m

• DDH-GTC-03 4.2m @ 40.2 g/t Au and 35 g/t Ag from 302.4m including 1.0m @ 97.0 g/t Au and 77 g/t Ag from 302.4m

Prospects surrounding the Talang Santo Mine



Talang SaminTalang Samin was identified in 2011 with the discovery of a 7 metres wide outcrop of clay-silica alteration encapsulating alternating chalcedonic and banded quartz veins exposed in a creek bed. Manual trenching extended the strike length of the surface exposure upslope for a length of 73 metres. A limited drilling campaign was undertaken into the underlying vein structure with several narrow but high grade intersections returned. It is located approximately 800 metres west-south-west of Talang Santo.

Work on a low cost exploration shaft at Talang Samin commenced in the September 2013 quarter in order to better understand its geological structure as well as to determine its potential for mining in the future.

Talang TohaLying to the north and along strike of Talang Samin, Talang Toha contains the first set of vein swarms that were identified in late 2010 in the northern area of the Project’s 10,540 hectare land-holding, now referred to as the Talang Cluster. In early 2011, seven outcropping quartz veins within an 11 metre wide zone had been found, ranging in width from 0.5 to 1.5 metres with the best vein showing grades of 7.2 g/t Au and 4 g/t Ag.

A limited number of holes were drilled before focus was switched to Talang Santo. The vein was intersected and was shown to be mineralised, however at a vertical depth of over 300 metres it was considered a lower priority than Talang Santo.

Petai KayuThe Petai Kayu vein has been identified along a strike length of 1.6 kilometres and varies in width from 1 metre to 3 metres at surface. Petai Kayu was initially interpreted as a split or splay of the Talang Santo vein but persistent and continuous exposures of outcropping vein mineralization identified along creeks, gullies and trenching supports the view that it is in fact a continuation of the Talang Santo vein.

Structural movement of the regional fault/major lineament that runs parallel with the Trans-Sumatra Fault has created dilatant fractures and subsidiary structures favourable for gold mineralization within a dilational environment. The change in strike of the Talang Santo deposit is interpreted to be a result of dilation. Sampling of the outcrops of Petai Kayu has returned anomalous gold with occasionally high silver assays from a highly oxidized quartz-calcite vein.

Petai Kayu is considered a high priority prospect.

Talang Santo SouthTalang Santo South is located within 250 metres of Talang Santo deposit. A significant gold soil anomaly was displayed over the vein with over 300 metres strike length trending NW-SE. To date the area has only been subjected to early stage reconnaissance exploration work such as soil sampling and mapping, however this has highlighted the anomalous zone as a target for drilling.

Way Linggo Mine & Surrounding AreaDuring the Reporting Period, efforts were concentrated on what looked liked a south-easterly extension of the Way Linggo mine, separated from it by a large transverse fault. The area is named Way-Sapta. Numerous narrow sub-parallel veins were outlined over a strike of approximately 600 metres and to a depth of 300 metres. Exploration drilling defined the presence of many mineralised veins with assays confirming the potential for the area with numerous narrow intervals containing gold mineralisation with assays ranging from low to very high grade.

Based on the encouraging results, an exploration shaft and horizontal drift were started during mid 2012 to gain a better understanding of one of the larger veins, however it soon became evident that it would not provide economic tonnage. Further exploration work is required to better assess the potential of the area.

The Company’s geological team is confident that the Way Linggo orebody does not exist in isolation.



A review of the area surrounding the Way Linggo deposit commenced in July 2013 with the objective of identifying new exploration targets. The review is being undertaken by a highly respected consultancy with extensive expertise in structural geology and ‘path-finder’ geochemistry. Some very encouraging concepts have been developed and a work programme is being planned.

While previous exploration work has covered the immediate vicinity of the mine, it was mostly conducted before mining activities commenced. The review now underway has the benefit of utilising the significant

amount of information that has been collected over the life of the Way Linggo mine, including data from mining activities, drilling campaigns, geochemical and geophysical studies.

It is expected that the review and fieldwork will be completed by January 2014. It is anticipated that the review will result in the production of an exciting pipeline of targets warranting additional exploration activity and a renewed focus on the Way Lingo deposit and its surrounds.

Way Linggo Structural Geological Model

Way Linggo Structural Geological Model


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Corporate Social ResponsibliityThe Group is committed to conducting its operations to the highest safety and environmentally responsible standards with respect to our employees, the environment and the community in which we co-exist. Co-operating and engaging with our employees, contractors and the local communities in order to build a culture of awareness is crucial to the continuous improvements that are being achieved at the Way Linggo Project.

Community EngagementAcross all of its activities in Sumatra, Kingsrose and PTNM recognise the need to be socially responsible. The Group is committed to building a lasting, mutually rewarding relationship with the surrounding communities and implementing initiatives and structures that encourage the community to be self reliant that will in turn allow the community to grow and prosper beyond the lifetime of the Project.

PTNM’s President Director, Pak Herryansjah, has an intimate knowledge of the surrounding community and directly oversees the facilitation of our community initiatives.

The approach adopted is that of consultation and co-operation to ensure our goals are aligned with the needs of the community. This approach has proven to be extremely beneficial, resulting in a number of social and environmental initiatives, including support for sporting and cultural events, educational scholarships, medical donations, forestry rehabilitation and the provision of micro-loans aimed at assisting local entrepreneurs to start their own businesses. Additional support is provided for local infrastructure projects including the upgrading of roads, building of bridges, water drainage and assisting with the development of micro hydroelectric systems for power generation.

Repairing community access road

Proportion of funding directed towards community initiatives



One of the biggest benefits to the local community is the opportunity to work at the Way Linggo Project. A large number of our employees are Sumatran, with many coming from nearby villages. Extensive training programs are provided to help broaden their skills, equipping them for work not only at the Way Linggo Project but for other employment opportunities in the future.

1. School book donations

2. Local school sports event

3. Seedling donations

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Healthy and Safety AwarenessKingsrose and PTNM are committed to upholding the highest occupational health and safety standards at the Way Linggo Project with respect to our employees, contractors and the local community. PTNM employs dedicated Health & Safety and Environment Officers who are tasked with overseeing the creation of a safe and responsible working environment, identifying and mitigating any potential health and safety risks and ensuring adequate health and safety training is provided to all employees.

Ongoing health and safety training programs and initiatives include:

• Safety induction training for all new employees, contractors or visitors to site;

• Weekly Safety Committee meetings;• First aid training courses;• Monthly camp and site hygiene inspections

and briefings;• Cyanide and dangerous chemical

awareness training;• Drill blast training; and• Mine evacuation and rescue training.

Reflecting the commitment to, and importance placed on, creating a safe and responsible working environment, PTNM was awarded a “golden flag” certificate (the highest level) in May 2013 for its Occupational, Health and Safety Management Systems, following an audit conducted in February 2013 by a government appointed Occupational Health and Safety auditor.

Mine rescue team briefing

Way Linggo rescue team



Environmental AwarenessThe Group strives to ensure that the appropriate level of environmental care is achieved within the Project area and is committed to conducting all operations in an environmentally sustainable manner. This approach is designed to mitigate any potential adverse impact our operations may have on both the environment and the community. To date, there has been minimal environmental impact largely due to the non-mechanised, minimally invasive mining methods favoured by the Company.

The Group conducts its activities in accordance with its obligations under the Contract of Work and prevailing regulations regarding environmental matters. Environmental impact assessments are conducted and comprehensive rehabilitation and reforestation takes place on compensation land (184 hectares) purchased by PTNM and donated to the Ministry of Forestry.

On-going activities conducted under the Company’s Environmental Management and Monitoring Plan include:

• Rainfall monitoring and subsequent water usage and quality analysis;

• Monitoring Project waste disposal, including strict hydrocarbon and hazardous waste disposal procedures and any adverse environmental consequences this may have;

• Close observation and monitoring of the Tailings Storage Facility in accordance with required environmental parameters;

• Protection and conservation of wildlife, in particular those species that may be protected or endangered; and

• Rehabilitation and re-vegetation in the areas of mining and exploration activities, assisted by the establishment of an on-site nursery to cultivate seedlings and other associated plant life.

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Way Linggo Nursery Native tree planting

Water q

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sampli

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JORC Mineral Resource Statement As at 30 June 2013

Classification Tonnes Gold (Au) g/t Silver (Ag) g/t Au ounces Ag ounces

Talang Santo

Measured - - - - -

Indicated 863,625 6.2 16 171,873 451,200

Inferred 797,355 4.5 17 115,616 443,751

Subtotal 1,660,980 5.4 17 287,489 894,951

Way Linggo

Measured 326,755 14.7 178 154,640 1,867,655

Indicated 162,067 6.2 60 32,462 311,644

Inferred 13,988 12.2 87 5,487 39,333

Subtotal 502,810 11.9 137 192,589 2,218,632

TOTAL

Measured 326,755 14.7 178 154,640 1,867,655

Indicated 1,025,692 6.2 23 204,335 762,844

Inferred 811,343 4.6 19 121,103 483,084

Grand Total 2,163,790 6.9 45 480,078 3,113,583

Notes• The figures quoted below represent the geological resource.

No “Modifying Factors” have been applied as per the 2004 edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).

• For the Way Linggo resource estimation, the geology model was formed via the incorporation of geological mapping, production face sampling and drill-hole data. In the main Way Linggo zone, grade estimates have been based upon development data only. Outside of the main ore body drill hole data has been the basis of grade estimates.

• For the Talang Santo resource estimation, the geology model was formed via the incorporation of geological mapping, face production sampling and drill hole data. Talang Santo grade estimates have been based upon development and drill hole data.

• The respective Mineral Resource models from 30 June 2012 have been updated by depleting them of the material mined during the period July 1 2012 to June 30 2013.

• The void files used to deplete the respective models were current as at 30 June 2013.

• The Classified Mineral Resource is reported above a 2.5g/t Au cut-off grade.

• A top-cut of 150.0g/t Au and 1,800g/t Ag was used during estimation at Way Linggo. A top-cut of 25.0g/t Au and 75g/t Ag was used during estimation at Talang Santo.

• At Way Linggo, the portion of the resource in the area above existing mine development north of 10,050mN is considered as Measured. Fans of drilling completed to circa 900mRL allow the zone between the current base of mine development at 930mPL and 900mRL north of 10,050mN to be considered Indicated. Drilling to the north of current development also allows the mineralisation north of the main ore body to be considered Indicated. The mineralised zones to the south of 10,050mN are currently considered Inferred in those areas that have not been intersected by mine development, which in turn are considered Indicated. Mineralised zones peripheral to the main Way Linggo zone are primarily considered Inferred.

• At Talang Santo the well-drilled portion of the primary Mawi Vein and its two 300o trending footwall structures are considered Indicated. The remainder of the Mawi Vein, the footwall structures and all other peripheral mineralised zones are considered Inferred.

• Following a critical appraisal of all Measured resource blocks by the Chief Geologist at the Way Linggo Project, a decision was made to factor the resource down by 15% to account for the non-recoverability of mining pillars.

• Note that small discrepancies may have occurred due to rounding.

Competent Person StatementThe information in this report that relates to exploration results, mineral resources and ore reserves is based on the information compiled by Mr Andrew Spinks, BSc Applied Geol, Grad.Dip (Mining), who is a member of the Australasian Institute of Mining and Metallurgy and is a director of Kingsrose Mining Limited. Mr Spinks has sufficient experience which is relevant to the styles

of mineralisation and types of deposits and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves (“JORC Code”). Mr Spinks consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.


Directors’ Report


Directors’ Report (Continued)


Auditor’s Independence Declaration


Corporate Governance Statement


Corporate Governance Statement (Continued)


Consolidated Income Statement for the year ended 30 June 2013


Consolidated Statement of Comprehensive Income for the year ended 30 June 2013


Consolidated Statement of Financial Position as at 30 June 2013


Consolidated Statement of Cash Flowsfor the year ended 30 June 2013


Consolidated Statement of Changes in Equityfor the year ended 30 June 2013


Notes to the Financial Statementsfor the year ended 30 June 2013


Notes to the Financial Statements (Continued)for the year ended 30 June 2013


Directors’ Declaration


Independent Audit Report


Independent Audit Report (Continued)


Shareholder Information

Corporate DirectoryDirectorsJohn MorrisNon-Executive Chairman

Timothy SpencerManaging Director

J. William PhillipsNon-Executive Director

Andrew SpinksNon-Executive Director

Jeannette SmithCompany Secretary

Registered Office - AustraliaSuite 9, Level 212-14 Thelma StreetWest Perth WA 6005Tel: + 61 8 9486 1149Fax: +61 8 9486 1151Email: [email protected]: www.kingsrosemininig.com.au

Indonesian OfficePT. Natarang MiningJL. Ciputat Raya 16Pondok Pinang, Kebayoran LamaJakarta Selatan 12310, IndonesiaTel: + 62 21 7510 125Email: [email protected]

Bankers - AustraliaHSBC Bank Australia188 – 190 St Georges TerracePerth WA 6000

Bankers – IndonesiaHSBC Bank IndonesiaWorld Trade CentreJl. Jendral Sudirman Kav. 29-31Jakarta 12920, Indonesia

Auditors - AustraliaErnst & Young Australia11 Mounts Bay RoadPerth WA 6000

Auditors – IndonesiaErnst & YoungIndonesia Stock Exchange BuildingTower 2, 7th FloorJl. Jend. Sudirman Kav. 52-53Jakarta 12190, Indonesia

Solicitors – AustraliaEMK LawyersSuite 4, 236 Naturaliste TerraceDunsborough WA 6281

Ralph Legal Suite 9, 16 Phillimore StreetFremantle WA 6160

Solicitors - IndonesiaSoemadipradja & TaherWisma GKBI, Level 9Jl. Jendral Sudirman No. 28Jakarta 10210, Indonesia

Share RegistryAdvanced Share Registry Limited150 Stirling HighwayNedlands WA 6998Tel: +61 8 9389 8033Fax: +61 8 9389 7871

Level 6, 255 Clarence StreetSydney NSW 2000Tel: + 61 2 8096 3502Website: www.advancedshare.com.au

Domicile & Country of IncorporationAustralia

Stock Exchange ListingsASX – AustraliaKingsrose Mining Limited is listed on the Australian Securities Exchange Limited(Home Branch – Perth)

ASX Code: KRMACN: 112 389 910

ANNUAL REPORT

2013ASX Code: KRM ABN: 49 12 389 910

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kingsrosemining.com.au

Suite 9, Level 2 12-14 Thelma St West Perth WA 6005Tel: +61 (8) 9486 1149Fax: +61 (8) 9486 1151

Corporate Directory - kingsrosemining.com.au · Jl. Jendral Sudirman Kav. 29-31 Jakarta 12920,...

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