Project Highlights

Mineral Hill is now operating at steady-state of 290,000tpa (initially forecast at 250,000tpa) with the ability to surge production to 330,000tpa, annually producing 5,400t of Cu, 1,500oz Au and 100,000oz Ag in concentrates. Gold and silver dore (bullion) production is expected to commence in the second half of 2012, with an increase in Mineral Hill production to 500,000 to 550,000tpa, adding 20,000oz Au and 165,000oz Ag per annum.

Sorby Hills is in the final stages of permitting with initial production expected to commence in 2013 at a rate of 500,000tpa generating 25,000t of Pb and 800,000oz Ag. Production is planned to increase in stages with additional approvals to 1.2mtpa.

KBL Mining's key projects are:

• Mineral Hill Mine, NSW
• Sorby Hills Project, WA
• Constance Range Project, QLD