Kingsrose Mining Limited (ASX:KRM) Unscheduled Mill Stoppage At Way Linggo

Perth, April 12, 2011 AEST (ABN Newswire) - During a scheduled inspection of both ball mills at the beginning of the month, it was noted that excessive wear to the liners warranted their immediate replacement and Kingsrose Mining Limited (ASX:KRM) has decided not to operate the plant and risk damage to the mills until new liners can be fitted. Further, inspection of the mills bearings during downtime has revealed noticeable deterioration and issues with the ball mill trunnion bearings and lube system. Temporary repairs have been carried out and as of yesterday evening the mills were again operating.

The Company has now been advised that replacement mill liners and another bearing will be on site and fitted on or about 18th April 2011. Unfortunately spares located on-site were deemed insufficient.

The Company has assessed the impact of this incident and has taken measures to ensure it has matters covered moving forward.

The Company expects its April's production being reduced by around half. The Company has a scheduled shutdown planned in June to commission and tie-in the new SAG Mill and management forecasts that production for the June quarter will now be around 8,000 ounces gold.

The above problem is disappointing in light of the solid operational improvements site management have made over the past six months and particularly after achieving a commendable result in the March quarter with gold production reaching 10,463 ounces and silver production of 123,774 ounces with preliminary cash cost estimates after silver credits being around US$25 per ounce.

The Company will provide a further update in its March Quarterly Activities Report due later this month.

Contact

Jeannette P. Smith Company Secretary Kingsrose Mining Limited Tel: +61-8-9486-1149 Fax: +61-8-9486-1151 Email: info@kingsrosemining.com.au