KBL Mining : Iron Duke Copper-Gold

ASX RELEASE 19 August 2016 Iron Duke Copper-Gold KBL Mining Limited (ASX: "KBL" or "the Company") is pleased to announce renewal of EL6064 which hosts the Iron Duke deposit comprising 494kt at 1.5% copper and 0.8g/t gold1 (wholly Inferred at a 1% Cu cut-off). The tenure is located just 50km northeast of Mineral Hill and forms part of a regional exploration strategy targeting polymetallic mineralisation (Cu-Pb-Zn-Ag-Au) amendable for processing through the recently upgraded plant.

EL6064 was renewed on 23 June 2016 for a further three years (ending 20 March 2019), with KBL's regional exploration presence expected to increase over the coming year across tenure now covering approximately 330km² (including EL1999, EL8334 & EL6064).

The Iron Duke deposit comprises a steeply east dipping, mineralised envelope characterised by a complex quartz-sulphide (pyrite - chalcopyrite ± pyrrhotite - arsenopyrite) stock work up to 15m wide and extending over 550m in strike. Drilling has targeted the upper portion of the deposit which remains open along strike and at depth below approximately 140m.

KBL are currently reviewing the satellite deposit in context with a number of other high priority exploration targets within the Mineral Hill Project area.

While exploration to date has solely focussed on the Iron Duke deposit, it is also planned to review a series of historical workings located within the southern extent of the tenement, collectively known as the Christmas Gift trend on which there has been no previous exploration. These extend over two kilometres, with historical records suggesting a similar style of mineralisation to that of Iron Duke.

1 The Iron Duke Inferred Mineral Resource Estimate of 494kt at 1.5% Cu & 0.8g/t Au is as released on 4 June 2012 under JORC2004. The company is not aware of any new information or data that materially affects the information included in the relevant market announcement and in the case of estimates of mineral resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Figure 1. EL6064 Iron Duke located approximately 50km northeast of Mineral Hill, NSW.

For further information, please contact:

Greg Starr Managing Director KBL Mining Limited Ph: [phone]

About KBL Mining

KBL Mining is an Australian Resource Company listed on the ASX (KBL, KBLGA and KBLO) with a current focus on producing precious metals. KBL's main assets include the Mineral Hill copper-gold-silver-lead-zinc mine near Condobolin in New South Wales and Sorby Hills lead-silver-zinc project in Western Australia. The Company has been operating the refurbished processing plant at Mineral Hill since October 2011 to produce copper-gold concentrates and in 2015 commenced producing a gold-silver concentrate and bullion. KBL also holds Sorby Hills (KBL holds 75% with Henan Yuguang Gold & Lead Co. Ltd (HYG&L) holding 25%) is a large near surface undeveloped silver-lead deposit close to port infrastructure and a short distance from Asian markets.

More information can be found on KBL's website at www.kblmining.com.au.

Competent Persons Statement

The information in this report that relates to drilling results and Mineral Resources is based on information compiled by Owen Thomas, BSc (Hons), who is a Member of the Australian Institute of Mining and Metallurgy and is a full time employee of the Company. Mr Thomas has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 & 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Thomas consents to the inclusion in the announcement of the matters based on his information in the form and context that the information appears.