ASX RELEASE 15 August 2016 Production Milestone KBL Mining Limited (ASX: "KBL" or "the Company") is pleased to announce the production and shipment of the 60th Gold bar from the state of the art Mineral Hill CIL circuit; a significant milestone for the company having now delivered approximately 4,000 ounces gold and 8,600 ounces silver as bullion.

Additional to resumed production of high grade gold concentrate for export, the Mineral Hill CIL is capable of generating saleable bullion from the treatment of float tails, re-treatment of gold tails (as announced 23 May 2016) and treatment of oxide ores. This represents a significant broadening of the production profile, offering operational flexibility and reducing overall risk.

KBL's Managing Director, Greg Starr commented: "The enhanced treatment flexibility of the Mineral Hill plant will allow the Company to maximise mill feed options while optimising processing for future ore sources. This adaptability is crucial for continued growth and sustained production while also highlighting amenability to toll treatment opportunities".

For further information, please contact:

Greg Starr Managing Director KBL Mining Limited Ph: +61 2 9927 2000

About KBL Mining

KBL Mining is an Australian Resource Company listed on the ASX (KBL and KBLGA) 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.

KBL Mining Limited published this content on 15 August 2016 and is solely responsible for the information contained herein.
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