KBL Mining : Appendix 3B

Level 3, 2 Elizabeth Plaza, NORTH SYDNEY NSW 2060 PO Box 98, NORTH SYDNEY NSW 2059

Phone:+61 2 9927 2000

Fax: +61 2 9927 2050

Website: www.kblmining.com.au

ACN 129 954 365

26 August 2016

KBL Mining Limited (KBL or the Company) releases this Appendix 3B today, 26 August 2016, related to the following movements in capital.

1. The Conversion of 10 (therefore total $100,000 face value) convertible notes, resulting in the issue of a total of 50,000,000 new, quoted shares coded KBL. The convertible notes were converted on the basis of the formula set out in Resolution 7 the Company's Shareholder Meeting held on 28 July 2016 and approved by the Company's shareholders.

The Company has therefore today issued 50,000,000 ordinary shares as set out in the attached Appendix 3B. With regard to that share issue, the Company gives notice under Section 708A(5)(e)(i) of the Corporations Act 2001 (Cth) ("Act") that:

1. the abovementioned shares were issued without disclosure to investors under Part 6D.2 of the Act.

2. as at the date of this notice the Company has complied with:

3. the provisions of Chapter 2M of the Act as they apply to the Company; and

4. section 674 of the Act; and

5. as at the date of this notice there is no information to be disclosed which is "excluded information" as defined in subsection 708A(7) and (8) of the Act that is reasonable for investors and their professional advisors to find in a disclosure document.

6. Yours sincerely

   Heath Roberts Company Secretary Appendix 3B

   Rule 2.7, 3.10.3, 3.10.4, 3.10.5

   New issue announcement, application for quotation of additional securities and agreement

   Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

   Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

   Name of entity

   KBL MINING LIMITED

   ABN

   38 129 954 365

   We (the entity) give ASX the following information.

   Part 1 - All issues

   You must complete the relevant sections (attach sheets if there is not enough space).

   1 +Class of +securities issued or to be issued

   1. Shares

   1. 50,000,000 Shares

   2Number of +securities issued or to be issued (if known) or maximum number which may be issued

   + See chapter 19 for defined terms.

   01/08/2012 Appendix 3B Page 1

   3	Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	1. Fully paid Ordinary Shares coded KBL
   4	Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: the date from which they do the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment	1. Yes - Fully paid Ordinary Shares coded KBL
   5	Issue price or consideration
   1. 50,000,000 Shares - $0.002 per share In accordance with Convertible Note conversion terms approved by Shareholders at shareholders meeting 28 July 2016
   6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	To raise working capital
   6a	Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i	Yes

   6b	The date the security holder resolution under rule 7.1A was passed	17 November 2015
   6c	Number of +securities issued without security holder approval under rule 7.1
   Nil
   6d	Number of +securities issued with security holder approval under rule 7.1A	Nil
   6e	Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)	1. 50,000,000 Shares - in accordance with Convertible Note conversion terms approved by Shareholders Res 7 EGM 28072016
   6f	Number of securities issued under an exception in rule 7.2	Nil
   6g	If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.	N/A
   6h	If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements	N/A
   6i	Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements	See Annexure 1
   7	Dates of entering +securities into uncertificated holdings or despatch of certificates	26 August 2016

   + See chapter 19 for defined terms.

   01/08/2012 Appendix 3B Page 3