Microsoft Word - Quarterly Activities Report December 2015 FINAL Report for the Quarter Ended 31 December 2015‌


ASX: KIS

Market Capitalisation $13.2 million Shares on Issue 165.3 million

52 Week High 16.5 cents

52 Week Low 7.5 cents

Share Price 8.0 cents

HIGHLIGHTS


  • Revised updated Reserve Statement issued

    Board of Directors

    Johann Jacobs Allan Davies Chris Ellis

  • Secured up to A$2 million funding through the issue of Convertible Notes. The funds are to be drawn down in two tranches, the first A$1 million was drawn during December 2015, whilst the next A$1 million will be drawn if required

    Chairman

    Director Director

  • Work continued on finalising the Definitive Feasibility Study

    Tungsten APT USD 16,750 / tonne (26

    January 2016)


    King Island Scheelite Limited (KIS)

    through its 100% Dolphin Project on King Island, Tasmania is one of the world's richest tungsten deposits and could meet a significant proportion of the world's tungsten requirements over a minimum 13 years.


    King Island Scheelite Limited ABN 40 004 681 734

    Level 26, 259 George Street Sydney NSW 2000

    GPO Box 5154

    Sydney NSW 2001 P. +61 2 8622 1400 F. +61 2 8622 1401

    www.kingislandscheelite.com.au

  • Meetings held with Environmental Protection Agency to amend prior approvals
  • Annual General Meeting held 15 October 2015


29 January 2016

King Island Scheelite Limited (Company) is pleased to present its activity report for the quarter ended 31 December 2015.

Revised Updated Reserve Statement


Dolphin open‐cut reserve statement was re‐issued, compliant with JORC 2012 and indicating:


  • Probable Reserves of 3.14 Mt at 0.73% WO3(at 0.2% WO3cut‐off), for a total of 22,900 tonnes of WO3


  • Compares to previously reported Probable Reserves of 1.90 Mt at 0.55% WO3(at 0.2% WO3cut‐off), for a total of 10,450 tonnes of WO3

  • Average strip ratio of 9.7:1 tonne for tonne (previously 3.1 tonne for tonne)


  • This will support an open‐cut mine life of 8 to 9 years (previously 4‐5 years)


  • Total Indicated Resources for Dolphin remain 9.60 Mt at 0.90% WO3(at 0.2% WO3cut‐off) for 86,400 tonnes of WO3.

    Definitive Feasibility Study ("DFS")


    Work continued on the consolidation of recent studies into a Definitive Feasibility Study. Ironstone Capital, the Company's financial advisors, have compiled an Information Memorandum, which will be circulated to interested finance providers.

    It is anticipated that the DFS will be completed during next quarter.


    Environmental Protection Agency ("EPA")


    The Company continued discussions with EPA on amending the previously granted approvals to be consistent with the operations envisaged in the current DFS.

    Finance


    Cash Balance


    As at 31 December 2015 the Company's cash balance was $1.5 million.


    Convertible Notes


    During the December 2015 Quarter the Company secured up to A$2.0 million funding through the issue of Convertible Notes. The funds are drawn down in two tranches, the first A$1.0 million was drawn during December 2015, whilst the next A$1.0 million will be drawn if required. The principal terms of the Convertible

    Notes are:


    • Face Value A$500,000 each


    • Interest Rate 8% per annum


    • Maturity Date 31 December 2016 or on being repaid whichever is earlier

    • Unsecured


    • Conversion or repayment is at the sole discretion of the Company

  • Conversion price is lower of 15% below either any major capital raising, or 30 day VWAP where no capital raising takes place

  • As required by the ASX Listing Rules, prior to any conversion the Company would request shareholder approval at a General Meeting.

  • Funds will be utilised to finalise the Definitive Feasibility Study and general working capital.

Mining Tenements


KIS group activities have related to exploration, there have been no activities relating to production or development.


Tenement reference

Nature of interest

Mining tenements held at the end of the quarter

Exploration Licence EL 19/2001 at Grassy, King Island, TAS (91 sq kms)


100% ownership

Mining Lease Application MLA 1M/2006 at Grassy, King Island, TAS (544 hectares)

100% ownership

Mining tenements acquired during the quarter

Nil

Nil

Mining tenements relinquished during the quarter

Nil

Nil

Beneficial percentage interests held in farm‐in or farm‐out agreements at the end of the quarter


Nil


Nil

Beneficial percentage interests in farm‐in or farm‐out agreements acquired or disposed during the quarter


Nil


Nil

Following is a summary of the expenditure incurred on exploration activities during the quarter:


$'000

Dewatering 13

Project management 46

Mine planning & geological work 55

Environmental 19

Water & tailings management 17

Other Feasibility Study work 13

163

Markets

Ammonium paratungstate (APT) is currently trading at an average of US$16,750 (A$23,900) per tonne (September US$17,000(A$23,500) per tonne).


Johann Jacobs

Chairman

29 January 2016

King Island Scheelite Limited

Level 26, 259 George Street Sydney NSW 2000

Phone (02) 8622 1400

Fax (02) 8622 1401

Email info@kisltd.com.au

For further information go to the company's website www.kingislandscheelite.com.au

King Island Scheelite Limited issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 14:01:09 UTC

Original Document: http://www.kingislandscheelite.com.au/client-assets/1519665.pdf