22 March 2011

Share Purchase Plan closes oversubscribed

Share Purchase Plan

The Director's of King Solomon Mines Ltd are pleased to advise that the company's Share Purchase Plan "SPP") has closed oversubscribed. The company raised approximately $2.2 million from the SPP which was the maximum amount possible.

This brings to $5.3 million the total amount raised firstly from placements undertaken by Bell Potter Securities Limited in November and February and secondly from the SPP. The company is now in a strong position to follow up immediately on success from drilling during the current field season.

Drilling

Diamond drilling has now commenced at King Solomon's Mud-house prospect (Sonid North Gold project). The current hole is the first in a program of approximately 2,400 m of diamond drilling. A complementary program of RC drilling is currently being organised following completion of a high-resolution magnetic survey undertaken to assist with hole positioning.

The arrival of a deep capacity diamond drill-rig at the company's Whitehorse porphyry copper prospect at Bu Dun Hua, means that drilling of the first of two planned 1,000m (approximate) diamond-holes can be expected to commence over the next 2-3 days.