Prospectus - Kingsrose Mining

Section 9
Investigating Accountant’s Report
Our review also determined whether the pro-forma transactions formed a reasonable basis for the preparation
of the pro-forma balance sheet.
These review procedures do not provide all the evidence that would be required in an audit, thus the level
of assurance provided is less than that given in an audit. We have not performed an audit on the historical
financial information and the pro-forma balance sheet and accordingly we do not express an audit opinion on
the historical financial information and the pro-forma financial information set out in Appendix 2.
5. Review Opinion
Based on the scope of our review, which is not an audit, nothing has come to our attention that causes us
to believe that the historical information, as set out in Appendix 2, does not present fairly, in accordance
with the recognition and measurement requirements, but not all of the disclosure requirements of applicable
accounting standards and other mandatory professional reporting requirements in Australia, the following:
(a)
(b)
The balance sheet of Kingsrose Mining Limited at 31 August 2007, the statement of changes in equity,
the income statement and the statement of cash flows from 20 April 2007 to 31 August 2007 prepared
on the basis set out in 4.3 above.
The pro-forma balance sheet of Kingsrose Mining Limited at 31 August 2007, the proforma statement
of changes in equity, the pro-forma income statement and the proforma statement of cash flows from 20
April 2007 to 31 August 2007 had the transactions as set out in section 4.4 of this report taken place as
at 31 August 2007.
6. Subsequent Events
6.1 In September 2007 the company entered into a mining services agreement with Westralmen Pty Ltd,
Darren Phillips and Michael Green by which Westralmen Pty Ltd agreed to perform mining services for
a period of 2 years for a fee of $418,000 per annum inclusive of GST payable in instalments monthly in
arrears.
6.2 In October 2007 the Company entered into an employment agreement with Mr D F Hatch whereby Mr
Hatch will be employed as managing director of the Company. Employment will commence from the
date the Company shares are listed on the Australian Securities Exchange for a period of three years at
a commencing salary of $300,000 per annum plus 9% superannuation and the use of a Company motor
vehicle. Mr Hatch has been issued 3,000,000 free options with an exercise price of 25c per option
expiring on 31 December 2012.
6.3 In October 2007 the Company issued 2,500,000 free options to the following:
- 1,000,000 to Mr JC Morris
- 1,000,000 to Mr MJ Andrews
- 500,000 to Abillo Pty Ltd as trustee for the MR Smith Family Trust.
Each option will entitle the holder to one fully paid share in the Company at an exercise price of 25c at
any time up to 31 December 2012.
7. Disclosure
At the date of this report Mack & Co does not have any pecuniary interest in Kingsrose Mining Limited that
would reasonably be regarded as being capable of affecting its ability to give an unbiased opinion in this
matter. Mack & Co will receive a professional fee for the preparation of this report.
Mack &Co consents to the inclusion of this report (including Appendix 1 and Appendix 2) in the Prospectus
in the form and context in which it is included. At the date of this report this consent has not been withdrawn.
Yours faithfully
Page 40
MACK & CO
N A CALDER
PARTNER