King Solomon Mines

23 August 2007

AGM 2007 - Chairman and Managing Director's address

Chairman's Address - J Quinn

Ladies and Gentlemen,

2007 is a pivotal year for KSO. After nearly seven years of effort by it’s founders, KSO emerged from relative obscurity when it successfully completed its IPO and listed on the Australian Stock Exchange in April.

In that gestation period, KSO’s founders had recognised that the scattered artisnal workings and limited outcrops in the Gobi Desert on the Chinese side of the Mongolian border may well indicate potential for more widespread and significant mineralisation. They were aware that modern mineral exploration techniques were largely unknown in this part of China. They formed the view that the area was a major tectonic setting capable of hosting world class orebodies. Being a private company with limited resources, they decided to initially focus their attention on the Sunite Zuo-Qi Banner or County where they identified and acquired several areas prospective for copper and gold in particular. The exploration that followed in the years to the end of the 2006 field season provided the basis for the capital raising this year.

The $10 Million raised will enable the company to both drill test the headline projects described in the prospectus and to use its first mover advantage, in those areas of Inner Mongolia where it is well established, to identify and acquire further opportunities. This money is expected to fund the next two field seasons in Inner Mongolia. Accordingly the Company has no time to waste in getting on with the job.

And quickly get on with the job KSO has done. You will have seen in the June Quarter Report that IP surveys have been completed at Marmot Ridge, drilling commenced at Wuritu, geological reconnaissance undertaken on other prospects and new properties acquired.

The evidence that the Company is situated in a potentially major mineral province has been reinforced by the data gathered since field work recommenced. KSO still has a long way to go before it has a discovery, but in the high risk/high reward business of mineral exploration you have to be in the right environment and be achieving technical successes in order to maximise your opportunity for a commercial discovery. I am increasingly confident that KSO is in the correct environment. Now KSO’s technical team have to identify
the hot spots. History teaches that nature is a good disguiser of its treasures, so that skill, commitment and patience are called for, and a little good fortune does not go astray either.

A very important ingredient in any successful exploration program are the people on the ground and particularly so when operations are located in lands culturally, socially and politically different from our homelands. I mentioned earlier that KSO’s founders have had many years of experience in Inner Mongolia. They were fortunate to form an early association with Mr Fu La whose Mongolian heritage combined with western commercial acumen has greatly assisted KSO to establish its credentials with both the authorities and the community in the areas in which it works.

KSO has some exiting times ahead. I now call upon the Managing Director, Stephen McPhail and Exploration Director, Bruce Bell to provide the meeting with an update on KSO’s exploration activities since the commencement of the current field season and in insight into the plans for the balance of the field

Managing Director's Address - S McPhail

Ladies and Gentlemen,

The past 12 months has seen KSO emerge as a significant listed explorer in China. The company has built up a strong portfolio of projects – principally copper and gold focussed. Most of its projects lie in the Sonid Zouqi region of Inner Mongolia, China.

Over the past year, the company has completed just over 3,000 metres of diamond drilling at its Marmot and Wuritu projects, resulting in an upgrade of both of these. The team has more than doubled in size to support an expanded exploration program.

King Solomon is well placed to pursue an aggressive exploration program, the goal of which is the discovery of world class mineral deposits.