Widespread's King Solomon advises placement and share purchase plan

New Zealand Exchange Limited
P.O. Box 2959
Wellington

8 February 2011

Dear Sir,

King Solomon Mines advises placement and share purchase plan

China based King Solomon Mines (“KSO”) is one of Widespread’s cornerstone investments, and represents 9.6% of our total assets at its present market value of AUD 8 cents a share. We are the largest individual shareholder in KSO with a holding of 8%.    

KSO today made the announcement below. While this financing reduces our percentage holding in the company it’s great news as this ensures that the KSO can pursue an active exploration programme this summer. 

For and on behalf of the Board,

Chris D Castle

Seattle, 8 February 2011

King Solomon Mines Limited

ISSUE OF SHARES UNDER PLACEMENT

AND PROPOSED SHARE PURCHASE PLAN

The Board of King Solomon Mines Limited (ASX Code: KSO) is pleased to announce a placement of 20,427,446 fully paid ordinary shares at a price of $0.07 to raise $1,429,921.

The funds raised are for general working capital purposes, mainly in connection with

exploring the Company’s exploration licences in Inner Mongolia. The Company plans an aggressive drilling program from next month at its principal projects in Inner Mongolia.

The placement was made to clients of broker Bell Potter Securities Limited and a number of other professional investors.

It is anticipated that an Appendix 3B for the issue of these placement shares will be lodged on 15 February 2011, after all the funds are received and the shares are issued.

KSO also intends to offer a Share Purchase Plan (SPP) to all shareholders of up to a

maximum of 30% of the issued capital at the Record Date. If fully subscribed this would raise approximately $2.2 million through the issue of approximately 31.3 million shares at a price of 7 cents.

Shareholders will be able to purchase up to $15,000 worth of shares under the SPP at a price of 7 cents per share, this being a 12.5% discount on the Company’s

average share price over the last five days on which sales in the Company’s shares were recorded.

Documentation for the SPP will be released to ASX shortly. All shareholders on the register on 7 February 2011 (Record Date) will be entitled to participate in the SPP.

King Solomon Mines Limited

Stephen McPhail

Managing Director