Padbury Mining : September 2016 Quarterly Activities Report

Quarterly Activities Report Quarter ended September 30, 2016

Padbury Mining Limited (Padbury) is pleased to present its quarterly activities report ended 30 September 2016.

During the quarter the company continued its discussions with potential investors in China including further visits by management.

Corporate

On 19 August 2016 Mr Edward Saunders was appointed non executive Chairman to replace Terry Quinn. Mr Saunders has over 40 years experience in the mineral exploration industry in Australia, has had a number of years experience in mining management and served on the board of a listed mining company as Chairman. He also served as Chairman of Padbury's joint venture company Aurium Resources as its Chairman. He is a shareholder in Padbury and is well familiar with its operations.

Michael Keemink was appointed as a non executive director to replace Gary Stokes. Mr Keemink is a financial planner with many years experience in this field and has previously been a board member of Aurium Resources. His financial management experience will be advantageous to Padbury.

On 15 September 2016 Mr Saunders was appointed Executive Chairman.

Capital Raising

On 31 August 2016 the Company issued 476,115,047 fully paid ordinary shares to various investors at an issue price of $0.01 per share to raise $4,761,150. The issue was made without disclosure using the Company's 15% capacity under ASX Listing rule 7.1 so that shareholder approval was not required.

Of the shares issued, 200,000,000 were issued to entities associated with Du Yong Yi pursuant to an agreement first announced on 22 March 2016.

Further, 77,715,047 of the shares were issued to Zhongying Property Development Company, a company established under the laws of Hong Kong. The Company has agreed to issue a further 122,284,953 shares at $0.01 per share to Zhongying (which would bring its total subscription under the placement to 200,000,000 shares) subject to obtaining shareholder approval. The $1,222,850 payable for the additional shares is being held by the Company in trust pending the relevant shareholder approval and subsequent issue.

The Company has also entered into an agreement with an investor for the issue of 50,000,000 shares at $0.01 per share to raise a further $500,000. These shares will not be issued unless and until the subscription funds have been received in Australia.

All issues and proposed issues of shares referred to above will be held in escrow for 12 months from issue, and a holding lock will be applied to the shares.

Proceeds from the placement will go towards commencing pre-feasibility studies, geological work on the Company's tenements, funding its Shanghai operations, and to provide working capital.

Tenement Management

Following is the schedule of Padbury Mining Limited tenements as at 30 September 2016.

Area of Interest	Tenement Reference	Interest
Western Australia
Peak Hill	M 52/1068	100%
Peak Hill	E 52/1557	100%
Peak Hill	E 52/1860	100%
Peak Hill	E 52/2368	100%
Peak Hill	E 52/2993	100%
Peak Hill	P 52/1329	100%
Peak Hill	P 52/1332	100%
Peak Hill	P 52/1333	100%
Mt Padbury	E 52/1862	100%
Mt Padbury	E 52/1976	100%
Mt Padbury	E 52/2279	100%
Mt Padbury	P 52/1330	100%
Mt Padbury	P 52/1331	100%
Mt Padbury	P 52/1342	100%

Further inquiries:

Henko Vos Company Secretary

T: [phone]