GEOPACIFIC RESOURCES LTD — Capital/Financing Update 2017

Mar 20, 2017

ASX Code: KGD 21 March 2017

==> picture [125 x 77] intentionally omitted <==

ASX Announcement & Media Release

Further Significant Intersections Recorded from Woodlark Island Drilling Program including 5m at 7.33 g/t Gold

Highlights:

• Results from RC drill hole KU17RC009 include:

• 21m at 3.27 g/t gold from 40m, including 5m at 7.33 g/t gold

• Aggressive drilling campaign continuing with further assays anticipated over coming weeks

Kula Gold Limited (ASX: KGD) (“ Kula ” or “ the Company ”) is pleased to advise further significant gold intersections have been recorded at the Kulumadau deposit as part of the Company’s ongoing drilling program at the Woodlark Island Gold Project in Papua New Guinea.

The Company’s Joint Venture partner, Geopacific Resources Limited (ASX: GPR), is undertaking the current drilling program as part of its earn-in agreement, with an RC and two diamond drill rigs currently in operation at the Kulumadau and Busai deposits respectively. Under the agreement, Geopacific Resources is funding the next A$8 million of expenditure at the Woodlark Island Project to earn an interest of up to 51%.

Drilling at Kulumadau East (Figure 1) was designed to extend and infill the inferred mineralisation north of the current Kulumadau pit design and has intercepted a wide zone of mineralisation in Reverse Circulation (RC) hole KU17RC009 (Figure 2). An adjacent diamond hole, KU17DD003 (located approximately 10m to the east of KU17RC009) was designed to further test this zone and aid geological interpretation has been drilled with results pending. A wide zone of alteration in KU17DD003 was logged and included two zones of visible gold within a wide zone of brecciation, alteration and quartz veining.

1 | P a g e

www.kulagold.com.au

==> picture [109 x 69] intentionally omitted <==

==> picture [518 x 410] intentionally omitted <==

Figure 1: Drillhole location plan showing the drill holes with significant assays (Table 1) (bold red with yellow intercept labels) and results from the previous release (white labels) in relation to current pit designs and the block model at the Kulumadau deposit.

A number of additional drill holes completed are currently in the process of being assayed, these are shown on the plan in pale red (Figure 1).

The cross section below (Figure 2) shows the higher-grade intersections in KU17RC009 and the breccia zone in the adjacent diamond hole that has recently been completed and not yet sampled. Further drilling in the area is required to provide a clearer geological interpretation of the mineralisation identified.

2 | P a g e

www.kulagold.com.au

==> picture [109 x 69] intentionally omitted <==

==> picture [418 x 327] intentionally omitted <==

Figure 2: Cross section showing new, broad, high-grade intercepts in KU17RC009 to the north of the Kulumadau East pit design and the

altered zones with visible gold logged in KU17DD003 (results pending).

The drilling results continue to confirm the potential to infill and extend mineralisation around the Kulumadau and Busai pit designs, with the aim of improving the Reserve inventory.

For further information please contact:

Garry Perotti

Chief Financial Officer

(p) 61 8 6144 0588

• (e) info@kulagold.com.au

Released through Sam Burns, Six Degrees Investor Relations, +61 400 164 067

==> picture [36 x 36] intentionally omitted <==

Follow KGD on Twitter @KulaGold

3 | P a g e

www.kulagold.com.au

==> picture [109 x 68] intentionally omitted <==

Background on the Woodlark Island Gold Project, PNG

Kula Gold Limited has advanced its Woodlark Island Gold Project to the point where it is permitted and ready to progress to the next stage. The Project is located 600 kilometres east of Port Moresby in the Milne Bay Province, Papua New Guinea.

Kula’s Joint Venture Partner Geopacific Resources Limited is funding the next $8 million expenditure to advance the gold reserves to a target of 1.2 million ounces of gold to earn additional equity in the Project.

The Project has excellent upside potential through the conversion of Inferred Resources and numerous nearby exploration targets within a short distance of the proposed process plant location.

The Resource Estimates for the Kulumadau and Busai Deposits were re reported and released on 31 January 2017 in accordance with JORC 2012. The estimates for Munasi and Woodlark King have not been re reported in accordance with JORC 2012, as there has been no additional work within these deposits since the previous estimate.

Kula Gold’s Feasibility Study, based on a JORC 2004 Ore Reserve of 766,000 ounces and a gold price of US$1200/ounce, defined a Project with a mine life of nine years, three open pit mining areas and a 1.8Mtpa gravity and carbon in leach plant (KGD ASX release 27 September 2012).

The Company’s 95% owned subsidiary, Woodlark Mining Limited, has been granted the Environment Permit and the Mining Lease for the Project.

Directors and Management

David Frecker Chairman Louis Rozman Non-executive director Mark Stowell Non-executive director Garry Perotti Chief Financial Officer

Registered office 20 Howard Street Perth, WA 6000, Australia T: + 61 8 6144 0588 F: + 61 8 6144 0589 E: info@kulagold.com.au W: www.kulagold.com.au Tw: twitter.com/kulagold

Auditor Ernst & Young 11 Mounts Bay Road, Perth, WA 6000, Australia Office: +61 8 9249 2222

Share registry Link Market Services Limited Level 12, 680 George Street Sydney, NSW 2000, Australia T: 1300 554 474 or +61 2 8280 7111

Investor relations Six Degrees 18 Howard Street Perth, WA 6000, Australia T: +61 (0) 400 164 067

4 | P a g e

www.kulagold.com.au

==> picture [109 x 68] intentionally omitted <==

The information in this report that relates to geology and exploration is based on information compiled by Mr Paul Dunbar, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr. Dunbar is employed by Dunbar Resource Management, a Geology and Exploration Management consultancy, who has been engaged by Kula Gold. Mr. Dunbar has sufficient experience, which is relevant to the style of mineralisation, geology and type of deposit under consideration and to the activity being undertaken to qualify as a competent person under the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the 2012 JORC Code). Mr. Dunbar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information relating to the 2012 JORC Resource estimates was initially released in the 31 January 2017 ASX release and is available on the company’s website. The company confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context of the resource estimates have not been materially modified from the original ASX release.

inal ASX release.
	**Appendix A: Table 1. Significant Intersections **
Hole	From(m)	To(m)	Interval(m)	Au(ppm)
12WKUD003	74	88	14	1.19
	94	105	11	1.68
KU17RC006	35	37	2	1.12
	99	101	2	3.18
KU17RD007	45	46	1	1.66
	53	54	1	3.38
KU17RC008	34	36	2	0.72
KU17RC009	11	27	16	1.11
	40	61	21	3.27
Including	52	57	5	7.33
	66	81	15	1.01
Including	76	81	5	1.76
	113	119	6	0.57
KU17RC010		No significant intersections
KU17RC011		No significant intersections
KU17RC012	3	4	1	1.03
KU17RC013	4	5	1	1.16
KU17RD014	10	11	1	1.02
KU17RC015		No significant intersections
KU17RC016		Hole abandoned
KU17RC017		No significant intersections
KU17RC018	10	12	2	0.54
KU17RC019	44	46	2	2.19
	70	81	11	1.01

Notes

• All material diamond drill core or RC chips

• Samples collected as half core, cut by diamond saw

• Sample preparation undertaken by ITS Laboratories on Woodlark Island (refer Appendix B for details)

• Gold analysis by Fire Assay 50gm charge by Intertek Genalysis Laboratories, Townsville, Australia

• Mineralised intercepts calculated as a weighted average, using a 0.5g/t Au lower cut, maximum of two metres of internal waste.

5 | P a g e

www.kulagold.com.au

==> picture [109 x 68] intentionally omitted <==

Appendix A: Table 2. Drillhole Collar Table

HOLE	EAST	NORTH	RL	AZI	DIP	Pre-Collar Depth	Final Depth
KU17RC006	469377	8995948	75	270	-60		150.0
KU17RD007	469325	8995953	77	270	-60	39	276.6
KU17RC008	469441	8996051	78	270	-60		120.0
KU17RC009	469754	8996098	74	270	-60		150.0
KU17RC010	469686	8996095	79	270	-60		156.0
KU17RC011	469530	8996101	90	270	-60		66.0
KU17RC012	469602	8996100	84	270	-60		72.0
KU17RC013	469523	8996198	96	270	-60		60.0
KU17RD014	469298	8996197	99	270	-60	66	188.0
KU17RC015	469220	8996101	97	90	-60		18.0
KU17RC016	469220	8996108	97	90	-60		12.0
KU17RC017	469155	8996110	108	270	-60		102.0
KU17RC018	469179	8996195	103	270	-60		87.0
KU17RC019	469425	8996099	90	270	-60		150.0

Notes

• Collar coordinates in PNG94 Geodetic System

• Azimuths true bearing

• Only holes that have a RC pre-collar have the pre-collar depth listed.

• The collar coordinates for KU17DD003 (shown in Figure 2) will be included when the assay results are available.

6 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

Appendix A: Table 3. Woodlark Island 2012 Resource Table

	Reported as per JORC 2012 As of July 2012 at 0.5g/t Au lower cutoff	Reported as per JORC 2012 As of July 2012 at 0.5g/t Au lower cutoff	Reported as per JORC 2012 As of July 2012 at 0.5g/t Au lower cutoff
Deposit	Category	Resource	Grade – cut	Gold – cut (Oz)
		(Mt)	(g/t gold)
Kulumadau	Measured	5	1.78	285,000
	Indicated	4.4	1.75	250,000
	Inferred	8.6	1.4	380,000
	Totals	18	1.6	910,000
Busai	Measured	3.9	1.54	190,000
	Indicated	10.4	1.4	470,000
	Inferred	4.9	1.6	250,000
	Totals	19	1.5	910,000
All	Measured	8.9	1.66	475,000
	Indicated	14.8	1.5	720,000
	Inferred	13.5	1.5	630,000
Totals	All	37.2	1.5	1,820,000

Notes

• 1: Totals may appear incorrect due to rounding.

• 2: The Busai Indicated Resource includes 0.4Mt @ 1.4/t Au for 20,000oz from overlying alluvial mineralisation.

• 3: The Busai Inferred Resources includes 0.4Mt @ 1.2/Au for 14,000oz from overlying alluvial mineralisation.

Appendix A: Table 4. Woodlark Island 2004 Resource Table

	Reported as per JORC 2004 As of July 2012 at 0.5g/t Au lower cutoff	Reported as per JORC 2004 As of July 2012 at 0.5g/t Au lower cutoff	Reported as per JORC 2004 As of July 2012 at 0.5g/t Au lower cutoff
Deposit	Category	Resource	Grade – cut	Gold – cut (Oz)
		(Mt)	(g/t gold)
Munasi	Inferred Total	3.9	0.9	110,000
		3.9	0.9	110,000
Woodlark King	Indicated Inferred2 Total	3	1.2	115,000
		1	1.8	60,000
		4	1.4	175,000
Total	All	7.9	1.1	285,000

• 1: Totals may appear incorrect due to rounding.

• 2: The Woodlark King Inferred Resource includes 0.3Mt @ 3.0g/t for 30,000oz Au from Watou (1.5km south of Woodlark King)

• 3: These Resources are reported under JORC 2004 and have not been updated.

7 | P a g e

www.kulagold.com.au

Appendix B: JORC Code, 2012 Edition – Table 1 – Recent Drilling

==> picture [110 x 68] intentionally omitted <==

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Sampling was conducted using diamond drilling (DD) or RC drilling. Sampling of the diamond drilling comprised half core samples taken based on lithological, alteration, and mineralisation breaks observed in geological logging. . RC samples were collected on a 1m interval with approximately 2kg collected from a riffle splitter. Samples were sent for fire assay gold and four-acid multi-element analysis by ICPMS method. Blank, duplicate, and standard samples were inserted in at various intervals based on Geopacific’s QAQC procedure to ensure assay results are representative and repeatable.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 50gm charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	Core was cut in half using a core saw. Where core competency was low, whole core was wrapped in plastic clingfilm to help maintain integrity of the sampled interval while being cut. RC samples of approximately 2kg were collected on 1m intervals. Samples were prepared on the on-site sample prep laboratory operated by ITS Pty Ltd PNG (Intertek Services Ltd). Standard preparation of samples is to crush ~2kg through a jaw crushed, with a blank bottle wash between each sample. Crushed sample is then transferred to a LM-2 pulveriser for reduction to pulp. A 150gm pulp sample is split from the master sample and submitted for analysis. Coarse reject material and pulps are bagged and stored on site for future reference. Samples were sent for fire assay gold analysis using a 50g charge, as well as multi-element analysis using multi-acid digest with ICP finish at Intertek’s Townsville laboratory.

8 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Drilling Techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc.).	Hole with an RC suffix were drilled by Reverse circulation drilling (RC), using a 139mm hammer. Holes with a DD suffix were drilled PQ or HQ diameter triple tube. All core is oriented using Reflex digital ori tool for all core diameters. Holes with a RD suffix were PQ or HQ diamond drill holes with a RC pre-collar
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Core recovery is recorded by measuring the core recovered from the drill hole against the actual drilled metres. RC samples are weighed for each metre and assessed for recovery, contamination and effect of water if present.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Triple tube barrel for diamond drilling plus closely monitored drill mud regime. Short drill runs used in areas of broken ground. RC drilling on 1 metre basis using cemented pvc casing to 12m to ensure tight collar seal and minimise outside circulation.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery data shows good recovery throughout the drill holes, consistently above 90%, and as such there is no sample bias introduced because of sample recovery.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	All drill core and chips was geologically logged by Geopacific geologists using Geopacific logging procedure. Geotechnical logging of Rock Quality Designation (RQD), hardness, degree of fracturing and weathering is undertaken by Geopacific staff using Geopacific’s logging procedure.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Drill core and chips was logged both qualitatively (e.g. lithology, alteration, structure, etc.) and quantitatively (e.g. veining and mineralisation percentage, structural orientation angles, etc.). Drill core is photographed both dry and wet and is stored in plastic core trays in our exploration core yard.
	The total length and percentage of the relevant intersections logged.	All holes are logged their entire length.

9 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Core is halved, with one half sent for sample preparation and analysis. The remaining core is stored in the core trays on site.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	RC samples weighed, and if dry, riffle split using a three-tier system generating a collective 12.5% split of the original metre sample for analysis. In areas of un-mineralised material, a 4-metre composite is taken by 25% splitting each component 1m sample and combining for a single sample for submission. Residual original split material is reserved should anomalous values be encountered and individual metre samples be required. Wet samples are placed in a clean container, mixed and spear sampled, mixed again and spear sampled, with resultant sub sample mixed and spear sampled again for submission.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Samples are crushed to a nominal 2mm by a jaw crusher, with the whole sample pulverised and then split; one 150gm sample for submission with residue stored on site.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	Field blank, duplicate, and standard samples are introduced to maximise the representivity of the samples.
	Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.	Field duplicates are inserted in accordance with Geopacific’s QAQC procedure at a nominal 1 duplicate in every 20 sampleswhich is in line with industry standards.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Fire assay Au and four-acid digest ICP analysis are thought to be appropriate for determination of gold and base metals in fresh rock, and are considered to represent a total analysis.
	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No results from geophysical tools, spectrometers, or handheld XRF instruments are reported in this release.

10 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Field and lab blank, duplicate, and standard samples were used in the drilling. Results from these QAQC samples were within the acceptable ranges.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant intersections were inspected by senior geological staff.
	The use of twinned holes.	No holes reported in this announcement are twins of previous drilling.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Primary assay data is sent electronically from the lab to GPR database administrator and then entered into the database and validated by the database administrator and senior staff.
	Discuss any adjustment to assay data.	No adjustments were made or required to be made to the assay data.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drillhole collars were located using a total station surveying instrument. Downhole surveys are recorded as being captured by single shot downhole camera
	Specification of the grid system used.	Coordinates are recorded in PNG94 geodetic system
	Quality and adequacy of topographic control.	LiDAR survey data obtained over the licence area, tied in to total station collar readings provide sub- metre accuracy.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Drilling reported in this release relates to infill drilling within the Kulumadau deposit. Existing drilling within the defined deposit area is nominally spaced 25m x 25m, closer in some areas.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Drilling results released in this announcement indicate new areas of unrecognised mineralisation that may or may not add to a future resource calculation. Data points are somewhat isolated from surrounding information and require additional drill holes to support interpretations and subsequent inclusion in future ore resource calculations.

11 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Whether sample compositing has been applied.	No composite sampling in announced results.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Current interpretations of the mineralised zones in all areas indicate that the orientation of the drill holes has achieved unbiased sampling of the structures.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	An interpretation of the mineralisation has indicated that no sampling bias has been introduced.
Sample security	The measures taken to ensure sample security.	All samples are collected by GPR staff and put into numbered plastic bags, along with a corresponding sample ticket, which are immediately sealed and placed in order on a pallet with other samples in an area directly adjacent to the onsite sample preparation laboratory. and the pallet containing the sealed samples is then delivered directly into the onsite sample prep lab, where chain of custody hands over to ITS Ltd.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits have been completed, but QAQC data is monitored on a batch-by-batch basis.

12 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

Appendix B: JORC Code, 2012 Edition – Table 1

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Geopacific is negotiating a Joint Venture agreement with Kula Gold Ltd (ASX:KGD) to acquire a 75% interest by spending AUD$18.65m over three tranches. In Tranches 1 and 2, Geopacific must spend AUD$8m within the first two years to earn an initial 35% interest in operating company WML. Should Geopacific delineate a Reserve base of >1.2M Oz Au within the two-year period it will be deemed to hold a 51% interest in WML. Geopacific can increase its ownership to 60% of WML by completing the earn in expenditure (Tranche 3) without delineating the Reserve target of 1.2M Oz Au. Should that target be met as part of Tranche 3 expenditure, Geopacific will be deemed to have earned a 75% interest in WML.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	This announcement is based on work done by Kula Gold Ltd and Geopacific Resources Limited.

13 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Geology	Deposit type, geological setting and style of mineralisation.	Most of Woodlark Island is covered by a veneer of Plio-Pleistocene limestones (coronus) of variable thickness with associated marine clays and basal conglomerates. A central elevated portion of the island (horst structure) contains Miocene volcanic rocks intruded by late stage, high K porphyritic intrusives and contains the known historical mines. Gold mineralisation within the Woodlark Island Gold Project is principally hosted by andesites and their sub-volcanic equivalents within the Miocene age stratigraphic unit known as the Okiduse Volcanics. The mineralisation is variously associated with lodes, quartz veins, stockwork zones and breccias developed within proximal phyllic and marginal propylitic alteration envelopes regionally associated with intrusive breccia complexes. Gold mineralisation is consistent with low sulphidation, base metal carbonate, epithermal systems typical of the south-west Pacific.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	See body of text for details.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	No top-cuts were used in the reporting of these significant intercept. The interval selected using a cut off value 0.5ppm Au and were calculated using weighted averaging.

14 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	Shorter intercepts of higher grade within larger reported intercepts are subsequently highlighted within the summary drilling table.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	N/A
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Data spacing is quite broad for holes KU17RC004 and KU17RC009. At this stage, it is unclear how mineralisation relates to current ore resource blocks and mineralised intercepts in neighbouring holes. More drilling is required to form a clearer picture on orientation and true widths.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Diagrams relevant to the report content are included in the body of the report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Refer to text.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Refer to text.

15 | P a g e

www.kulagold.com.au

==> picture [110 x 68] intentionally omitted <==

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Refer to text.

16 | P a g e

www.kulagold.com.au