KAISER REEF LIMITED — Capital/Financing Update 2020

Dec 7, 2020

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Dear Investor,

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Narrow high-grade quartz vein with visible gold from the A1 mine

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Operations at the processing facility

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Process facility gold pour

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Fully operating A1 Gold Mine

On behalf of the Directors of Kaiser Reef Limited ( Kaiser or Company ), it gives me great pleasure to invite you to become a shareholder of the Company or to further invest if you are an existing Shareholder. This is possible via the recently released Prospectus and application form, key details of which are set out below. The Prospectus and application form is available from the Share Registry and can be downloaded and actioned online at:

Public Offer https://investor.automic.com.au/#/ipo/kaiserreef Priority Offer https://investor.automic.com.au/#/ipo/kaiserreefpriority

As announced on 1 October 2020, Kaiser has agreed to a transaction which, following settlement, will provide the Company with the opportunity to become a high-grade gold producer through the acquisition of gold assets and processing facility owned by Centennial Mining Ltd (subject to Deed of Company Arrangement). The Board believes that this will, in turn, allow the Company to capitalise on the strong gold price with the goal being to deliver future returns for shareholders. Full details of the transaction are outlined in the Notice of Annual General Meeting (released to the ASX on 20 November 2020) and the aforementioned Prospectus. The Board of Kaiser believes that the opportunity is enhanced by the talented and dedicated Australian operational team working at the mine and processing plant.

The transaction will deliver Kaiser a 100% interest in the operating A1 Gold mine, Maldon gold processing plant and Maldon gold exploration project. In addition to the opportunity to become a gold producer, the Company remains focussed on continued exploration activities in NSW and will embark on exploration programs at the tenements located in Victoria, the subject of the proposed acquisition.

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Location of Kaiser projects post completion in NSW and Victoria. Acquisition of Victorian assets is subject to regulatory and shareholder approval.

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ABOUT THE NEW GOLD ASSETS

The A1 gold mine has been in production for the majority of time since its discovery in 1861.

The Maldon gold field which currently has established infrastructure in place including a 150,000 tpa CIP gold processing plant also provides opportunity for further exploration success. The A1 and Maldon projects have historically produced in excess of 2 million oz of gold. Kaiser believes there is good exploration potential. Part of the use of funds raised by the Prospectus offering will be dedicated to enhancing operations at A1 and conducting exploration at A1 and Maldon.

The Board considers that these Victorian projects, together with access to existing infrastructure and mining personnel, provide immediate utility and exposure to a development and production company profile.

I am genuinely excited by the operating platform, exploration opportunities and strategic benefits these assets (the subject of the acquisition) represent.

ABOUT THE PROSPECTUS

This Prospectus is seeking to raise $7,500,000 via the issue of 25,000,000 Shares at an issue price of $0.30 per share. The offer will provide funds to implement the Company’s business strategies (set out in section 5 of the Prospectus). Upon completion, the Company will have approximately $10M in cash and have no debt. The Company would be the 100% owner of exciting exploration assets, a producing gold mine and processing plant and at the issue price have an enterprise valuation of approximately $25M. The Board of Kaiser believes that this represents a compelling valuation proposition.

The Prospectus is issued for the purpose of supporting an application to re-list the Company on ASX. The Prospectus contains detailed information about the Company, its objectives and the offer, as well as the risks of investing in the Company.

YOUR SUPPORT IS SOUGHT

The Australian Securities Exchange (ASX), requires Kaiser, as one of the conditions of re-listing on ASX, to secure at least 300 new shareholders to satisfy its spread requirements. The Company’s existing ~770 shareholders are not included for the purpose of meeting this spread requirement, unless they participate in this Prospectus raising and subscribe for additional shares.

Kaiser values its existing shareholders and is seeking their support and has allocated a priority pool within the Prospectus offer for existing shareholders should they wish to participate. Before making your investment decision, I urge you to read the Prospectus in its entirety and seek professional advice if required.

I look forward to you joining as a shareholder and/or your continued support for our Company endeavours.

These are exciting times, and we look forward to sharing in the Company’s future success as we seek to relist as the newest gold producer to trade on the ASX!

Yours sincerely,

Adrian Byass

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Non-Executive Chairman