KGL RESOURCES LIMITED — Capital/Financing Update 2013

Nov 7, 2013

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8 November 2013

New Discoveries at Rockface and Morley Prospects at Jervois NT

• High grade near surface results, with mineralisation outcropping at surface, between two large chargeability anomalies

• 9m @ 1.21% Cu, 4.1g/t Ag, 0.03g/t Au from 105m (Hole KJC033)

• 24m @ 1.47% Cu, 3.5g/t Ag, 0.04g/t Au from 160m (Hole: KJC035)

• Mineralisation open at depth and along strike

KGL Resources Limited (KGL Resources or “the Company”) is pleased to announce results from an exploration drilling program at the Jervois Copper-Silver-Gold Project in the Northern Territory.

The 2,000 m drilling campaign intersected copper at the targeted Rockface and Morley Prospects, the results including significant high grade, near surface intervals and the presence of copper in what is a 2 km long IP anomaly.

Significantly the Rockface intersections hit between two large chargeability anomalies that will be drilled in the ongoing campaign (Figure 2).

These targets were generated from mapping and sampling combined with a review of previous exploration data and reprocessing of geophysical data.

The drilling program was conducted as a precursor to resource extension drilling to increase known Resources at the Bellbird and Marshall-Reward deposits (Figure 5).

The program was designed to test several recently identified targets that have potential to build on established Resources.

KGL Resources is aiming to increase the overall scale of the potential multi-metal mining project at Jervois as part of a Pre-Feasibility Study currently being undertaken.

Simon Milroy, the Managing Director of KGL Resources, commented:

“We are delighted with the first results from our exploration program at Jervois, focusing on previously undrilled targets Rockface and Morley. The Rockface results are very significant in that they are high grade, near surface and between two large chargeability anomalies. We see strong potential at Morley with the recent drilling confirming copper in what is a 2 km long IP anomaly.

The results justify our strategy of seeking to increase the already substantial Resource base at Jervois for the current feasibility studies.

“Preparations are now being made to follow up with further drilling along strike both to the east and west of the recent intersections. The follow up drilling will also target the strong IP anomaly located on strike and 200m east to the recent intersections.”

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The drilling rigs have now moved to the resource extension drilling into the Marshall-Reward and Bellbird areas. Approximately 8,000m of drilling has been completed in the current program with most of the drilling being RC pre collars that are now being followed up with diamond tails.

Encouraging results at Morley in holes 800m along strike from each other (Figure 5) included

• 8m @ 0.99% Cu, 0.23% Zn, 10.2g/t Ag, 0.03g/t Au from 115 m (Hole KJC003)

• 5m @ 0.81% Cu, 3.1g/t Ag, 0.04g/t Au from 63 m (Hole KJC004)

• 4m @ 0.86% Cu, 0.18% Zn, 5.7g/t Ag, 0.04g/t Au from 70 m (Hole KJC004)

ROCKFACE

Two RC holes have been drilled under a 6m wide zone of outcropping copper mineralisation (malachite) that lies along strike and 400m to the west of the historical Rockface prospect.

This drilling intersected a zone of significant copper mineralisation in both holes (Figure 3).

9m @ 1.21% Cu, 4.1g/t Ag, 0.03g/t Au from 105m (Hole KJC033)

24m @ 1.47% Cu, 3.5g/t Ag, 0.04g/t Au from 160m (Hole: KJC035)

The copper mineralisation is close to the sheared contact between a fine grained quartzitic rock to the south and micaceous schists to the north and comprises pyrite and chalcopyrite.

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Figure 1 Plan of Rockface and Bellbird prospects

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Figure 2 IP Chargeability Anomalies at Rockface

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Drill hole Trace
IP Chargeability 40mV/V
IP Chargeability 20mV/V
KJC035
KJC033
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Figure 3 Rockface Cross Section

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MORLEY

Two holes were drilled at Central Morley (KJC002, KJC003) to test for mineralisation associated with the recently identified IP anomaly. The IP anomaly is offset to the east, possibly due to faulting, by approx. 200m and parallels the reward deposit extending north and beyond the tenement boundary.

KJC002 was the shallower of two holes drilled in the central portion of Morley that intersected 2m @ 0.96% Cu, 3g/t Ag, 0.02g/t Au from 57 m. Further down this hole at 77m a 2m wide zone of tungsten mineralisation was intersected (2m @ 0.55% W, 0.07% Cu, 2.8g/t Ag from 77 m). Historical drilling at Jervois has intersected zones of tungsten mineralisation that are often associated with the copper mineralisation and the potential of tungsten to generate additional by-products is being assessed as part of the PFS.

The second hole KJC003 was drilled under KJC002 and intersected two zones of copper mineralisation

• 8m @ 0.99% Cu, 0.23% Zn, 10.2g/t Ag, 0.03g/t Au from 115 m

• 1m @ 0.68% Cu, 6.3g/t Ag, 0.04g/t Au from 135 m

A diamond tail is planned on the end of this RC hole to further test the Morley zone.

MORLEY NORTH

Over 800m further to the north of Holes KJC002 and KJC003 a fence of holes were drilled close to the tenement boundary to test the potential for continuation of the mineralisation as suggested in the recently reprocessed geophysics. Northern Morley KJC004, KJC005, KJC006, KJC009

The most eastern hole KJC004 intersected three zones of copper mineralisation including

• 5m @ 0.81% Cu, 3.1g/t Ag, 0.04g/t Au from 63 m

• 4m @ 0.86% Cu, 0.18% Zn, 5.7g/t Ag, 0.04g/t Au from 70 m

• 1m @ 0.91% Cu, 5.1g/t Ag from 86 m

The next hole (KJC005), 50m to the west of KJC004 intersected a 2m wide zone of elevated silver/lead/zinc mineralisation.

• 2m @ 0.27% Zn, 0.27% Pb, 8.1g/t Ag, 0.01g/t Au 0.07% W from 7 m (KJC005)

This RC hole will be extended from its present 93m depth to test for down dip extensions to the copper mineralisation intercepted in hole KJC004.

Hole KJC006 was collared a further 50m to the west and intersected a broad zone of anomalous zinc mineralisation extending for 90m down the hole.

• 90m @ 0.16% Zn, 0.4g/t Ag from 16 m

• 2m @ 0.14% Cu, 0.19% Zn, 11.6g/t Ag from 88 m

This drilling has confirmed a new zone of mineralization east of the Marshall-Reward resource that extends for over 1km and has the potential to host additional copper resources. Limited previous drilling has been conducted along the trend.

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Drill hole Trace
IP Chargeability 20mV/V
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Figure 4 Morley IP Charegability Anomaly

SYKES

Six RC holes were drilled at the Sykes prospect, a ferruginous ridge with copper occurrences to the east of the Marshall-Reward deposit. These holes failed to identify any zones of significant mineralisation KJC007, KJC008, KJC010, KJC011, KJC012, KJC013

KJC010 1m @ 0.93% Cu, 1.8g/t Ag, 0.03g/t Au from 35m KJC011 3m @ 0.27% Cu, 8.2g/t Ag, 0.01g/t Au 0.05% W from 7m

Two holes were drilled to test the southern extension of Marshall KJC014, KJC015. These both intersected narrow zones of low grade mineralisation including

• 1m @ 0.13% Cu, 0.11% Pb, 0.13% Zn, 2.2g/t Ag from 28 m (Hole KJC014)

• 1m @ 0.35% Cu, 2.3g/t Ag from 100 m (Hole KJC015)

CHUBKO

At Chubko a single RC hole was targeted to test beneath an area of anomalous base metals mineralisation that was identified during regional mapping and sampling in 2011. This hole KJC001 intersected a 13m wide zone of low grade silver/lead mineralisation with lead assays of up to 0.17% Pb and 3.4g/t Ag. The Chubko prospect will be the subject of further mapping and sampling during this field program.

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Figure 5 Plan of Jervois tenement and drill hole collars

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Table 1. Drill Hole Mineralisation Intercepts

Hole ID	Easting	Northing	RL	Dip	Azimuth	BOX* (m)	From (m)	To (m)	Interval (m)	_ETW (m)_**	Cu %	Pb %	Zn %	Ag g/t	Au g/t	W %
KJC002	630484.8	7495656.9	361.3	‐60	90	44	57 77	59 79	2 2	1.3 1.3	0.96 0.07	‐ 0.01	0.04 0.04	3 2.8	0.02 ‐	‐ 0.55
KJC003	630485	7495654	361.5	‐70	90	39	115 135	123 136	8 1	3.0 0.5	0.99 0.68	0.01 0.01	0.23 0.03	10.2 6.3	0.03 0.04	‐ ‐
KJC004	630700	7496475	361	‐60	90	34	63 70	68 74	5 4	2.5 2	0.81 0.86	0.01 0.06	0.04 0.18	3.1 5.7	0.04 0.04	‐ ‐
							86	87	1	0.5	0.91	0.04	0.07	5.1	0	‐
KJC005	630650	7496475	357	‐60	90	34	7	9	2	1	0.01	0.27	0.27	8.1	0.01	0.07
KJC006	630600	7496475	355	‐60	90	46	16 88	106 90	90 2	45 1	0.01 0.14	0.01 0.01	0.16 0.19	0.4 11.6	‐ ‐	‐ ‐
KJC010	630370	7494200	355.53	‐60	90	37	35	36	1	0.5	0.93	0.03	0.03	1.8	0.03	‐
KJC011	630425	7494405	355.35	‐60	270	33	7	10	3	1.5	0.27	‐	0.05	8.2	0.01	0.05
KJC014	630329	7493875	357	‐55	270	23	28	29	1	0.6	0.13	0.11	0.13	2.2	‐	‐
KJC015	630325	7493947	353	‐55	270	59	100	101	1	0.6	0.35	‐	0.06	2.3	0.01	‐
KJC033	627903	7490271	369	‐55	016	90	105	114	9	5.0	1.21	0.01	0.01	4.1	0.03	‐
KJC035	627903	7490270	369	‐60	016	90	160	184	24	7.0	1.47	0.01	0.01	3.5	0.04	0.03

Base of Oxidisation down hole depth *Estimated true width

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For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3071 9003

About KGL Resources

KGL Resources Limited is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine. Jervois currently has Indicated and Inferred Resources of 13.5 million tonnes @ 1.3% copper and 25.8 g/t silver for a total of 170,415 tonnes copper and 11.6 million oz silver at a 0.5% copper cutoff, together with 69,000 oz gold, 26,000 tonnes lead and 22,000 tonnes zinc.

Competent Person Statement

The Jervois Exploration data in this report is based on information compiled by Martin Bennett, who is a member of the Australian Institute of Geoscientists and a full time employee of Kentor Gold Limited.

Mr. Bennett has sufficient experience which is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Bennett has consented to the inclusion of this information in the form and context in which it appears in this report.

The data in this report that relates to Jervois Mineral Resource Estimates is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

The data in this report that relates to Jervois cut off grades and mining assumptions is based on information evaluated by Mr Simon Milroy who is a The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Milroy is a full-time employee of KGL Resources Limited and he consents to the inclusion in the report of the cut off grades and mining assumptions in the form and context in which they appear.

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