KGL RESOURCES LIMITED — Capital/Financing Update 2015

Dec 28, 2015

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29 December 2015

KGL announces $3 million capital raising

Underwriting by KGL Chairman, Denis Leslie Wood

KGL Resources Limited ( KGL or Company ) is pleased to announce a capital raising to raise up to $3 million by way of a two for nine pro rata non-renounceable entitlement offer, fully underwritten by Denis Leslie Wood ( Entitlement Offer ).

Eligible shareholders will be able to apply for additional shares through a top-up offer.

The offer price for the Entitlement Offer is $0.095 per share.

Funds raised through the capital raising will be used for the exploration and development of KGL’s Jervois Copper-Silver Project in the Northern Territory as well as being applied to corporate overheads, working capital and offer costs.

The principal terms of the non-renounceable rights issue are as follows:

• Two (2) new fully paid ordinary shares for every nine (9) shares held

• An issue price of 9.5 cents per share, representing a discount of 5% to the closing price of KGL shares on 24 December 2015 of $0.10 (being the last trading day before announcement of the Entitlement Offer) and a discount of 4.13% to the TERP.[1]

Use of funds

Source of funds	$3m raising
Cash on hand December 2015	$1.4 million
Funds raised after costs	$3 million
Total funds available	$4.4 million
Use of funds
Exploration	$2.8 million
Project development (follow up drilling, EIS and other studies)	$0.3 million
Working capital	$1.3 million
Total budget	$4.4 million

1 The Theoretical Ex-Rights Price ( TERP ) is the theoretical price at which KGL shares should trade immediately following the exdate for the Entitlement Offer assuming 100% take up of the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which KGL’s shares trade immediately following the ex-date for the Entitlement Offer will depend on many factors and may not approximate TERP.

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Key dates

Detailed information regarding the Entitlement Offer will be sent to shareholders in accordance with the timetable below.

Activity	Date
Record date for Entitlement Offer (7:00pm Brisbane time)	5 January 2016
Information booklet, and entitlement and acceptance form despatched	8 January 2016
Entitlement Offer opens	8 January 2016
Closing date for acceptances under Entitlement Offer (5:00pm Brisbane time)	22 January 2016
Announcement of results of Entitlement Offer and under-subscriptions	28 January 2016
Settlement of new shares under the Entitlement Offer	29 January 2016
Allotment of new shares issued under the Entitlement Offer	1 February 2016
Despatch of holding statements for new shares issued under the EntitlementOffer	1 February 2016
Normal ASX trading for new shares issued under the Entitlement Offercommences	2 February 2016

For further information contact:

Mr Simon Milroy Chief Executive Officer 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.