KGL RESOURCES LIMITED — Capital/Financing Update 2017

May 15, 2017

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16 May 2017

Update on expanded Jervois Project

• Acquisition of Unca Creek tenement at Jervois completed

• Previous exploration confirms well defined copper trend

• Reprocessing of exploration results identifies new targets

• Detailed gravity survey to commence

KGL Resources (ASX: KGL) (KGL or the Company) is pleased to announce that the acquisition of the exploration tenement EL28082 adjoining the Jervois Copper Project has been completed. The Northern Territory Government has approved the transfer of the tenement to KGL which was the last outstanding condition precedent to the acquisition, and settlement has now occurred with the vendor.

KGL considers the acquisition, known as the Unca Creek Exploration Project, to have considerable strategic value. The tenement has almost trebled the size of KGL’s 100% ² ² owned Jervois project area from 37.9 km to 110.8km . Unca Creek offers geological similarities to Jervois and is located in the highly prospective Bonya Metamorphics.

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Figure 1 Topographic map of tenements

Figure 2 Aeromagetics for Jervois region

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Although relatively under-explored, work undertaken by previous tenement holders including MIM, Normandy Poseidon and NRE has demonstrated the tenement’s exploration potential. This includes the northern strike extension of the sequence of rocks that host the MarshallReward deposits which represent a substantial part of KGLs current Resource at Jervois. As a result, the acquisition offers multiple walk-up drill targets.

Northern Prospects

At the northern edge of KGL’s existing Jervois project area, copper mineralisation at the Boundary prospect can be observed in outcrop extending on to the newly acquired Unca Creek tenement. Reconnaissance mapping has located numerous malachite occurrences and prospective host units to the north of Boundary.

Soil and rock chip sampling undertaken by NRE has demonstrated a continuous trend of anomalous copper mineralisation with soil samples of up to 2080ppm and rock chip samples of up to 23% Cu. (Figure 3, Table 2 & 3)

Aeromagnetic and IP data show a continuous trend – the Reward/Morley trend - between Boundary and the Becana prospect then north to the Yohoho prospect and beyond to the northern boundary of the Unca Creek tenement. (Figure 4 & 5)

Becana Prospect

The Becana prospect is located 350m north of the Boundary prospect where KGL intersected 11m @ 0.72% Cu, 3.6g/t Ag from 63m in KJCD004 when following mineralised trends north of the Marshall- Reward copper deposit and the northern extension of the Reward/Morley trend.

Drilling by NRE on this mineralised trend at Becana intersected significant copper mineralisation including:

• 9m @ 2.3% Cu, 9.8g/t Ag from 144m (NRC011)

• including 2m at 8.1% Cu, 22.5g/t Ag, 0.11g/t Au from 148m

• 2m @ 1.2% Cu from 63m (NRC013)

Yohoho Prospect

The Yohoho prospect is 1.2km north of the Boundary prospect beyond Becana. Earlier drilling by MIM that included:

• 8m @ 1.08% Cu from 198m (J21)

was followed up by NRE who drilled further north intersecting

• 8m @ 1.5% Cu from 39m (NRC001)

• 4m @ 1.1% Cu from 40m (NRC002)

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Figure 3 Soils and Rockchip copper assays

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Figure 4 Airborne magnetics north of Reward deposit with known copper mineral occurrences

KGL reprocessed an IP survey conducted by MIM, and calculated 3D inversions of chargeability and resistivity. The results revealed a strong chargeability anomaly that extends from Boundary to Becana and further north to YoHoHo (Figure 5).

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Figure 5 IP Chargeability 100m depth slice

Between the Reward/Morley trend and Hamburger Hill there is the Apex prospect within a tightly folded fold closure. Union Corporation mapped a malachite occurrence within folded calcsilicate units that coincides with a weaker parallel chargeability trend to the east of the main anomaly that is coincident with the Apex target where outcropping copper mineralisation has been observed. This prospect has no previous drilling.

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Hamburger Hill

Hamburger Hill is located 2.9km east of the Reward/Morley trend in a sedimentary/volcanic host sequence that resembles the Bellbird-Rockface area. Existing structural interpretations indicate that Hamburger Hill may be a folded repetition of the Reward/Morley trend. Previous wide spaced (~200m) RC and diamond drilling by Normandy intersected copper-lead-zinc mineralisation hosted in calcsilicate rocks. Best intersections include:

• 7m @ 1.28% Cu, 0.65% Pb, 0.34% Zn from 158.6m (HHD-1A)

• 4.2m @ 1.17% Cu from 115.8m (HHD-3)

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Figure 6 Hamburger Hill SAM Induced Polarisation highlighting the high chargeability zones

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Reprocessing of the SAM data acquired by NRE has recovered the Total Field Magnetometric Induced Polarisation (TFMMIP) information that is showing a good chargeability anomaly coincident with known mineralisation and has outlined the northern extensions to this anomaly that remain untested (Figure 6). The central TFMMIP anomaly is over 1 km in length.

Southern Prospects

There is further potential in the southern area of EL28082 where very little previous exploration has been undertaken. On the southern portion of the NRE tenement, directly south from the J-shaped Jervois Range there are four tungsten-copper prospects that are aligned to form an outer J-shaped trend (Big J trend). The tungsten-copper occurrences are hosted by a sedimentary sequence that includes calcsilicates and iron-rich sediments. CSIRO’s recently completed 3D geological model for Jervois raises the possibility that the outer J-shaped trend is a folded repetition of the host sequence at Jervois. This area could potentially host sulphide lenses.

Gravity survey

A detailed gravity survey was completed at the Jervois project in early 2016. Results of this survey have proved very effective at locating magnetite and garnet-altered rocks that are commonly proximal to mineralisation. Magnetite-garnet altered rocks are significantly denser than the unaltered country rocks and constitute a good gravity target. This is especially evident in areas such as Marshall, Reward and in the fold hinge zone at Rockface where the gravity response is significantly higher. The presence of high density sulphide minerals can make the gravity response even larger.

A gravity survey will now be undertaken at Unca Creek. The objective will be to improve the understanding of the geology, and in combination with existing drilling results, previous geophysical surveys and structural mapping, define and refine new and existing drill targets.

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Table 1 Table of significant results

Hole ID	Easting (m)	Northing (m)	RL (m)	Dip	Azimuth	BOX1 (m)	Total Depth (m)	From (m)	To (m)	Interval (m)	ETW2 (m)	Cu %	Pb %	Zn %	Ag g/t	Au g/t
NRC001	630707	7497718	369	-60	96		140	40	43	3	2.1	0.36
								68	70	2	1.4	0.31
								74	76	2	1.4	0.53
								80	81	1	0.7	0.79			8.8
NRC002	630700	7497682	378	-60	95.5		100 including including	39	47	8	5.6	1.50			4.4	0.04
								40	43	3	2.1	2.90			7.4	0.07
								91	95	4	2.8	0.50
								94	95	1	0.7	1.00
NRC003	630695	7497640	364	-60	96.5		100 including	40	44	4	2.8	1.10			3.8
								40	42	2	1.4	1.70			5.5	0.03
								59	60	1	0.7	2.30
								65	67	2	1.4	1.30			2.3
								79	80	1	0.7	0.65
NRC004	630693	7497586	364	-60	75.5		60	32	34	2	1.4	0.19
								40	41	1	0.7	0.65
NRC005	630678	7497583	362	-60	76		100	86	87	1	0.7	0.26
NRC006	630833	7497563	356	-60	70		60	47	48	1	0.7	0.54
NRC007	630718	7497342	369	-60	85.5		100 including including	57	71	14	9.8	0.42			1.2
								57	60	3	2.1	0.90			3.2
								70	71	1	0.7	0.92			5.4
NRC008	630628	7497015	360	-65	96.5		180	78	79	1	0.7	0.46			5.7
NRC009	630728	7497020	348	-60	275.5		72	49	50	1	0.7	0.73
NRC010	630705	7496827	350	-60	275.5		60	9	11	2	1.4	0.33
								43	44	1	0.7					0.12
								46	47	1	0.7					0.57

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Hole ID	Easting (m)	Northing (m)	RL (m)	Dip	Azimuth	BOX1 (m)	Total Depth (m)	From (m)	To (m)	Interval (m)	ETW2 (m)	Cu %	Pb %	Zn %	Ag g/t	Au g/t
NRC011	630661	7496827	350	-60	96.5		168 including	120	121	1	0.7	0.46
								144	153	9	6.3	2.30			9.8	0.03
								148	150	2	1.4	8.10			22.5	0.11
NRC012	630704	7496589	348	-60	90		120 including including including	50	51	1	0.6	0.30	0.16	0.54	8
								55	56	1	0.3	0.45
								60	90	30	18	0.36		0.11	2.5
								63	65	2	1.2	1.40			7.6	0.04
								74	76	2	1.2	0.68			4.1	0.03
								82	86	4	2.8	0.30		0.54	6.4
NRC013	630765	7496627	350	-60	264.5		102 including including	29	38	9	6.3	0.62			2.2
								30	31	1	0.7	0.23	Zn
								36	38	2	1.4	1.20			4.2	0.02
								54	59	5	3.5	0.23	0.13	0.37	3.7
								66	67	1	0.7	0.50
NRC014	630332	7497006	354	-60	96		96	8	9	1	0.7	0.17
								95	96	1	0.7	0.15
NRC015	630674	7497684	361	-70	96.5		174 including	83	90	7	4.9	0.17
								89	90	1	0.7	0.46
								138	139	1	0.7					0.12
								166	168	2	1.4	0.52			3
NRC016	630728	7497430	365	-60	95		80	48	49	1	0.7	1.40			4

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Hole ID	Easting (m)	Northing (m)	RL (m)	Dip	Azimuth	BOX1 (m)	Total Depth (m)	From (m)	To (m)	Interval (m)	ETW2 (m)	Cu %	Pb %	Zn %	Ag g/t	Au g/t
NRC017	630577	7498150	373	-60	94		120 including including	14	27	13	9.1					0.07
								20	22	2	1.4					0.13
								26	27	1	0.7					0.33
								54	56	2	1.4					0.28
								99	100	1	0.7	1.50
								113	114	1	0.7	0.28				0.06
NRC018	630725	7496834	348	-70	104.5		168	14	18	4	2.8	0.33
NRC019	630633	7496623	347	-60	90		80 including including including	41	50	9	6.3				5.1
								41	45	4	2.8
								42	44	2	1.4		0.88	0.35
								43	44	1	0.7
NRC020	632656	7490554	355	-60	145.5		78	46	47	1	0.7	0.12			1.3
HHD-1	633452	7495935	340.12	-55	90		60	48	52	4	2.8	0.81	0.01	0.07
HHD-1A	633453	7495935	340.15	-55	94		182.8	87.8	90.8	3	2.1	0.87	0.74	0.53
								98.7	101.7	3	2.1	0.36	0.05	0.29
								158.6	165.6	7	4.9	1.28	0.65	0.34
HHD-3	633458	7496178	340.15	-55	86.5		182.8	115.8	120	4.2	3.0	1.17	0.03	0.11
HHD-6	633936	7495750	331.03	-65	90		169.2	123.8	124.8	1	0.7	0.5	0	0.01
HHRC-2	633473	7495935	344	-55	90		150	43	44	1	0.7	0.69	0.14	0.35
								46	51	5	0.7	0.76	0.14	0.51
								121	125	4	2.8	0.53	0.26	0.48
HHRC-3	633457	7496170	339.76	-55	90		113	104	108	4	2.8	0.85	0.02	0.08
HHRC-8	633300	7495292	335.04	-60	90		43	22	25	3	2.1	0.3	0.41	0.34

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Hole ID	Easting (m)	Northing (m)	RL (m)	Dip	Azimuth	BOX1 (m)	Total Depth (m)	From (m)	To (m)	Interval (m)	ETW2 (m)	Cu %	Pb %	Zn %	Ag g/t	Au g/t
J18	630592	7497170	355.3	-70	90		255	235	236	1	0.6	0.65	0	0.01		0.01
J19	630689	7497692	361.9	-70	90		114	96	100	4	2.4	0.65	0	0.01		0
J21	630646	7497570	359.64	-75	90		252.2	66	68	2		0.56	0	0.01		0.01
								173	183	10		0.44	0	0.01		0.01
								189	190	1		2.23	0	0		0
								198	206	8		1.08	0	0.01		0.02

1Base of Oxidisation down hole depth 2Estimated True Width

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Table 2 Rockchip sampling results for Northern Extension (NRE data)

SAMPLE	East_WGS84	North_WGS8	Cu %	Pb ppm	Zn ppm	Ag g/t	Au g/t
3014404	631090	7498111	0.00	12	136	-0.5	-0.002
3014437	631146	7497647	0.00	4	4	-0.2	-0.01
3014438	630879	7497654	0.03	2	42	-0.2	-0.01
3014439	630794	7497756	4.76	2	35	7.2	0.04
3014440	630739	7497789	9.43	6	28	0.8	0.05
3014441	630973	7497814	10.35	8	18	18.7	0.19
3014442	630740	7497973	0.06	4	11	-0.2	-0.01
3014443	630739	7497974	0.18	2	36	-0.2	0.02
3014444	630743	7497990	5.64	10	20	2.1	0.08
3014445	630614	7498128	2.80	69	183	3.7	0.01
3014446	630590	7498152	0.02	32	4	0.2	0.01
3014447	631340	7497540	0.25	12	5	-0.2	0.02
3014448	630853	7497572	13.75	7	37	22.5	0.02
3014449	630850	7497576	0.08	-2	36	-0.2	0.02
3014450	630716	7497586	14.95	37	27	39	0.21
3014451	630716	7497578	3.15	50	61	2.9	0.14
3014452	630670	7497482	0.70	15	144	0.2	-0.01
3014453	630719	7497448	4.84	17	184	6.7	0.11
3014454	630752	7497434	22.20	180	28	22.8	0.24
3014455	631071	7497440	0.34	5	13	0.2	0.02
3014456	630808	7497325	0.78	2	84	0.5	0.15
3014457	630748	7497309	19.00	40	22	97	0.04
3014458	630736	7497281	7.19	407	46	8.1	0.11
3014459	630737	7497268	1.35	22	26	0.7	0.02
3014460	630719	7497142	9.94	404	81	49	0.28
3014461	631350	7496865	0.25	19	93	0.3	0.01
3014462	630702	7497017	7.15	68	96	0.6	0.11
3014463	630694	7497029	7.43	531	182	4	0.07
3014464	630675	7496964	6.59	1270	456	3	0.14
3014465	630680	7496805	0.09	10	62	-0.2	0.01
3014467	630713	7496772	4.55	178	185	2.1	0.06
3014468	631012	7496809	1.56	45	65	4.5	0.02
3014470	630255	7497898	0.93	200	29	1.2	0.01
3014471	630264	7497968	0.07	97	58	0.2	-0.01
3014472	630299	7498071	0.33	4750	471	10.4	0.04
3014473	630370	7498085	3.01	35	33	5.9	0.03
3014474	630587	7498174	0.01	53	8	0.2	-0.01
3014475	630589	7498173	0.01	68	37	0.2	0.01
3014476	630587	7498183	0.04	13	69	-0.2	-0.01
3014477	630593	7498143	0.01	44	8	-0.2	0.01
3014479	630618	7497940	4.95	234	148	4.6	0.04
3014480	630608	7497999	0.08	30	67	0.2	0.01
3014481	630620	7498005	14.65	359	436	178	0.04

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SAMPLE	East_WGS84	North_WGS8	Cu %	Pb ppm	Zn ppm	Ag g/t	Au g/t
3014482	630598	7498112	1.31	29	161	1.6	-0.01
3014483	630595	7498120	0.08	37	21	0.4	0.01
3014485	630620	7496523	0.04	51	1790	-0.2	0.01
3014486	630735	7496530	0.16	492	407	2.7	0.04
3014487	630730	7496609	0.20	253	210	1.5	0.08
3014488	630891	7496630	0.81	8	278	0.7	0.01
3014494	630764	7498018	23.40	23	15	68	0.13
3014505	630978	7498347	1.10	7	103	1.5	0.03
JN13-421	630342	7497828	0.00	2	82	1.8	0
JN13-422	630340	7497830	0.00	7	171	-0.5	0
JN13-423	630634	7497358	0.00	7	160	-0.5	0
JN13-424	630614	7497377	0.00	45	97	-0.5	0
NUR-01	630597	7498154	0.00	24.3	20	0.1	-0.001
NUR-02	630597	7497947	0.78	9.4	65	2.5	0.001
NUR-03	630970	7497816	12.30	12.2	22	19.85	1.18
NUR-04	630721	7497708	16.30	49.2	41	21.6	0.192
NUR-05	630740	7497362	11.30	37.2	10	24	0.184
NUR-06	630744	7497310	11.10	33.5	32	41.9	0.053

Table 3 Northern area soil sampling assays (NRE)

SAMPLE East m North m Cu ppm Pb ppm Zn ppm	SAMPLE East m North m Cu ppm Pb ppm Zn ppm
5011056 630600 7497425 19 9 31	5011306 630825 7498325 66 2 38
5011060 630625 7497425 79 9 39	5011307 630850 7498325 22 4 18
5011061 630650 7497425 24 9 43	5011319 630600 7497325 30 9 36
5011062 630675 7497425 195 10 54	5011320 630625 7497325 39 9 43
5011063 630700 7497425 14 7 54	5011321 630650 7497325 40 6 37
5011064 630725 7497425 44 7 44	5011322 630675 7497325 93 6 54
5011065 630750 7497425 355 7 35	5011323 630700 7497325 12 4 43
5011066 630775 7497425 40 6 29	5011324 630725 7497325 16 4 36
5011067 630800 7497425 24 6 27	5011325 630750 7497325 725 5 37
5011068 630825 7497425 41 7 29	5011326 630775 7497325 45 6 31
5011069 630850 7497425 16 9 38	5011327 630800 7497325 35 4 29
5011101 630600 7497525 17 12 37	5011328 630825 7497325 29 4 40
5011102 630625 7497525 16 9 39	5011329 630850 7497325 11 3 23
5011103 630650 7497525 15 12 69	5011341 630600 7497225 20 3 34
5011104 630675 7497525 230 9 50	5011342 630625 7497225 27 8 29
5011105 630700 7497525 119 7 37	5011343 630650 7497225 21 5 34
5011106 630725 7497525 52 7 36	5011344 630675 7497225 92 3 50
5011107 630750 7497525 91 6 28	5011345 630700 7497225 122 3 39
5011108 630775 7497525 82 5 19	5011347 630725 7497225 36 3 37
5011109 630800 7497525 32 6 24	5011348 630750 7497225 117 6 36
5011110 630825 7497525 174 5 20	5011349 630775 7497225 71 3 24

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SAMPLE East m North m Cu ppm Pb ppm Zn ppm	SAMPLE East m North m Cu ppm Pb ppm Zn ppm
5011111 630850 7497525 255 6 21	5011350 630800 7497225 89 6 29
5011135 630600 7497625 93 6 27	5011351 630825 7497225 118 4 32
5011136 630625 7497625 38 9 33	5011352 630850 7497225 468 4 44
5011137 630650 7497625 19 6 33	5011364 630600 7497125 28 11 50
5011138 630675 7497625 50 7 39	5011365 630625 7497125 12 7 63
5011139 630700 7497625 80 3 22	5011366 630650 7497125 13 7 67
5011140 630725 7497625 384 8 24	5011367 630675 7497125 55 4 31
5011141 630750 7497625 42 4 20	5011368 630700 7497125 32 4 36
5011143 630775 7497625 76 5 26	5011369 630725 7497125 155 6 40
5011144 630800 7497625 57 5 31	5011370 630750 7497125 97 4 29
5011145 630825 7497625 88 6 30	5011371 630775 7497125 76 6 22
5011146 630850 7497625 232 4 23	5011372 630800 7497125 58 4 18
5011158 630600 7497725 29 6 29	5011373 630825 7497125 87 3 23
5011159 630625 7497725 157 3 31	5011374 630850 7497125 109 3 37
5011160 630650 7497725 21 5 25	5011386 630600 7497025 32 8 39
5011161 630675 7497725 31 5 34	5011387 630625 7497025 47 5 50
5011162 630700 7497725 23 5 40	5011388 630650 7497025 126 13 53
5011163 630725 7497725 2080 6 35	5011389 630675 7497025 80 8 34
5011164 630750 7497725 572 6 27	5011390 630700 7497025 385 13 40
5011165 630775 7497725 156 6 30	5011391 630725 7497025 290 10 54
5011166 630800 7497725 228 5 33	5011392 630750 7497025 160 9 37
5011167 630825 7497725 61 6 67	5011393 630775 7497025 50 5 28
5011168 630850 7497725 336 4 48	5011394 630800 7497025 21 5 32
5011180 630600 7497825 43 6 48	5011395 630825 7497025 20 4 34
5011181 630625 7497825 155 6 35	5011396 630850 7497025 21 2 32
5011182 630650 7497825 29 6 53	5011409 630600 7496925 27 8 45
5011183 630675 7497825 19 7 70	5011410 630625 7496925 66 13 41
5011184 630700 7497825 35 6 32	5011411 630650 7496925 20 8 37
5011185 630725 7497825 116 4 32	5011412 630675 7496925 94 6 28
5011186 630750 7497825 159 4 32	5011413 630700 7496925 95 6 23
5011187 630775 7497825 102 5 34	5011414 630725 7496925 66 5 22
5011188 630800 7497825 295 5 37	5011415 630750 7496925 63 5 26
5011189 630825 7497825 119 5 33	5011416 630775 7496925 31 3 26
5011190 630850 7497825 37 6 29	5011417 630800 7496925 27 5 32
5011203 630600 7497925 123 9 34	5011418 630825 7496925 135 5 28
5011204 630625 7497925 87 6 41	5011419 630850 7496925 40 3 32
5011205 630650 7497925 60 6 31	5011431 630600 7496825 17 5 32
5011206 630675 7497925 54 6 42	5011432 630625 7496825 34 6 45
5011207 630700 7497925 16 5 29	5011433 630650 7496825 16 7 50
5011208 630725 7497925 13 7 37	5011434 630675 7496825 17 6 47
5011209 630750 7497925 106 7 31	5011435 630700 7496825 100 6 57
5011210 630775 7497925 38 4 24	5011436 630725 7496825 350 10 46
5011211 630800 7497925 20 6 33	5011437 630750 7496825 124 8 33
5011212 630825 7497925 39 6 32	5011438 630775 7496825 26 4 19

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SAMPLE East m North m Cu ppm Pb ppm Zn ppm	SAMPLE East m North m Cu ppm Pb ppm Zn ppm
5011213 630850 7497925 14 4 23	5011439 630800 7496825 35 5 24
5011225 630600 7498025 183 5 27	5011440 630825 7496825 26 4 38
5011226 630625 7498025 271 5 41	5011441 630850 7496825 24 4 34
5011227 630650 7498025 56 5 24	5011454 630600 7496725 12 6 26
5011228 630675 7498025 35 6 27	5011455 630625 7496725 11 4 26
5011229 630700 7498025 44 7 27	5011456 630650 7496725 11 5 33
5011230 630725 7498025 23 5 16	5011457 630675 7496725 15 5 21
5011231 630750 7498025 40 7 19	5011458 630700 7496725 36 6 24
5011232 630775 7498025 49 5 20	5011459 630725 7496725 37 5 21
5011233 630800 7498025 63 6 23	5011460 630750 7496725 47 5 21
5011234 630825 7498025 21 5 17	5011461 630775 7496725 32 5 17
5011235 630850 7498025 83 5 16	5011462 630800 7496725 39 4 21
5011248 630600 7498125 277 5 79	5011463 630825 7496725 15 4 16
5011249 630625 7498125 229 5 31	5011464 630850 7496725 18 4 18
5011254 630650 7498125 52 7 44	5011476 630600 7496625 10 7 26
5011255 630675 7498125 60 67 119	5011477 630625 7496625 10 7 27
5011256 630700 7498125 111 7 42	5011478 630650 7496625 10 7 30
5011257 630725 7498125 37 10 26	5011479 630675 7496625 13 9 35
5011258 630750 7498125 24 7 36	5011480 630700 7496625 11 6 23
5011259 630775 7498125 46 10 22	5011481 630725 7496625 362 31 156
5011260 630800 7498125 309 5 31	5011482 630750 7496625 288 29 103
5011261 630825 7498125 56 9 23	5011483 630775 7496625 75 10 50
5011262 630850 7498125 43 6 20	5011484 630800 7496625 35 8 45
5011274 630600 7498225 172 7 39	5011485 630825 7496625 34 5 24
5011275 630625 7498225 172 6 36	5011486 630850 7496625 32 5 29
5011276 630650 7498225 143 5 33	5011498 630600 7496525 26 6 66
5011277 630675 7498225 191 7 32	5011500 630625 7496525 26 14 147
5011278 630700 7498225 165 4 24	5011501 630650 7496525 17 13 69
5011279 630725 7498225 79 5 20	5011502 630675 7496525 40 25 79
5011280 630750 7498225 56 4 21	5011503 630700 7496525 51 8 46
5011281 630775 7498225 34 8 24	5011504 630725 7496525 188 7 73
5011282 630800 7498225 44 5 18	5011505 630750 7496525 246 46 132
5011283 630825 7498225 40 5 29	5011506 630775 7496525 22 7 34
5011284 630850 7498225 45 4 27	5011507 630800 7496525 20 6 32
5011297 630600 7498325 196 4 29	5011508 630825 7496525 12 4 25
5011298 630625 7498325 61 4 32	5011509 630850 7496525 10 3 27
5011299 630650 7498325 57 5 22	P13-221 630726 7496777 157 14 47
5011300 630675 7498325 43 3 19	P13-222 630729 7496727 35 6 23
5011301 630700 7498325 20 3 15	P13-223 630750 7496723 46 7 23
5011302 630725 7498325 14 3 28	P13-224 630774 7496724 39 6 22
5011303 630750 7498325 34 5 22	P13-225 630772 7496774 90 9 36
5011304 630775 7498325 16 5 21	P13-226 630751 7496776 67 8 29
5011305 630800 7498325 134 6 51

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For further information contact:

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 Project in the Northern Territory and developing it into a multi-metal mine.

Competent Person Statement

The Jervois Exploration data in this report is based on information compiled by Keith Mayes, a Fellow of the Geological Society of London and a full time employee of KGL Resources Limited.

Mr. Mayes 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Mayes has consented to the inclusion of this information in the form and context in which it appears in this report.

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1.1 Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random		Diamond drilling and reverse circulation
techniques		chips, or specific specialised industry standard measurement		(RC) drilling were used to obtain samples
		tools appropriate to the minerals under investigation, such as		for geological logging and assaying.
		down hole gamma sondes, or handheld XRF instruments,		RC drill holes are sampled at 1m intervals
		etc). These examples should not be taken as limiting the		and split using a cone splitter attached to
		broad meaning of sampling.		the cyclone to generate a split of ~3kg.
		Include reference to measures taken to ensure sample		Diamond core was quartered with a
		representivity and the appropriate calibration of any		diamond saw and generally sampled at 1m
		measurement tools or systems used.		intervals with shorter samples at geological
		Aspects of the determination of mineralisation that are		contacts.
		Material to the Public Report.		Field duplicate samples were taken to
		In cases where ‘industry standard’ work has been done this		determine representivity of the primary
		would be relatively simple (eg ‘reverse circulation drilling was		sample.
		used to obtain 1 m samples from which 3 kg was pulverised		RC samples are routinely scanned with a
		to produce a 30 g charge for fire assay’). In other cases more		Niton XRF. Samples assaying greater
		explanation may be required, such as where there is coarse		than 0.1% Cu, Pb or Zn are submitted for
		gold that has inherent sampling problems. Unusual		analysis at a commercial laboratory.
		commodities or mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
Drilling techniques		Drill type (eg core, reverse circulation, open-hole hammer,		RC drilling was conducted using a reverse
		rotary air blast, auger, Bangka, sonic, etc) and details (eg		circulation rig with a 5.25” face-sampling
		core diameter, triple or standard tube, depth of diamond tails,		bit. Diamond drilling was either in NQ2 or
		face-sampling bit or other type, whether core is oriented and		HQ3 drill diameters. Metallurgical diamond
		if so, by what method, etc).		drilling (JMET holes) were PQ
Drill sample		Method of recording and assessing core and chip sample		Diamond core recoveries are determined
recovery		recoveries and results assessed.		by orientating core and measuring the
		Measures taken to maximise sample recovery and ensure		recovered core between drill intervals
		representative nature of the samples.		provided by the drilling company. Any core
		Whether a relationship exists between sample recovery and		loss is recorded as a percentage of the
		grade and whether sample bias may have occurred due to		interval.
		preferential loss/gain of fine/coarse material.		At the start of each RC drill program the
				bulk sample residue (drill cuttings) for 2-3
				holes were weighed and compared to the
				theoretical weight of sample based on the
				interval length (1m) and the bit diameter.
				The ratio between the split and the bulk
				residue is calculated to ensure the split is
				representative applying Gy’s sample theory
				(~1:15).
				Drill rigs with high air pressure and CFM
				are utilised to ensure samples are dry and
				sample recovery is maximised.
				Drill intervals with suspected sample loss
				are recorded on the drill log.
				RC holes are twinned with diamond holes
				to determine if there is a sampling bias
				from loss of fines.
Logging		Whether core and chip samples have been geologically and		All RC and diamond core samples are
		geotechnically logged to a level of detail to support		geologically logged with fields including
		appropriate Mineral Resource estimation, mining studies and		lithology, alteration, mineralisation and
		metallurgical studies.		structural fabric.
		Whether logging is qualitative or quantitative in nature. Core		Representative samples of core were
		(or costean, channel, etc) photography.		submitted for petrology and a logging atlas
		The total length and percentage of the relevant intersections		created to standardize geological logging.
		logged.		Diamond core is orientated and logged for
				geotechnical information including
				recovery, RQD and structural fabric.
				RC drilling is logged in 1m intervals.
				Diamond core is logged in intervals based
				on the lithology, alteration and
				mineralisation.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all		RC drill holes are sampled at 1m intervals
techniques and		core taken.		and split using a cone splitter attached to
sample preparation	 	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness		the cyclone to generate a split of ~3kg. Diamond core was quartered with a diamond saw and generally sampled at 1m
		of the samplepreparation technique.		intervals with shorter samples atgeological

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Quality control procedures adopted for all sub-sampling		contacts.
		stages to maximise representivity of samples.		RC sample splits (~3kg) are pulverized to
		Measures taken to ensure that the sampling is representative		85% passing 75 microns.
		of the in situ material collected, including for instance results		Diamond core samples are crushed to 70%
		for field duplicate/second-half sampling.		passing 2mm and then pulverized to 85%
		Whether sample sizes are appropriate to the grain size of the		passing 75 microns.
		material being sampled.		Sample preparation has been designed to
				ensure compliance with Gy’s sample
				theory.
				RC duplicates are collected as an
				additional split from the cone splitter on the
				drill rig.
				Diamond core duplicates are a second
				interval of quarter core.
Quality of assay		The nature, quality and appropriateness of the assaying and		The QA/QC procedure includes standards,
data and		laboratory procedures used and whether the technique is		blanks, duplicates and laboratory checks.
laboratory tests		considered partial or total. For geophysical tools, spectrometers, handheld XRF		In ore zones Standards are added at a ratio of 1:10 and duplicates and blanks
		instruments, etc, the parameters used in determining the		1:20.
		analysis including instrument make and model, reading times,		Basemetal samples are assayed using a
		calibrations factors applied and their derivation, etc.		four acid (total) digest with an ICP AES
		Nature of quality control procedures adopted (eg standards,		finish. Gold samples are assayed by Aqua
		blanks, duplicates, external laboratory checks) and whether		Regia with an ICP MS finish. Samples
		acceptable levels of accuracy (ie lack of bias) and precision		over 1ppm Au are re-assayed by Fire
		have been established.		Assay with an AAS finish.
				An umpire laboratory is used to check ~1%
				of samples analysed.
				QA/QC data is assessed on a monthly
				basis to assess precision and accuracy of
				sample assays. Variances in the assay
				value of standards of greater than 10% (~3
				standard deviations) triggers reanalysis of
				the sample batch.
				XRF analyses are only used to prescan
				samples. Samples with greater than 0.1%
				Cu, Pb or Zn are then submitted for
				analysis at a commercial laboratory.
Verification of		The verification of significant intersections by either		Data is validated on entry into the
sampling and		independent or alternative company personnel.		Datashed database.
assaying	 	The use of twinned holes. Documentation of primary data, data entry procedures, data		Further validation is conducted by a geologist when data is imported into
		verification, data storage (physical and electronic) protocols.		Vulcan.
		Discuss any adjustment to assay data.		Validation of drill results at each resource
				was aided by twinning selected holes with
				variances investigated to determine the
				source of sampling or assaying error.
Location of data		Accuracy and quality of surveys used to locate drill holes		Surface collar surveys were picked up
points		(collar and down-hole surveys), trenches, mine workings and		using a Trimble DGPS.
		other locations used in Mineral Resource estimation.		A selection of drill collars were periodically
		Specification of the grid system used.		checked by a surveyor.
		Quality and adequacy of topographic control.		Downhole surveys were taken during
				drilling with a Reflex MEMS gyro or a
				Reflex EZ gyro,. Reflex EZ shot.
				All drilling is conducted on the MGA 94
				Zone 53 grid. All downhole surveys were
				converted to MGA 94 Z53 grid.
				A DTM has been generated from a close
				spaced grid of sample points using a
				DGPS. Additional sample points have been
				added is areas with steep or rugged
				topography.
Data spacing and		Data spacing for reporting of Exploration Results.		Drilling for Inferred resources has been
distribution		Whether the data spacing and distribution is sufficient to		conducted at a spacing of 50m along strike
		establish the degree of geological and grade continuity		and 80m within the plane of the
		appropriate for the Mineral Resource and Ore Reserve		mineralized zone. Closer spaced 50m by
		estimation procedure(s) and classifications applied.		40m drilling was used for Indicated
		Whether sample compositing has been applied.		resources.
				Shallow oxide RC drilling was conducted
				on 80m spaced traverses with holes 10m
				apart

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Orientation of data		Whether the orientation of sampling achieves unbiased		Holes were drilled perpendicular to the
in relation to		sampling of possible structures and the extent to which this is		strike of the mineralization at a default
geological structure		known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to		angle of -60 degrees but holes vary from - 45 to -80. The orientation of drill holes relative to the
		have introduced a sampling bias, this should be assessed		mineralised structures is not thought to
		and reported if material.		have generated any significant sample
				bias.
Sample security		The measures taken to ensure sample security.		The NRE samples were stored in sealed
				polyweave bags on site and transported to
				the laboratory at regular intervals by NRE
				staff or a transport contractor.
Audits or reviews		The results of any audits or reviews of sampling techniques		The sampling techniques are regularly
		and data.		reviewed.

1.2

1.3 Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral tenement		Type, reference name/number, location and ownership		The Unca Creek project is within EL28082
and land tenure		including agreements or material issues with third parties		100% owned by Jinka Minerals and
status		such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national		operated by Kentor Minerals (NT), both wholly owned subsidiaries of KGL
		park and environmental settings.		Resources.
		The security of the tenure held at the time of reporting along		The adjacent Jervois project is covered by
		with any known impediments to obtaining a licence to operate		Mineral leases and an Exploration licence
		in the area.		EL30242 owned by KGL Resources
				subsidiaryJinka Minerals.
Exploration done		Acknowledgment and appraisal of exploration by other		Previous exploration has primarily been
by other parties		parties.		conducted by Reward Minerals, MIM,
				Normandy Poseidon, Natural Resources
				Exploration and PlentyRiver.
Geology		Deposit type, geological setting and style of mineralisation.		EL30242 and EL28082 lies on the Huckitta
				1: 250 000 map sheet (SF 53-11). The
				tenement is located mainly within the
				Palaeo-Proterozoic Bonya Schist on the
				northeastern boundary of the Arunta
				Orogenic Domain. The Arunta Orogenic
				Domain in the north western part of the
				tenement is overlain unconformably by
				Neo-Proterozoic sediments of the
				Georgina Basin.
				The copper-lead-zinc mineralisation is
				interpreted to be stratabound in nature,
				probably relating to the discharge of base
				metal-rich fluids in association with
				volcanism or metamorphism or dewatering
				of the underlying rocks at a particular time
				in thegeological historyof the area.
Drill hole		A summary of all information material to the understanding of		Table 1
Information		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.
Data aggregation		In reporting Exploration Results, weighting averaging	
methods		techniques, maximum and/or minimum grade truncations (eg
		cutting of high grades) and cut-off grades are usually Material
		and should be stated.
		Where aggregate intercepts incorporate short lengths of high

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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.
		The assumptions used for any reporting of metal equivalent
		values should be clearly stated.
Relationship		These relationships are particularly important in the reporting		Refer Table 1
between		of Exploration Results.
mineralisation		If the geometry of the mineralisation with respect to the drill
widths and intercept lengths		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 (eg ‘down hole
		length, true width not known’).
Diagrams		Appropriate maps and sections (with scales) and tabulations		Refer Figures 4,5 &6
		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.
Balanced reporting		Where comprehensive reporting of all Exploration Results is		Refer Table 1, 2 & 3
		not practicable, representative reporting of both low and high
		grades and/or widths should be practiced to avoid misleading
		reporting of Exploration Results.
Other substantive		Other exploration data, if meaningful and material, should be		Refer Figure 3, 4, 5 & 6
exploration data		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.
Further work		The nature and scale of planned further work (eg tests for		Refer Figures 3, 4, 5 & 6
		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.