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KGL RESOURCES LIMITED Capital/Financing Update 2018

Aug 29, 2018

65179_rns_2018-08-29_34169106-3eb3-4156-b7bb-9d43a02275bf.pdf

Capital/Financing Update

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www.kglresources.com.au

30 August 2018

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$5.7 M PLACEMENT TO EXTEND JERVOIS COPPER PROJECT EXPLORATION PROGRAM

  • Placement to raise approximately $5.7 M at 38 cents per share – a 12.8% premium to the last close including:

  • ASM Connaught House Fund LP and ASM Connaught House (Master) Fund III LP, subscribed for $3M

  • Existing shareholders KMP Investments and RCF Opportunities Fund L.P. also participated

  • Share Purchase Plan to raise $2M at 33 cents per share to follow, allowing all current shareholders to participate.

  • Placement to fund resumption of exploration of high potential areas and to extend and upgrade resources

KGL Resources Limited (ASX:KGL) ( KGL or the Company ) is pleased to announce that it has undertaken a capital raising via a placement to raise approximately $5.7 million.

The Company has received commitments in respect of a placement to issue approximately 15.0 million new shares ( Placement Shares ) at 38 cents each, raising $5.7 million ( Placement ) from a small group of sophisticated and institutional investors, including ASM Connaught House Fund LP and ASM Connaught House (Master) Fund III LP (both managed by Argyle Street Management Limited), RCF Opportunities Fund L.P, a fund in the global resource private equity firm Resource Capital Funds and KGL’s majority shareholder, KMP Investments Pte Ltd.

The Company is also pleased to announce a Share Purchase Plan to ensure all shareholders are able to participate to raise up to $2 million ( Share Purchase Plan ).

The new shares to be issued under the Share Purchase Plan will be issued at 33 cents per share. This represents a 13.2% discount to the Placement issue price.

Current Activities

In February of this year the Company undertook a placement that secured KGL’s ability to complete the total current resource drilling program, and to complete the Environmental Impact Statement, an essential step towards project development at the growing Jervois Copper Project.

Significant progress has been made on these activities including:

  • Undertaking the planned infill drilling program at Rockface which will be completed in September and we look forward to announcing an updated resource in Q4 2018. This will underpin mining studies and estimation of Rockface’s maiden reserves that are also planned for release in Q4.

www.kglresources.com.au

  • Completing the infill drilling of potential open pit mining areas at Reward and Bellbird. This will help advance open pit mining studies and estimation of Reserves.

  • Continuing to progress the Environmental Impact Statement, the last of the major licences required before the right to mine is achieved. The Company is on schedule for submission to the Northern Territory government in November, which following the required public consultation process will see the Company prepare and lodge a supplementary report early in 2019.

Plans for the Placement and SPP Funds

This Placement and SPP will allow KGL to resume exploration drilling, by retaining the two drill rigs on site for a further 6 months to capitalise on the expertise captured during the infill drilling to add potential additional resources.

There is significant potential at the northern end of Reward and a drilling program to upgrade and extend this deeper high-grade copper mineralisation will be a primary objective for the raised funds. Down hole Electromagnetics (DHEM) that has been used so successfully at Rockface and Reward North will continue to play an important role in guiding drilling to the highest grade mineralisation.

The existing resource at Jervois includes 3.8Mt of silver/lead/zinc mineralisation and drilling will also be targeted at these deposits to both upgrade and extend the mineralisation, primarily at Reward and Green Parrot. Several areas of shallow copper mineralisation have been identified in recent and historical drilling that offers the potential for additional open pitable resources. East Reward, Morley and Boundary prospects are all on the existing granted mining lease and will be a priority for follow up drilling. There are also several exciting exploration targets that will be evaluated as part of this next drilling campaign.

Use of Funds

Funds
Current Balance (less Creditors) (Aug 2018) $10.1M
Placement and Share Purchase Plan (assuming 100% SPP participation) $7.7M
Current Activities inc Infill Drilling, EIS Completion, Engineering and Mining
Studies, Administration
$(6.5)M
Exploration drilling $(8.1) M
Balance (Jun 2019) $3.2M

KGL Executive Chairman Denis Wood commented,

“The Board is pleased with the participation of ASM Connaught House Fund in the placement and with the continuing strong support of our existing shareholders KMP Investments and RCF Opportunities Fund L.P.

With this extended exploration program we aim to pursue the high potential for additional resources and so enhance the robustness of the Jervois project.”

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www.kglresources.com.au

Details of Placement

Pursuant to the terms of the Placement, the Company has agreed to issue 15.02 million Placement Shares in the Company at an issue price of 38 cents per share – a 12.8% premium to the last close - to raise $5.7 million before costs, under the Company’s existing 15% placement capacity pursuant to ASX Listing Rule 7.1.

Share Purchase Plan

In order to ensure existing shareholders are able to participate, the Company is pleased to announce a Share Purchase Plan to raise $2 million will be offered to all eligible shareholders at a price of 33 cents per share. This represents a 13.2% discount to the Placement issue price.

The Share Purchase Plan is available to Australian and New Zealand shareholders who were registered as KGL shareholders at 7:00pm (AEST) on 29 August 2018 ( Record Date ) ( Eligible Shareholders ). Shareholders wishing to participate can choose between $1,000, $2,000, $7,500 and $15,000 investments.

Full details of the Share Purchase Plan will be contained in an information booklet which is anticipated to be dispatched to Eligible Shareholders on 3 September 2018. Eligible Shareholders should read the information booklet carefully before making any investment decision regarding the Share Purchase Plan. If you are in any doubt about the Share Purchase Plan, you should consult your financial or other professional adviser.

Share Purchase Plan Key Dates

Event Date
Record Date (7pm) 29 August 2018
Announcement of SPP 30 August 2018
SPP Open and Documents dispatched 3 September 2018
SPP Close 19 September 2018
Allotment of new KGL shares 25 September 2018
Quotation of new KGL shares 26 September 2018

All dates are indicative only and subject to change. All times and dates refer to Australian Eastern Standard Time. KGL reserves the right to amend any or all of these dates and times, subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws and regulations. In particular, KGL reserves the right to extend the closing date of the Share Purchase Plan, to accept late applications (either generally or in particular cases) and to withdraw the Share Purchase Plan without prior notice. Any extension of the closing date may have a consequential impact on the date that new shares are issued. Applicants are encouraged to submit their acceptance forms as soon as possible after the Share Purchase Plan opens.

For further information, contact: Ms Kylie Anderson Company Secretary Phone: 07 3071 9003

Attachment : KGL Investor Presentation.

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Corporate Presentation August 2018

www.kglresources.com.au KGL RESOURCES LIMITED ASX:KGL | 1

Important Notices and Disclaimers

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  • The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

  • No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of KGL Resources Ltd, their directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Forward-looking statements:

  • This presentation includes certain forward-looking statements. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of KGL are forward-looking statements that involve various risks and uncertainties. Although every effort has been made to verify such forward-looking statements, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. You should therefore not place undue reliance on such forward-looking statements.

  • Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements. Statements in relation to future matters can only be made where the Company has a reasonable basis for making those statements.

KGL RESOURCES LIMITED ASX:KGL | 2

Company Highlights – Jervois Copper Project

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  • Rapidly progressing a significant copper project 384.8kt of contained copper

  • One of the few ASX companies providing exposure to a copper development project, with additional lead/zinc upside

  • Significant opportunity to add value to project through infill drilling program and continued exploration across the portfolio

  • Preliminary mine planning and metallurgical process design work underway

  • Environmental Impact Statement (EIS), the only major outstanding approval and now in the final stages of preparation

  • Experienced resource industry appointments recently made to progress development

  • Base metal market dynamics continue to improve with new demand for high quality projects

KGL RESOURCES LIMITED ASX:KGL | 3

Corporate Snapshot

CAPITAL STRUCTURE

Australian Stock Exchange (ASX) code KGL
ASX Share price (close 28-Aug-18) A$0.33.7
52 week low / high A$0.405 / A$0.26
Shares outstanding
Options on Issue
Market capitalisation
Cash (30-Jun-18)
Debt
243.0M
Nil
A$81.0M
A$13.3M
Nil
Enterprise value A$67.7M
DIRECTORS
Denis Wood- Executive Chairman
Appointed 28 July 2015
Ferdian Purnamasidi- Non-Executive Director
Appointed 26 April 2016
Peter Hay -Non-Executive Director
Appointed 2 November 2017
John Gooding- Non-Executive Director
Appointed 12 June 2018
Fiona Murdoch -Non-Executive Director
Appointed 12 June 2018

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24 MONTH SHARE PRICE PERFORMANCE
0.50 2.50
0.45
0.40 2.00
0.35
0.30 1.50
0.25
0.20 1.00
0.15
0.10 0.50
0.05
0.00 0.00
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18
Volume (m) Share Price (A$/share)
Volume (m)
Share Price (A$/share)
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MAJOR SHAREHOLDERS

KMP Investments Pte Ltd 25.7%
Denis Wood 9.2%
Pegasus CP One 7.2%
Marshall Plenty Investments LLC 5.1%

KGL RESOURCES LIMITED ASX:KGL | 4

Building a Quality Australian Copper Company

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Jervois Copper Project – 100% Owned

  • 380km ENE of Alice Springs with access via Stuart and Plenty Highway

  • Jervois Project Area 111km[2] – Pastoral Lease

  • Bonya Community 17km SW of project

  • Upgraded Mineral Resource (18 May 2018)

  • 384.8 kt copper

  • 23.6 moz silver

  • 143.5 kt lead*

  • 46.5 kt zinc*

  • 135 koz gold

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JERVOIS - CONTAINED COPPER METAL & COPPER GRADE
Jervois Total contained copper metal and copper grade
385
400 2.00
350 327
300 279 1.50
250
200 170 1.00
150
150 113
100 0.50
50
0 -
July 2011 Jan 2012 Nov 2012 Sep 2014 July 2015 May 2018
Copper Indicated Copper Inferred Copper Grade
Grade % Cu
Contained Copper Metal (kt)
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* Resources are reported from the 2015 models

KGL RESOURCES LIMITED ASX:KGL | 5

Jervois and Unca Creek

  • High-grade Jervois Copper Project located in highly prospective geological setting

  • Research suggesting Hybrid Sedex / Silici-ClasticFelsic VMS

  • Mining Leases granted over all existing resources

  • Unca Creek Project (acquired March 2017) continues a 1.85km extension of the Reward /Morley trend

  • Current exploration focus

  • Upgrading Reward Deeps from Inferred to Indicated confidence

  • Identify extensions to existing silver/lead/zinc deposits

  • Identify extensions to existing copper/silver/gold deposits

  • Evaluate potential for new open pit resources

  • Test highest ranked exploration targets

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KGL RESOURCES LIMITED ASX:KGL | 6

Geological Setting and Gravity Inversion

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Density
Med – Green Pioneer
High – Yellow
V. High - Orange
Reward
NORTH
North
Reward
Crowes
Nest
Green
Parrot
Bellbird
Rockface
KGL RESOURCES LIMITED ASX:KGL | 7
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Extensive Project Pipeline – 100% Owned

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Feasibility Study Copper
RESERVES GP Copper – Unca Creek
MR RW
Lead/Zinc
BB BBN
Scoping Study
Rockface
RESOURCE
Coxs Find
Rockhole
Inferred Resource
Bellbird East Killeen
PROJECT
Pioneer
Hamburger Hill
Multiple significant intercepts
Scarp Georges Hill Chubko
PROSPECT
Boundary Killeen Cu
Green Parrot West Morley Becana
Mineralised Intercept
Wren Lucy Denis Eagle Apex Colling
TARGET
Falcon Little Jay Oleg Crowes Nest Van Gills
Windmill Rocky Road Amigo Maa Salama
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* MR - Marshall Reward (incl. Reward North) BB – Bellbird

GP – Green Parrot, BBN – Bellbird North, RW - Reward

KGL RESOURCES LIMITED ASX:KGL | 8

Jervois – Establishing a Mining District

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Outcropping Copper Mineralisation
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Coxs Find - 3km ROCKFACE - 5km Bellbird - 5km Green Parrot - 1km Marshall - 500m Reward KGL RESOURCES LIMITED ASX:KGL | 9

Rockface Prospect

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Rockface Cross Section – Outline of Conductors

  • Current Mineral Resource is 3.2Mt @ 2.90% Cu

  • Multiple parallel lenses, dipping north at -80 degrees

  • Down hole electromagnetic (DHEM) surveying has proven extremely successful, providing clear targets for drilling

  • Identified conductors approximately 900m from surface

  • Drilling confirms grade increasing with depth

  • Current infill drilling targeting the two separate lodes, the Main Lode and the smaller North Lode

  • Recent results at KJCD244, KJCD245 include[1] :

  • 8.4m @ 2.91% Cu , 3.00% Pb, 0.17% Zn, 14.50g/t Ag, 0.43g/t Au from 486 m, including

    • 3.3m @ 5.12% Cu , 0.04% Pb, 0.37% Zn, 26.3g/t Ag, 0.94g/t Au from 486 m; and

    • 6.85m @ 1.23% Cu, 0.03% Pb, 0.15% Zn, 7.4g/t Ag, 0.01g/t Au from 506.15 m

  • 9.62m @ 4.63% Cu , 0.04% Pb, 1.03% Zn, 31.8g/t Ag, 0.03g/t Au from 578 m, including

    • 4.05m @ 9.91% Cu , 0.04% Pb, 2.15% Zn, 67g/t Ag, 0.02g/t Au from 578.95 m
  • Both holes expected to contribute additional copper resources and grade to May 2018 resource upgrade

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+900 meters
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KGL RESOURCES LIMITED ASX:KGL | 10

1 “Quarterly Activities Report Period Ended 30 June 2018” released 17 July 2018

Rockface – Main and North Lode

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Rockface - Longitudinal section Rockface - Cross Section
+900 Meters
1 “Quarterly Activities Report Period Ended 30 June 2018” released 17 July 2018 KGL RESOURCES LIMITED ASX:KGL | 11
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Reward Prospect

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Reward Cross-Section

  • Current Mineral Resource is 9.2Mt @ 1.7% Cu

  • Drilling confirms significant discovery at Reward

  • Down hole electromagnetic (DHEM) surveying has proven extremely successful, providing clear targets for drilling

  • Several DHEM conductors remain untested to the north of this deeper drilling

  • Additional resource growth exists surrounding Reward

  • Morley located north-east of Reward intersected copper mineralisation (KJC246)

  • 21m @ 1.03% Cu , 0.10% Pb, 0.05% Zn, 10.3g/t Ag, 0.35g/t Au from 144m, including

    • 8m @ 1.42% Cu , 0.01% Pb, 0.04% Zn, 15.4g/t Ag, 0.01g/t Au from 144m; and

    • 5m @ 0.76% Cu , 0.01% Pb, 0.04% Zn, 7.6 g/t Ag, 1.35 g/t Aug

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~915
Meters
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KGL RESOURCES LIMITED ASX:KGL | 12

Reward North

KJD223 Assays and Core

From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
From
m
To
m
Interval
m
Copper
%
Lead
%
Zinc
%
Silver
g/t
Gold
g/t
691.44
692.07
692.5
693.4
694.3
695.3
696.18
697.3
698
698.7
692.07
692.5
693.4
694.3
695.3
696.18
697.3
698
698.7
699
0.63
0.43
0.9
0.9
1
0.88
1.12
0.7
0.7
0.3
0.64 0.03 0.06 7.2 0.15
2.05 0.05 0.05 25.3 0.33
4.02 0.05 0.06 32.8 0.48
5.83 0.17 0.08 51.3 0.85
5.46 0.05 0.05 38.9 0.26
5.34 0.06 0.04 35.3 0.23
15.24 0.12 0.09 92.2 21.52
2.62 0.03 0.34 18.4 1.56
1.09 0.07 0.03 12.6 0.19
0.41 0.03 0.10 4.6 0.12
699 699.6 0.6 1.51 0.03 0.05 8.7 0.18

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KGL RESOURCES LIMITED ASX:KGL | 13

Jervois Hosts Significant Zinc and Lead

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  • Jervois Project contains significant upside associated with zinc and lead

  • Current zinc/lead Resource hasn’t been upgraded since 2015

  • 143.5 kt lead*

  • 46.5 kt zinc*

  • Further exploration potential across the projects and at known prospects

  • By example current Green Parrot Resource

  • Indicated - 0.5Mt @ 0.99% Cu, 0.92% Pb, 0.63% Zn , 64.0g/t Ag

  • • Inferred - 1.4Mt @ 0.81% Cu, 1.78%Pb, 0.93% Zn , 78.0g/t Ag

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KGL RESOURCES LIMITED ASX:KGL | 14

* Resources are reported from the 2015 models

Project Development Studies

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  • Mine planning continues in conjunction with work towards upgrading Resource confidence

  • Preliminary mine plan envisages concurrent open cut and underground mining, to produce a blend of the higher grade underground ore with open cut material

  • Plan is based on a progression of open cut operations from Reward to Bellbird, while underground mining commences at Rockface and then moves to Reward

  • Design and costing of a smaller processing plant than proposed in the previous pre-feasibility study is well advanced

  • All mining and processing design and site infrastructure planning is being done in conjunction with studies for the drafting of the EIS.

  • Rail and port studies are also well under way, with several alternatives being investigated

Schematic of Conceptual Processing Plant

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KGL RESOURCES LIMITED ASX:KGL | 15

Greater Jervois Project

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Northern Extension

  • Unca Creek Project has considerable strategic value*

  • 1.85km northern extension of the Reward/Morley trend

  • Within the Bonya Metamorphics – SAM survey completed

  • Soils geochemistry survey completed

  • Multiple rock chips samples over 10% Cu

  • Soil sample assays of up to 2,080ppm Cu

  • Multiple prospective drill targets

Boundary

  • 11m @ 0.72% Cu, 3.6g/t Ag from 63m in KJCD004

  • 3m @ 1.08% Cu, 5.3g/t Ag from 130 m in KJC193

  • EOH assay of 1.05% Cu when the hole was abandoned due to excessive water

Becana

  • 9m @ 2.3% Cu, 9.8g/tAg from 144m

  • 2m @ 1.4% Cu from 63m

Pioneer

  • 4m @ 1.1% Cu from 40m

  • 8m @ 1.5% Cu from 39m

  • 8m @1.08% Cu from 198m

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KGL RESOURCES LIMITED ASX:KGL | 16

* Refer ASX Announcement “KGL expands Jervois Project” released on 27 March 2017

Summary and Outlook

  • Jervois Copper Project, one of Australia’s most promising new copper mineral discoveries

  • KGL is expeditiously progressing exploration and development activities

  • Environmental and project approvals process proceeding

  • Mining Lease approved

  • Metallurgical test work underway

  • Preliminary mine planning and geotechnical work progressing

  • Update to Mineral Resource for both Reward and Rockface planned

  • Progress processing design, site infrastructure planning and development studies

  • KGL is on track to building a quality Australian copper company with strong and supportive major shareholders

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KGL RESOURCES LIMITED ASX:KGL | 17

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KGL Resources Limited

Level 7, 167 Eagle Street, Brisbane, QLD, 4000 T: +61 7 3071 9003

E: [email protected]

W: www.kglresources.com.au

KGL RESOURCES LIMITED ASX:KGL | 18

Appendix 1: Jervois – Mineral Resource (July 2018)

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Jervois 2018 Category Mt Cu % Ag g/t Pb % Zn % Cu Kt Ag Mozs Lead Kt Zinc Kt Cu cut off
Marshall Indicated 1.4 1.45 35.6 20.1 1.6 0.5
Reward OP Indicated 3.3 1.11 27.7 37.0 3.0 0.5
Reward UG Indicated 0.7 2.68 43.1 18.3 0.9 1.0
Bellbird OP Indicated 3.9 1.19 8.6 46.5 1.1 0.5
Bellbird UG Indicated 0.2 1.84 12.0 3.9 0.1 1.0
Rock Face UG Indicated 0.5 3.57 19.3 19.3 0.3 1.0
Marshall OP Inferred 0.3 0.90 20.2 2.6 0.2 0.5
Reward OP Inferred 0.4 1.01 20.5 3.8 0.2 0.5
Reward UG Inferred 3.6 1.90 32.8 67.6 3.8 1.0
Reward E OP Inferred 0.5 0.78 6.6 3.8 0.1 0.5
Reward E UG Inferred 0.7 1.45 12.9 10.3 0.3 1.0
Bellbird OP Inferred 1.3 0.98 36.5 13.0 1.6 0.5
Bellbird UG Inferred 1.9 2.00 12.7 37.6 0.8 1.0
Rock Face UG Inferred 2.7 2.77 16.3 73.5 1.4 1.0
Sub-total 21.3 1.67 22.3 357.1 15.3
Lead Resource*
Reward Indicated 0.5 0.74 70.7 6.84 0.90 3.6 1.1 33.6 4.4 None
Green Parrot Indicated 0.5 0.99 64.0 0.92 0.63 5.1 1.1 4.7 3.2 0.3
Reward Inferred 0.8 0.51 90.9 8.64 1.17 4.1 2.3 69.4 9.4 None
Green Parrot Inferred 1.4 0.81 78.0 1.78 0.93 11.1 3.4 24.4 12.8 0.3
Bellbird North Inferred 0.7 0.57 17.9 1.71 2.52 3.8 0.4 11.3 16.7 0.2
Sub-total 3.8 0.72 67.5 3.74 1.21 27.7 8.3 143.5 46.5
TOTAL Indicated 11.1 1.39 25.8 153.7 9.2
Inferred 14.1 1.64 31.9 230.7 14.5
TOTAL 25.2 1.53 29.2 384.8 23.6
Gold Resources Category Mt Gold g/t Gold Koz Cut-off Cu%
Reward UG Indicated 0.7 0.67 14.8 1.0
Rockface UG Indicated 0.5 0.23 4.1 1.0
Total Indicated 1.2 0.48 18.9
Marshall Reward OP Inferred 5.9 0.24 44.9 0.5
Reward UG Inferred 3.6 0.42 48.3 1.0
Bellbird OP Inferred 5.2 0.12 19.7 0.5
Bellbird UG Inferred 1.9 0.09 5.1 1.0
Rockface UG Inferred 2.7 0.20 17.3 1.0
Total Inferred 19.2 0.22 135.4
Total Ind & Inf 20.5 0.23 154.2

* Resources are reported from the 2015 models

KGL RESOURCES LIMITED ASX:KGL | 19

Competent Person Statement

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 The following drill holes were originally reported on the date indicated and using the JORC code specified in the table. Results reported under JORC 2004 have not been updated to comply with JORC 2012 on the basis that the information has not materially changed since it was last reported.

Hole Date originally Reported JORC Reported Under
KJD 010W1 15/01/2015 2012
KJD1 220W 12/12/17 2012
KJCD 223 12/12/17 2012
KJCD 244 17/07/2018 2012
KJCD 245 17/07/2018 2012
KJCD 263 17/07/2018 2012
KJCD 264 17/07/2018 2012
KJCD 248 17/07/2018 2012
KJCD 266 17/07/2018 2012
KJCD 267 17/07/2018 2012
KJCD 271 17/07/2018 2012
KJCD 269 17/07/2018 2012
KJC 247 17/07/2018 2012
KJC 246 17/07/2018 2012
KJCD 216 25/09/2017 2012
KJC 133 28/05/2015 2012
KJC 159 28/05/2015 2012
KJC 129 21/07/2014 2012
JOC 062 18/07/2014 2012
Unca Creek 16/05/2017 2012

 The Jervois Resources information were first released to the market on 18 May 2018 and complies with JORC 2012. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

KGL RESOURCES LIMITED ASX:KGL | 20