KGL RESOURCES LIMITED — Capital/Financing Update 2018

Feb 14, 2018

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15 February 2018

JERVOIS COPPER PROJECT

• Rockface & Reward Drilling Update

• Assays confirm high-grade copper at Rockface

• Deep hole targeting Conductor 8 at Rockface intersects modelled mineralisation

• Resource extension drilling at Reward continues to intercept mineralisation

• Placement at a premium raises $6.73M to secure Jervois exploration program through 2018

KGL Resources Limited (KGL:ASX) (KGL or the Company) announces further high grade copper mineralisation from drilling and assays at the Rockface prospect, located at KGL’s 100% owned Jervois Copper Project in the Northern Territory and a $6.73 million placement.

KGL Executive Chairman Mr Denis Wood said:

“KGL recommenced exploration late January with two rigs making good progress at both Rockface and Reward. It is encouraging to see mineralisation intersected in the most recent hole in Conductor 8 at a vertical depth of over 800m.

“Several holes at Rockface have been designed to test the outer edges of the conductors where lower grade mineralisation is anticipated as we work towards a resource update later this year.

“Separately at Reward, along strike 5km north-east of Rockface, additional copper mineralisation has been delineated above Conductor R1 which is not currently in the existing resource.

“We are also extremely pleased to have secured a $6.73 million private placement, at a premium price of 40 cents to last closing price as of 14 February of 38 cents and with no fees, that will give us the financial security to complete the 2018 exploration program at the Jervois Copper Project.”

Placement

KGL is pleased to announce the raising of $6.73 million through a placement to an entity related to international mineral resources identity Mr Ernie Thrasher and to KGL’s existing major shareholder KMP Investments Pte Ltd (KMP).

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The placement comprises 12.5M new shares to Mr Thrasher at $0.40 cents per share to raise $5 million, and 4.32M new shares to KMP at the same price to raise $1.73 million. The price of the placement represents a 5% premium to yesterday’s closing price for KGL shares on the ASX and a 30% premium to the Company’s previous placement and entitlement offer last October.

The placement will be made pursuant to the Company’s 15% placement capacity under Listing Rule 7.1, with the shares to be issued upon settlement on 2 March 2018.

Commenting on the placement, Mr Wood, said:

“Mr Thrasher’s investment – at a premium - is welcomed as a significant vote of confidence in KGL. As CEO and founder of the US company Xcoal Energy & Resources, Mr Thrasher is one of the world’s most highly regarded resource industry operators, investors and developers, and a senior figure in international resources marketing and government affairs. Ernie’s strategic global finance, trade and shipping contacts will be of great value to KGL in our plans to enter the business of copper production.

“The continued strong support of KMP for KGL as the Company’s largest shareholder is greatly appreciated.

“In proceeding with the placement now, directors took into account the recent increased volatility of financial markets. The funds raised from the placement will secure KGL’s ability to complete the total current exploration program, enabling two drilling rigs to remain on site for the whole of 2018, and to complete the Environmental Impact Statement, an essential step towards project development at the growing Jervois Copper Project.”

Drilling Update

Rockface

Assays from drilling late last year in the eastern zone of Rockface confirm high grade copper with additional assays from this year’s drilling still pending.

Hole KJCD226W1

Hole KJD226W1 intersected two intervals of massive sulphide at Rockface. The upper portion of the first zone corresponds with the expected position of Conductor 6 and upper portion of the second zone corresponds with Conductor 8.

Significant intercepts included

• 6.62m @ 3.8% Cu, 0.72% Zn, 33.2g/t Ag, 0.24g/t Au from 590.72 m (C6)

• 4.18m @ 3.16% Cu, 0.32% Zn, 25.6g/t Ag, 0.25g/t Au from 607.57 m (C8)

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Hole KJCD227

Hole KJD227 intersected a 14.23m interval of chalcopyrite mineralisation at Rockface. A follow up DHEM survey confirmed this intersection was on the very eastern edge of Conductor 8

Significant intercepts included

• 14.23m @ 0.76% Cu, 7.5g/t Ag, 0.11g/t Au from 764.12m (C8)

Assays from holes drilled late last year in the western zone at Rockface also confirmed high grade copper.

Hole KJCD228

Updated DHEM modelling confirmed that Hole KJCD228 passed just beyond the eastern edge of Conductor 3 before intersecting a 17.37m interval of chalcopyrite mineralisation coincident with Conductor 5.

Significant intercepts included

17.37m @ 3.59% Cu, 16.1g/t Ag, 0.24g/t Au from 557.83m (C5)

Hole KJCD229

Hole KJCD229 was designed to test the mineralised boundaries of Conductor 3 and intersected mineralisation coincident with the lower and western edge of Conductor 3 and a second narrow zone of mineralisation, although not conductive, is coincident with the strike extension of Conductor 5.

Significant intercepts included

• 4.63m @ 1.78% Cu, 5.9g/t Ag, 0.06g/t Au from 546.06m (C3)

• 2.12m @ 1.9% Cu, 9.6g/t Ag, 0.08g/t Au from 580.65m

Hole KJCD230

Hole KJCD230, for which assays are pending, intersected a zone of mineralisation while targeting DHEM conductors at the eastern zone of Rockface. The intersection corresponds to the expected position of the extended conductor C8.

The mineralised zone occurs within a psammitic host unit, which has pervasive vein hosted magnetite alteration and carbonate veinlets. A semi-massive zone of sulphides occurs from 836.64 to 840.21m (Photographs 1 & 2). Within the mineralised zone, the late stage carbonate veinlets have remobilised mineralisation, resulting in disseminated blebs of chalcopyrite within veins.

Outside of this zone, sulphides occur as chalcopyrite-dominated, disseminated stringers or within late stage quartz and carbonate veins.

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Photograph 1. Hole KJCD230 - Zone of massive magnetite with disseminated chalcopyrite and pyrite stringers (Conductor C8) circa 831.5m.

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Photograph 2. Hole KJCD230 - Zone of disseminated breccia matrix sulphides chalcopyrite and pyrite with magnetite vein (Conductor C8) circa 839.31 m.

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Table 1 - KJCD230 Summary Geological Log of mineralised zones.

From	To	Interval	ETW	Minerals	Nature	Est %* Total Sulphide**	Alteration
(m)	(m)	(m)	(m)
829.43	832.2	2.77	1.9	Pyrite, Chalcopyrite	Disseminated stringers	4%	Magnetite, carbonate veinlets
832.2	836.64	4.44	3.1	Pyrite, Chalcopyrite	Disseminated stringers	1%	Magnetite, carbonate veinlets
836.64	840.21	3.57	2.5	Pyrite, Chalcopyrite	Disseminated breccia matrix	30%	Magnetite, carbonate veinlets
840.21	844.85	4.64	3.2	Pyrite, Chalcopyrite	Disseminated pervasive	1%	Magnetite, carbonate veinlets
844.85	845.54	0.69	0.5	Pyrite, Chalcopyrite	Disseminated foliation	15%	Magnetite, carbonate veinlets
845.54	846.67	1.13	0.8	Pyrite, Chalcopyrite	Disseminated, vein hosted	3%	Magnetite, carbonate veinlets

*KJCD230 Visual observations, Assays pending, ETW – Estimate of True Width

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Figure 1 Plan view of drilling at Rockface prospect

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Figure 2 Rockface Cross section 628305E

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Figure 3 Rockface Cross section 628360E

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Figure 4 Rockface long section 7490390N

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Reward

Hole KJCD234

Hole KJCD234 intersected a zone of mineralisation while targeting DHEM conductors at Reward. The hole intersection corresponds to the expected position of conductor R1.

The mineralised zone occurs within a psammitic host unit in association with massive brecciated magnetite. The semi-massive, breccia-matrix zone of sulphides occurs from 266.54 to 281m. This zone is split by an unmineralised pegmatite vein running through the middle from 274.19 to 274.63m.

Outside the zone of semi massive sulphides, mineralisation occurs as disseminated chalcopyrite, pyrite and trace galena along foliation planes. Assays are pending.

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Photograph 3. Hole KJCD234 - Zone of semi-massive chalcopyrite and breccia of magnetite (Conductor R1) circa 275.13m.

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Photograph 4 . Hole KJCD234 - Zone of semi-massive and foliation-controlled chalcopyrite, with brecciated magnetite (Conductor R1) circa 279.04m.

Table 2 - KJCD234 Summary Geological Log of mineralised zones.

From	To	Interval	ETW	Minerals	Nature	Est %* Total Sulphide**	Alteration
(m)	(m)	(m)	(m)
266.54	271.24	4.7	2.8	Chalcopyrite & pyrite	Disseminated	2%	Brecciated massive magnetite
271.24	274	2.76	1.6	Chalcopyrite, pyrite, galena	Disseminated, pervasive	5%	Brecciated massive magnetite
274	275.13	1.13	0.7	Chalcopyrite & pyrite	Vein hosted	Trace	Brecciated massive magnetite
275.13	279.08	3.95	2.3	Chalcopyrite & pyrite	Disseminated pervasive	8%	Brecciated massive magnetite
279.08	281	1.92	1.1	Chalcopyrite & pyrite	Disseminated pervasive	15%	Brecciated massive magnetite

*KJCD234 Visual observations, Assays pending, ETW – Estimate of True Width

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Figure 5 Plan view of drilling at Reward prospect

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Figure 6 Reward Cross section 7495275N

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Figure 7 Reward Long section 630380E

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Figure 8 Location Diagram for the Jervois Copper Project

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Table 3 Summary 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
KJD226W1	628370	7490770	356	-72.6	169.9	na	722.9	590.72	597.34	6.62	4.3	3.8	0.09	0.72	33.2	0.24
								607.57	611.75	4.18	2.6	3.16	0.06	0.32	25.6	0.25
KJD227	628385	7490874	358	-74.8	173.0	na	872.8	744	745.75	1.75	1.3	0.71	0.04	0.14	3	0.26
								764.12	778.35	14.23	10.4	0.76	0.05	0.07	7.5	0.11
								784.31	785.69	1.38	1.0	1.28	0	0.01	2.4	0.11
								787.1	787.47	0.37	0.3	1.57	0.01	0.01	4.4	0.06
KJCD228	628329	7490660	359	-73.9	173.2	na	610.4	545	546.41	1.41	0.8	0.48	0.01	0.04	2.2	0.12
								551.81	555	3.19	2.3	0.49	0.03	0.04	2.4	0.02
								557.83	575.2	17.37	12.7	3.59	0.01	0.03	16.1	0.24
KJCD229	628248	7490630	360.8	-74.4	174.7	na	622.2	481.55	481.81	0.26	0.2	8.14	0	0.02	199.3	0.01
								542.63	543.14	0.51	0.3	3.21	0.01	0.03	7.8	0.11
								546.06	550.69	4.63	3.0	1.78	0.01	0.04	5.9	0.06
								580.65	582.77	2.12	1.4	1.9	0.03	0.11	9.6	0.08

1Base of Oxidisation down hole depth

• 2Estimated True Width

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For further information, contact: Ms Kylie Anderson Company Secretary 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 Adriaan van Herk, a member of the Australian Institute of Geoscientists, Chief Geologist and a full-time employee of KGL Resources Limited.

Mr. van Herk 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. van Herk has consented to the inclusion of this information in the form and context in which it appears in this report

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	Hole Date originally Reported	JORC Reported Under
KJCD183 26/04/2016		2012
KJCD195 02/08/2016		2012
KJCD197 19/09/2016		2012
KJCD201 09/02/2017		2012
KJCD203 09/02/2017		2012
KJCD210 29/06/2017		2012
KJCD211 29/06/2017		2012
KJCD205	22/03/2017	2012
KJCD208	30/06/2017	2012
KJCD171	20/10/2015	2012
J9	17/05/2011	2004
KJCD207	17/05/2017	2012
KJCD182	09/05/2016	2012
KJCD198	10/11/2016	2012
KJCD203	09/02/2017	2012
KJCD225	14/12/2017	2012
KJCD214	30/10/2017	2012
KJCD222	14/12/2017	2012
KJCD215	30/10/2017	2012
KJCD221	14/12/2017	2012
KJCD219	14/12/2017	2012
KJCD218	14/12/2017	2012
KJDC212	30/10/2017	2012
KJCD223	12/12/2017	2012
KJCD216	25/09/2017	2012
KJD220W1	12/12/2017	2012

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1 JORC Code, 2012 Edition – Table 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		Drill type (eg core, reverse circulation, open-hole hammer,		RC drilling was conducted using a reverse
techniques		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

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
sample		If non-core, whether riffled, tube sampled, rotary split, etc and		the cyclone to generate a split of ~3kg.
preparation		whether sampled wet or dry.		Diamond core was quartered with a
		For all sample types, the nature, quality and appropriateness		diamond saw and generally sampled at 1m
		of the sample preparation technique.		intervals with shorter samples at geological
		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 using the Logchief
assaying	 	The use of twinned holes. Documentation of primary data, data entry procedures, data		data acquisition software. Further validation is conducted by a
		verification, data storage (physical and electronic) protocols.		geologist when data is imported into
		Discuss any adjustment to assay data.		Vulcan.
				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.
				All drilling is conducted on the GDA94
				MGA Zone 53 grid. All downhole surveys
				were converted to GDA94 MGA 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.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
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
Orientation of		Whether the orientation of sampling achieves unbiased		Holes were drilled perpendicular to the
data 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.		Samples were stored in sealed polyweave
				bags on site and transported to the
				laboratory at regular intervals by KGL 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.

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 Jervois project is within EL25429 and
and land tenure		including agreements or material issues with third parties		EL28082 100% owned by Jinka Minerals
status		such as joint ventures, partnerships, overriding royalties,		and operated by Kentor Minerals (NT),
		native title interests, historical sites, wilderness or national		both wholly owned subsidiaries of KGL
		park and environmental settings.		Resources.
		The security of the tenure held at the time of reporting along		The Jervois project is covered by Mining
		with any known impediments to obtaining a licence to operate		Leases and two Exploration licences
		in the area.		owned by KGL Resources subsidiary Jinka
				Minerals.
Exploration done		Acknowledgment and appraisal of exploration by other		Previous exploration has primarily been
by other parties		parties.		conducted by Reward Minerals, MIM and
				Plenty River.
Geology		Deposit type, geological setting and style of mineralisation.		EL25429 and EL28082 lie on the Huckitta
				1: 250 000 map sheet (SF 53-11). The
				tenement is located mainly within the
				Palaeo-Proterozoic Bonya Schist on the
				north-eastern 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 the geological history of the area.
				The copper mineralisation is interpreted to
				be a later structurally controlled,
				mineralising event(s)

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Drill hole		A summary of all information material to the understanding of		Refer Table 3
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		Grades reported are uncut
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
		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 Tables 1-3
between		of Exploration Results.
mineralisation		If the geometry of the mineralisation with respect to the drill
widths and		hole angle is known, its nature should be reported.
intercept lengths		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 1-8
		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		Where comprehensive reporting of all Exploration Results is		Refer Table 3
reporting		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 Figures 1-8 Photograph 1-4
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 1 - 8
		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.

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