KGL RESOURCES LIMITED — Capital/Financing Update 2022

Apr 19, 2022

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20 April 2022

KGL Resources Limited

Equity Raising 2022

Investment highlights

Australia’s next copper producer

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High >2.0% copper Feasibility advanced - Near-term growth – grade Resource[1 ] project fully permitted opportunities unique vs. global Cu Updated FS expected for Resource and projects mid 2022 Mine Life extension

Funding plan being finalised

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Offtake signed with Independent pure-play Glencore on favourable copper exposure terms leveraged to strong market fundamentals

Experienced management team and Board with development expertise

Safe jurisdiction

Project located in promining Northern Territory

1. KGL Resources ASX announcement 23 March 2022

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

2

Jervois Copper Project

• KGL Resources is creating the next Australian copper hub in the Northern Territory

• Consolidating the proximate & prospective Reward, Rockface and Bellbird deposits

• Robust PFS led to Feasibility Study – planned delivery of mid 2022

• Direct access to key infrastructure – c.530km road access from mine to Glencore’s Mount Isa complex. Plenty Highway to be sealed as part of Outback Way[#]

• Supported by long-term/extensive mining and exploration leases

Jervois Resource

Resources	(Mt)	Copper (%)	Silver (g/t)	Gold (g/t)	Copper (kt)	Silver (Moz)	Gold (koz)
Indicated	13.83	2.31	32.4	0.32	319.4	14.41	140.7
Inferred	9.06	1.61	15.6	0.16	146.2	4.53	46.4
Total	22.87	2.04	25.7	0.25	465.6	18.93	187.1

Jervois Tenements

• Jervois Exploration Licence – 37.9 km[2 ]

• Jervois Mining Leases – 19.5 km[2 ]

• Unca Creek Exploration Licence – 72.7 km[2]

Funding announced but timeline not finalised

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Mt Isa Complex
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https://www.pm.gov.au/media/678-million-further-seal-and-upgrade-outback-way

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

3

Jervois Project Development update

Clear pathway to production

Project parameters

• 1.6Mtpa plant; 300-person camp; tailings storage facility; hybrid (solar and diesel) power station; bore farm; 2 x Open Cut and 3 x UG mines

Key achievements to date

• PFS and design

• Civils design and camp supplier agreed

• FEED for processing plant underway

• Binding offtake signed with Glencore

• Significant Resource upgrade

Upcoming works

• CAPEX/OPEX estimates nearing completion

• Mine plan optimisation

• Tender for civil contracts

• Finalise funding strategy

• Feasibility Study to be finalised mid 2022

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Plenty
Highway
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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

4

Binding Offtake Agreement with Glencore

Terms

Key benefits

• Evergreen with minimum 5–year term from commercial production

• Covers 100% of copper concentrate from Jervois mine

• Material delivered by KGL to Glencore’s Mount Isa’s Copper Smelter

• Benchmarked pricing for payables – Copper, silver and gold

• Certainty of concentrate sales for the project – supporting the funding strategy

• Strong project support from a leading mining, processing & commodities trading firm

• Benchmarked pricing in a strong commodity environment

• Simplified transport solution minimises emissions

• Significantly reduces haulage / transport costs

• Sales within Australia supporting local and broader economies

• Significant working capital benefits

• De-risks investment decision for Jervois

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

5

Favourable Macro Tailwinds

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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

6

Driving the Jervois Copper Project

Many years’ experience in project evaluation, feasibility and development

Executive management team

Simon Finnis

Managing Director / CEO

Over 30 years of global mining

experience across a range of roles; including CEO of Grande Cote Operations during its development and early operations in Senegal and MD of KGL Mining Limited during development and operational phases of the Bauxite Hills Mine.

Amy Treble

Chief Financial Officer

A Senior Finance Professional with

over 21 years' experience delivering financial services and providing advice to Managers, Executives, Committees and Board of both ASX listed and non-listed companies. This includes 16 years in the mining sector and 5 years within Big4 professional accounting firms internationally and within Australia.

Allan Reid

Project Director Over 30 years’ experience in project development , having advised on a vast range of mining projects. Allan’s skillset includes risk management, commercial, technical and project management advisory services to mining, power and mineral processing sector clients

John Levings Chief Geologist

A highly experienced geologist with over 40 years’ experience. John worked for several years as a field geologist and geophysicist for Anglo American Ltd. In 1985, as Chief Geologist for Normandy Gold Ltd, John was responsible for the discovery of the high-grade White Devil gold deposit in Tennant Creek

Board of Directors

Peter Hay

Independent Non-Executive Chair

Ferdian Purnamasidi

Non-Executive Director

Denis Wood

Non-Executive Director

Denis Gately Independent Non-Executive Director

Over 30 years’ mining experience , including GM of Pan Australian Mining Ltd, MD of Sedgman Limited and Joint MD of Macarthur Coal Ltd.

Over 20 years’ mining experience and an Executive at the Salim Group and in charge of Corporate Development and Strategic Acquisitions within the resources sector.

Over 45 years’ mining experience , as a qualified metallurgist and geologist including 13 years with BHP, Managing Director at Australian Premium Coal and discovering, funding and construction of the Coppabella and More Vale mines.

Over 30 years’ Natural Resources

experience , including Managing Partner at Minter Ellison and numerous previous resource industry directorships and Chair positions.

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

7

Corporate Structure and Shareholders

Ca ital Structure p

Capital Structure
Australian Stock Exchange (ASX) code	KGL
ASX Share price (close 19 April 2022)	$0.435
Shares outstanding	392 M
Options on Issue	1 M
Market capitalisation	A$170.6M
Cash (31 March 2022)	A$7.47M
Debt	Nil
Enterprise value	A$163.1M

Financial Position

• Cash $7.47m (31 March 2022)

• No debt

• Entitlement Issue launched

Supportive shareholder base

• 19% institutional funds, including substantial holder Paradice (7.5%)

• 10% owned by directors

• KMP investments, part of the Salim Group

Major Shareholders

Major Shareholders
KMP Investments Pte Ltd	24.5%
Denis Wood	9.1%
Marshall Plenty Investments LLC	7.2%
Paradice Investment Management	7.5%
Pegasus CP One	5.6%

Shareholder breakdown

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Funds, 19%
Other, 40%
KMP Investments, 25%
Marshall
Directors,
Plenty, 7% 10%
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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

8

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Entitlement Issue Announced*

Offer Structure & Size

1 for 6 pro-rata traditional non- renounceable entitlement offer to raise up to A$24.2 million – not underwritten

• Minimum raising under the offer of $A9.9 million

• Up to approximately 65.4 million new KGL shares (New Shares) will be issued

• Uncapped top-up facility for shareholders

Offer price of A$0.37 per New Share

Use of Proceeds

• Minimum raise of A$9.9 million to advance the project as we work through the Front End Engineering design (FEED) and the final stages of the Feasibility Study. It will also add to working capital, to strengthen the balance sheet as the company moves toward a final investment decision in respect of the development of the Jervois Copper Project.

• Funding in excess of minimum raise to be used to place orders for long-lead items, commence early site works and lock in pricing and timing of key equipment, based on the outcomes of the Feasibility Study. It will also provide additional working capital and, to the extent not spent, will defray equity requirements as part of the final funding package for capital development of the Jervois Copper Project.

Shareholder Support

• Commitments by shareholders representing 33.6% - Denis Wood and KMP Investments, to take up their entitlements in full

• All directors have indicated they will take up their entitlements in full

• KMP Investments has indicated an interest in participating in the top-up facility (subject to shareholder approval)

• Please refer to the Investor raising Presentation lodged on the ASX on 13 April 2022 for all details

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

9

KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID	KGL Resources Limited Equity Raising 2022 10 Development timeline Drilling and exploration Development activities 2020 1Q 2Q 3Q 4Q 2022 2021 1Q 2Q 3Q 4Q Resource Definition    Resource Enhancement    Exploration     PFS  ILUA  Permitting    Updated Resource   Capital Raise Reserve Feasibility Study      FEED & Early Works  FID
PFS	
ILUA	
Permitting			
Updated Resource						
Capital Raise
Reserve
Feasibility Study						
FEED & Early Works						
KGL Resources Limited FID					Eq	uity Raising 2022			10

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Resource update
Exceptional growth in Resource
2.15%
800
2.04%
2.1%
700
1.8%
1.59%
600 1.52%
1.5%
1.30% 1.30%
500 1.25% 466
1.10% 410
1.07% 1.2%
400 369 375
146
327
127
0.9%
279 125
300
220
191
0.6%
200 170
150 179
319
113 69 284
250
0.3%
100
150 136 149
113 101 100
- -
2011 2012 2012 2014 2015 2018 2019 2020 2022
(Jan) (Nov)
In dicatedferred IndicatInferr ed Grade
Copper Metal (kt) Cu Grade (%)
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Resource update

Note: Resource estimate 2018 – 2022 are for Reward, Bellbird & Rockface deposit only

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

11

Rockface Depth Potential

Copper assays up to 61.4% Cu

• Rockface Deposit 3.53Mt @3.07% Cu (indicated & inferred)

• Recent drilling into the north lens produced record copper assay of 61.4% over true width 0.74m

• True width intersections include:

• KJCD481 – 6.28m @ 2.39%Cu

• KJCD481D3 – 4.45m @18.88% Cu

• KJCD481D6 – 4.00m @19.80% Cu

• KJCD481D7 – 2.17m @12.81% Cu

• DHEM models indicates Rockface mineralisation open at depth

KJCD481D6 core results

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KJCD481D6
DHEM
Conductors
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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

12

Upside at Reward

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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

13

Upside at Reward

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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

14

Exploration Strategy

Unlocking the potential of the Jervois copper hub

• Significant Resource increase reported

• Drilling Ongoing around Reward – late 2021 assay results imminent

 Rockface depth potential

• Accessible extension with strong potential

• Drill core from KJCD481D6 produced a record copper assay of 61.4% copper

 Reward North

• Reward IP anomaly plunges deeper to the north

 Reward South

• High grade silver intercepted

 Cox’s Find South

• Intersection in first IP targeted drillhole

• Large, low-conductivity plate modelled

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Reward North
(Unca Creek EL)
Cox’s Find &
Extensions
(Jervois ML)
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KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

15

Environment, Social and Governance

KGL is focussed on implementing industry leading ESG practices

Environment

Social

Governance

• Authorisation granted and Mining Management Plan approved by the Northern Territory Government

• Employees sourced locally where possible, reducing travel costs and environmental impact of FIFO

  • KGL has developed a set of guiding principles that define what type of company KGL aspires to be

• Promoting diversity in the workplace; recognising, valuing and utilising the diverse skills and knowledge of staff and contractors

• Water extraction licences and Unca Creek diversion permit granted

• Prioritising sustainable use of land and and contractors water resources; protecting the flora, fauna and communities that are  Positive work culture that supports dependent on these resources mental health and values teamwork and respect

• KGL’s Values of Integrity, Accountability, Respect and Sustainability are at the core of everything we do

• KGL has strong representation of experienced, Independent NonExecutives on its Board

• KGL will engage with stakeholders to ensure their environmental  KGL prioritises community  Policies and procedures have been considerations are integrated into all consultation, stakeholder engagement, developed to provide our ethical planning and operational decisions and proactive and open framework for addressing ESG communication

• Sustainability objectives, targets and  KGL has identified Sustainable performance measures have been  KGL’s goal is to avoid adverse impacts Development Goals that are closely established on the social values of local and aligned to our values, strategic regional communities objectives and operational activities

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

16

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Summary and Outlook

• Globally significant high-grade greenfield copper project poised for development

• Approvals complete

• Clear pathway to production with offtake signed

• Substantial upside potential through infill drilling and further exploration

• Experienced team to deliver the project

Key workstreams for 2022

• Finalise funding strategy

• • Complete Reserve

• Finalise Feasibility Study

• • Final Investment Decision

• Early works - mobilise to site

• • Operational readiness

• Pure-play ASX copper exposure leveraged to strong market fundamentals

KGL Resources Limited

20 April 2022 – Morgans Business Breakfast

17

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Disclosures

Competent Person Statement

The Jervois resources information were first released to the ASX on 23/03/2022 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

The following drill holes were originally reported on the date indicated and using the JORC code specified in the table.

Hole		Date originally Reported	JORC Reported Under
KJCD	481D3	11/10/2021	2012
KJCD	481D6	10/11/2021	2012
KJCD	481D7	14/02/2022	2012
KJCD	416	14/04/2020	2012
KJCD	434	13/05/2021	2012

Forward Looking statements

• This release 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

Equity Raising 202220 April 2022 – Morgans Business Breakfast

18

Appendices

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Project Resources	Project Resources	Project Resources	Project Resources	Project Resources	Project Resources	Project Resources	Project Resources	Project Resources	Project Resources
		Mineralised Mass Category (Mt) Copper (%) Silver (g/t) Gold (g/t) Copper (kt) Silver (Moz) Gold (koz) Indicated 3.84 1.80 39.4 0.31 69.06 4.86 38.2 Inferred 0.65 0.92 9.2 0.07 5.91 0.19 1.5 Indicated 2.03 2.20 13.1 0.16 44.55 0.85 10.5 Inferred 1.44 1.36 9.3 0.15 19.50 0.43 6.9 7.95 1.75 24.8 0.22 139.06 6.33 57.1 Indicated 4.78 2.12 42.6 0.45 101.64 6.55 69.2 Inferred 4.32 1.56 19.6 0.20 67.29 2.72 27.8 Indicated 0.38 2.62 17.7 0.14 9.90 0.22 1.7 Inferred 1.92 2.06 12.0 0.10 39.49 0.74 6.0 Indicated 2.80 3.37 21.4 0.23 94.31 1.93 21.1 Inferred 0.73 1.92 19.0 0.18 13.97 0.45 4.2 14.93 2.19 26.3 0.27 326.57 12.60 130.0 Indicated 13.83 2.31 32.4 0.32 319.46 14.41 140.7 Inferred 9.06 1.61 15.6 0.16 146.16 4.53 46.4 22.87 2.04 25.7 0.25 465.62 18.93 187.1 Grade Metal
Resource			Mineralised Mass	Grade			Metal
	Area	Category	(Mt)	Copper (%)	Silver (g/t)	Gold (g/t)	Copper (kt)	Silver (Moz)	Gold (koz)
Open Cut Potential > 0.5 % Cu	Reward	Indicated	3.84	1.80	39.4	0.31	69.06	4.86	38.2
		Inferred	0.65	0.92	9.2	0.07	5.91	0.19	1.5
	Bellbird	Indicated	2.03	2.20	13.1	0.16	44.55	0.85	10.5
		Inferred	1.44	1.36	9.3	0.15	19.50	0.43	6.9
	Sub Total		7.95	1.75	24.8	**0.22 **	139.06	6.33	57.1
Underground Potential > 1 % Cu	Reward	Indicated	4.78	2.12	42.6	0.45	101.64	6.55	69.2
		Inferred	4.32	1.56	19.6	0.20	67.29	2.72	27.8
	Bellbird	Indicated	0.38	2.62	17.7	0.14	9.90	0.22	1.7
		Inferred	1.92	2.06	12.0	0.10	39.49	0.74	6.0
	Rockface	Indicated	2.80	3.37	21.4	0.23	94.31	1.93	21.1
		Inferred	0.73	1.92	19.0	0.18	13.97	0.45	4.2
	Sub Total		14.93	2.19	26.3	**0.27 **	326.57	12.60	130.0
Sub Totals		Indicated	13.83	2.31	32.4	0.32	319.46	14.41	140.7
		Inferred	9.06	1.61	15.6	0.16	146.16	4.53	46.4
Total			22.87	2.04	25.7	**0.25 **	**465.62 **	18.93	187.1

KGL Resources Limited

Equity Raising 202220 April 2022 – Morgans Business Breakfast

20

Contact us:

Level 5, 167 Eagle Street, Brisbane QLD 4000, Australia T: +61 7 3071 9003 info@kglresources.com.au kglresources.com.au

KGL Resources Limited

Equity Raising 2022