KGL RESOURCES LIMITED — Capital/Financing Update 2023

May 22, 2023

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23 May 2023

Completion of Entitlement Offer Raising $13.5 million

On 26 April 2023, KGL Resources Limited (KGL or the Company) announced a 10 for 27 pro-rata traditional non-renounceable entitlement offer of new fully paid ordinary shares in KGL (New Shares) at an offer price of $0.12 per New Share to raise up to approximately $20.2 million (Entitlement Offer).

The Entitlement Offer closed at 5.00pm (AEDT) on Thursday, 18 May 2023, raising a total of approximately $13.5 million before costs. Including New Shares applied for under the top-up facility, this represents a total take-up rate of approximately 67%.

The Executive Chairman of KGL, Mr Denis Wood, thanked shareholders for their ongoing support of the Company, and said:

“Although we did not raise the full amount of the Entitlement Offer, the $13.5 million raised was well in excess of the minimum the board considered necessary. It will allow us to continue derisking and preparing for the Jervois development as well as funding the ongoing drilling activities. Two drilling rigs are currently operating on site.”

KGL received valid applications under the Entitlement Offer for approximately 112,709,573 New Shares (including 2,151,113 New Shares under the top-up facility).

The applications include participation by KGL’s major shareholders, KMP Investments Pte. Ltd., Denis Wood (on behalf of his controlled entities), and Marshall Plenty Investments, LLC.

KGL reserves the right, subject to the requirements of the ASX Listing Rules and applicable law, to place the remaining shortfall from the Entitlement Offer within three months of the closing date at a price not less than the issue price of $0.12 per New Share.

The issue and allotment of the New Shares under the Entitlement Offer is scheduled to occur on Thursday, 25 May 2023, and normal trading on ASX of the New Shares is expected to commence on Friday, 26 May 2023.

This announcement has been approved by the directors of KGL Resources Limited.

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KGL Resources Limited | Entitlement Offer