KGL RESOURCES LIMITED — Capital/Financing Update 2025

Mar 17, 2025

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Exploration Success: Discovery Hole at Crowe’s Nest Highlights
Potential Significance of the Western Limb of J-Fold
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18 March 2025

• While the primary focus of the drilling program in 2024 has been on improving confidence in the resource to support the FSU25, KGL continues to progress its understanding of the geological structures and mineralising systems at Jervois with each of the main deposits remaining open at depth.

• Despite extensive drilling over the years, the Jervois exploration leases remain underexplored with significant upside potential due to their position along the crustal-scale Jervois Fault.

• In Q4 2024, structural geologist, Dr Warwick Crowe, was re-engaged to undertake a site visit and review the latest geological and geophysical data and to provide an updated report on the exploration potential at Jervois. On the basis of this report, a final exploration hole (KJC684) for 2024 targeted a geophysical anomaly at Crowe’s Nest and confirmed a discovery with similar mineralisation to Reward (brecciated IOCG) highlighting the potential significance of the western limb of the J-Fold.

• The discovery of a magnetite body on the western limb, with associated copper mineralization, supports the hypothesis that the Jervois Fault may have served as a primary pathway for mineralized fluids across the entire Jervois Project.

• A downhole electromagnetic (DHEM) and other geophysical surveys are planned following the completion of the current Inversion study and update of the 2025 / 2026 exploration plan.

Crowe’s Nest and Scarp Trend Exploration Update

KGL Resources ( ASX:KGL ) is excited to report the drilling results of the last hole of 2024, KJC684, a discovery hole on the western limb of J-fold, at Crowe’s Nest prospect (Figure 1).

The Jervois project is positioned along the crustal-scale Jervois Fault with a unique mineralisation style blending SEDEX, VMS and IOCG characteristics. Exploration results to date demonstrate the rationale for pursuing a systematic approach to unlocking this project's immense value. In this regard, Dr. Warwick Crowe, a globally regarded structural geologist, was commissioned to provide a report on the exploration potential at Jervois and to provide directions for future work as part of the exploration planning process. Dr Crowe completed a site visit and field report, and on the basis of this report, a final exploration hole for 2024 was drilled at Crowe’s Nest.

The Crowe’s Nest and Scarp Trend, located on the western limb of the J-Fold, has been a persistent geophysical hotspot since KGL’s initial gravity and magnetic surveys in 2016 and 2017 (Figures 2 and 3). Additionally, soil sampling conducted in 2015 identified anomalous copper grades at the Scarp prospect, prompting follow-up drilling with three shallow RC holes, the deepest reaching only 100 meters. One of these legacy holes logged magnetite and returned elevated copper assay results.

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Figure 1. Map of Jervois project showing the location of reported holes (ASX Announcement 18/03/25).

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Figure 2. Map of the Jervois Project displays the Aeromagnetic Total Magnetic Intensity (TMI) on the left and the Residual Bouguer Gravity (curve and terrain corrected) on the right. Both gravity and magnetic data emphasize the significance of the western limb of the J-Fold.

The 2024 gravity and magnetic inversion models have once again highlighted the significance of the western limb of the J-Fold (Figure 3). A cross-section along the Reward-Crowe’s Nest trend from the 2024 magnetic inversion model suggests a connection between the Jervois Fault, a crustal-scale shear zone and the D3 related J structure fault-system on the eastern limb (Figure 4). Furthermore, the discovery of a magnetite body on the western limb, with associated copper mineralization, supports the hypothesis that the Jervois Fault may have served as a primary pathway for mineralized fluids across the entire Jervois Project (Figure 3). Notably, the fold exhibits a U-shape rather than the originally inferred J-shape.

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Figure 3. Map of Magnetic inversion model 2024 and structural interpretation from the first vertical derivative of mag (1VD). Location of prospects and cross section line A-B (Figure 4).

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Figure 4. Cross Section over Crowe’s Nest Reward (7495035mN). Showing the magnetic inversion model 2024, with structural interpretation form magnetic data (1VD). Reward ore body coloured by copper grad and proposed pit outline.

The western limb of the J-fold has strong geophysical signatures suggesting high prospectivity.

A single RC hole, KJC684, was drilled at the northern end of the western limb of the J-Fold, where the geophysical anomalies are shallower along this trend targeting a geophysical anomaly at the Crowe’s Nest prospect.

The hole intersected three brecciated magnetite bodies, with the main intersection measuring 17 meters (from 205 to 222 m), thereby confirming the geophysical anomaly and returning anomalous copper assay results. The highest intersection is 0.15% copper (from 174 to 175 m).

Although significant sulphide mineralization was not intersected, the hole KJC684 is considered an exploration success. Trace sulphides were encountered, hosted in magnetite breccia and quartz-carbonate mixtures. The observed alteration sequence aligns with those identified at known deposits and along the eastern limb of the J- fold. The data suggests the potential presence of another ore body, supported by high magnetic susceptibility (MagSus) readings and elevated copper levels (based on pXRF readings) near the end of the hole. This new finding opens another 3km long western limb of the J-Fold (Scarp – Crowe’s nest trend) for exploration (Figure 2).

It is important to note that all thicknesses reported for hole KJC684 represent downhole thicknesses. As this is the first RC hole drilled in the area, no structural information is currently available.

The full assay results are provided in Table 1. The hole has been cased off with PVC in preparation for a downhole electromagnetic (DHEM) survey.

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Figure 5. Cross section over Crowes’ Nest prospect (7495018mN) showing hole KJC684 copper concentration (cut off at 200ppm) on the left and iron concentration (Cut off at 6%) on the right. Gravity inversion and magnetic inversion models 2024.

Important Insights for Exploration Strategy and Next Steps

Despite extensive drilling since KGL acquired the Jervois exploration lease in 2011, the Jervois tenements remain under explored with recent drilling focused on infill drilling and extending the resource and knowledge, at depth, for the current lodes.

Given the large scale and high-grade nature of the mineralising systems at Jervois, Dr. Crowe’s recent structure analysis and review of the exploration potential of the Jervois and UNCA Creek exploration leases has provided an updated framework for interpreting the geological model for copper mineralisation at Jervois with important insights that will help to refine the Company’s exploration strategy going forward as we seek to unlock this project's immense value.

The copper mineralisation distribution around the J-Fold occurs as a series of discrete, steeply plunging shoots broadly associated within the same stratigraphic package.

An updated analysis of the Jervois geology and geophysics data suggests a fluid migration model for the Jervois magnetite-copper mineral system that involves a deep, late tectonic, felsic intrusive source at depth intersecting the crustal scale Jervois Fault which provided a conduit for fluid migration to higher crustal levels. The line of fault intersection between the Jervois Fault and the J-Fold structure may have provided for more focused fluid ingress.

As shown in Figure 4., an interpreted cross section on magnetic inversion data across the J-Fold shows the Jervois Fault is the major structure in the area dipping to the east beneath the J-Fold. The intersection of the J- Fold with the Jervois Fault Zone may have enabled preferential fluid migration into the J-Fold structure. The line of fault intersections between the two structural domains would also have facilitated focused fluid ingress along the Jervois Fault and into the subsidiary systems.

Building on these insights, KGL has commissioned Viridien (formerly CGG) Multiphysics to undertake a comprehensive geophysics; gravity and magnetic inversion analysis utilizing advanced tools and technologies and the existing datasets for the Jervois and UNCA Creek exploration leases to identify high potential near mine, brownfield and greenfield exploration targets for future exploration programs. It is expected that the use of more cost effective advanced geophysical techniques and advanced modeling techniques of geophysical data may help to reduce the cost of future exploration programs.

A decision to undertake deeper diamond drilling of Crowe’s Nest, located approximately 2 kilometers west of Reward and targeting other geophysical prospects along the western limb of the J-Fold will depend on the results of the DHEM survey, inversion analysis, ranking of other prospects and other development priorities.

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Potential Significance of the Western Limb of J-Fold
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Table 1. Assay results from hole KJC684. Showing Gold, Silver, Copper, iron, Lead, Sulphur and Zinc concentration.

Hole ID		ELEMENT	ELEMENT	Au	Ag	Cu	Fe	Pb	S	Zn
		UNITS		**ppm **	**ppm **	**ppm **	%	**ppm **	**ppm **	**ppm **
		DETECTION		0.005	0.5	1	0.01	5	50	1
	From	To	Sample ID	FA25/OE	4A/OE	4A/OE	4A/OE	4A/OE	4A/OE	4A/OE
KJC684	28	29	212376	0.011	X	39	5.17	12	68	147
KJC684	29	30	212377	X	X	40	5.36	15	83	112
KJC684	30	31	212378	X	X	171	5.57	18	77	110
KJC684	31	32	212379	X	X	6	5.49	16	X	105
KJC684	32	33	212380	X	X	33	5.32	26	86	108
KJC684	33	34	212381	X	X	111	5.12	17	89	101
KJC684	34	35	212382	X	X	240	5.31	12	138	166
KJC684	35	36	212383	X	X	204	5.21	13	154	118
KJC684	36	37	212384	X	X	140	5.55	15	125	113
KJC684	37	38	212385	X	X	91	5.65	21	73	115
KJC684	38	39	212386	X	X	32	5.55	27	58	105
KJC684	39	40	212387	X	X	21	4.7	13	X	98
KJC684	103	104	212451	X	X	31	5.74	12	X	108
KJC684	104	105	212452	X	X	50	6.41	15	52	107
KJC684	105	106	212453	X	X	96	5.94	9	55	101
KJC684	106	107	212454	X	X	176	5.41	9	92	111
KJC684	107	108	212455	X	X	260	5.4	12	118	89
KJC684	108	109	212456	X	X	226	6.57	14	231	346
KJC684	109	110	212457	X	X	111	6.62	8	135	201
KJC684	110	111	212458	X	X	119	6.04	10	97	96
KJC684	111	112	212459	X	X	84	5.89	10	58	91
KJC684	112	113	212460	X	X	83	5.69	22	336	136
KJC684	113	114	212461	X	X	115	6.34	10	94	95
KJC684	114	115	212462	X	X	78	6.84	13	142	100
KJC684	115	116	212463	X	X	203	5.62	11	164	89
KJC684	167	168	212515	X	X	46	5.65	11	56	100
KJC684	168	169	212516	X	X	76	6.21	16	161	107
KJC684	169	170	212517	X	X	468	5.39	26	544	96
KJC684	170	171	212518	X	X	22	5.63	13	X	96
KJC684	171	172	212519	X	X	8	6.14	33	278	92
KJC684	172	173	212520	X	X	21	5.84	15	X	130
KJC684	173	174	212521	X	X	48	5.46	12	61	93
KJC684	174	175	212522	X	0.6	1511	5.52	14	553	102
KJC684	175	176	212523	X	X	806	5.51	10	281	104
KJC684	176	177	212524	X	X	137	5.77	7	95	109
KJC684	177	178	212525	X	X	301	5.54	9	123	103

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Potential Significance of the Western Limb of J-Fold
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	KJC684		178		179	212526	212526	0.008		X	195	6.08	13	107	122
	KJC684		179		180	212527		X		X	38	6.15	13	X	100
	Hole ID				ELEMENT			Au		Ag	Cu	Fe	Pb	S	Zn
					UNITS			ppm		ppm	ppm	%	ppm	ppm	ppm
					DETECTION			0.005		0.5	1	0.01	5	50	1
			Fro m		To		Sample ID	FA25/OE		4A/OE	4A/OE	4A/OE	4A/OE	4A/OE	4A/OE
	KJC684		180		181		212528	0.011		X	51	5.92	12	X	99
	KJC684		181		182		212529	X		X	96	6.22	18	X	95
	KJC684		182		183		212530	X		X	17	6.22	16	X	94
	KJC684		199		200		212547	X		X	251	5.98	9	152	108
	KJC684		200		201		212548	X		X	68	6.56	11	51	103
	KJC684		201		202		212549	X		X	572	6.05	12	219	108
	KJC684		202		203		212550	X		X	43	6.17	10	52	168
	KJC684		203		204		212551	X		X	49	5.7	15	50	126
	KJC684		204		205		212552	X		X	76	5.59	11	61	125
	KJC684		205		206		212553	X		X	170	6.13	13	83	119
	KJC684		206		207		212554	X		X	445	6.51	10	162	141
	KJC684		207		208		212555	X		X	145	6.71	26	96	121
	KJC684		208		209		212556	0.007		X	183	8.26	17	163	216
	KJC684		209		210		212557	X		X	110	6.46	16	112	121
	KJC684		210		211		212558	X		X	143	6.44	13	126	99
	KJC684		211		212		212559	X		X	209	6.3	15	200	109
	KJC684		212		213		212560	X		X	310	9.48	49	484	171
	KJC684		213		214		212561	X		X	419	11.34	36	736	175
	KJC684		214		215		212562	X		X	237	9.69	32	248	205
	KJC684		215		216		212563	X		X	287	10.32	29	302	189
	KJC684		216		217		212564	X		X	60	10.45	23	69	190
	KJC684		217		218		212565	0.019		X	168	10.48	24	179	195
	KJC684		218		219		212566	X		X	70	9.78	33	80	193
	KJC684		219		220		212567	X		X	132	10.16	28	172	184
	KJC684		220		221		212568	X		X	98	10.34	31	124	254
	KJC684		221		222		212569	X		1	253	7.58	89	326	164
	KJC684		222		223		212570	X		X	18	6.27	15	X	97
	KJC684		223		224		212571	X		X	13	6.4	14	X	95
	KJC684		224		225		212572	X		X	82	7.4	13	55	140
	KJC684		225		226		212573	X		X	13	6.39	15	X	102
	KJC684		226		227		212574	X		X	18	5.42	46	314	131
	KJC684		227		228		212575	X		X	10	6.65	14	X	105
	KJC684		228		229		212576	X		X	51	6.32	22	822	91

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KJC684	229	230	212577	X	X	97	7.07	66	268	130
KJC684	289	290	212637	X	X	69	5.71	9	X	105
KJC684	290	291	212638	0.01	X	137	5.73	10	X	97
KJC684	291	292	212639	0.01	X	56	5.77	8	X	99
KJC684	292	293	212640	X	X	117	5.65	8	87	137
KJC684	293	294	212641	X	X	141	5.65	7	87	99
KJC684	294	295	212642	X	X	144	5.34	8	88	99
KJC684	295	296	212643	X	X	122	5.37	7	64	99

Hole ID		ELEMENT	ELEMENT	Au	Ag	Cu	Fe	Pb	S	Zn
		UNITS		ppm	ppm	ppm	%	ppm	ppm	ppm
		DETECTION		0.005	0.5	1	0.01	5	50	1
	Fro m	To	Sample ID	FA25/O E	4A/OE	4A/OE	4A/OE	4A/OE	4A/OE	4A/OE
KJC684	296	297	212644	X	X	188	5	10	106	97
KJC684	297	298	212645	X	X	29	5.76	9	X	95
KJC684	298	299	212646	X	X	56	5.95	11	62	130
KJC684	299	300	212647	X	X	57	5.52	8	57	102
KJC684	300	301	212648	0.005	X	332	5.36	16	138	103
KJC684	301	302	212649	X	X	73	5.08	13	X	98
KJC684	302	303	212650	X	X	58	5.29	17	X	101
KJC684	303	304	212651	X	X	66	4.83	12	50	96
KJC684	304	305	212652	X	X	28	3.91	17	57	183
KJC684	305	306	212653	X	X	19	4.8	19	X	102
KJC684	306	307	212654	X	X	6	5.49	19	X	134
KJC684	307	308	212655	X	X	97	5.6	10	X	104
KJC684	308	309	212656	X	X	52	5.35	9	X	98
KJC684	309	310	212657	X	X	75	5.51	8	X	98
KJC684	310	311	212658	X	X	8	5.11	11	X	127
KJC684	311	312	212659	X	X	5	5.5	9	X	101
KJC684	312	313	212660	X	X	85	5.77	15	53	99
KJC684	313	314	212661	X	X	50	5.8	15	X	104
KJC684	314	315	212662	X	X	76	5.67	12	X	99
KJC684	315	316	212663	X	X	19	4.63	10	X	88
KJC684	316	317	212664	X	X	103	5.62	11	60	156
KJC684	317	318	212665	X	X	26	5.08	9	X	97
KJC684	318	319	212666	X	X	33	5.31	12	78	93
KJC684	319	320	212667	X	X	23	5.08	10	X	98
KJC684	320	321	212668	0.007	X	82	6.16	12	X	105
KJC684	321	322	212669	X	X	9	6.05	8	271	113
KJC684	322	323	212670	0.011	X	35	5.68	9	69	116

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KJC684	323	324	212671	X	X	43	5.59	11	52	103
KJC684	324	325	212672	X	X	35	5.53	18	120	160
KJC684	325	326	212673	X	X	26	5.66	16	X	131
KJC684	326	327	212674	X	X	18	5.8	12	X	115
KJC684	327	328	212675	X	X	67	5.43	21	54	97
KJC684	328	329	212676	X	X	18	6.71	15	X	237
KJC684	329	330	212677	X	X	65	6.24	19	X	123
KJC684	330	331	212678	X	X	56	6.42	17	X	133
KJC684	331	332	212679	X	X	39	8.17	10	X	188
KJC684	332	333	212680	0.01	X	119	7.88	12	53	167
KJC684	333	334	212681	X	X	45	6.38	33	X	127

Table 2. Reported hole KJC684 collar details

Hole ID Easting Northing Elevation	Hole ID Easting Northing Elevation	Hole ID Easting Northing Elevation	Hole ID Easting Northing Elevation	Collar	Collar	Final Depth Comment (m)	Final Depth Comment (m)
				dip	azimuth
					(grid)	(m)
KJC684	628225.57	7494983.42	363.56	-64.72	270.31	346.00	Reverse Circulation (RC)

Table 3. Sampling interval information.

Hl ID	Sampled	Sampled	Sample type
oe	from 'm'	to 'm'
KJC684	28.00	40.00	RC Chips
	103.00	116.00
	167.00	183.00
	199.00	230.00
	289.00	334.00

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

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Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Atiqullah Amiri, a Competent Person who is a Member of The Australian Institute of Geoscientists (MAIG# 9200). Atiqullah Amiri is a fulltime employee of KGL Resources. He has over 5 years of experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, 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 Amiri consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

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JORC Code, 2012 Edition – Table

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 (e.g. cut channels, random	•	Holes KJC6894 reported in this
techniques		chips, or specific specialised industry standard measurement		announcement is an RC hole and all
		tools appropriate to the minerals under investigation, such as		samples taken at 1 meter intervals.
		down hole gamma sondes, or handheld XRF instruments,	•	A sample and a field duplicate collected
		etc). These examples should not be taken as limiting the		in calico bags; split by a cone splitter
		broad meaning of sampling.		attached to cyclone.
	•	Include reference to measures taken to ensure sample	•	Bulk samples collected in plastic bags
		representivity and the appropriate calibration of any		at one meter interval.
		measurement tools or systems used.	•	All calico bags and bulk samples were
	•	Aspects of the determination of mineralisation that are		weighted.
		Material to the Public Report.	•	All samples were analysed on the field
	•	In cases where ‘industry standard’ work has been done this		with handheld pXRF analyser. The
		would be relatively simple (e.g. ‘reverse circulation drilling		results used as indicator only (not
		was used to obtain 1 m samples from which 3 kg was		reported)
		pulverised to produce a 30 g charge for fire assay’). In other	•	Calico bags and field duplicates were
		cases more explanation may be required, such as where		sent for geochemical analysis to
		there is coarse gold that has inherent sampling problems.		Intertek lab in Darwin to be prepared
		Unusual commodities or mineralisation types (e.g. submarine		and analysed in Townsville.
		nodules) may warrant disclosure of detailed information.	•	Samples weighted between 2 to 3 Kg.
			•	Mineralisation at all deposits is
				characterized by disseminations, veinlets
				and large masses of chalcopyrite,
				associated with magnetite-rich alteration
				within a psammite. The mineralisation has
				textures indicative of structural
				emplacement within specific strata i.e. the
				mineral appears stratabound.
			•	Mineralisation in the reported hole KJC684
				intersections is associated with brecciated
				magnetite vein. Detailed mineralisation
				type (sulphide relationship with magnetite)
				is notpossible from RC chips. .
Drilling	•	Drill type (e.g. core, reverse circulation, open-hole hammer,	•	holes KJC684 reported in this
techniques		rotary air blast, auger, Bangka, sonic, etc) and details (e.g.		announcement was collar with RC and
		core diameter, triple or standard tube, depth of diamond tails,		finished with RC.
		face-sampling bit or other type, whether core is oriented and	•
		_if so, by what method, etc). _
Drill sample	•	Method of recording and assessing core and chip sample	•	All samples were weighted and no sample
recovery		recoveries and results assessed.		recovery issue encountered
	•	Measures taken to maximise sample recovery and ensure	•	No evidence has been found for any
		representative nature of the samples.		relationship between sample recovery and
	•	Whether a relationship exists between sample recovery and		copper grade and there are no biases in
		grade and whether sample bias may have occurred due to		the sampling with respect to copper grade
		preferential loss/gain of fine/coarse material.		and recovery, previous drilling programs
			•	Jinka Minerals and KGL split the rare
				overweight samples (>3kg) for assay.
				Since overweight samples were rarely
				reported no sample bias was established
				between sample recoveryandgrade.
Logging	•	Whether core and chip samples have been geologically and	•	All KGL RC and diamond core samples
		geotechnically logged to a level of detail to support		are geologically logged. Logging in
		appropriate Mineral Resource estimation, mining studies and		conjunction with multi-element assays is
		metallurgical studies.		appropriate for mineral resource

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Whether logging is qualitative or quantitative in nature. Core		estimation.
		(or costean, channel, etc) photography.	•	Core samples are also orientated and
	•	The total length and percentage of the relevant intersections		logged for geotechnical information.
		logged.	•	All logging has been converted	to
				quantitative and qualitative codes in the
				KGL Access database.
			•	All relevant intersections were logged.
			•	Paper logs existed for the historical drilling.
				There is very little historical core available
				for inspection.
Sub-sampling	•	If core, whether cut or sawn and whether quarter, half or all	•	The following describes the recent KGL
techniques and		core taken.		sampling and assaying process:
sample	•	If non-core, whether riffled, tube sampled, rotary split, etc and		– RC drill holes are sampled at 1m
preparation	• •	whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling		intervals and split using a cone splitter attached to the cyclone to generate a split of ~3kg; – RC sample splits (~3kg) are pulverized to 85% passing 75
		stages to maximise representivity of samples.		microns.
	•	Measures taken to ensure that the sampling is representative		– Diamond core was quartered with a
	•	of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.		diamond saw and generally sampled at 1m intervals with samples lengths adjusted at geological contacts; – Diamond core samples are crushed to 70% passing 2mm and then
				pulverized to 85% passing 75
				microns.
				– Two quarter core field duplicates
				were taken for every 20m samples
				by Jinka Minerals and KGL
				Resources.
				– All sampling methods and sample
				sizes are deemed appropriate for
				mineral resource estimation
			•	Details for the historical sampling are not
				available.
Quality of assay	•	The nature, quality and appropriateness of the assaying and	•	The KGL drilling has QAQC data that
data and		laboratory procedures used and whether the technique is		includes standards, duplicates and
laboratory tests		considered partial or total.		laboratory checks. In ore zones standards
	•	For geophysical tools, spectrometers, handheld XRF		are added at a ratio of 1:10 and duplicates
		instruments, etc, the parameters used in determining the		and blanks 1:20.
		analysis including instrument make and model, reading times,	•	Base metal samples are assayed using a
		calibrations factors applied and their derivation, etc.		four-acid digest with an ICP AES finish.
	•	Nature of quality control procedures adopted (e.g. standards,		Gold samples are assayed by Aqua Regia
		blanks, duplicates, external laboratory checks) and whether		with an ICP MS finish. Samples over
		acceptable levels of accuracy (i.e. lack of bias) and precision		1ppm Au are re-assayed by Fire Assay
		have been established.		with an AAS finish.
			•	There are no details of the historic drill
				sample assaying or any QAQC.
			•	All assay methods were deemed
				appropriate at the time of undertaking.
Verification of	•	The verification of significant intersections by either	•	Data is validated on entry into the MS
sampling and		independent or alternative company personnel.		Access database, using Database check
assaying	•	The use of twinned holes.		queries and Maxwell’s DataShed.
	•	Documentation of primary data, data entry procedures, data	•	Further validation is conducted when data
		verification, data storage (physical and electronic) protocols.		is imported into Micromine and Leapfrog
	•	Discuss any adjustment to assay data.		Geo software
			•	Hole twinning was occasionally conducted
				at Reward with mixed results. This may be
				due to inaccuracies with historic hole

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				locations rather than mineral continuity
				issues.
			•	For the resource estimation below
				detection values were converted to half the
				lower detection limit.
Location of data	•	Accuracy and quality of surveys used to locate drill holes	•	For the KGL drilling surface collar surveys
points		(collar and down-hole surveys), trenches, mine workings and		were picked up using a Trimble DGPS,
		other locations used in Mineral Resource estimation.		with accuracy to 1 cm or better.
	•	Specification of the grid system used.	•	Downhole surveys were taken during
	•	Quality and adequacy of topographic control.		drilling with a Ranger or Reflex survey tool
				at 12m intervals
			•	All drilling by Jinka Minerals and KGL is
				referenced on the MGA 94 Zone 53 grid.
				All downhole magnetic surveys were
				converted to MGA 94 grid.
			•	For Reward there are concerns about the
				accuracy of some of the historic drillhole
				collars. There are virtually no preserved
				historic collars for checking.
			•	There is no documentation for the
				downhole survey method for the historic
				drilling.
			•	Topography was mapped using Trimble
				DGPS and LIDAR
Data spacing and	•	Data spacing for reporting of Exploration Results.	•	Drilling at Rockface was on nominal 50m
distribution	•	Whether the data spacing and distribution is sufficient to		centres with downhole sampling on 1m
		establish the degree of geological and grade continuity		intervals.
		appropriate for the Mineral Resource and Ore Reserve	•	Drilling at Reward was on 25m spaced
		estimation procedure(s) and classifications applied.		sections in the upper part of the
	•	Whether sample compositing has been applied.		mineralisation extending to 50m centres
				with depth and ultimately reaching 100m
				spacing on the periphery of mineralisation.
			•	For Reward shallow oxide RC drilling was
				conducted on 80m spaced traverses with
				holes 10m apart.
			•	The drill spacing for all areas is appropriate
				for resource estimation and the relevant
				classifications applied.
			•	A small amount of sample compositing has
				been applied to some of the near surface
				historic drilling.
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; the default
geological		known, considering the deposit type.		angle is -60 degrees, but holes vary from -
structure	•	If the relationship between the drilling orientation and the		45 to -80.
		orientation of key mineralised structures is considered to	•	Drilling orientations are considered
		have introduced a sampling bias, this should be assessed		appropriate and no obvious sampling bias
		and reported if material.		was detected.
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 internally and by external
				consultants.

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1.2 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 Jervois operation (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 Mineral
		with any known impediments to obtaining a licence to operate		Claims and an Exploration licence owned
		in the area.		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
				PlentyRiver.
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
				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 stratabound mineralisation for the
				project consists of a series of complex,
				narrow, structurally controlled, sub-vertical
				sulphide/magnetite-rich deposits hosted by
				Proterozoic-aged, amphibolite grade
				metamorphosed sediments of the Arunta
				Inlier.
			•	Mineralisation is characterised by veinlets
				and disseminations of chalcopyrite in
				association with magnetite. In the oxide
				zone which is vertically limited malachite,
				azurite, chalcocite are the main Cu-
				minerals.
			•	Massive to semi-massive galena in
				association with sphalerite occur locally in
				high grade lenses of limited extent with
				oxide equivalents including cerussite and
				anglesite in the oxide zone. Generally,
				these lenses are associated with more
				carbonate-rich host rocks occurring at
				Green Parrot,Reward and Bellbird North.
Drill hole	•	A summary of all information material to the understanding of	For	intercept depths please see Tables in the
Information		the exploration results including a tabulation of the following	body of the report
		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	•	Generally minimum grade truncation
methods		techniques, maximum and/or minimum grade truncations (eg		0.35%Cu for intercepts above 200m RL
		cutting of high grades) and cut-off grades are usually Material		OR for open pit option.
		and should be stated.	•	Minimum grade truncation 0.8%Cu for
	•	Where aggregate intercepts incorporate short lengths of high		intercepts below 200m RL Or underground
		grade results and longer lengths of lowgrade results, the		option

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		procedure used for such aggregation should be stated and	•	Since this is the first hole, no cut off grade
		some typical examples of such aggregations should be		is applied.
		shown in detail.	•	Aggregate intercepts use length-weighting
	•	The assumptions used for any reporting of metal equivalent	•	No top-cuts are applied nor considered
		values should be clearly stated.		necessary
			•	Nometalequivalents are used
Relationship	•	These relationships are particularly important in the reporting	•	In the main deposit areas, the geometry of
between		of Exploration Results.		the Lodes is well known and is used to
mineralisation	•	If the geometry of the mineralisation with respect to the drill		estimate true widths, which are quoted in
widths and		hole angle is known, its nature should be reported.		the report
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	• •	Refer to the report body. No structure data available to estimate the
		_length, true width not known’). _		truewithofthemineralisation.
Diagrams	•	Appropriate maps and sections (with scales) and tabulations	•	Refer Figures in the report body
		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	•	Results for all holes are reported according
reporting		not practicable, representative reporting of both low and high		to the Data Aggregation Methods stated
		grades and/or widths should be practiced to avoid misleading		above
		_reporting of Exploration Results. _
Other substantive	•	Other exploration data, if meaningful and material, should be	•	Outcrop mapping of exploration targets
exploration data		reported including (but not limited to): geological		using Real time DGPS.
		observations; geophysical survey results; geochemical	•	IP, Magnetics, Gravity, Downhole EM are
		survey results; bulk samples – size and method of treatment;		all used for targeting
		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	•	The current report relates to first
		lateral extensions or depth extensions or large-scale step-out		exploration hole at Crowe’s Nest deposit.
		drilling).	•	Down hole electromagnetic survey is
	•	Diagrams clearly highlighting the areas of possible		planned for this hole.
		extensions, including the main geological interpretations and	•	Brownfields and greenfield exploration
		future drilling areas, provided this information is not		might continue in the 2ndhalf of the year
		commercially sensitive.		2025, subject to finance availability.
			•	Additional prospecting work is underway to
				pinpoint further targets for next phase of
				exploration

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