KGL RESOURCES LIMITED — Investor Presentation 2021

Jul 14, 2021

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www.kglresources.com.au

Level 7 167 Eagle Street Brisbane 4000

15 July 2021

Noosa Mining Conference

The attached presentation will be given by KGL Resources Limited’s (ASX:KGL) Chief Executive Officer, Simon Finnis today at the Noosa Mining Conference.

This announcement is authorised by the Board of Directors.

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Noosa Mining Investment Conference

High Quality Australian Copper Project Poised for Development

KGL Resources

July 2021

Noosa Mining Conference July 2021 (ASX:KGL)

KGL Poised for Development

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Experienced Board and Management further strengthened. Supportive long-term and new shareholders.

$24.6M cash at 31/03 No Debt

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• PFS Robust high quality Copper project with significant upside. Full feasibility well advanced.

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Significant opportunity Key project planning and Strong Copper through infill drilling and approvals complete fundamentals. continued exploration across portfolio

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KGL Resources

Board, Management Team and Shareholders

Directors

Capital Structure

	Denis Wood – Executive Chairman Ferdian Purnamasidi – Non executive director Peter Hay – Independent non-executive director Fiona Murdoch - Independent non-executive director Steve Mallyon – Independent non-executive director Management Simon Finnis – CEO Amy Treble – CFO John Levings – Chief Geologist***	Major Shareholders Australian Stock Exchange (ASX) code KGL ASX Share price (close 9 July) $0.55 52 week low / high $0.156 – $0.845 Shares outstanding 392.3 M Options on Issue 1.1 M Market capitalisation A$215.8M Cash (31 Mar 21) A$24.6M Debt Nil Enterprise value A$191.2M

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* New this year
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Major Shareholders
KMP Investments Pte Ltd	24.5%
Denis Wood	9.1%
Marshall Plenty Investments LLC	7.2%
Paradice Investment Management*	6.4%
Pegasus CP One	5.6%

KGL Resources

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Share Price Performance
1
0.9
0.8
0.7
0.6
Raised
0.5 $3.6 mill @ 70c
0.4 Raised
Raised
$3.8 mill @ 16c
$21.5 mill @ 42c
0.3
0.2
0.1
0
Closing Share Price $/ share
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KGL Resources

Jervois Copper Project

• ✔ Approvals – all major approvals including ILUA, EIS and Mining Management Plan.

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• Jobs – up to 300 during construction and up to 300 operational during peak operations.

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Processing to a concentrate onsite. Trucked via the Plenty and Stuart Highways to Alice Springs.

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• Rail to Adelaide and/or Darwin for export.

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• Accommodation village on site.

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• Upgraded Bonya airstrip.

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• Up to 1,200 ML water per annum from Jervois Dam and borefield.

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• 12 MW diesel , solar hybrid power station.

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KGL Resources: Company Overview

February 2021 (ASX:KGL) 5 Noosa Mining Conference (ASX:KGL)

y - Dec 2020
PFS Assumptions
Assumptions
Cu Price AUD/USD Initial LOM Processingrate	US 6,788/t US$3.08/lb 0.71 7.5years 1.6 Mtpa

Jervois Prefeasibility Study - Dec 2020

PFS Key Metrics[(1)]

Financial Metrics

Pre-Production Capex (2)	A$200 m
Total Revenue (3)	A$ 2,462 m
Project Cashflow(pre-tax)	A$385 m
NPV(8%, real,pre-tax)	A$177 m
IRR(pre-tax)	23.1%
Payback period	38 months

PFS AISC[(4)] (US/ lb, Cu Produced), excluding by-product credits

Physicals

Mineralised material mined	11.3 M dmt
Cu Head Grade Cu in Concentrate	2.20% 222 kt
Agin Concentrate	6.7 Moz

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Sustaining Development capital Corporate
12%
capital cost
2% 1%
Mining
Royalties
32%
9%
Processing
16%
Transport /
smelting
28%
Admin/ infrastructure/
rehab
0%
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• (1) For full details, refer to ASX Announcement dated 2 December 2020. All material assumptions continue to apply. (2) Excludes working capital requirements.

• (3) Gross Revenue, including by-product credits.

• (4) AISC is All in sustaining costs, and includes C1 cost, corporate costs, sustaining capex and open cut stripping and underground capital development, converted at 0.71 AUD:USD. KGL Resources: Company Overview Noosa Mining ConferenceFebruary 2021February 2021 (ASX:KGL)(ASX:KGL)(ASX:KGL) 6

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Potential of Jervois Mineral Field

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Tenure

• Jervois Exploration Licence -37.9 km2

• Unca Creek Exploration Licence - 72.7 km2

Deposit Geology

• 3 JORC Resources hosted by megascale J-Fold

• Jervois Fault – deep crustal association

• 80-90% of the J-Fold under explored, under drilled

• Potential outside J-Fold

• Geophysics: Recognised key success factor

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KGL Resources
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Potential of Jervois Mineral Field

Reward North (Unca Creek)

• Reward IP anomaly plunges deeper to north into Unca Creek EL

• Similar anomaly strength to Reward, only deeper

• All previous drilling…. Too shallow

• In-fill IP for Reward North and J-Fold planned for August 2021

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• Drilling and DHEM: planned 2021, H2

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Jervois EL Unca Creek EL
Reward Deposit
IP Chargeability Inversion Model
KGL Resources Noosa Mining Conference July 2021 (ASX:KGL) 8
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Jervois Copper Resource Evolution
Jervois Copper
500 3.00%
450 426 kt
2.50%
400
2.03%
350 327 kt
2.00%
300
250 1.50%
200 1.07%
1.00%
150
100
0.50%
50
0 0.00%
Jul 2015 Sep 2020
Indicated contained copper (kt) Inferred contained copper (kt) Cu grade %
Grade % Cu
Contained Copper Metal (kt)
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Jervois Copper Resource Evolution

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KGL Resources

Jervois Copper Project Progress

• Pre-Feasibility Study result delivered a robust mining project.

• Initial production 30,000tpa contained copper in cons plus silver and gold.

• Full Feasibility Study now under way.

• Drilling has recommenced February – second rig in May 2021.

• Project financing and product sales discussions in progress.

• NT Govt has approved Mining Management Plan – final major approval.

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Deputy Chief Minister Manison and KGL Chairman Denis Wood announcing approval of MMP, January 2021

Timeline

April 2016 New strategy to enhance project

March 2017 Acquisition of Unca Creek

October 2018 Draft EIS Lodged

April 2020 Mining Management Plan (MMP) lodged

January 2021 NT Govt approves MMP

August 2016 ILUA signed

August 2017 ML granted; EIS Terms of Reference agreed

October 2019 EPA recommend EIS approval

December 2020 February 2021 PFS and Ore Drilling Restarts Reserve announced

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KGL Resources

Copper Price 2000-2021

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USD and AUD Copper Prices
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Copper US$/t Copper A$/t
Copper Daily LME Official Cash Price
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KGL Resources

Favourable Copper Market Factors

Robust, high grade Jervois operation will come into production at a time of expected strong demand and high prices.

Growing demand

Constrained supply

• Global post COVID-19 economic stimulus focused on renewable energy.

  • Growing production deficit forecast from 2021.

  • Large traditional mines running dry.

• Copper is key in a low carbon emission world:

• Electric vehicles sales expected to increase tenfold by 2030.

• Renewable energy generation is more copper intensive than conventional

• Grade declining in current major mines.

• Increased costs.

• Water scarcity.

Limited new discoveries

• 2010-2019 – worst decade recorded for Cu discoveries.

Growing sovereign risk

• DR Congo – tax and royalty hikes.

• Tanzania – export limitations.

• Philippines – mine closures.

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KGL Resources

Copper Supply Gap

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KGL Resources

Summary and Outlook

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Key milestones for 2021

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KGL Resources

Disclaimer and Competent Person Statement

• 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.

Competent Persons Statement

• The Jervois Resources information were first released to the market on 15/09/20 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 data in this report that relates to the 2015 Reward South Resource was first released to the market on 29/07/2015 (then named Green Parrot) 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 information contained in this release that relates to the Jervois Ore Reserves Estimate was first released to the market on 2 December 2020 complies with JORC 2012 and was compiled by Mr Iain Ross, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Ross is a full-time employee of Xenith Consulting. Mr Ross has sufficient experience that is relevant to the style of mineralisation and type of deposit described in the release to qualify as a Competent Person as defined by the JORC Code, 2012 Edition. 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 information contained in this release that relates to the Jervois Pre-feasibility Study were first released to the market on 2 December 2020 and complies with JORC 2012.

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.

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KGL Resources

KGL Resources Limited