KILLI RESOURCES LIMITED — Interim / Quarterly Report 2022

Jan 30, 2023

QUARTERLY REPORT DECEMBER 2022

ASX: KLI

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Highlights - Discovery 31 January 2023

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Ravenswood North (Gold & Copper) Project – Queensland

• High grade gold, copper and silver values were returned for surface rock chips at Rocky prospect, extending the geochemical footprint to 4km along strike. Rock chip results reported include 5.27g/t Au, 13.05g/t Ag & 0.11% Cu, 224g/t Ag & 0.28% Cu, and 173g/t Ag & 0.55% Cu.

• The maiden drill program commenced at Rocky in December, to drill test the Au-Ag-Cu surface geochemical anomaly. Results due in the March quarter.

• A new high-grade Cu-Au-Ag-Pb system was identified at the West Branch prospect, with surface rock chip sample results including 6.18% Cu, 8.93g/t Au & 10.1g/t Ag, 5.2% Cu, 8.47g/t Au & 27.3g/t Ag, 0.2% Cu, 8.47g/t Au & 27.3g/t Ag, 32.6g/t Ag, 0.6g/t Ag & 15.8% Pb.

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West Tanami (Gold, REE & Copper) Project – Western Australia

• Drilling in the Tanami confirmed gold within the Dead Bullock Formation, host lithology to the Callie 8M oz Gold Mine, 120kms along strike.

• Aircore drill results identified a potential 2.8km wide orogenic sediment hosted gold corridor.

• Visual copper mineralisation was observed in diamond core, highlighting the potential for base metal mineralisation in the Tanami. A new commodity to be explored in future programs.

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Reverse Circulation drilling at the Ravenswood North Project, December 2022.
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Killi Resources Limited | ABN 35 647 322 790 | www.killi.com.au | admin@killi.com.au

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Exploration activities

Ravenswood North Project (100% owned, Queensland)

During the Quarter the Company focussed the exploration programs on the Rocky and West Branch prospects, with the following announcements released:

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• Additional high-grade Ag-Cu results extended the system at Rocky 4km along strike. The maiden Reverse Circulation drill program commenced at Rocky in December 2022. Results of copper, gold, silver & lead mineralisation from the West Branch prospect.

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Rocky Prospect

The Company completed a 240-sample soil program in August at the Rocky prospect, infilling and extending the geochemical grid with results reported in the December Quarter. Highly anomalous gold results were returned with the best results of 1,160ppb Au, 629ppb Au & 483ppb Au, which along with other samples has generated a third gold anomaly (Anomaly 3), Figure 1. The anomaly is >200 x background values for gold and is located 300m north of the two existing anomalies, covering an area 300m x 100m.

In addition to the new soil gold anomaly the footprint for other elements such as copper, molybdenum, silver, and bismuth were also extended north-east and south-west a further 1km in each direction.

From the additional program, a 1.5km[2] gold-silver-copper-bismuth-selenium-tellurium-thaliumindium core anomaly has been determined. This core is surrounded by elevated lead-antimonyarsenic levels proximally, with distal copper and molybdenum values are currently controlled by the extent of the soil sampling grid.

A total of 15 rock chip samples were taken during the soil program at outcrops of interest. Visible copper mineralisation was observed at three sample locations in the form of malachite and azurite on the eastern side of the prospect. Three samples returned highly anomalous results of 224g/t Ag, 0.28% Cu & 0.33% Sb (RVRK035), 173g/t Ag, 0.55% Cu, 0.31% Sb & 0.26% Pb (RVRK033), 56.3g/t Ag, 0.43% Cu, 0.27% Sb & 0.19% Pb (RVRK031), Table 1. These are now the highest silver values on the project and extend the mineralisation footprint a further 1km east, with the system now stretching a total of 4km along strike.

Table 1. Details of Rocky prospect rock chip samples (MGA94_55S).

Sample	Easting	Northing	Au	Ag	Bi	Cu	Li	Mo	Pb	Sb	Sn	W	Zn
ID			(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)	(ppm)
KRRC0003	449252	7814176	0.052	1.19	15.95	830	23.3	4.34	216	6.71	7.1	140	82
KRRC0004	449569	7814084	0.052	0.19	35.3	1505	5	38.6	24.5	7.87	13.6	38.2	113
RVRK001	449603	7813136	N/A	0.07	0.76	61.6	7.3	0.93	14.7	0.12	2	1	86
RVRK002	449017	7813475	0.006	0.28	0.27	84.4	4.2	1.11	49.2	3.12	1.8	1.1	176
RVRK003	449027	7813480	0.016	0.27	0.7	36.4	5	1.4	62.4	5.81	1.6	1.4	101
RVRK020	444151	7816177	N/A	0.01	0.32	9.2	70.5	0.97	14.5	BDL	4	1	47
RVRK023	446836	7816782	0.012	0.02	0.03	51.9	118	1.74	2.1	BDL	1.1	0.3	102
RVRK026	449185	7814182	0.009	0.95	8.33	487	82.6	2.16	15	5.9	2.2	220	63
RVRK027	449778	7814175	5.27	13.05	37.2	1185	88.7	3.45	39.5	8.68	1.1	2.4	223
RVRK028	449626	7814219	0.062	4.75	25.6	1910	109.5	2.08	123.5	19	6	51.5	124
RVRK029	448626	7812956	0.008	0.24	0.4	85.7	23.3	2.34	10.8	58.3	0.5	0.9	55
RVRK031	451096	7814041	0.006	56.3	1.95	4300	5	0.47	1860	2720	0.6	0.1	113
RVRK032	450875	7814261	BDL	0.24	0.12	25	7.3	0.41	28.5	27.6	0.6	0.9	82
RVRK033	451090	7814047	0.009	173	1.65	5540	4.2	0.62	2630	3100	0.7	0.2	128
RVRK035	450971	7813701	0.026	224	8.68	2790	5	0.42	12.6	3300	BDL	BDL	133
BDL – Below Detection Limit. N/A – Whole rock				sample for	lithological purposes, not assayed for gold. Abbreviations of elements: Au (Gold), Ag (Silver), Bi
(Bismuth), Cu (Copper), Li (Lithium),			Mo (Molybdenum), Pb (Lead), Sb (Antimony), Sn (Tin), W (Tungsten) & Zn							(Zinc).

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This geochemical fingerprint developing at Rocky is not only indicative of large-scale intrusionrelated gold deposits around the world but is similar to that of district systems within close proximity to the project, such as Mt Leyshon (3.9M oz Au and 2.4M oz Ag produced) and Mt Wright (1.5M oz Au produced).

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Figure 1. Location of rock chip & soil results at Rocky prospect. Soil results are contoured for various levels on gold mineralisation, copper, and silver, with the location of historical and recent rock chip samples, old workings, overlaying the magnetics from the recently flown VTEM survey.

Field mapping and ground truthing of rock chip samples was completed over the prospect in October. Mapping of lithologies and structures associated with the mineralisation will aid in determining the ideal direction to drill test the anomaly, Figure 2.

Geological observations identified mineralisation to be hosted in magnetic biotite-granodiorite. Magnetism was mostly moderate to strong and weaker in magnetic low areas identified through the recently acquired VTEM data (ASX Announcement 20th September 2022).

Despite very sparse outcrop, zones of strong silica-sericite±clay with disseminated arsenopyrite and hematite after sulphide were seen to be associated with areas of strongest gold anomalism. These zones appear to be magnetite-destructive trending north-northeast to north-northwest.

The high-grade silver rock chips (RVRK031, 33 and 35) east of the main gold anomalies at Rocky were found to be related to quartz veins with galena, copper oxides such as malachite and azurite with associated alteration of sericite-clay-iron oxides, Figure 2.

An additional 13 rock chip samples were collected within the alteration zones, of the host rock and quartz veins with results expected in Quarter 1 2023.

Reverse Circulation (RC) drilling commenced at Rocky prospect in early December 2022. The drill program was the first holes to test this anomaly with the exploration team completing 5 RC holes for 996m prior to the Christmas break. The drilling program has been planned on 400m spaced lines, with the initial holes to be completed to a depth of 150-200m. The program targeted the high-tenor gold and silver anomalies, with results expected in Quarter 1 2023, Figure 3.

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A B
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Figure 2. A. Mapping and rock chip sampling activities at Rocky. B. Rock chip sample from Rocky, with visible malachite and azurite.

West Branch

The prospect area was determined from the regional magnetics which indicated a potential intrusive, with a zone of low magnetism (demagnetised zone) in the centre, and a wider positive magnetic zone surrounding the centre (magnetised zone). The geochemical programs focussed on this area, within the Ravenswood Corridor.

Killi collected 15 rock chip samples from the West Branch prospect during recent field geochemical soil programs at the northern end of the Project. The samples were taken from two outcropping locations, 1.8km apart, and exhibited copper mineralisation to the eye in the form of malachite (copper carbonate hydroxide).

Surface rock chip results reported at the West Branch prospect, include:

• 6.18% Cu, 8.93g/t Au & 10.1g/t Ag (KRRC0002)

• 5.2% Cu, 8.47g/t Au & 27.3g/t Ag (RVRK009)

• 0.2% Cu, 17g/t Au & 2.77g/t Ag (RVRK021); and

• 15.75% Pb, 32.6g/t Ag & 0.56g/t Au (KRRC0001)

These results are the highest copper values and some of the higher gold and silver values observed at the project and provide a second exploration target generated on the project within 2022, Figure 3.

At surface the West Branch target area is in part masked by the ‘West Branch River’, however two samples were taken on either side of the river and returned values greater than 5% copper as well as associated significant gold and silver results, with both samples logged as altered mafics believed to be part of the Horse Pocket Volcanics.

General observations from the rock chip program indicated the magnetised zone returned results high in copper, gold and silver, and the demagnetised zone returned high silver and lead with weak gold and copper anomalism.

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One sample was taken from the area interpreted as the contact between the intrusive unit with the surrounding volcanics, KRRC0001. The sample was logged in the field as a brecciated sediment, with abundant quartz and iron-rich veinlets with minor sulphides (pyrite). The assays returned for this sample were anomalous for silver (32.6g/t), lead (15.7%), gold (0.57g/t) and copper (2,260ppm). Of interest, this sample also had elevated values for arsenic (1%), cadmium (45.7ppm), antimony (163.5), tin (30.1ppm), strontium (180.5ppm) and zinc (635ppm).

These anomalous assay results are consistent with pathfinder elements of known mineral systems in the area, such as Mt Leyshon, Mt Success, Mt Wright, Golden Valley and Welcome deposits, all within 60kms of the project.

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Figure 3. Location of rock chip results from the West Branch prospect coded to copper, with geology 1:100k map sheet (Dotswood, GSQLD) on the project.

West Tanami Project (100% owned, Western Australia)

During the Quarter the Company focussed the exploration programs on regional gold and rare earth targets with the following announcements released:

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• Gold Mineralisation within the highly prospective Dead Bullock Formation at the West Tanami.

• Magmatic Sulphide Zone intersected at West Tanami

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Regional Gold Mineralisation

The Company reported the first round of aircore drilling results and established host lithologies from the aircore and diamond drill programs completed at the West Tanami Project.

Gold deposits within the Tanami district are generally hosted within the fold-hinges of the Dead Bullock Formation, or in close proximity to the sequence margins and/or contacts, with the Formation host to the +8Moz Callie gold deposit, 120 kms along strike to the south-east.

Logging of the upper portion of the diamond drill hole identified the highly prospective Dead Bullock Formation. Additional to the favourable geology in the drill core, the regional aircore

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program has returned low-level gold anomalism in multiple locations, similar in geochemical fingerprint to Callie deposit which was found on a 50 ppb Au anomaly.

Killi completed four aircore drill lines at the northern end of the project, across the interpreted axial hinge within sediments, at the Fox, Deva, and Trickster prospects, covering 9km of combined stratigraphy, Figure 4.

Multiple intercepts of anomalous gold, arsenic and silver were intersected at the Fox prospect, with all elements aligning with the geochemical fingerprint for a sediment hosted gold system. The results returned a 2.8km wide corridor anomalous for gold, silver and arsenic , aligning with the Company’s model for a sediment-hosted gold system, and similar to those already found in the Tanami, Figure 5.

Two regional aircore lines were completed at Trickster and Deva consisted of 54 holes for 2,201 metres. These two drill lines represent the first drilling over the newly identified prospective hydrothermal structure that could represent the main mineralising feature of the district.

These first pass aircore lines were completed at Trickster and Deva across the interpreted feature that extends from the Tanami (NT), previously referred to as the ‘D5 Fault’, have returned a gold result in bedrock, below alluvial cover of 4m @ 100ppb Au from 8m depth, Figure 6.

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Figure 4. Location of gold and silver results at the West Tanami Project, from the regional aircore drill program, including the gold anomaly at Deva interpreted as the D5 fault structure that extends from the northern territory and is associated with million-ounce gold systems of the Tanami district.

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Figure 5. Mineralisation and geological cross-section of the Fox prospect regional aircore drill line including the Diamond drill hole, 2 x vertical exaggeration. Geological interpretation from aircore and diamond logging.

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Figure 6. Mineralisation and geological cross-section at the Deva prospect, with significant zone of gold mineralisation at the eastern end in hole TMAC0082.

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Table 2 Location of aircore drill holes reported in the Quarter (MGA94_52S).

								Downhole	Bottom of hole	Bottom of hole
Hole ID	Prospect	Easting	Northing	RL	Depth	Dip	Azi	Significant gold	Significant	Significant
								intervals	silver intervals	arsenic intervals
TMAC0004	Fox	474550	7858599	415	93	-60	180	2m @ 20ppb Au fr 72m	3m @ 0.1g/t Ag fr 90m	NSI
TMAC0009	Fox	474556	7859104	414	87	-60	180	4m @ 135ppb Au fr 72m	NSI	NSI
TMAC0011	Fox	474556	7859307	412	105	-60	180	2m @ 50ppb Au fr 80m	NSI	NSI
								2m @ 60 ppb Au fr
TMAC0012	Fox	474551	7859398	411	105	-60	180	28m & 8m @	NSI	NSI
								20ppb Au fr 38m
								4m @ 40ppb Au fr
TMAC0013	Fox	474551	7859603	410	93	-60	180	6m, 4m @ 25ppb Au fr 24m, 8m @	NSI	3m @ 10ppm As fr 90m
								20ppb Au fr 50m
TMAC0014	Fox	474558	7859699	410	93	-60	180	2m @ 20ppb Au fr 16m	3m @ 0.1g/t Ag fr 90m	NSI
TMAC0015	Fox	474549	7859800	410	105	-60	180	NSI	NSI	3m @ 99ppm As fr 102m
TMAC0016	Fox	474552	7860003	411	75	-60	180	NSI	NSI	NSI
TMAC0017	Fox	474550	7860401	415	81	-60	180	2m @ 20ppb Au fr 68m	NSI	3m @ 12ppm As fr 78m
TMAC0018	Fox	474552	7860504	417	105	-60	180	NSI	BDL	5m @ 15ppm As fr 100m
TMAC0019	Fox	474558	7860605	417	64	-60	180	NSI	4m @ 0.12g/t Ag fr 60m	NSI
TMAC0020	Fox	474556	7860662	417	64	-60	180	4m @ 20ppb Au fr 4m	BDL	NSI
TMAC0021	Fox	474552	7860801	415	76	-60	180	NSI	4m @ 0.16g/t Ag fr 72m	4m @ 23ppm As fr 72m
								8m @ 45ppb Au fr
TMAC0023	Fox	474560	7857817	415	115	-60	180	80m, 4m @ 20ppb	BDL	NSI
								Au fr 104m
TMAC0024	Fox	474550	7857998	415	109	-60	180	4m @ 40ppb Au fr 88m	NSI	NSI
TMAC0025	Fox	474550	7858199	415	73	-60	180	NSI	NSI	NSI
TMAC0026	Fox	476138	7856400	414	133	-60	180	4m @ 30ppb Au fr 36m	BDL	NSI
								4m @ 20ppb Au fr
TMAC0028	Fox	476129	7856800	415	139	-60	180	12m, 12m @	BDL	NSI
								37ppb Au fr 20m
								4m @ 30ppb Au fr
TMAC0029	Fox	476135	7856999	416	133	-60	180	28m, 4m @ 20ppb	NSI	NSI
								Au fr 68m
TMAC0032	Trickster	479649	7864402	427	78	-60	215	4m @ 20ppb Au fr 68m	NSI	NSI
TMAC0034	Trickster	479937	7864825	423	43	-60	215	NSI	1m @ 0.22g/t Ag fr 42m	1m @ 72ppm As fr 42m
TMAC0035	Trickster	479988	7864899	422	43	-60	215	4m @ 20ppb Au fr 36m	1m @ 0.66g/t Ag fr 42m	NSI
TMAC0036	Trickster	480033	7864985	421	43	-60	215	NSI	NSI	1m @ 11ppm As fr 42m
TMAC0043	Trickster	480460	7865578	415	40	-60	215	NSI	NSI	1m @ 11ppm As fr 39m
TMAC0044	Trickster	480540	7865731	414	40	-60	215	NSI	1m @ 0.11g/t Ag fr 39m	NSI
TMAC0046	Trickster	480707	7865994	415	40	-60	215	NSI	NSI	1m @ 26ppm As fr 39m
TMAC0049	Trickster	480884	7866218	414	40	-60	215	NSI	NSI	4m @ 11ppm As fr 36m
TMAC0075	Deva	488434	7861475	445	40	-60	215	NSI	BDL	1m @ 13ppm As fr 39m
TMAC0076	Deva	488489	7861572	447	40	-60	215	NSI	BDL	1m @ 10ppm As fr 39m
								12m @ 43ppb Au fr
TMAC0082	Deva	488820	7862079	454	40	-60	215	8m Incl. 4m @ 100ppb	BDL	1m @ 11ppm As fr 39m
								Au fr 8m

• NSI – No Significant Intercepts.

• N/A – Sample not analysed for element

Au (g/t) analysed via fire assay 30g charge, as composites samples down the drill hole. Ag (g/t) analysed as bottom of hole multi-element sample, via ICP40Q.

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Diamond Drilling

The partially funded EIS diamond drill hole was completed to a total depth of 890.4m during the field season. Killi received a $150,000 exploration grant from the Western Australian Government through the Exploration Incentive Scheme for a stratigraphic drillhole. The purpose of the hole was to test the potential for a significant gold mineral system in the region, at the Fox prospect (previously ‘Raven’), only 150kms north-west along strike from the Callie 13Moz gold mine in the Northern Territory.

Logging and geochemical evaluation of the upper sedimentary sequence by geological logging and portable X-ray fluorescence (pXRF) has confirmed the section of the stratigraphy in which the project resides.

The top of the diamond hole begins within the Killi Killi Formation, which is host to the Coyote and Kookaburra gold mines within the region. The hole then passes through a transitional zone and into the Dead Bullock Formation, Figure 7. The sequence is strongly folded and faulted relating to both extensional and compressional events.

In the upper part of the hole there were multiple zones of interest such as cross-cutting quartz veins within a sandstone, adjacent to a sedimentary-mafic contact. A particularly interesting quartzpyrite vein was intersected at ~218m with a strong silica and hematite alteration halo, and at 173m there was a folded and sheared shale unit with quartz veining and silica/feldspar alteration, which is characteristic of gold mineralisation styles in the region.

The stratigraphy of the Tanami region has been difficult to delineate historically, due to the poor exposure at surface, and lack of available data, such as diamond core. Exploration has been intermittent from the early 1900’s until the mid-1980’s owing to the remoteness and cover and has focused on sediment hosted mineralisation, specifically for uranium, rare earth elements and gold.

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Figure 7. Diamond core photographs of the iron-rich sediments of the Dead Bullock Formation (DBF). A) At approximately 139m, folded iron-rich sediments of the DBF. B) Folded siltstone and shale units of the DBF at ~173m, with multiple folding and shearing events overprinted, with k-feldspar alteration. C) Sediments of the DBF, with increased pyrite and quartz veining.

Of significance at ~840m depth (560m vertical depth), a gabbro (mafic) unit with distinctly high sulphide content was intersected. Sulphides were observed from ~834m – 840.8m ranging from trace to approximately 30% of the rock mass increasing with depth. From 840.8m – 841.5m semimassive and massive sulphides were intersected, where classification of massive sulphides is based

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on sulphide content >80% of the rock mass, Figure 8. The dominant sulphides observed were pyrrhotite, chalcopyrite and pyrite, potentially representative of a magmatic base metal system. The pyrrhotite and chalcopyrite appear to be associated with the gabbro unit, with pyrite present in the sediments as well as the gabbro. At this point the pyrite is believed to be part of a hydrothermal overprint as it is seen throughout the hole and associated with varying degrees of quartz veining.

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Chalcopyrite
Pyrrhotite
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Figure 8. Massive sulphides in TMDD0001, chalcopyrite, pyrrhotite and pyrite observed, 841m depth.

Previous work and mapping completed by the Geological Survey of Western Australia has only identified sediments with no interpretation of mafic units at the prospect.

Dolerites have been loosely documented in the region to intrude the sedimentary sequence, however there is very limited drilling in which they have been intersected and limited analysis performed.

Further review of historical reports indicates there has been no prior exploration for magmatic sulphide mineralisation in the Tanami Province, which presents a unique opportunity for Killi to explore.

CAUTIONARY STATEMENT ON VISUAL ESTIMATES OF MINERALISATION

References in this report to visual results are from diamond drilling. Visible mineralisation in NQ core (TMDD0001) consisted of trace, disseminated, semi-massive and massive sulphides of pyrrhotite, chalcopyrite and pyrite. Visual estimates of percentages are based on preliminary visual observations of the drill core surface as presented in the core trays and may not be representative of the entire sample interval. Laboratory assays are required for representative estimates of copper and other metal contents abundance. Half the core samples have been sent for assays. This work will take some time and assay results are expected in March quarter 2023.

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Exploration forecast for Quarter 1, 2023:

Ravenswood North

• Process and interpret RC drilling results, when received.

• Plan additional follow-up drilling at Rocky, and work towards drilling at West Branch.

• Ground truthing of VTEM anomalies will be completed.

West Tanami

• Continue to interpret and understand results of aircore drilling and diamond drill as assays return.

• Process and interpret the close-spaced low-flown aeromagnetic survey.

• Evaluate the prospectivity for base metals in the Tanami region to be completed.

• Plan a downhole Electromagnetic (DHEM) crew for the diamond hole at Fox.

• Plan and develop the exploration programs for the 2023 field season.

Mt Rawdon

• Plan and schedule heritage survey.

• Plan and schedule geochemical programs, to include soils, stream and rock chip sampling.

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Logging of Fox – EIS-funded Diamond Drillhole.
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Compliance Statement

The information in this report that relates to Exploration Results for the West Tanami and Ravenswood North Projects is extracted from the ASX Announcements listed below which are available on the Company website www.killi.com.au and the ASX website (ASX code: KLI):

www.killi.com.au and the ASX websit	e (ASX code: KLI):
Date	Announcement title
7 December 2022	Drilling commences at Rocky, Ravenswood North
1 December 2022	Gold Mineralisation within Dead Bullock Formation at Tanami
15 November 2022	High-grade results extend Rocky Prospect, Ravenswood North
25 October 2022	Further Information – Magmatic Sulphide Zone at West Tanami
4 October 2022	New High-Grade Cu-Au Surface Mineralisation at Ravenswood

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The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the market announcements continue to apply and have not materially changed. The Company confirm that form and context in which the Competent Person’s finding are presented have not been materially modified from the original market announcements.

Corporate

Key expenditure during the quarter comprised staff costs and exploration and evaluation activities associated with the recent Ravenswood North geochemical programs, earthworks, heritage survey, and RC drilling. As well as the assays for soils, rock chips, aircore drilling, and diamond drilling at West Tanami Project. This included using experienced consulting geologists.

The Company also used funds for geological consulting, database management and tenement management during the quarter across all four projects.

Killi Resources held cash reserves of ~$1.8M at 31 December 2022.

In accordance with ASX Listing Rule 5.3.2, the Company advise that no Mining Development of Production activities were conducted during the quarter.

Related Party Transactions

In accordance with ASX Listing Rules 4.7C.3 payments to related parties of the entity and their associates outlined in the Company’s Appendix 5B for the quarter relate to Directors fees and professional fees paid to Grange Consulting for company secretarial and financial management services.

Prospectus -Proposed Use of Funds

In accordance with ASX Listing Rule 5.4.4, the Company provides the following comparison of its actual expenditure on the individual items in the “use of funds” statement in its IPO Prospectus since the date of its admission to ASX against the estimated expenditure on those items in the “use of funds” statement in the IPO Prospectus and an explanation of any material variances. The material variances in exploration expenditure are due to the Company only being admitted to the Official List of ASX on 10 February 2022 with actual use of funds being less than 11 months into the period of the two-year underlying Prospectus proposed use of funds.

Item	Proposed Use of Funds1	Actual Use of Funds	Variance Under/(Over)
Exploration at West Tanami Project	$2,495,000	$2,308,255	$186,745
Exploration at Ravenswood North Project	$1,227,500	$574,350	$653,150
Exploration of Mt Rawdon Project	$720,000	$46,584	$673,416
Exploration of Balfour Project	$367,000	$26,720	$340,280
Expenses of the Capital Raising Offer	$686,824	$691,254	($4,430)
Administration costs andworking capital	$1,306,887	$1,347,115	($40,228)
Total	$6,803,211	$4,994,279	$1,808,932

1 Proposed Use of Funds for the first two years following Admission as outlined in the Company’s IPO Prospectus dated 16 November 2021.

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Performance Rights

A summary of the Performance Rights on issue at the end of the Quarter is outlined below. During the Quarter the Company issued 189,752 Performance Rights. None of these Performance Rights vested or were converted or cancelled during the quarter.

Class			Number	Vested (Yes/No)
	Milestone	Expiry
Class A Performance Rights	Each Class A Performance Right will vest and convert (at the election of the holder) into one Share upon the Company achieving a volume weighted average price for 20 consecutive trading days (20 Day VWAP) exceeding $0.40.	Five (5) years from the date of issue.	2,750,0001	Yes
Class B Performance Rights	Each Class B Performance Right will vest and convert (at the election of the holder) into one Share upon the Company achieving a 20 Day VWAP exceeding $0.60.	Five (5) years from the date of issue.	1,850,0001	No
Class C Performance Rights	Each Class C Performance Right will vest and convert (at the election of the holder) into one Share upon the Company achieving a 20 Day VWAP exceeding $0.70.	Five (5) years from the date of issue.	510,0001	No
Class A1 Performance Rights	Continued employment until 7 Feb 2023	7 Feb 2026	28,4632	No
Class A2 Performance Rights	Continued employment until 7 Feb 2024	7 Feb 2026	75,9012	No
Class B1 Performance Rights	Continued employment with the Company until 7 February 2023; and the Company achieving a volume weighted average price for 20 consecutive trading days (20 Day VWAP) exceeding $0.60.	7 Feb 2026	28,4632	No
Class C1 Performance Rights	Continued employment with the Company until 7 February 2023; and the Company achieving a 20 Day VWAP exceeding $0.70.	7 Feb 2026	28,4632	No
Class D1Performance Rights	Continued employment with the Company until 7 February 2023; and the Company achieving a 20 Day VWAP exceeding $0.80.	7 Feb 2026	28,4632	No
Total			5,299,752
1Allotted prior to the Company’s ASX admission 2Issued during the Quarter

Quarterly Activities Report | December 2022 | ASX: KLI

13

Tenement Schedule

Table 1. Killi Resources Tenement Holding December 2022 quarter end

As required by listing rule 5.3.3

Iron Bull Bangemall Pty Ltd (a wholly owned subsidiary company of Killi Resources Limited)

Access Australia Mining Pty Ltd (a wholly owned subsidiary company of Killi Resources Limited)

Project	Tenement Number	Holder	Killi Ownership (at end of quarter)	Change in Ownership
West Tanami (Western Australia)	E80/5100	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5101	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5102	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5103	Iron Bull Bangemall PtyLtd	100%	Nil
Ravenswood Nth (Queensland)	EPM 26889	Access Australia Mining Pty Ltd	100%	Nil
	EPM 26890	Access Australia Mining Pty Ltd	100%	Nil
	EPM 26892	Access Australia Mining Pty Ltd	100%	Nil
	EPM 26908	Access Australia Mining Pty Ltd	100%	Nil
	EPM 26909	Access Australia Mining Pty Ltd	100%	Nil
	EPM 28413	Access Australia Mining Pty Ltd	100%	Application pending
Mt Rawdon West (Queensland)	EPM 27828	Access Australia Mining Pty Ltd	100%	Nil
Balfour (Western Australia)	E46/1383	Access Australia Mining Pty Ltd	100%	Nil

This Announcement has been authorised by the Board of Directors.

For enquiries contact:

Kathryn Cutler Chief Executive Officer +61 8 9322 7600 admin@killi.com.au

Quarterly Activities Report | December 2022 | ASX: KLI

14

ABOUT KILLI RESOURCES

West Tanami Project

The Company owns 100% of the West Tanami Gold Project in the north-east of Western Australian. The land holding totals 1,634km[2] of granted tenure over 100km strike of the major gold corridor, Tanami Fault System, with existing gold endowment of the Tanami Gold Province greater than 19M oz Au. Within the district there are multiple gold deposits which include Callie Gold Mine (Newmont, ~13Moz Au), the Tanami Goldfields (3M oz Au), Twin Bonanza (1.5M oz Au) and the Coyote and Kookaburra mines (Black Cat Syndicate, ~1M oz Au), Figure 8.

Aside from gold, recent work completed by explorers in the area have highlighted the potential for hydrothermal Rare Earth systems, within the district. 85% of the tenement package is covered by shallow transported cover (12-15m depth) which provides an opportunity for the discovery of a new mineralisation system.

Ravenswood North

The Company owns 100% of the Ravenswood North Project located near Charter Towers in Queensland. The project consists of five granted tenements totalling ~580km[2] . The majority of the land holding covers the prospective Ravenswood-Charter Towers gold corridor, host to Ravenswood Gold Mine, Charter Towers, Golden Valley, Kitty O’Shea, Mt Success and Piccadilly, Figure 9.

The Company believes this project has the potential for a large-scale Intrusive-Related Gold System.

Mt Rawdon West

The Mt Rawdon West Project consists of one tenement currently in application, which covers 309km[2] of prospective gold and copper ground between Evolutions Mt Rawdon Gold Mine and SolGold’s Mt Perry Project, located inland 60km from Bundaberg (QLD), Figure 10. The Nicko’s Reward and Mt Rawdon structures intersect in the centre of the tenement and coincide with and existing 1.5km[2] geochemical soil anomaly of Cu-Au-Mo.

Balfour

The Balfour Project is located in the Pilbara of Western Australia and covers 350km[2] of the Proterozoic Rift boundary, 25km strike of the sub-basin, and surrounds the Nicholas Downs Manganese Deposit owned by Hancock Prospecting, Figure 11. Killi owns 100% of the project, with the tenement currently in application.

==> picture [520 x 261] intentionally omitted <==

Quarterly Activities Report | December 2022 | ASX: KLI

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==> picture [528 x 394] intentionally omitted <==

Figure 8 . Location of West Tanami Gold and REE Project in relation to existing Gold and REE Mines in the Tanami Province.

==> picture [537 x 329] intentionally omitted <==

Figure 9 . Location of Ravenswood North Gold and Copper Project in relation to existing Gold Mines in the Charter Towers Province, Queensland.

Quarterly Activities Report | December 2022 | ASX: KLI

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==> picture [490 x 371] intentionally omitted <==

Figure 10 . Location of Mt Rawdon Gold and Copper Project in relation to existing prospects in the area, Queensland.

==> picture [491 x 372] intentionally omitted <==

Figure 11 . Location of Balfour Project in relation to existing manganese prospects in the area, Western Australia.

Quarterly Activities Report | December 2022 | ASX: KLI

17

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Killi Resources Limited ABN Quarter ended (“current quarter”) 74 647 332 790 31 December 2022

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (Joint Venture Payments) Other (Net GST Payments) 1.9 Net cash from / (used in) operating activities	- (964) - - (102) (160) - 3 - - - (200)	- (2,082) - - (186) (309) - 5 - - - (200)
	26	(52)
	(1,397)	(2,824)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - (1) - - -	- - (1) - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	(1)	(1)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	3,257 (1,397) (1) -	4,684 (2,825) (1) -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	1,859	1,859
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,859 - - -	3,257 - - -
	1,859	3,257
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 (60) 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		(60)
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-
	N/A
8.	Estimated cash available for future operating activities		$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (1,397) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (1,397) Cash and cash equivalents at quarter end (item 4.6) 1,859 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 1,859 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.33 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?		(1,397) - (1,397) 1,859 -
			1,859
	Answer: Due to the location of the Company’s projects in northern WA and QLD its exploration activities and associated cash payments are seasonable, with higher net operating cash outflows in the dry season and lower operating cash outflows expected over the wet season when on-ground exploration activity is limited. Net cash outflows from operating activities in the current quarter also include a once off joint venture payments (Item 1.8).
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: No the Company has not taken any steps. The Company believes it will be able to raise further equity when needed, if and as required, following the successful completion of its initial public offering of $6 million completed in March 2022 quarter.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes, the Company expects to be able to continue its operations and to meet its business objectives based on its response to items 1 and 2 above.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 31 January 2023

Authorised by: The Board of Killi Resources Limited.........................

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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