KINGSTON RESOURCES LIMITED — Capital/Financing Update 2016

Nov 23, 2016

KINGSTON RESOURCES LIMITED

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ASX Announcement

24[th] November 2016

ASX Code: KSN

Share Price: A$0.022 Shares Outstanding: 660,269,985 Market Capitalisation: A$14.5m Cash: A$5.4m (September 30)

ACN 009 148 529

Bynoe lithium targets identified, drilling applications submitted

Highlights

• Six priority pegmatite targets identified

• Mine Management Plans (MMP) submitted for drilling approval

• Drilling program is planned for commencement of the next drilling season, Q2 2017, post receipt of approvals

• Additional targets identified for future work

Board and Management

Anthony Wehby Chairman

Andrew Corbett Managing Directo r

Andrew Paterson Chief Geological Director

Stuart Rechner Non-Executive Director

Yafeng Cai Non-Executive Director

Kingston Resources Limited (ASX:KSN) (the Company or Kingston) is pleased to provide an update on its exploration programs at its Bynoe Project (Figure 1). Kingston has eight granted tenements for a total of 188km[2] within the Bynoe lithium province where lithium (spodumene) mineralisation has recently been identified by neighbouring explorers.

KSN geochemical surveys

Since tenement granting in September Kingston has completed geochemical surveys over four tenements within the Bynoe Project. This program has identified six targets (Figure 1) which have been prioritised for an initial drilling program.

The targets are located within the lithium bearing pegmatite trend, comprising outcropping or sub-cropping pegmatites with a combination of historical tintantalum workings (Liana and Ah Bung) and newly identified lithium in soil anomalies (Cai, Figure 2). The Bao, Lei and Min Prospects have also been identified as outcropping pegmatites and will be the focus of ongoing work. Numerous other pegmatites within Kingston’s tenements have also been identified and will be the subject of future work programs.

Mine Management Plan submission

Contact Details

3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au www.kingstonresources.com.au

MMPs for drilling the priority targets have been submitted, and once approved will allow the Company to undertake its initial RC drilling program. This is anticipated to be in the April quarter 2017, at the commencement of the next drilling season (post wet season). Ahead of drilling, Kingston will be conducting an aeromagnetic survey to further identify and refine targets.

Kingston MD Andrew Corbett commented “We are very pleased to have rapidly advanced our Bynoe Project from tenement granting to preparation for drilling within two months. The Bynoe region is fast becoming a significant new lithium opportunity for Australia which Kingston is excited to be part of, the scale of the Bynoe pegmatite field and access to regional infrastructure provides a unique advantage.”

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ASX Announcement – 24[th] November 2016

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Figure 1: Kingston Resources Bynoe Project

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3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au

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ASX Announcement – 24[th] November 2016

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Figure 2: EL31133 Cai Prospect lithium in soil anomaly (CXO drillhole locations extracted from its ASX announcement dated 20[th] October 2016)

• Note: tenement outlines are sourced from the NT DME Strike web platform. Individual tenement ownership is attributed based upon ASX announcements by the respective listed entities.

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3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au

ASX Announcement – 24[th] November 2016

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About Kingston Resources

Kingston Resources is a metals exploration company. The Company holds an attractive portfolio of lithium exploration tenements covering four key project areas. In Western Australia, the Mt Cattlin and Greenbushes projects are adjacent or near existing lithium mines. In the Northern Territory, the Bynoe project area is home to some exciting new discoveries and the Arunta project lies within a significant pegmatite field. The Company is well funded to rapidly advance its exploration projects, with the initial focus being the Mt Cattlin, Bynoe, and Arunta lithium projects.

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Reserves is based on information compiled by Mr Andrew Paterson, who is a member of the Australian Institute of Geoscientists. Mr Paterson is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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” (JORC Code). Mr Paterson consents to the inclusion in this report of the matters based upon the information.

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3 Spring Street, Sydney, NSW 2000

+61 2 8249 4968 info@kingstonresources.com.au

ASX Announcement – 24[th] November 2016

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JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Kingston Resources Ltd (KSN) has collected surface soil samples from target areas from within EL31091, EL31133, EL31092 and EL31151. The samples were sieved to <2.5mm and collected using hand tools (shovels) in 200m * 50m grids with 50m * 50m infilled areas. 679 samples have been collected and assayed during these sampling programs. A selected area of samples from the eastern side of EL31133 (Cai Prospect) is displayed in figure 2.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other _type, whether core is oriented and if so, by what method, etc). _	Not applicable as no drilling has been undertaken
Drill sample	 Method of recording and assessing core and chip sample recoveries	Not applicable as no drilling has been undertaken
recovery	and results assessed.
	 Measures taken to maximise sample recovery and ensure
	representative nature of the samples.
	 Whether a relationship exists between sample recovery and grade
	and whether sample bias may have occurred due to preferential
	loss/gain of fine/coarse material.

3 Spring Street, Sydney, NSW 2000

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ASX Announcement – 24 [th] November 2016
Criteria JORC Code explanation Commentary
Logging  Whether core and chip samples have been geologically and  Not applicable as no drilling has been undertaken
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.
 Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
 The total length and percentage of the relevant intersections logged.
Sub-sampling  If core, whether cut or sawn and whether quarter, half or all core  Not applicable as no drilling has been undertaken
techniques and taken.
sample  If non-core, whether riffled, tube sampled, rotary split, etc and
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 stages to
maximise representivity of samples.
 Measures taken to ensure that the sampling is representative 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.
Quality of  The nature, quality and appropriateness of the assaying and  Soil samples were sent to Intertek (Perth) for 4A/OM (four acid
assay data and laboratory procedures used and whether the technique is considered digestion) with ICP-MS analysis for Cs, Li, Ta, Rb + Sn
laboratory tests partial or total.  A duplicate soil sample was collected every 25 [th] sample as an internal
 For geophysical tools, spectrometers, handheld XRF instruments, etc, duplicate. Quality control samples were additionally run by the
the parameters used in determining the analysis including instrument laboratory during analysis
make and model, reading times, calibrations factors applied and their
derivation, etc.
 Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels
of accuracy (ie lack of bias) and precision have been established.
Verification of  The verification of significant intersections by either independent or  No independent geologists were engaged to verified results.
sampling and alternative company personnel.
assaying  The use of twinned holes.
 Documentation of primary data, data entry procedures, data
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3 Spring Street, Sydney, NSW 2000

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ASX Announcement – 24[th] November 2016

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Criteria JORC Code explanation Commentary
verification, data storage (physical and electronic) protocols.
 Discuss any adjustment to assay data.
Location of  Accuracy and quality of surveys used to locate drill holes (collar and  All coordinate information was collected using hand held GPS utilizing
data points down-hole surveys), trenches, mine workings and other locations GDA 94, Zone 52.
used in Mineral Resource estimation.
 Specification of the grid system used.
 Quality and adequacy of topographic control.
Data spacing  Data spacing for reporting of Exploration Results.  Sample locations are displayed in figures within the document
and distribution  Whether the data spacing and distribution is sufficient to establish the  Samples collected at 200m * 50m grids are designed to identified any
degree of geological and grade continuity appropriate for the Mineral potentially mineralized pegmatite trends and follow up infill to 50m
Resource and Ore Reserve estimation procedure(s) and 50m is designed to identify the extent of anomalism and any zoning in
classifications applied. the soil response.
 Whether sample compositing has been applied.
Orientation of  Whether the orientation of sampling achieves unbiased sampling of
data in relation to geological possible structures and the extent to which this is known, considering  Not applicable as no drilling has been undertaken
the deposit type.
structure
 If the relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample  The measures taken to ensure sample security.  Samples were delivered to the laboratory in Darwin who arranged
security transit to its Perth laboratory for analysis.
Audits or  The results of any audits or reviews of sampling techniques and data.  Not applicable as no audits or reviews of sampling techniques have
reviews been undertaken.
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3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au

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ASX Announcement – 24[th] November 2016

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	These results are from within Kingston Resources Ltd’s Bynoe Project which comprises 8 granted tenements and 4 tenement application 100% owned by Kingston through the subsidiary Slipstream WANT Pty Ltd (see figure 1).
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	Previous exploration of pegmatite hosted mineralization has occurred in the Bynoe region predominantly through historical small scale mine workings targeting Sn ± Ta and through regional recent RC drilling programs by Core Exploration and Liontown Resources. Within KSN’s target areas only historical workings and sparsely selected rock chip samples (pegmatite + host rock) have previously been undertaken.
Geology	 Deposit type, geological setting and style of mineralisation.	KSN is targeting any potential mineralization within the outcropping pegmatites within the Bynoe Project. The mineralization style is expected to be pegmatite hosted hard rock Sn + W + Ta + Li. The age and sources of the different pegmatite bodies in the area is thought to be Palaeoproterozoic.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information	Not applicable as no drilling has been undertaken
	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

3 Spring Street, Sydney, NSW 2000

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+61 2 8249 4968 info@kingstonresources.com.au

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ASX Announcement – 24 [th] November 2016
Criteria JORC Code explanation Commentary
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  In reporting Exploration Results, weighting averaging techniques,  Not applicable as no drilling has been undertaken
aggregation maximum and/or minimum grade truncations (eg cutting of high
methods grades) and cut-off grades are usually Material and should be stated.
 Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
 The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship  These relationships are particularly important in the reporting of  Not applicable as no drilling has been undertaken
between Exploration Results.
mineralisation
 If the geometry of the mineralisation with respect to the drill hole
widths and
angle is known, its nature should be reported.
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 length, true
width not known’).
Diagrams  Appropriate maps and sections (with scales) and tabulations of  See figures in release
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 not  Selected KSN soil data is displayed in figure two for EL31133
reporting practicable, representative reporting of both low and high grades  The soil sampling data from the other sampled tenements (EL31091,
and/or widths should be practiced to avoid misleading reporting of EL31092 and EL31151) has been successful in identifying pegmatite
Exploration Results. trends, but further sampling is required before a representative
coverage over potential areas of interest is achieved.
Other  Other exploration data, if meaningful and material, should be reported  See release details
substantive including (but not limited to): geological observations; geophysical  During collection of the soil samples information was collected from
survey results; geochemical survey results; bulk samples – size and each sample site relating to the nature of the soil profile (i.e. insitu
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3 Spring Street, Sydney, NSW 2000

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ASX Announcement – 24[th] November 2016

Criteria	JORC Code explanation	Commentary
exploration data	method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	soil, lag rich material, alluvial etc), type of soil (i.e. sandy, clay rich, etc) and depth of sample (max 50cm). The soil profile varies within the Bynoe Project and this metadata is utilized when assessing results.
Further work	 The nature and scale of planned further work (eg tests for lateral	KSN has undertaken further field based infilling soil sampling at the
	extensions or depth extensions or large-scale step-out drilling).	Cai Prospect as well as other targets within the project area. The
	 Diagrams clearly highlighting the areas of possible extensions,	company is planning on undertaking its initial drill program within the
	including the main geological interpretations and future drilling areas,	Bynoe Project in Q2 2017 (post wet season).
	provided this information is not commercially sensitive.

3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au

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