KINGSTON RESOURCES LIMITED — Capital/Financing Update 2017

Apr 17, 2017

KINGSTON RESOURCES LIMITED

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ASX Announcement

18 April 2017

ASX Code: KSN

Share Price: A$0.021 Shares Outstanding: 665,769,985 Market Capitalisation: A$14.0m Cash: A$5.1m (Dec 31, 2016) ACN 009 148 529

Geophysical survey highlights target areas at Bynoe

Highlights

• Magnetic, radiometric and aster data combined to generate new target areas

• Three main areas highlighted for additional work

• Drilling approvals in place for Cai, Lei, Bao, Liana and Min prospects

Board and Management

Anthony Wehby Chairman

Andrew Corbett Managing Directo r

Andrew Paterson Chief Geological Officer

Stuart Rechner Non-Executive Director

Chris Drew Commercial Manager

Kingston Resources (ASX:KSN) is pleased to announce the initial results of an airborne geophysical survey at Bynoe (Figure 1), flown in collaboration with Liontown Resources Ltd and Core Exploration Ltd (refer ASX announcement 10 January 2017). Kingston had the aeromagnetic and radiometric data interpreted by Southern Geoscience Consultants in conjunction with available Aster data to produce a series of structural and radiometric targets. This information will now be used to prioritise ongoing soil geochemistry programs and drill targeting.

The interpretation has highlighted targets for on-ground testing in three areas:

1. EL31133: four structural and radiometric targets. The radiometric targets correspond with known pegmatite outcrops, are close to a known lithium-in-soil anomaly (Cai) that is scheduled for drill testing in the upcoming RC program, and are along strike from Core Exploration’s Grants and Far West lithium discoveries.

2. EL31091: seven radiometric targets, one of which is adjacent to a lithium-insoil anomaly (Lei) that is scheduled for drill testing in the upcoming RC program. The other target areas are yet to be tested.

3. EL31151: six radiometric targets in and around a series of structural targets, in an area which has not yet been tested by soil sampling. This area is adjacent to Core Exploration’s Ringwood prospect (Figure 2).

Drilling Approvals

Contact Details

3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968

info@kingstonresources.com.au www.kingstonresources.com.au

Kingston has received approvals for three RC drilling programs at Bynoe. An initial program of between 3000 - 4000m of RC drilling is scheduled to commence once the seasonal rains have finished. Targets identified by Kingston’s prior surface sampling have been further refined by the recently completed geophysical interpretation to prioritise phase one drill targets.

“This has been a valuable collaborative geophysical program between the active lithium exploration companies at Bynoe”, commented Kingston’s Managing Director Andrew Corbett. “The interpretive work has highlighted areas for us to test with additional geochemistry, and we’re looking forward to starting our RC program as soon as the dry season begins”.

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ASX Announcement – 18 April 2017

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Figure 1: Initial drill targets at Bynoe.

3 Spring Street, Sydney, NSW 2000

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

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ASX Announcement – 18 April 2017

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Figure 2: Radiometric and structural targets, EL31151.

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

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ASX Announcement – 18 April 2017

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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. In addition, the Livingstone Gold Project holds a 50koz inferred resource and is the site of a number of high grade historic intersections. The company is well funded to rapidly advance its exploration projects, with the initial focus being the Mt Cattlin, Bynoe, and Arunta lithium projects, alongside commencement of work on the Livingstone Gold Project.

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 in the form and context in which it appear.

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Kingston Resources Project Locations

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

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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	•Not applicable as no new sampling has been undertaken
	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.
Drilling	• Drill type (eg core, reverse circulation,	•Not applicable as no drilling has been
techniques	open-hole hammer, rotary air blast, auger,	undertaken
	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). _
Drill sample	• Method of recording and assessing core	•Not applicable as no drilling has been
recovery	and chip sample recoveries and results	undertaken
	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.
Logging	• Whether core and chip samples have been	•Not applicable as no drilling has been

3 Spring Street, Sydney, NSW 2000

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ASX Announcement – 18 April 2017

Criteria	JORC Code explanation	Commentary
	geologically and geotechnically logged to a	undertaken
	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	•Not applicable as no drilling has been
techniques and sample preparation	quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet	undertaken
	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 assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is	•Not applicable for geophysics survey program reporting •Details of the geophysical survey are
	considered partial or total.	as follows: Flight Height: 50m. Line
	• For geophysical tools, spectrometers,	Spacing: 50m. Flight Line Direction:
	handheld XRF instruments, etc, the	090-270 deg. Tie Line Spacing: 500m.
	parameters used in determining the	Tie Line Flight Direction: 0-180 deg.
	analysis including instrument make and	Magnetometer: G822A Magnetometer
	model, reading times, calibrations factors	Data capture rate 20 times per sec:
	applied and their derivation, etc.	Radiometric System: RS 400
	• Nature of quality control procedures	Spectrometer
	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	•Southern Geoscience Consultants
sampling and assaying	by either independent or alternative company personnel.	were engaged by KSN to undertake an independent review of the magnetic-
	• The use of twinned holes.	radiometric data as well as available
	• Documentation of primary data, data entry	ASTER data over KSN’s Bynoe
	procedures, data verification, data storage	Project. They were engaged to
	(physical and electronic) protocols.	interpret the datasets and define any
	• Discuss any adjustment to assay data.	new target areas identified based on their understanding of LCT type
		pegmatitesgeophysical characteristics

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

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Criteria	JORC Code explanation	Commentary
		in lithium bearing terrains.
Location of	• Accuracy and quality of surveys used to	•Location of airborne geophysical data
data points	locate drill holes (collar and down-hole	is via GPS units with an accuracy of
	surveys), trenches, mine workings and	+/- 5m which is considered sufficient
	other locations used in Mineral Resource	accuracy for the purpose of
	estimation.	interpreting results
	• Specification of the grid system used.	•The grid system used is GDA 1994
	• Quality and adequacy of topographic	MGA Zone 52.
	control.
Data spacing	• Data spacing for reporting of Exploration	•Airborne data was captured along
and distribution	Results.	flight lines spaced 50m apart flown at a
	• Whether the data spacing and distribution	height of 50m. Sample spacing along
	is sufficient to establish the degree of	each line was approximately 4-5m.
	geological and grade continuity appropriate
	for the Mineral Resource and Ore Reserve
	estimation procedure(s) and classifications
	applied.
	• Whether sample compositing has been
	_applied. _
Orientation of	• Whether the orientation of sampling	•Not applicable as no drilling has been
data in relation to geological	achieves unbiased sampling of possible structures and the extent to which this is	undertaken
structure	known, considering the deposit type.
	• 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	•Not applicable as no new sampling
security	security.	has been undertaken
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	•Not applicable as no audits or reviews of sampling techniques have been
		undertaken.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location	•These results are from within Kingston
tenement and land tenure status	and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding	Resources Ltd’s Bynoe Project. The survey covered 6 of KSN’d granted tenements 100% owned by Kingston
	royalties, native title interests, historical	through the subsidiary Slipstream
	sites, wilderness or national park and	WANT Pty Ltd (EL31133, EL31151,
	environmental settings.	EL31150, EL31200, EL31092,
	• The security of the tenure held at the time	EL31091, see Figure 1).
	of reporting along with any known
	impediments to obtaining a licence to
	_operate inthe area. _

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

3 Spring Street, Sydney, NSW 2000

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ASX Announcement – 18 April 2017

Criteria	JORC Code explanation	Commentary
Exploration	• Acknowledgment and appraisal of	•Previous exploration of pegmatite-
done by other parties	exploration by other parties.	hosted mineralisation 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	•KSN is targeting any potential
	of mineralisation.	mineralisation within the outcropping
		pegmatites within the Bynoe Project.
		The mineralisation 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	•Not applicable as no drilling has been undertaken
	results including a tabulation of the
	following 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	• In reporting Exploration Results, weighting	•Not applicable as no new sampling
aggregation methods	averaging techniques, maximum and/or minimum grade truncations (eg cutting of	has been undertaken
	high 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 _

3 Spring Street, Sydney, NSW 2000

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Criteria	JORC Code explanation	Commentary
	metal equivalent values should be clearly
	_stated. _
Relationship	• These relationships are particularly	•Not applicable as no drilling has been
between mineralisation widths and intercept lengths	important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	undertaken
	• 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	•See figures in release
	scales) and tabulations 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	•See body of release
reporting	Exploration Results is not practicable,
	representative reporting of both low and
	high grades and/or widths should be
	practiced to avoid misleading reporting of
	_Exploration Results. _
Other	• Other exploration data, if meaningful and	•See release details
substantive exploration data	material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical
	survey results; bulk samples – size and
	method of treatment; metallurgical test
	results; bulk density, groundwater,
	geotechnical and rock characteristics;
	potential deleterious or contaminating
	_substances. _
Further work	• The nature and scale of planned further	•KSN plans to begin drill testing its 5
	work (eg tests for lateral extensions or	pegmatites targets defined through
	depth extensions or large-scale step-out	surface geochemical surveys (Lei, Cai,
	drilling).	Min, Bao and Liana), once field access
	• Diagrams clearly highlighting the areas of	becomes practical. The new targets
	possible extensions, including the main	discussed in this release which have
	geological interpretations and future drilling	been identified through interpretations
	areas, provided this information is not	of the geophysical survey will be
	commercially sensitive.	followed up with on ground
		reconnaissance and geochemical
		surveys.

3 Spring Street, Sydney, NSW 2000

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