KINGSTON RESOURCES LIMITED — Capital/Financing Update 2019

Jun 4, 2019

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

KINGSTON RESOURCES LIMITED

ABN

44 009 148 529

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Ordinary shares
	Entitlement Offer – 58,666,858 fully paid ordinary shares
	Fully paid ordinary shares

• See chapter 19 for defined terms.

Appendix 3B Page 1

4 Do the[+] securities rank equally in Yes – equally with all issued fully paid all respects from the date of ordinary shares allotment with an existing[+] class of quoted[+] securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration $0.016 per fully paid ordinary share 6 Purpose of the issue The funds from the Entitlement Offer will be (If issued as consideration for the used to advance exploration activities at the acquisition of assets, clearly Company’s Misima Gold Project and identify those assets) Livingstone Gold Project in WA (refer ASX Announcement on 3 May 2019) 6a Is the entity an[+] eligible entity that Yes. has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the[+] securities the subject of this Appendix 3B , and comply with section 6i 6b The date the security holder 8 November 2018 resolution under rule 7.1A was passed 6c Number of +securities issued N/A without security holder approval under rule 7.1 6d Number of +securities issued N/A without security holder approval under rule 7.1A 6e Number of[+] securities issued with N/A security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

6f Number of securities issued under 58,666,858 fully paid ordinary shares under a an exception in rule 7.2 pro rate non-renounceable rights issue on the basis of 1 fully paid ordinary share for every 6 fully paid existing shares held 6g If securities issued under rule N/A 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. 6h If securities were issued under rule N/A 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining See Annexure 1 issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 Dates of entering[+] securities into 5 June 2019 uncertificated holdings or despatch of certificates Number +Class 8 Number and +class of all Ordinary Shares +securities quoted on ASX 1,567,427,741 KSN ( including the securities in section 2 if applicable)

• See chapter 19 for defined terms.

Appendix 3B Page 3

9 Number and +class of all +securities not quoted on ASX (_including_the securities in section 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Number	+Class
	Existing 7,058,823 Options (Expiry 30/6/2019, EX 3c) 13,500,000 Options (Expiry 30/06/2019, EX 7c) 5,000,000 Options (Expiry 22/12/19, Ex 2.5 cents) 29,000,000 Performance Rights (Expiry 30/06/2019 - subject to Performance and Vesting Conditions) 5,520,625 Performance Rights (Expiry 30/06/2020 - subject to Performance and Vesting Conditions) 12,813,661 Performance Rights (Expiry 30/06/2021 – subject to Performance and Vesting Conditions) 22,696,363 Performance Rights (Expiry 30/6/2022 – subject to Performance and Vesting Conditions) 18,216,818 Performance Rights (Expiry 31/7/2019 – subject to Performance and Vesting Conditions) 30,375,909 Options (Expiry 30/6/2021, Ex 2.7 cents)	KSNLTUO1 KSNLTUO2 KSNLTUO4 KSNLITHPER KSNLTPR2 KSNLTPR3 KSNLTPR4 KSNSTPR4 KSNLTU06
	N/A

Part 2 - Bonus issue or pro rata issue

(as previously announced) 11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable?	No Non-renounceable

13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	1 for 6 fully paid ordinary shares
	Fully paid ordinary shares
	15 May 2019
	Yes
	Rounding Up
	All countries except Australia and New Zealand
	29 May 2019
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date	3 May 2019
	N/A
	N/A
	N/A
	N/A
	N/A
	20 May 2019

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities

• ( tick one )

• (a) ✓[Securities described in Part 1 ]

(b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

To be provided.

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over To be provided.

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of securities for which N/A +quotation is sought 39 Class of +securities for which N/A quotation is sought 40 Do the[+] securities rank equally in all N/A respects from the date of allotment with an existing[+] class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation N/A now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

• See chapter 19 for defined terms.

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Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

  • Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

==> picture [63 x 41] intentionally omitted <==

Sign here: ............................................................ Date: 5 June 2019 (Company secretary)

Print name: Rozanna Lee

== == == == ==

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for +eligible entities

Introduced 01/08/12

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Part 1	Part 1
Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnumber of fully paid ordinary securities on issue 12 months before date of issue or agreement to issue	1,214,961,029
Addthe following: • Number of fully paid ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	5,922,725ordinary shares issued on 18/7/18 upon partial vesting of STI Performance Rights (KSNST3) issued to Executive Directors on 8/12/17 – approval by shareholders at AGM on 29/11/17) – remainder have lapsed 58,666,858ordinary shares issued on 5/6/19 (pro rata non-renounceable rights issue announced to shareholders on 3/5/19) Up to192,793,865ordinary shares to be issued on or before 28 August 2019 (remaining shortfall from pro rata non- renounceable rights issue announced to shareholders on 3/5/19)
Subtractthe number of fully paid ordinary securities cancelled during that 12-month period	N/A
“A”	1,472,344,477

Step 2: Calculate 15% of “A”

Step 2: Calculate 15% of “A”	Step 2: Calculate 15% of “A”	Step 2: Calculate 15% of “A”
	“B”	0.15 [Note: this value cannot be changed]

• See chapter 19 for defined terms.

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Multiply “A” by 0.15

220,851,672

Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used

Insert number of equity securities issued or agreed to be issued in that 12-month period not counting those issued:

• Under an exception in rule 7.2

• Under rule 7.1A

• With security holder approval under rule 7.1 or rule 7.4

Note:

• This applies to equity securities, unless specifically excluded – not just ordinary securities

• Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed

• It may be useful to set out issues of securities on different dates as separate line items

“C”

2,314,629 (Ordinary Shares issued on 18/7/18 upon partial vesting of FY18 STI Performance Rights (KSNST3) issued to employee on 6/12/17 – remainder have lapsed) 5,350,568 FY19 STI Performance Rights issued to employee on 23/8/18 (Expiry 31/7/2019 – subject to Performance and Vesting Conditions) 164,062,500 Placement of ordinary shares 1/5/19 49,123,888 Placement of ordinary shares 8/5/19 220,851,585

Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1

“A” x 0.15

Note: number must be same as shown in Step 2 Subtract “C”

220,851,672 220,851,585

Note: number must be same as shown in Step 3 Total [“A” x 0.15] – “C” 87 [Note: this is the remaining placement capacity under rule 7.1]

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

“A” Note: number must be same as shown in Step 1 of Part 1

1,472,344,477

Step 2: Calculate 10% of “A”

“D” 0.10 Note: this value cannot be changed Multiply “A” by 0.10 147,234,448

Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used

Insert number of equity securities issued or 72,376,112 (Placement of shares on 8 and agreed to be issued in that 12-month period 10 May 2019) under rule 7.1A

Insertnumber of equity securities issued or agreed to be issued in that 12-month period under rule 7.1A	Insertnumber of equity securities issued or agreed to be issued in that 12-month period under rule 7.1A	72,376,112 (Placement of shares on 8 and 10 May 2019)
Notes:
•	This applies to equity securities – not just
	ordinary securities
•	Include here – if applicable – the securities
	the subject of the Appendix 3B to which this
	form is annexed
•	Do not include equity securities issued
	under rule 7.1 (they must be dealt with in
	Part 1), or for which specific security holder
	approval has been obtained
•	It may be useful to set out issues of
	securities on different dates as separate line
	items
“E”		72,376,112

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A	Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	147,234,448
Subtract“E” Note: number must be same as shown in Step 3	72,376,112
Total[“A” x 0.10] – “E”	74,858,336 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

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