KINGSTON RESOURCES LIMITED — Capital/Financing Update 2020

Dec 10, 2020

ASX/Media Announcement 11 December 2020

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$13m capital raising to advance 3.6Moz Misima Gold Project

Funding to progress development studies, approvals and extensional / in-fill drilling as Kingston advances its large-scale PNG gold project towards development

• Binding commitments received for an institutional share placement at $0.26 per share to raise $12.5m

• Additionally, Kingston Chairman Mick Wilkes to subscribe for $500,000 worth of shares, subject to shareholder approval, for total equity raising proceeds of $13.0m

• Placement to facilitate the introduction of a number of new institutions to the Company’s register, including both Australian and international funds

• Proceeds to be used primarily to advance development studies, approvals and exploration at the Misima Gold Project in PNG

Kingston Resources Limited (ASX: KSN ), ( Kingston or the Company ) is pleased to advise that it has secured binding commitments to raise $12.5 million via a single-tranche institutional share placement ( Placement ) to advance its 3.6Moz Misima Gold Project in PNG to the next stage, as the foundation for a substantial new Asia-Pacific gold business. Alongside the Placement, Kingston Chairman Mick Wilkes has committed to take up $500,000 worth of shares at the same issue price as the Placement, subject to shareholder approval, for total equity raising proceeds of $13.0 million.

Under the Placement, the Company will issue 48,076,923 million shares at $0.26 per share ( Issue Price ) to institutional and sophisticated investors to raise gross proceeds of $12.5 million. The Issue Price represents an 11.2% discount to the 10-day volume weighted average price ( VWAP ).

The Placement will result in the introduction of a number of new institutions to Kingston’s share register, including both Australian and international funds, and has also received strong support from the Company’s existing shareholders.

Funds raised under the Placement will primarily be used to advance activities at the Company’s flagship Misima Gold Project in PNG, as well as at the Livingstone Gold Project in WA, including:

• Extensional and in-fill drilling within the existing 3.6Moz Misima Resource;

• Advancing mining studies and environmental studies at Misima;

• $1.65m settlement of the acquisition of remaining Joint Venture interest in Misima, taking Kingston to 100% ownership of Misima (see ASX Announcement 24 June 2020);

• Exploration activities at Misima and Livingstone; and

• General working capital.

201/110 Pacific Hwy, @KSNResources North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au

ASX: KSN Shares on Issue: 231M Market Cap: A$69M Cash: A$6.8M (30 Sept 2020)

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An Extraordinary General Meeting (EGM) of shareholders is expected to be held in early 2021 for shareholders to approve the issuance of shares to Mr Wilkes pursuant to listing rule 10.11 and to ratify the Placement pursuant to Listing Rule 7.4.

The Placement is being undertaken pursuant to ASX Listing Rule 7.1 and 7.1A. It is anticipated that 25,076,580 shares will be allotted under Listing Rule 7.1, and 23,000,343 will be allotted under Listing Rule 7.1A. The shares are expected to be issued on or around 18 December 2020. Details of the proposed share issue are set out in the Appendix 3B lodged by the Company today.

Canaccord Genuity (Australia) Limited acted as Lead Manager to the Placement.

Kingston Managing Director Andrew Corbett said: “We are delighted with the response we have had from investors during the book-build process, which reflects the strong positive sentiment towards the Misima Gold Project following our recently-released Pre-Feasibility Study.”

“We’re now looking forward to taking the next steps at Misima, advancing work on studies and approvals, and working towards the delivery of updated Resource and Reserve estimates next year.”

“The coming 12 months is set to be an exciting and busy period for Kingston, as Misima moves into the DFS and approvals process, and with continued drilling activity planned to further improve the already compelling Project economics.”

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This release has been authorised by the Kingston Resources Limited Board. For all enquiries please contact Managing Director, Andrew Corbett, on +61 2 8021 7492.

About Kingston Resources

Kingston Resources is a metals exploration company which is focused on exploring and developing the worldclass Misima Gold Project in PNG. Misima hosts a JORC Resource of 3.6Moz Au and an Ore Reserve of 1.35Moz. Misima was operated as a profitable open pit mine by Placer Pacific between 1989 and 2001, producing over 3.7Moz before it was closed when the gold price was below US$300/oz. Kingston has concluded a Pre-Feasibility Study for Misima and is continuing to advance development activities. The Misima Project also offers outstanding potential for additional resource growth through exploration success targeting extensions and additions to the current Resource base. Kingston’s interest in Misima is held through its PNG subsidiary Gallipoli Exploration (PNG) Limited.

In addition, Kingston owns 75% of the high-grade Livingstone Gold Project in Western Australia where active exploration programs are also in progress.

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The Misima Mineral Resource estimate outlined below was released in an ASX announcement on 24 November 2020. Further information relating to the resource is included within the original announcement.

Resource Category	Cut-off (g/t Au)	Tonnes (Mt)	Gold Grade (g/t Au)	Silver Grade (g/t Ag)	Au (Moz)	Ag (Moz)
Indicated	0.3	68.3	0.80	4.5	1.8	9.8
Inferred	0.3 & 0.8	76.1	0.76	5.9	1.9	14.4
Total	0.3	144	0.78	5.2	3.6	24.2
Reserve	Cut-off (g/t Au)	Tonnes (Mt)	Gold Grade (g/t Au)	Silver Grade (g/t Ag)	Au (Moz)	Ag (Moz)
Probable	0.3	48.3	0.87	4.2	1.35	6.48
	Misima JORC 2012 Mineral Resource & Ore Reserve summary table

Competent Persons Statement and Disclaimer

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Stuart Hayward BAppSc (Geology) MAIG, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr. Hayward is an employee of the Company. Mr. Hayward has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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”. Mr. Hayward consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears.

The Competent Person signing off on the overall Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears.

Kingston confirms that it is not aware of any new information or data that materially affects the information included in all ASX announcements referenced in this release, and that all material assumptions and technical parameters underpinning the estimates in these announcements continue to apply and have not materially changed.

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