KINGSTON RESOURCES LIMITED — Capital/Financing Update 2021

Dec 13, 2021

ASX/Media Announcement

14 December 2021

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Shareholder approval received for the acquisition of the Mineral Hill Mine in NSW

Acquisition delivers immediate gold production, cash-flow and outstanding gold and copper exploration opportunities in a Tier-1 mining district

Kingston Resources Limited (ASX: KSN ) ( Kingston or the Company ) is pleased to announce that the Company’s shareholders have today approved the issuance of shares to the vendor under the terms of the proposed acquisition of the Mineral Hill Mine ( Mineral Hill ) in central NSW (Figure 1), announced on 18 November 2021.

The acquisition represents a unique opportunity for Kingston to accelerate its transition into an operating mining company. With first gold poured in September, Mineral Hill is currently ramping up production from the processing of existing tailings, with full production on track for early 2022. Production is forecast to total 40,000 ounces at an average all-in sustaining cost (AISC) of A$1,550-1,650/oz over 29 months. The operation is expected to deliver positive free cash-flow by early 2022.

The assets acquired as part of the transaction include two processing circuits, a number of developed gold and polymetallic deposits alongside an extensive exploration portfolio.

Shareholders approved the issuance of consideration shares to the vendor at the Company’s Annual General Meeting held today. Accordingly, the acquisition of Mineral Hill is expected to complete on or before the end of January 2022 upon satisfaction of the remaining customary conditions precedent.

Kingston Resources Managing Director, Andrew Corbett, said: “The Kingston board would like to thank our shareholders for their continued support and for their strong vote of confidence today for the Mineral Hill transaction”.

“The Mineral Hill operational team is continuing to ramp up production throughout this transition period, and we look forward to working closely with them to deliver positive cash flow from the project from early 2022.

“In addition, work has commenced on designing and planning an immediate restart of exploration and resource drilling post settlement of the transaction. Exploration at Mineral Hill is one of the key pillars underpinning our aspiration to become a leading diversified mid-tier gold and base metal producer in the Asia-Pacific region.

“Strategically, the processing plant is ideally located within the Cobar Basin to take advantage of both internal and external near-mine opportunities. The attractive deal metrics, near-term cash-flow and significant gold and copper exposure make for a fantastic strategic fit with our cornerstone asset, the 3.8Moz Misima Gold Project in PNG.”

ASX: KSN Shares on Issue: 357M Market Cap: A$59M Cash: A$7.5M (30 September 2021)

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

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Figure 1. Mineral Hill Mine (100%) 516km W of Sydney NSW in Cobar Basin.

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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 3.8Moz 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.

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The Misima Mineral Resource and Ore Reserve estimate outlined below was released in an ASX announcement on 24 November 2020 and 15 September 2021. 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	97.7	0.79	4.3	2.5	13.4
Inferred	0.3	71.3	0.59	3.8	1.4	8.7
Total	0.3	169	0.71	4.1	3.8	22.1
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 confirms that the information in the market announcement provided is an accurate representation of the available data and studies for the material mining project and 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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