KINGSTON RESOURCES LIMITED — M&A Activity 2017

Nov 9, 2017

KINGSTON RESOURCES LIMITED

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ASX Announcement

10 November 2017

ASX Code: KSN

Share Price: A$0.021 Shares Outstanding: 669,082,736 Market Capitalisation: A$14.1m Cash: A$3.1m (30 September, 2017)

Post-merger shares 992,957,093 ACN 009 148 529

Board and Management

Anthony Wehby Chairman

Kingston’s transformational merger to proceed

Highlights

• Kingston Resources Limited (KSN.ASX) is pleased to announce that it has acquired the exciting 2.3Moz Misima Gold Project through a successful merger with WCB Resources.

• Kingston has already identified a number of initial exploration targets at Misima where field work is set to commence in November ahead of drilling in 2018.

Andrew Corbett Managing Directo r

Andrew Paterson Chief Geological Officer

Stuart Rechner Non-Executive Director

Chris Drew Business and Commercial Manager

Kingston Resources Ltd (KSN) is pleased to confirm that the Supreme Court of British Columbia has granted final approval for the merger between Kingston Resources Ltd (KSN) and WCB Resources Limited (WCB).

“This merger represents a transformational step for both KSN and WCB shareholders. We would like to take the opportunity to thank the WCB management and shareholders for their support during the merger process. The KSN board and management team welcomes the new KSN shareholders and we look forward to commencing work on Misima this month’’, commented Andrew Corbett, Managing Director of KSN.

The court approval follows overwhelming support from WCB shareholders for the merger with KSN. The process is underway to delist WCB and to issue new KSN shares to WCB shareholders.

Mr Corbett stated, “We are immediately commencing work on Misima which includes completing a JORC resource, and re-establishing a field team incorporating current and new operational personnel who will be recommencing geochemical field work shortly. Historical data completed on Misima has enabled Kingston to rapidly identify priority drill targets on Misima. The KSN management team aim to submit drilling approvals in the new year with a target of mobilising a drill rig in Q4 FY18.”

Contact Details

205/283 Alfred Street North, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au

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ASX Announcement – 10 November 2017

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Exploration targets identified

Kingston is already working with the established field team to recommence exploration work on the island. A review of historic data has highlighted four key target areas. Each of these areas has been underexplored in the recent history of Misima as exploration work subsequent to the 2004 mine closure has focused on deep copper targets. Kingston is excited to return the focus to these anomalies, the initial aim will be to add shallow, higher grade tonnes to the existing resource. The four target areas are:

• Umuna East: Mineralised structures on southeast side of Umuna that are up to 1.8km in strike with evidence of high grade, shallow mineralisation. Surface channel samples include

• 20m @ 4.07g/t Au

• 40m @ 1.95g/t Au

• 18m @ 1.91g/t Au

• 188m @ 0.81g/t Au

• Misima North: >3km untested strike open to the north, supported by historic mining, and geochemistry.

Remains under-explored. Historic drilling to follow up on at Misima North include

• 8m @ 4.68g/t Au from 8m in hole MNR2220, 1.4km north of Umuna

• 10m @ 2.36 g/t Au from surface in hole MNR889, 2.3km north of Umuna

• 10m @ 3.2 g/t Au from surface in hole MNR515, 2.3km north of Umuna.

Historic channel sampling at Misima North includes:

• 119m @ 1.63g/t 2.3km north of Umuna;

• 176m @ 1.12g/t; and

• 45m @ 0.88g/t 2.5km north of Umuna.

• Umuna Extensions : The existing resource is open along strike and down dip, with additional potential from both shear-hosted and skarn mineralisation which may add to the resource with drilling.

• Quartz Mountain: To the west of Umuna, Quartz Mountain is an area of higher grade mineralisation where the average hole depth to date is only 90m. The mineralisation remains open at depth. Historic drilling at Quartz Mountain includes:

• 10m @ 3.06g/t Au from 108m to end of hole in hole ERC693

• 12m @ 4.13g/t Au from 116m in hole EMD701

• 14m @ 2.28g/t Au from 76m in hole ERC2263

• 60m @ 2.29g/t Au from surface in hole EMD746.

Historic channel sampling at Quartz Mountain includes

• 115m @ 1.47 g/t Au

• 113m @ 1.50 g/t Au

• 49m @ 1.04 g/t Au.

205/283 Alfred Street North, North Sydney, NSW 2060

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Figure 1. Misima Gold Project heat map of soil sampling geochemistry.

Initial work will focus on the splay structures at Umuna East where existing soil sampling, channel sampling and alluvial mining supports the presence of shallow, and potentially higher grade, mineralisation.

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Figure 2. Umuna East splay structures with channel samples and soil samples

205/283 Alfred Street North, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au

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Figure 3. Example of Umuna East splay structures; Gold produced by alluvial miners on Umuna East

Over the remainder of 2017, alongside commencing the initial geochemistry program, Kingston anticipates appointing an Exploration Manager for Misima, releasing a JORC resource statement, and commencing work on environmental approvals for the planned 2018 drilling campaign.

Australian Project Update

Kingston’s Australian projects are all well positioned for an exciting 2018 with Livingstone, Bynoe and Arunta all drill ready. The next steps for each project are:

Livingstone Gold Project: The next drill program will focus on the large geochemical soil anomaly around the Livingstone’s Find area.

Bynoe Lithium Project : Following further field work in the September quarter, three targets are now ready for follow up drilling. Kingston’s key focus at Bynoe is working towards a maiden resource.

Arunta Lithium Project: Two priority drill targets have been identified with greenfields reconnaissance and assessment ongoing.

205/283 Alfred Street North, North Sydney, NSW 2060

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About Kingston Resources

Kingston Resources is a metals exploration company. Currently the Company is completing a 70% earn in on the Misima Gold Project in PNG which has historically produced over 3.7Moz of gold and holds a recently completed NI43-101 resource of 2.3Moz of gold[1] . The Company also holds an attractive portfolio of lithium exploration tenements covering four key project areas with the priority focus in the Northern Territory, where the Bynoe Project 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 continue to advance its exploration projects.

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Kingston Resources’ project locations.

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 appears.

The technical and scientific disclosure of the Misima Indicated and Inferred Mineral Resource estimate has been reviewed and approved by Mr Scott Andrew McManus, a Member of the Australasian Institute of Geoscientists and a Registered Professional Geologist (Information Geoscience And Mining), and a full time employee of Skandus Pty Ltd who is a "qualified person" as

1 WCB.TSXv announcement 10th August 2017, http://www.wcbresources.com/news-releases/wcb-resources-announces-gold-resource-upgrademisima-island-0. This resource is reported under the Canadian National Instrument 43-101 and is not reported in accordance with the JORC Code. A Competent Person has not yet done sufficient work to report the resource in accordance with the JORC Code. It is uncertain whether, after further work, the NI43-101 resource will be able to be reported as a Mineral Resource under the JORC Code.

205/283 Alfred Street North, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au

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defined by the National Instrument 43-101. Mr McManus is independent of WCB and has reviewed and approved the contents of this news release with respect to the Mineral Resource estimate.

205/283 Alfred Street North, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au

JORC Code, 2012 Edition – Table 1 Umuna Gold Deposit, Misima Island

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (e.g. cut channels, random chips, or specific	•	The Umuna project was sampled using HQ, PQ and NQ triple tube diamond
techniques	•	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	•	drill holes (DD) (540 holes for 88,255m), Reverse Circulation (RC) (1,307 holes for 146,740m) and 144 Trenches/Channels cut with a diamond saw (for 9,212m). Ewatinona was sampled using HQ, PQ and NQ triple tube diamond drill
		appropriate calibration of any measurement tools or systems used.		holes (DD) (104 holes for 9,994.05m), and Reverse Circulation (RC) (285 holes
	•	Aspects of the determination of mineralisation that are Material to the Public		for 31,921.1m)
		Report.	•	DD samples were logged, photographed and marked up in lithological and
	•	In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘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		structural units and sampled in 2m lengths. Whole Core was submitted due to issues with splitting the core. RC samples were taken using a riffle splitter into 1m samples. These were further representatively split and combined into a 2m composite. If Samples were wet, a tube splitter was used instead of a
		commodities or mineralisation types (e.g. submarine nodules) may warrant		riffle. Trench samples were mapped and sampled in 2m intervals.
		disclosure of detailed information.	•	Sample preparation was carried out on site through jaw crusher than a
				hammer mill, and a split sent to a lab.
			•	No data prior to 1978 has been used in the estimate
			•	From 1978 to 1987 Gold was determined using a screen fire assay (after AAS)
				and Silver, Copper, Lead and Zinc using an AAS at Fox laboratories in
				Sydney.
			•	From 1987-2000 Gold was determined using a screen fire assay and Silver,
				Copper, Lead and Zinc using an AAS at the Misima Mines Pty Ltd (MMPL)
				on site lab. Where gold was > 0.5 Auppm a check assay was carried out at
				Classic Labs in Townsville using screen fire assay.
			•	From 2012-2015 WCB Resources Ltd (WCB) Drill Assays were carried out at
				ALS using Au-AA25 using a 30g charge and ME-ICP61 for a suite of 33
				elements

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Drilling	•	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast,	•	Diamond drilling (DD) accounts for 36% (based on metres) of the drilling
techniques		auger, Bangka, sonic, etc.) and details (e.g. 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.).		used in the resource and comprises of PQ, HQ and NQ sized triple tube core. Drillhole depths range from 5 to approximately 433 m with an average depth of 151m. Some Drill core was oriented to assist in structural interpretation. RC
				Drilling accounts for 60% of the drilling in the resource. RC diameter ranged
				from 4” to 5”. Drillole depths range from 15 to 269m with an average depth
				of 120m.
Drill sample	•	Method of recording and assessing core and chip sample recoveries and	•	DD Recovery was determined at the drill site while core was still in the inner
recovery	• •	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.	•	tube of the wire-line core barrel. RC recovery was assessed at the rig, and where suspect it was noted in the log sheets. Attention was paid to expected sample weights. MMPL procedure document outlines the recovery procedures for DD and RC drill holes. Larger diameter PQ, HQ and NQ size core was used to provide more
				improved recovery and triple tube drilling employed to preserve core in a
				more coherent state for logging and also to improve recovery in very broken
				or clayey lithologies. RC Samplers were to keep an eye on sample weights
				produced at the rig and advise the geologist if the weight was more or less
				than expected. RC samples were riffle split to produce a representative sample
				on site where the sample was wet a tube splitter was used. Diamond core was
				not split, with the whole drill core been taken for sample.
			•	There does not appear to be a correlation between mineralisation and poor
				core recovery for the DD holes that have recovery recorded. Core recovery
				was extremely variable during the project. WCB holes have good recoveries
				with 90+% in the mineralised intercepts. No bias and grade has been noted.
				Recovery of RC samples, where poor, was noted in the drill logs, and intervals
				marked as suspect.
Logging	•	Whether core and chip samples have been geologically and geotechnically	•	All core and chips have been suitable logged to an industry standard and is
	• •	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.	•	appropriate to support resource estimation. Diamond core has been qualitatively logged for lithology, size, colour, texture, alteration, structure, weathering, and a mixture of qualitative and quantitatively logged for mineralisation, structure orientation, geotechnical and veining. RC chips were qualitatively logged for colour, weathering,
				lithology,alteration and mineralisationquantitativelylogged. Magnetic

205/283 Alfred Street North, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au

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Criteria	JORC Code explanation	JORC Code explanation		Commentary	Commentary
					susceptibility was logged for all drill holes. All core was photographed wet.
					Digital and Analogue photography is available for DD core.
				•	All intervals for RC and DD has been logged. For a total of 244,207m
Sub-sampling	•	If core, whether cut or sawn and whether quarter, half or all core taken.		•	Core was not sub sampled as the whole core was taken as a sample.
techniques and sample preparation	• •	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique.		•	Quartered samples were taken as required for petrography. Chip samples were riffle split (tube split if the sample was wet) and sampled dry, which was noted in log sheets. All 2 m composites were assayed.
	• •	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		•	Anomalous or suspect intervals were re-assayed from coarse rejects. Sample preparation for all samples followed MMPL or WCB standard
		material collected, including for instance results for field duplicate/second-half			methodologies which are appropriate.
	•	sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.		•	QAQC procedures included checking the homogeneity of the sample at the hammer mill split via duplicates, assay reliability via inter lab checks of lab
					pulp and coarse rejects, free AU potential via screen fire assay, as well as the
					use of matrix specific standards, blanks and field duplicates. All samples that
					had reported gold had their coarse rejects kept in labelled core trays in the
					core yard for later checks and duplication as required. (This material is no
					longer available due to the fast decomposition of the material)
				•	Field Duplicates were taken to ensure representative sampling.
				•	Diameter of core sizes employed are considered appropriate to the grain size
					of the gold and in line with general industry practice for epithermal style gold
					deposits. Field duplicates were routinely checked to ensure that they reported
					within acceptable limits. Screen fire assays were routinely taken to check for
					the presence of free gold and the gold sizing.
Quality of	•	The nature, quality and appropriateness of the assaying and laboratory		•	All assay techniques used during the three stages of drilling used in the
assay data and laboratory tests	• •	procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of		• •	estimate are appropriate. The technique is total. No geophysical tools were used to determine any element concentrations used in this resource estimate. Grind size checks were performed by the labs and reported as part of their due diligence. One reference sample was inserted into laboratory dispatches every 50
		accuracy (i.e. lack of bias) and precision have been established.			samples submitted. The various standards used were: < 5 ppb Au, > 0.1 ppm

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Criteria	JORC Code explanation	Commentary
		Au and > 2.5 ppm Au. The geologist who logged the hole was required to
		select the standard that he thought best reflected the assay result expected for
		that batch of 50 samples. Sixty gram samples of standards were weighed from
		the original shipment of certified reference material. Blanks, consisting of
		unmineralised limestone, were used from at least 1999. Duplicates of all
		samples and the reject from the jaw-crusher and hammer-mill stages of
		subsampling were retained at the geology storage shed for reassay if required.
		Two pulps were made from the hammer-milled samples that had sample
		numbers ending in zero; i.e., every tenth sample. The letters “A” and “B” were
		added to these sample numbers and both were presented to the mine
		laboratory for assay The rejected hammer-milled pulp from the “A” sample
		was then split: one of these splits was sent to ALS, Townsville, Australia and
		the other to Classic Laboratories also in Townsville, Australia as check
		samples.
		Files have been provided to Australian Mining Consultants (AMC) during the
		2013 and 2015 resource estimate and to Skandus which provide evidence that the
		documented sampling protocols were carried out across the Property. They also
		include some of the QA/QC checks and results between the years 1978 and 2004 at
		Misima and nearby deposits, including Ewatinona.
		• The files are not sufficient to demonstrate the continuous implementation
		of the QA/QC system or results throughout the drilling history.
		However, the files do indicate that sampling and assaying protocols and
		a level of QA/QC checks were in place certainly for some of the drilling
		programs during these years.
		• AMC reviewed the available QAQC data in terms of validity of
		procedures and the spatial impact of results on the 2015 Mineral
		Resource.
		• In summary:
		• An industry standard QA/QC system was in place during early years of
		drilling, from 1978 to 1987
		• There was an awareness and some focus of sampling limitations and
		protocols in 1990 and steps were taken to improve sample preparation
		• A more comprehensiveQA/QC system was inplace from 1999 to 2004

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				• Drillholes from 2000–2004 appear to have had undergone regular QA/QC
				checks, and are therefore likely to have a higher level of confidence.
				Although it would be desirable to have demonstrated higher precision in
				the samples, the QA/QC data indicates that the assays were unbiased.
				• There is sufficient information on sampling and assaying protocols,
				supported by sufficient QA/QC and mine production data to conclude
				that the sample database is adequate to support Measured or Indicated
				Mineral Resource estimates.
				• Skandus reviewed MML mine memos relating to QAQC and concluded
				that there was an ongoing active program where issues were identified
				and efforts were taken to improve process, this also included a site visit
				by Pitard (1990) which coincides with the site efforts to improve sampling
				limitations andprotocols.
Verification of	•	The verification of significant intersections by either independent or	•	Significant intersections were inspected in the field by staff geologists to
sampling and assaying	• • •	alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	• •	confirm nature of mineralization and verify integrity of sampled intervals. Twinning had not been regularly carried out, during 2013 and 2015 AMC carried out a review of drill holes close by using boundary tools in Datamine and found acceptable correlation. All Data, data entry procedures, data verification and data storage has been
				carried out in accordance with MMPL and WCB SOPS. Historical records are
				currently stored at a facility in Townsville whilst WCB Records have been
				transferred to KSN. Digital records are stored in various electronic formats.
				Whilst there are database formats of the drill data it is recommended that an
				appropriate drillhole database is used to house the MMPL (which was
				extracted from the GEOLOG system on behalf of WCB) and WCB data. KSN
				is in the process of merging the drillhole data into its own drillhole database
				which is an appropriate drillhole database.
				Skandus carried out its own validation checks on the drill hole files and
				original GEOLOG files provided after transfer and found there to be very few
				validation issues. Skandus also reviewed all MMPL data and data protection
				SOPS, and selected documentation and found all work had been carried out
				to acceptable industry standard and care. Skandus has experience with the
				GEOLOG system and also reviewed original GEOLOG format files,and scans

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				of Analogue GEOLOG log forms. Despite the data not being in a suitable
				database the data quality is good.
			•	No adjustments or calibrations were made to any assay data used in this
				estimate.
Location of	•	Accuracy and quality of surveys used to locate drill holes (collar and down-	•	Drillhole collar surveys were conducted as soon as possible after drilling.
data points	• •	hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.		Downhole surveys, to maintain a record of hole deviation, were conducted on angled cored holes after each 50 m was drilled. Packets containing downhole survey discs were present in several scanned images, indicating that an Eastman single shot camera was the survey tool in use at the time.
				During recent resource estimation work, it was established that all survey
				azimuths used in the GEOLOGs were magnetic, allowing easy adjustment of
				the down-the-hole survey data for the grid being used.
				In the recent diamond drilling completed by WCB, down hole surveying was
				conducted on intervals approximating every 30 metres.
			•	GDA94 datum (Zone 56).
			•	All data is provided in either GDA94, AGD66, Truncated AGD or MMPL local
				mine grid. The estimate has been carried out in the local MMPL mine grid.
				There is good documentation outlining the conversion methodology. LOCAL
				MMPL X = –5,146,863 + ( 0.8420881 * AMGX ) + ( 0.5400387 * AMGY ) LOCAL
				MMPL Y = –7,149,444 + ( –0.540031 * AMGX ) + ( 0.8420999 * AMGY )
			•	Topographic control was checked during 2015 by a new topographic survey
				conducted by WCB. AMC during the 2015 report reviewed the control with
				drillhole collars and end of mine surveys and found it was sufficient to
				support measured or indicated mineral resource estimates.
Data spacing	•	Data spacing for reporting of Exploration Results.	•	Drillhole spacing is approximately 25m by 25m with downhole sampling
and distribution	• •	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.		predominantly at 2m intervals adjacent to the main Umuna zone, at depth and distal zones have a 50m x 50m drill hole spacing. The majority of the RC and diamond holes were angled holes at a variety of dips and orientation, predominantly normal to the structure of interest. Some historical drilling
				was vertical until orientation of target structures were well known.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	For the size of the deposit and expected mining block (and historical mining
				block), the spacing gives good coverage of the mineralised zone and at a
				suitable spacing to estimate blocks. Sample spacing has been taken into
				consideration for classification of the resource blocks.
			•	Samples were composited to 2m.
Orientation of	•	Whether the orientation of sampling achieves unbiased sampling of possible	•	Based on the current geological model of steep structurally controlled and
data in relation to geological structure	•	structures and the extent to which this is 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.	•	gently dipping strata bound mineralisation, the orientation is appropriate for each of the differently oriented zones and styles. No orientation based sampling bias has been identified in the data at this point.
Sample	•	The measures taken to ensure sample security.	•	MMPL and WCB had industry standard SOPS and protocols for governing
security				sample security. Skandus interviewed previous senior technicians and
				Geologists from WCB and MMPL as well as reviewed the SOP documents
				and found that sample security on historical samples was adequate, this is
				backed up by the physical remnants of material such as sample tags, lock
				ties, bags and drums used during the WCB campaign still in storage at the
				WCB site office.
Audits or	•	The results of any audits or reviews of sampling techniques and data.	•	Skandus, has reviewed sampling memos and a report by Pitard that audited
reviews				and reviewed the MMPL sampling in 1990. Pitard identified some issues and
				made recommendations to improve sampling. Documentation shows that
				these recommendations where put into practise by MMPL. WCB sampling
				and data was reviewed by AMC during a 2013 technical report. AMC found
				that the core handling, logging and sampling was carried out to industry
				standards.

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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	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and ownership including agreements	•	Misima Island is part of the Louisiade Archipelago within Milne Bay Province
tenement and land tenure status	•	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.	•	of PNG. It is situated in the Solomon Sea about 625 km east of Port Moresby, the capital of PNG. The site is located at an approximate latitude of 10° 40’ South and longitude of 152° 47’ E. The Property consists of a single Exploration Licence, (EL) 1747, comprising
				53 sub blocks, covering a total area of 180 km2. This EL is valid and is currently
				in the renewal process to extend the licence to 20 March 2019. All conditions
				pertaining to compliance of the title have been met. The Property is located
				on the eastern portion of the island and includes the historic mining areas of
				Umuna and Quartz Mountain. There are no known impediments. KSN holds
				title via a farm in agreement between WCB Resources Ltd and WCB Pacific
				Pty Ltd, Pan Pacific Copper Ltd and Gallipoli Exploration Ltd which has been
				extended until March 2019. Gallipoli is the legal entity and tenement holder
				and is responsible forperformingits obligations under the_Mining Act_1992.
Exploration	•	Acknowledgment and appraisal of exploration by other parties.	•	1958–1964 Oceanic Mineral Development Pty Ltd, taken over by Pacific
done by other				Island Mines (PIM) Diamond drilling / adit development
parties			•	1964–1967 Oceanic/Cultus Joint Venture (JV) Trenching, diamond drilling
				5 holes for 1,383m in 1965, IP survey, U/G sampling new adit, steam sediment
				sampling
			•	1967 CRA Exploration Pty Ltd (CRAE) Stream sediment sampling at point
				of entry of all rivers and streams into the ocean
			•	1967–1969 PIM/Cultus Joint Venture (JV) Stream sediment sampling over
				whole island, ridge and spur soil sampling, percussion drilling, diamond
				drilling
			•	1969–1972 Noranda/PIM/Cultus JV - Noranda was operator
				Diamond drilling of 15 holes for 3,568 m at Mount Sisa copper anomaly,
				minor trenching at Umuna
			•	1973 Claims not renewed No work carried out
			•	1975–1976 Meneses Explorations Pty Ltd Grid Mapping, Sampling of old
				trenches

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	1977–1987 Placer/Meneses JV, Placer was operator Deep trenching, and
				channel sampling, mapping reverse circulation and diamond drilling
			•	1978–1985 CRAE also in JV, withdrew in 1985
			•	1982 Meneses bought out of JV
			•	1987 Placer forms MMPL, Government of PNG becomes 20% shareholder
				Mining development agreement signed
			•	2012 Barrick Gold Relinquishment of Mining Lease (SML 1)
			•	2012 – 2017 WCB Resource Ltd. Collection and collation of sampling
				information, historical documentation, sourcing and reconciling production
				blast hole data to drilled data and 2013 and 2015 resource estimates,
				topographic surveys to tie in topographic control, water levels, as mined
				surfaces and collar locations, Converting Geolog drill hole data into a modern
				format, and carrying out QAQC on the data and conversion with checking
				against analogue documents and photographs. Reviews of historical assay
				QA/QC. Work on validating and verifying historical data so it could be
				reliably used in a modern code compliant context. Compiling of historical
				information into NAT-INST 43-101 format for modern reporting. 3,669 auger
				ridge and spur soil samples, helimagentic aeromagnetic survey with
				processing and interpretation (2,035 line kms of survey), 658 channel samples
				and geological mapping, analysis of structural measurements, comparative
				analysis of WCB channel sampling and MMPL channel sampling to confirm
				validityof MMPL data and drillingof 5 diamond holes into the Mt Sisa area.
Geology	•	Deposit type, geological setting and style of mineralisation.	•	Misima Island forms part of the Louisiade Archipelago which is a
				continuation of the Papuan Fold Belt of the Papuan Peninsula offshore
				eastwards through the Papuan Plateau. The oldest rocks on Misima are
				Cretaceous to Paleogene metamorphic rocks, which can be subdivided into
				the western Awaibi Association and the younger overthrust eastern Sisa
				Association that is host to the gold and copper mineralization. The two
				associations are separated by an original thrust fault with later extensional
				activation.
			•	Mineralisation deposit style on Misima Island is best described as
				Intermediate Sulphidation Epithermal due to the strong association with
				porphyryCu Au style alteration,veiningand characteristics,the dominance

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ASX Announcement – 10 November 2017

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				of Ag Zn Pb Au Cu Mn geochemistry as well as complex alteration styles and
				geometry.
			•	Styles of mineralisation observed include multiphase hydrothermal breccia,
				stockworks both sheeted and three-dimensional, skarn, jasperoidal
				replacement, and poorly banded vein infill of quartz and carbonate with
				associated pyrite, galena, sphalerite, barite and minor tetrahedrite. This
				mineralization can be classified as Intermediate Sulphidation Epithermal
				Style and appears to be laterally zoned from a well-developed complex base
				metal skarn style affiliation outwards to a base metal fracture stockwork vein
				breccia style of mineralisation.
			•	Surrounding the Umuna lode, and most widely developed on the eastern
				(footwall) side, is a broad peripheral zone of lower grade mineralisation in
				quartz veins, often occupying shears, and of linear and irregularly shaped
				volumes of strongly jointed to brecciated rocks. The schists tend to carry shear
				or breccia mineralisation with a higher frequency of strong jointing and
				brecciation in the more compact intrusives and Ara Greenschist. Intrusive
				contacts are commonly brecciated and mineralised which, with their frequent
				shallow dips, has the effect of spreading mineralisation laterally in contrast to
				the steep attitude of Umuna lode mineralisation.
			•	Structurally the Umuna geometry is typical of a complex fault array with a
				large major fault hosting the majority of the precious metal mineralisation
				with numerous ancillary splays developed in the footwall to the main
				structure. The intersection of the splays and the dominant Umuna Fault are
				loci for zones of well-developed mineralisation. Mineralisation has a
				dominant structural control however strong secondary stratigraphic controls
				are also observed in particular where skarn style mineralisation is developed
				in Halibu Limestone – Ara Schist contacts. A series of north west trending
				splays intersect and control the loci of the higher-grade material within the
				Umuna fault zone.
Drill hole	•	A summary of all information material to the understanding of the exploration	•	Collar information is not provided for specific drillholes mentioned in this
Information		results including a tabulation of the following information for all Material drill		announcement. The Misima dataset contains over 2,000 historic holes, the
		holes: o easting and northing of the drill hole collar o elevation or RL(Reduced Level – elevation above sea level in metres) of		majority of which were drilled by Misima Mines Pty Ltd up to 2001. Holes mentioned in the body of the announcement are included as examples of

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ASX Announcement – 10 November 2017

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		the drill hole collar		remnant mineralisation outside of the areas mined by MMPL.
		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 averaging techniques, maximum	•	Drill intersections are length-weighted averages down hole. No top cuts
aggregation methods		and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.		have been applied.
	•	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 Exploration	•	Drilling is generally orthogonal to mineralised trends, however the
between mineralisation widths and intercept lengths	• •	Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).		intersection widths reported may not necessarily be true widths. The relationship between intersection width and true width varies from hole to hole depending on mineralisation style and attitude.
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts	•	Representative sections and maps are shown in the body of this
		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		announcement and in the accompanying presentation.
		appropriate sectional views.
Balanced	•	Where comprehensive reporting of all Exploration Results is not practicable,	•	Reporting of all historical drilling is not practicable. Intersections discussed
reporting		representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.		above are mentioned purely as representative examples of prospective exploration target areas.
Other	•	Other exploration data, if meaningful and material, should be reported	•	Geochemical results from soil sampling and trench (channel) sampling are
substantive exploration data		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.	•	also mentioned in the announcement and accompanying presentation. Where trench sampling composites are reported, the width if the composite is the overall length of the mineralised section of trench sampling as determined by GIS software. The grade reported is the simple arithmetic
				mean of all samples within that interval,with equal weight applied to each

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ASX Announcement – 10 November 2017

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				assay. The orientation of each line reported is shown on the accompanying
				maps: some orientations are not orthogonal to strike and investors should
				not assume all these results represent true widths of mineralisation at
				surface.
Further work	•	The nature and scale of planned further work (e.g. tests for lateral extensions	•	Kingston Resources intends to continue exploring Misima, initially with
	•	or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the		ongoing channel sampling in 2017 and also diamond drilling commencing in 2018. The intention of this work is to increase the size of the Misima mineral
		main geological interpretations and future drilling areas, provided this information is not commercially sensitive.		resource prior to commencing economic studies into possible future development scenarios.

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