KRAKATOA RESOURCES LIMITED — Capital/Financing Update 2019

Nov 24, 2019

==> picture [162 x 82] intentionally omitted <==

Board:

Colin Locke (Exec. Chairman) David Palumbo (Non-Exec. Director) Timothy Hogan (Non-Exec. Director)

25 November 2019

KTA expands its landholding in the Lachlan Fold Belt

• Krakatoa acquires the Turon Project in the Lachlan Fold Belt, NSW, via direct licence application (ELA5882), subject to grant

• Positioned approximately 50km east of the Company’s Belgravia Project and 60km northeast of Newcrest Mining’s Cadia Valley Mine

Capital Structure:

165,000,000 Fully Paid Shares

75,000,000 Options @ 5c exp 31/07/21 12,000,000 Options @ 10c exp 24/10/20 10,893,878 Options @ 40c exp 12/12/19

• The Turon Project is prospective for:

• High-grade “Slate Belt” orogenic gold similar to the Hill End Field which has produced ~2Moz Au and where the world’s largest gold specimen, the Holtermann Nugget, was found

• o Shear-hosted gold mineralisation

ASX Codes: KTA, KTAOC

• Two separate north-trending reef systems, the Quartz Ridge and Turondale Groups, comprising numerous workings and quartz reefs that strike over 1.4km and 2.4km respectively, are contained in the Turon Project

Projects

Belgravia (Au-Cu) Mt Clere (REE) Dalgaranga (Ta-Li-Rb) Mac Well (Be, Au) Corkill-Lawson (Co-Ag)

• Rock grab sampling across the Quartz Ridge and Turondale Groups returned several tantalising results, including: o 1,530.00 g/t Au - Dead Horse Reef

• 150.00 g/t Au - Dead Horse Reef

• 60.60 g/t Au – Britannia Mine

• 26.00 g/t Au - Dead Horse Reef

• 17.15 g/t Au - Sixty Seven Reef

• o 11.30 g/t Au - Quartz Ridge Reef

• Limited drilling inadequately tested the Quartz Ridge Group targets with anomalous gold mineralisation intersected, which remains open in all directions, including:

• 2m @ 6.53g/t Au from 30m (incl 1m @ 10.40g/t Au)

• o 1m @ 1.23g/t Au from 24m o 3m @ 0.576g/t Au from 35m

• Krakatoa is actively exploring opportunities to further expand its landholding within the Lachlan Fold Belt, with a focus on copper-gold systems

OVERVIEW

Krakatoa Resources Limited (ASX: KTA) (“Krakatoa” or the “Company”) is pleased to announce that it has expanded its landholding in the Lachlan Fold Belt, NSW, through the acquisition of a 100% interest in the Turon Project via direct exploration licence application (ELA5882), subject to grant. The Turon Project covers an area of 120km[2] and is situated approximately 50km east of the Company’s Belgravia Project, 60km north east of Newcrest Mining’s Cadia Valley Operations and 30km north of Bathurst in the Central Tableland region, NSW (Figure 1).

The area has been subject to recent pegging interest, with both Alkane Resources Limited and Freeport McMoran Exploration Australia Pty Ltd pegging large landholdings immediately adjacent to the Turon Project.

Whilst the Company is not aware of any reason why the exploration licence for the Turon Project will not be granted in due course (anticipated within three to six months), investors are cautioned that there is a risk this may not occur.

Executive Chairman, Colin Locke commented “The Turon Project is a prospective, nondilutionary and strategically positioned acquisition that contains multiple anomalies demanding investigation. We continue to focus on and aggressively advance our Belgravia Project, in particular the Bell Valley Porphyry target, whilst actively exploring opportunities to further expand our landholding within the Lachlan Fold Belt.”

==> picture [423 x 305] intentionally omitted <==

FIGURE 1: REGIONAL LOCATION PLAN OF BELGRAVIA AND TURON PROJECTS

PROJECT GEOLOGY

The Turon Project is situated in the Hill End Synclinorial Zone or Trough, north of the Bathurst Batholith. It straddles the moderate to tightly folded, north-plunging Tripleys Creek Anticline. To the west is the Hill End Anticline and Fault and to the east the Waigdon Thrust. The various domains are comprised of Devonian and Silurian sediments intercalated with felsic volcanic and volcaniclastic rocks, and minor limestone. Three Carboniferous granitic stocks intrude these domains. They parallel and lie north of the 35km wide Lachlan Transverse Zone (LTZ). Sediments of the Hill End Trough rest on Ordovician volcanic and intrusive rocks of the Macquarie Arc and are up to 5km thick. Deformation associated with the Middle Devonian Tabberabberan Orogeny (~380Ma) closed the basin. A veneer of Late Devonian sediments postdates the Tabberabberan Orogeny and was gently deformed by the Kaniblan Orogeny (~355Ma). Granites of the Bathurst Batholith intruded the region at ~340Ma.”

==> picture [346 x 398] intentionally omitted <==

----- Start of picture text -----

Quartz Ridge
Group
ELA5882
Turondale
Group
Dam Creek
Group
Millah Murrah
Group
----- End of picture text -----

FIGURE 2: GEOLOGY, MINERAL OCCURENCES AND PROSPECTS - TURON PROJECT

The Turon Project lies on the western limb of an asymmetric synclinorium containing Devonian Cunningham Formation metasediments within the eastern Hill End Trough. The Cunningham Formation is a series of siltstones, slates, calcareous and lithic greywackes, and greywacke conglomerates.

Orogenic gold vein deposits occur adjacent to, and throughout, the Hill End Trough. In the Turon Project, gold mineralisation occurs in association with bedding parallel quartz veins (up to 10m wide) that commonly express as strike ridges within the metasediments. During the 1850s gold rush, many surface slot mines and underground mines chased vein quartz for their gold.

MINERALISATION

A number of mineral deposit styles are present in the Hill End Trough. Styles include orogenic gold (and base metal) vein systems; stratabound base metal sulphide mineralisation associated with Silurian felsic volcanism; lead–zinc and iron skarns of various ages; intrusive related molybdenum and tungsten mineralisation related to Carboniferous fractionated granites; Permian epithermal silver-lead-zinc and skarn-type mineralisation, and auriferous placer deposits ranging in age from Permian to Recent.

Four groups of historical mineral occurrences exist within the Turon Project (Figure 2):

• 1) Quartz Ridge;

• 2) Turondale;

• 3) Millah Murrah; 4) Dam Creek.

1) Quartz Ridge Group

The Quartz Ridge Group, which includes the Quartz Ridge, Battery (Sixty Seven) and Dead Horse prospects, features auriferous quartz vein shoots within a simple north-northeast trending, discordant quartz fissure system over a strike exceeding 1.4km.

The Quartz Ridge Group was mined pre-1878 with shallow underlie shafts, pits, drives and crosscuts. An adit (approximately 130m long) was mined from the western slope (640m ASL) to the Dead Horse reef. The total amount of gold produced from the group remains unknown.

Historical exploration work has primarily comprised of mapping, stream sediment sampling, rock chip sampling, adit survey and a small drilling program.

Strachan Exploration Services Pty Ltd on behalf of private holders, Messrs. Franke and Nielsen, collected 90 grab rock samples in 1992. High-grade gold contents were returned in several samples including: 1,530g/t Au (FF39) 150g/t Au (FF9), 26 g/t Au (FF8) and 14.6 g/t Au (FF7): Annexure 1 .

Centius Gold Limited conducted field-based exploration programs in the area including the Quartz Ridge Group during the period 2010-2014.

Centius collected a total of 87 grab rock samples with an average weight of 3.9kg from outcrop and mullock over a strike length of approximately 1.4km. The sample results corroborated the gold prospectivity of the Quartz Ridge Group and the previous sampling by Strachan. Significant results included 17.15 g/t Au (DH61), 12.55 g/t Au (DH13) and 11.30 g/t Au (DH84): Annexure 2 .

Centius subsequently drill tested the open pit potential beneath the old workings and anomalous grab rock samples at the Quartz Ridge Group with 19 Reverse Circulation (RC) holes totalling 1,783m. Annexure 4 details collar and intersections applying a cut of 0.5g/t information, with the best intersections including:

Q009 - 2m @ 6.53 g/t Au from 30m (incl 1m @ 10.4ppm Au) Q009 - 1m @ 1.23 g/t Au from 24m Q013 - 3m @ 0.58 g/t Au from 35m

Importantly, Krakatoa considers the targets inadequately drill tested to date, noting:

• The Q009 intersection at the Battery Prospect remains open to the north and at depth;

• Several holes were drilled on the wrong orientation and consequently failed to test their target; and

• Three of the six holes drilled at the Dead Horse Prospect terminated prematurely.

2) Turondale Group

The Turondale Group includes the Box Ridge, Homeward Bound Reef and Britannia prospects. This cluster of workings share similarities with the Hill End goldfield. The system of reefs can be traced for over 2.4km, along the north-south trending hinge of a regional anticline.

Mining on the Turondale Group occurred before 1877 with no records of the amount of gold produced. Shallow water tables restricted development to less than 30 metres.

The Turon River, which was exploited for alluvial gold, lies 2km north of the Turondale Group. The entire length of the Turon River within the licence area was worked for alluvial and perched alluvial gold. The basement source of this gold remains to be found.

Limited to no systematic modern exploration has been conducted within the Turondale Group area.

BHP completed a very brief exploration program at the Britannia Mine between 1988-89. The company sampled mullock, in-situ veining and host rocks, with gold prominent within the quartz veins. Better results included 60.6 g/t Au (TD/B15) and 10.6 g/t Au (TD/B5) : Annexure 3 . Three RC holes for a total of 199m were drilled with no significant results (applying a cut of 0.5g/t).

Several companies, including Oroya Mining Limited, Neo Resources Limited and Perpetual Resources Limited, held substantial landholdings across the Sofala region, which includes the Turondale Group, over the period 2006-2019. Their exploration work mainly focused on other areas and prospects.

3) Millah Murrah Group

The Millah Murrah prospect is described as a structurally controlled high sulphide base metal (+/Au) hydrothermal metamorphic vein and warrants examination for VHMS. The prospect area is potentially similar to the Sunny Corner deposit to the southeast, which at one time was the largest silver producer in NSW and contains an Inferred Mineral Resource of 1.5 Mt @ 3.7% Zn, 2.1% Pb, 0.39% Cu, 24 g/t Ag and 0.17 g/t Au (Argent Minerals 2015 Annual Report, restated under 2004 JORC Code at a 2.5% combined base metals cutoff grade: https://www.asx.com.au/asxpdf/20150904/pdf/4313l574jkg1yc.pdf).

4) Dam Creek Group

The Dam Creek Area contains several alluvial occurrences with no known hard rock gold sources.

Several linear features apparent in satellite imagery are thought to represent shear zones suggesting the potential for shear hosted mineralisation similar to the nearby Spring Gully.

Known gold mineralisation is spatially associated with the Waigdon Thrust Fault, with several mines located along or near this structure.

Other opportunities

The Chesleigh Group, which crops out in the projects east, elsewhere hosts the Belara and Sunny Corner base metal mineralisation. Significant mineralisation is also hosted by middle Carboniferous granites and other related intrusives, where they intrude the Chesleigh Group, including Climax Porphyry Molybdenum type, Mt Pleasant Deposit, and the Mount Tennyson molybdenum–tungsten skarns and greisen/pegmatite related mineralisation associated with the emplacement of the middle Carboniferous Bathurst Batholith. Two such granites, Wiagdon and Millah Murrah, intrude the project’s southern parts.

Several regional stream sediment anomalies generated by previous explorers remain to be followed up.

NEXT STEPS

The Company will undertake a comprehensive review of the historical work completed to generate targets for follow-up testing.

FOR FURTHER INFORMATION:

Colin Locke Executive Chairman +61 457 289 582

ANNEXURE 1 – ROCK CHIP SAMPLING RESULTS – Quartz Ridge Group

Sample	**Location **	ppm Au	Sample	**Location **	Au **ppm **
FF1	Southern	0.01	FF48	Tripleys Creek	<0.02
FF2	Southern	0.01	FF49	Tripleys Creek	<0.02
FF3	Southern	0.01	FF50	Tripleys Creek	<0.02
FF4	Southern	<0.02	FF51	Tripleys Creek	<0.02
FF5	Southern	0.02	FF52	Southern	0.13
FF6	Southern	0.01	FF53	Southern	0.02
FF7	Southern	14.60	FF54	Southern	0.05
FF8	Southern	26.00	FF55	Southern	<0.02
FF9	Southern	150.00	FF56	Southern	<0.02
FF10	Southern	1.00	FF57	Southern	<0.02
FF11	Northern	0.45	FF58	Southern	<0.02
FF12	Northern	0.09	FF59	Southern	0.02
FF13	Northern	0.04	FF60	Southern	<0.02
FF14	Northern	0.06	FF61	Southern	0.20
FF15	Northern	0.03	FF62	Southern	0.04
FF16	Northern	0.02	FF63	Southern	0.04
FF17	Northern	0.02	FF64	Southern	0.04
FF18	Northern	0.04	FF65	Southern	0.07
FF19	Northern	0.01	FF66	Southern	<0.02
FF20	Northern	0.01	FF67	Southern	<0.02
FF21	Southern	6.79	FF68	Southern	<0.02
FF22	Southern	0.02	FF90	Northern	0.05
FF23	Southern	0.04	FF91	Northern	<0.02
FF24	Southern	0.17	FF92	Northern	<0.02
FF25	Central	<0.02	FF93	Western	<0.02
FF26	Central	<0.02	FF94	Western	<0.02
FF27	Central	<0.02	FF95	Western	<0.02
FF28	Central	<0.02	FF96	Central	0.63
FF29	Central	<0.02	FF97	Central	0.02
FF30	Northern	<0.02	FF98	Central	0.05
FF31	Northern	<0.02	FF99	Eastern	<0.02
FF32	Northern	<0.02	FF100	Eastern	<0.02
FF33	Northern	<0.02	FF101	Eastern	<0.02
FF34	Northern	<0.02	FF102	Southern	0.05
FF35	Northern	<0.02	FF103	Southern	<0.02
FF36	Northern Adit	0.30	FF104	Southern	<0.02
FF37	Northern Adit	0.03	FF105	Southern	<0.02
FF38	Southern	0.05	FF106	Southern	0.20
FF39	Southern	1530.00	FF107	Southern	0.32
FF40	Southern	0.11	FF108	Southern	<0.02
FF41	Southern	3.33	FF109	Southern	0.02
FF42	Southern	0.02	FF110	Southern	<0.02
FF43	Southern	0.02	FF111	Southern	1.84
FF44	Southern Adit	<0.02	FF112	Southern	3.86
FF45	Southern Portal	0.03
FF46	Southern Portal	0.02
FF47	Tripleys Creek	0.02

Co-ordinates for the rock chip samples were not included within the report (GS 1992/028). However, EL3910, and therefore the areas sampled, are encapsulated within the Turon Project (Figure 3).

==> picture [353 x 275] intentionally omitted <==

----- Start of picture text -----

Reverse Circulation Hole
----- End of picture text -----

FIGURE 3: RELATIONSHIP BETWEEN HISTORICAL TENEMENT (EL3910) WITH RC COLLAR LOCATIONS AND TURON

ANNEXURE 2 – ROCK CHIP SAMPLING RESULTS - EL7592

Sample	**E84 **	**N84 **	**Reef **	Sample	Wt kg	**Au ppm **
DH001	737370	6337282	DeadHorse South	insitu	6.86	0.004
DH002	737362	6337274	DeadHorse South	insitu	5.44	0.004
DH003	737361	6337267	DeadHorse South	insitu	4.6	0.002
DH004	737352	6337271	DeadHorse South	insitu	4.16	0.003
DH005	737362	6337278	DeadHorse South	insitu	4.28	0.002
DH006	737361	6337270	DeadHorse South	insitu	4.5	0.002
DH007	737371	6337280	DeadHorse South	insitu	3.44	<0.002
DH008	737299	6337266	DeadHorse South	insitu	4.28	0.003
DH009	737300	6337286	DeadHorse South	mullock	3.48	0.002
DH010	737356	6337609	DeadHorse	insitu	1.26	0.002
DH011	737389	6337612	DeadHorse	mullock	3.32	<0.002
DH012	737389	6337608	DeadHorse	mullock	2.64	0.003
DH013	**737384 **	6337615	Dead Horse	mullock	**6.52 **	12.55
DH014	737388	6337643	DeadHorse	mullock	5.22	0.087
DH015	737388	6337643	DeadHorse	mullock	4.9	3.63
DH016	737388	6337646	DeadHorse	mullock	4.96	0.023
DH017	737398	6337664	DeadHorse	mullock	4.92	0.003
DH018	737398	6337664	DeadHorse	mullock	5.68	0.007
DH019	737433	6337656	DeadHorse	insitu	3.32	<0.002
DH020	737439	6337651	DeadHorse	insitu	1.76	0.002
DH021	737427	6337616	DeadHorse	insitu	3.26	<0.002
DH022	737421	6337603	DeadHorse	insitu	2.82	<0.002
DH023	737416	6337591	DeadHorse	insitu	3.58	<0.002
DH024	737379	6337607	DeadHorse	mullock	2.14	0.034
DH025	737391	6337637	DeadHorse	mullock	3.08	0.006
DH026	737400	6337664	DeadHorse	mullock	2.78	0.002
DH027	737392	6337674	DeadHorse	mullock	5.08	0.002
DH028	737208	6337462	DeadHorseAdit	mullock	3.46	0.049
DH029	737208	6337462	DeadHorseAdit	mullock	3.54	0.128
DH030	737208	6337462	DeadHorseAdit	mullock	4.38	<0.002
DH031	737340	6337428	DeadHorse Southern Drive	mullock	3.02	1.37
DH032	737340	6337428	DeadHorse Southern Drive	mullock	4.04	0.003
DH033	737340	6337428	DeadHorse Southern Drive	mullock	3.34	0.003
DH034	737368	6337574	DeadHorse	mullock	3.14	0.51
DH035	737368	6337560	DeadHorse	mullock	3.36	0.011
DH036	737368	6337560	DeadHorse	mullock	3.6	0.003
DH037	737366	6337541	DeadHorse	mullock	3.5	2.99
DH038	737366	6337541	DeadHorse	mullock	4.54	0.49
DH039	737371	6337532	DeadHorse	mullock	4.26	0.007
DH040	737364	6337527	DeadHorse	mullock	3.22	0.003
DH041	737364	6337527	DeadHorse	mullock	3.66	0.003
DH042	737355	6337493	DeadHorse	mullock	4.36	0.008
DH043	737355	6337493	DeadHorse	mullock	3.54	0.57
DH044	737279	6337746	DeadHorse	insitu	3.6	<0.002
DH045	737280	6337765	DeadHorse	insitu	3.94	<0.002
DH046	737350	6337775	DeadHorseNorth	insitu	4.96	0.002
DH047	737416	6337850	DeadHorseNorth	subcrop	4.48	<0.002

	Sample	E84	N84	Reef	Sample	Wt kg	Au ppm
	DH048	737418	6337885	DeadHorseNorth	scree	2.28	0.002
	DH049	737429	6337927	DeadHorseNorth	insitu	3.36	0.002
	DH050	737522	6338341	Battery Section	mullock	4.16	0.002
	DH051	737525	6338374	Battery Section	mullock	2.88	0.044
	DH052	737522	6338322	Battery Section	Insitu	4.84	0.003
	DH053	737522	6338322	Battery Section	mullock	4.18	0.304
	DH054	737522	6338322	Battery Section	mullock	5.04	0.002
	DH055	737519	6338309	Battery Section	mullock	3.1	0.321
	DH056	737562	6338293	Battery Section	tailings	6.7	0.931
	DH057	737479	6338164	DeadHorseNorth	mullock	4.6	0.005
	DH058	737485	6338182	DeadHorseNorth	mullock	3.56	0.002
	DH059	737491	6338209	Battery Section	mullock	4.28	0.098
	DH060	737497	6338219	Battery Section	mullock	3.9	0.649
	**DH061 **	737500	6338274	**Battery Section **	mullock	**4.32 **	17.15
	DH062	737536	6338404	Battery Section	In situ	3	0.011
	DH063	737517	6338564	Quartz Reef	In situ	3.5	0.003
	DH064	737507	6338529	Quartz Reef	In situ	3.96	0.002
	DH065	737566	6338560	Quartz Reef	mullock	3.68	0.038
	DH066	737571	6338583	Quartz Reef	mullock	3.96	0.006
	DH067	737575	6338593	Quartz Reef	In situ	3.24	0.003
	DH068	737575	6338593	Quartz Reef	In situ	3.96	0.018
	DH069	737571	6338615	Quartz Reef	In situ	2.36	0.011
	DH070	737571	6338615	Quartz Reef	In situ	3.8	<0.002
	DH071	737587	6338614	Quartz Reef	mullock	4.04	0.68
	DH072	737523	6338586	Quartz Reef	mullock	4.6	0.002
	DH073	737576	6338636	Quartz Reef	In situ	4.36	0.006
	DH074	737578	6338660	Quartz Reef	In situ	3.88	0.006
	DH075	737578	6338660	Quartz Reef	In situ	3.72	0.117
	DH076	737578	6338660	Quartz Reef	In situ	3.86	0.204
	DH077	737578	6338660	Quartz Reef	In situ	3.56	0.031
	DH078	737584	6338677	Quartz Reef	mullock	3.94	0.055
	DH079	737585	6338683	Quartz Reef	mullock	3.48	<0.002
	DH080	737592	6338700	Quartz Reef	mullock	3.54	0.43
	DH081	737592	6338720	Quartz Reef	mullock	4.42	0.057
	DH082	737587	6338768	Quartz Reef	mullock	3.74	0.004
	DH083	737580	6338785	Quartz Reef	mullock	2.82	<0.002
	**DH084 **	737589	6338790	**Quartz Reef **	mullock	4.24	11.3
	DH085	737591	6338805	Quartz Reef	mullock	3.3	0.049
	DH086	737589	6338822	Quartz Reef	mullock	5.16	<0.002
	DH087	737586	6338830	Quartz Reef	Insitu	4.88	0.002

ANNEXURE 3 – BHP ROCK CHIP SAMPLING RESULTS - ML1009

Sample	Auppm	Sample	Auppm	Sample	Auppm	Sample	Auppm
TD/A01	<0.01	TD/B12	<0.01	TD/C06	0.140	TD/C21	0.07
TD/A02	<0.01	TD/B13	0.03	TD/C07	0.080	TD/C22	0.15
TD/A03	<0.01	TD/B14	2.61	TD/C08	0.020	TD/C23	0.02
TD/A04	<0.01	TD/B15	60.6	TD/C09	0.010	TD/C24	<0.01
TD/A05	0.120	TD/B16	4.46	TD/C10	<0.01	TD/C25	<0.01
TD/B01	<0.01	TD/B17	**6.87 **	TD/C11	<0.01	TD/C26	<0.01
TD/B02	0.020	TD/B18	0.79	TD/C12	<0.01	TD/C27	<0.01
TD/B03	<0.01	TD/B19	0.72	TD/C13	<0.01	TD/C28	0.09
TD/B04	<0.01	TD/B20	6.06	TD/C14	0.020	TD/C29	<0.01
TD/B05	10.60	TD/B21	0.25	TD/C15	<0.01	TD/C30	<0.01
TD/B06	0.30	TD/C01	<0.01	TD/C16	<0.01	TD/C31	0.05
TD/B07	0.06	TD/C02	<0.01	TD/C17	<0.01	TD/C32	<0.01
TD/B08	0.04	TD/C03	0.47	TD/C18	<0.01	TD/C33	<0.01
TD/B09	0.02	TD/C04	0.03	TD/C19	<0.01	TD/C34	<0.01
TD/B10	0.81	TD/C05	2.52	TD/C20	<0.01	TD/C35	<0.01

Samples collected on a local grid established across the Brittania Mine area. The original BHP tenement (ML1009) lies wholly within the Turon Project (Figure 4).

==> picture [303 x 251] intentionally omitted <==

FIGURE 4: RELATIONSHIP BETWEEN HISTORICAL TENEMENT (ML1009) AND TURON

ANNEXURE 4 – DRILLING DETAILS - EL7592

Hole	**E94 **	**N94 **	Prospect	RL(m)	FD(m)	Dip	Az	**From **	To	**Width **	**Au ppm **
Q001	737455	6337518	DeadHorse	729	150	-50	270	NSR
Q002	737425	6337587	DeadHorse	721	108	-60	270	Premature termination
Q003	737421	6337587	DeadHorse	720	90	-55	270	Premature termination
Q004	737370	6337652	DeadHorse	730	33	-60	90	Terminatedin workings
Q004A	737366	6337652	DeadHorse	730	99	-90	90	NSR
Q005	737291	6337695	DeadHorse	709	174	-55	90	NSR
Q006	737438	6338296	Battery	638	138	-80	90	NSR
Q007	737440	6338296	Battery	638	126	-60	120	NSR
Q008	737505	6338333	Battery	623	13	-55	90	2	3	1	0.594
Q009	737505	6338333	Battery	623	66	-75	90	24	25	1	1.23
Q009	737505	6338333	Battery	623	66	-75	90	30	**32 **	2	6.53
Q010	737509	6338552	Quartz Ridge	619	90	-55	90	25	26	1	0.848
Q011	737505	6338552	Quartz Ridge	619	100	-70	90	54	55	1	0.582
Q012	737532	6338607	Quartz Ridge	614	100	-50	90	18	19	1	0.67
Q013	737545	6338650	Quartz Ridge	611	78	-50	90	35	38	3	0.58
Q014	737538	6338646	Quartz Ridge	611	126	-70	90	NSR
Q015	737556	6338707	Quartz Ridge	604	32	-50	86	Terminatedin workings
Q016	737548	6338706	Quartz Ridge	604	96	-65	67			NSR
Q017	737561	6338753	Quartz Ridge	600	84	-60	90			NSR
Q018	737565	6338800	Quartz Ridge	591	78	-65	85	74	75	1	0.59

Disclaimer

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forwardlooking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

Competent Persons Statement

The information in this announcement is based on and fairly represents information compiled by Mr Jonathan King, consultant geologist, who is a Member of the Australian Institute of Geoscientists and employed by Collective Prosperity Pty Ltd, and is an accurate representation of the available data and studies for the Project. Mr King has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr King consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

JORC Code, 2012 Edition – Table 1 report template

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 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.	Various parts of the Turon Project has been explored periodically over the years. The reviews were mostly cursory and never systematic. Due consideration was never given to the regolith, its development and its likely impact on exploration method and results. Though some results are generated from the limited chip sampling, stream sediment and drilling, the scope of most work is at a reconnaissance level, and any reader should consider this when reading this document. Most work involves rock chip or stream sediment sampling. Geological mapping was also sporadic. Stream sediments comprised 89 -3 mm and 89 -80# samples BLEG samples averaged 3 kg per site. Finer samples were also subject to cyanide extraction and ICP-MS analysis 87 Chip samples were collected from mullock or outcrop (average weight 3.9kg)
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, 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).	19 shallow, RC drill holes for 1783m (average depth 94 m and ranging from 14 to 178m) were developed by Centius Gold Limited on the Quartz Ridge Project, and BHP developed 3 RC holes for 199m on the Turondale Prospect One vertical hole, all other holes were inclined 50 to 75° west or east subject to sites Each holewas surveyedwitha"Reflex"camera at the collar,

Criteria	JORC Code explanation	Commentary
		mid-point and bottom; inside rods and open hole upon completion BHP drilling was sampled as 2-metre composites with 3 holes variably oriented on a local grid: one generally east, one west and the third vertical with 250m between drill holes
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and 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.	Standard sampling approached were adopted, i.e. 1m intervals Cuttings over 1m lengths were sacked from a cyclone and then spear sampled Less than 1% were wet and recovery was generally 90 to 100% Collar samples 0 to 3m or 0 to 6m were "open holed" Holes were back filled with drill cuttings and the top section (approx 0.6m) of PVC casing removed and the hole sealed with concrete. Top soil was then mounded over the hole. BHP drilling is very much under reported, but as it contained NSR, it is not considered significant
Logging	 Whether core and chip samples have been geologically and geotechnically 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. _	Each hole was logged geologically and sampled throughout the developed length All drilling was at the reconnaissance level and not used in resource estimation
Sub- sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  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.  Quality control procedures adopted for all sub-sampling stages to _maximise representivity of samples. _	Drilling approaches were standard, and suitable for the target type being explored though the company experienced drilling difficulties with only 4 of 19 holes (>20%) failed to achieve target depth (3 of these holes were at the Dead Horse Prospect where 5 were originally drilled) Each interval (1783 samples) was assayed for gold, whereas 683 samples were assayed for arsenic BHP holes were sampled as two-metre composites

Criteria	JORC Code explanation	Commentary
	 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. _	No QA/QC is discussed for BHP drilling
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory 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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	 Drill sampleswere assayed for gold by ALS Minerals (Orange) with Fire Assay Fusion method AA-22 (50g nominal weight, AAS finish). Range 0.002 to 1.0ppm Au. Those greater than 1.00ppm Au were re-assayed with method AA-26AA (range 0.01 to 100ppm). Preparation was method PUL 23 (pulverize and split) Neither gold sample standards or blanks were included in sample batches.  BHPdrill samples were submitted to Australian Assay Labs in Orange for Fire Assay using a 50 g charge  Rock chipsanalysed for gold and trace elements by ALS Minerals (Orange) using methods AA22 and 26 (Fire Assay Fusion, nominal weight 50g) and ME-ICP41 (aqua regia digestion)  BLEGsamples were assayed for gold using "Cyanide Leach" method Au-CN12 (1000gm nominal sample weight, ICP-MS finish, range 0.0001 to 10ppm). The-80#sediments were analysed for trace elements with ICP method ME-MS41.
Verification of sampling and assaying	 The verification of significant intersections by either independent or 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. _	Drilling difficulties led to use of a vertical hole at the Dead Horse Prospect. No adjustments were made to any data

Criteria	JORC Code explanation	Commentary
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-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.	Early stage project predominantly at the grass roots level. Discussed targets are based mostly on empirical observations (right geology, outcropping quartz veins, historical workings, alteration, presence of sulphides or gossanous material) and not solely on assay results other than where they confirm the empirical evidence
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  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. _	Data spacing is suitable for the exploration stage, which is mostly at the reconnaissance level The work completed was appropriate for the exploration stage No resource is currently identified No sample compositing was used
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible 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.	No bias introduced.
Sample security	 The measures taken to ensure sample security.	Historical reports did not document the chain of custody to ensure sample security
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	No reviews or audits of sampling techniques was undertaken. The data collated was reviewed respective to each generation of work undertaken.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements 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 inthe area. _	The Turon Project (ELA5882) licence application made by Krakatoa Resources Ltd has been accepted by the NSW Division of Resources and Geoscience Upon grant, the company will hold 100% interest and all rights in the Turon Project
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	Parts of the Project area have been explored at various times by BHP, Homestake, CSR, Cluff Resources, Empire Gold Mines, and Ardent Resources (Centius Gold Limited), amongst others. Most exploration efforts by these companies was cursory and failed to adequately consider the regolith that obscures much of the prospective geology.
Geology	 Deposit type, geological setting and style of mineralisation.	The Turon application is situated in the Hill End Trough, north of the Bathurst Batholith. It straddles the moderate to tightly folded, north-plunging Tripleys Creek Anticline. The various domains are comprised of Devonian and Silurian sediments intercalated with felsic volcanic and volcaniclastic rocks, and minor limestone, which rest on Ordovician rocks. Three Carboniferous stocks intrude in the south of the application area. They parallel and lie approximately 12km north of the 35km wide Lachlan Transverse Zone A number of mineral deposit styles are present in the Hill End Trough. Styles include: orogenic gold (and base metal) vein systems; stratabound base metal sulphide mineralisation associated with Silurian felsic volcanism; lead–zinc and iron skarns of various ages; intrusive related molybdenum and tungsten mineralisation related to Carboniferous fractionated

Criteria	JORC Code explanation	Commentary
		granites; Permian epithermal silver–lead–zinc and skarn-type mineralisation, and auriferous placer deposits ranging in age from Permian to Recent.
Drill hole Information	 A summary of all information material to the understanding of the exploration 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. _	Two rounds of drilling o BHP (1989) 3 RC holes, 199 metres, local grid utilised, NSR returned, Brittania Mine o Centius (2011) 19 holes for 1783 metres, Quartz Ridge Group Collar information, dip and azimuth provided for Centius drilling BHP drilling less certain, age of work constrains the available information No significant mineralisation intersection downgrading the BHP work
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of 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 metal equivalent values _should be clearly stated. _	No weightings or other manipulations were made to the data. No metal equivalents were used or calculated
Relationship between mineralisatio n widths and	 These relationships are particularly 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.  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	Some Centius holes were unfavourably oriented and as a consequence failed to reach their intended target, should they have intersected mineralisation then a likely bias would have been introduced.

Criteria	JORC Code explanation	Commentary
intercept lengths	width not known’).
Diagrams	 Appropriate maps and sections (with 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. _	The pertinent maps for this stage of project are included in the release. Co-ordinates in MGA94Z55
Balanced reporting	 Where comprehensive reporting of all 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. _	The report has relied on the information in the public records released by the previous explorers, academic and other research documents, etc.
Other substantive exploration data	 Other exploration data, if meaningful and 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. _	Other geophysical data sets for the project area are available in the public domain. This will be recovered and reprocessed prior to reinterpretation to support future exploration. Thorough compilation of the historical results is necessary
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, _provided this information is not commercially sensitive. _	Data compilation and exploration will occur immediately A site visit to review the targets is necessary before commencing any fieldwork.