KRAKATOA RESOURCES LIMITED — Capital/Financing Update 2021

Apr 20, 2021

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21 April 2021

Rand Rock-chips Return Robust, High-grade Gold

• New rock-chip samples across Gold Hill, Rand Project return multiple high grade gold results including 21.7g/t, 17.65g/t and 14.45g/t, 4.81g/t and 4.11g/t.

• Majority of samples returned strongly elevated pathfinder elements, some of which are extremely anomalous, characteristic of intrusive related gold systems (IRGS).

• Extensive, regional-scale auger soil and maiden air-core (AC) drilling completed – all assay results currently pending.

• Reverse circulation (RC) drilling currently being carried out.

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Figure 1: photos of intense silica-hematite altered metasediments with various styles of quartz veining: left rock-chip sample11333 outcrop - 4.81g/t Au; right: sample 11335 - 14.45g/t Au

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Capital Structure 278,950,000 Fully Paid Shares 82,800,000 Options @ 5c exp 31/07/21 5,000,000 Options @ 7.5c exp 31/07/21 16,200,000 Options @ 7.5c exp 29/11/23 15,000,000 Performance Rights at 20c, 30c and 40c.

ASX Code KTA, KTAOC

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Krakatoa Resources Limited (ASX: KTA) (“Krakatoa” or the “Company”) is pleased to announce further high gold grades, from rock-chip samples collected at the 100% owned Rand Gold Project (“Project”). The Rand Project is centred approximately 60km NNW of Albury in NSW’s Riverina region and covers an area of 580km[2] within an under-explored region of the well-endowed Lachlan Fold Belt.

Krakatoa’s Chief Executive Officer, Mark Major stated:

“The results from this second batch of rock-chip samples have demonstrated the wide-spread nature of high-grade gold across the unexplored Bulgandry Goldfields. They further demonstrate the potential of the system and have further confirmed the geochemical signature of an Intrusive Related Gold System (IRGS).

In recent months, the Company has executed a multi-pronged aggressive exploration strategy, and we keenly await the pending results of these programs so we can hastily advance to stage 2 of our exploration strategy”.

Prospectivity

The Company received assay results from a second batch of rock-chip samples collected during reconnaissance fieldwork, undertaken in mid-February 2021. The fieldwork involved prospecting the previously unexplored historical workings hosted on the “Gold Hill” property. Gold Hill hosts the historical Goodwood, Lone Hand and Coonerty and Murphy’s Reefs and associated mines. A total of 41 samples were collected from outcrops, subcrops, mullock dump and sorting piles, and as float (Figures 1 and 2). Results are summarised in Table 1.

The samples comprised oxidised quartz veins and/or altered host (meta-sedimentary) rocks, with vein textures ranging from massive, saccharoidal, crustiform, comb, bucky to laminated and variably vuggy (Figure 1). Rock samples were chipped from outcrops, subcrops and mine faces, collected from historical mine mullock dumps and sorting piles or were grab samples of ‘float’. The majority of float samples are interpreted to be locally sourced.

Assays returned confirm potential for economic grades of gold (maximum of 21.7 g/t, with 3 samples returning over 10g/t and a further 5 returning over 1 g/t) and minor silver (up to 80.5 g/t). Other results of note include elevated Pb (up to 2.56%) and extremely anomalous IRGS pathfinder elements, including As (max. greater than 1%), Bi (max. 1,300ppm), Te (max. 3.1ppm), W (max. 370ppm), Mo (max. 15ppm), Sb (max. 222ppm), In (max. 1.83ppm) and Sn (max. 63ppm) with a low sulphide content (see Table 1 and Figure 2). It is believed that the higher grade gold in this area is associated with intensely silicahematite altered metasediments with grey translucent quartz veins (Figure 1).

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Figure 2: Rock-chip samples (purple) with Au assays (g/t), mine workings (yellow) & magnetic linears. GDA94_Zone55 grid, cells are 250 metres

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Current exploration programs

An 800 sample, regional-scale auger geochemical soil survey over the Bulgandry Goldfields (Figure 3) was completed in late February. The Bulgandry Goldfields are characterised by numerous historical workings where gold was mined from shallow outcropping veins that produced gold at very high grades, of up to 265g/t. These mines are predominantly located on topographical highs, situated along a series of ENE-trending magnetic lineaments collectively totalling 8kms in strike length (see ASX announcement date February 17, 2021).

After a surface IP geophysical survey was completed in January, a 43 hole 2,760m air-core (AC) drilling program over the magnetic “bullseye” targets was recently completed and all assay results are pending. Currently a maiden reverse circulation (RC) drilling program of up to 10 holes for ~1,500m is being carried out. This program is targeting historical mines which include the Goodwood and Lone Hand Reefs (that have never been drill tested), in addition to Show Day and Welcome Find Reefs. Additionally, assays for a further 32 rock-chip samples collected during further mapping in March are pending.

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Figure 3: Map displaying the Rand Project area, prospects/historical mines and priority exploration targets

Authorised for release by the Board.

FOR FURTHER INFORMATION:

Colin Locke Executive Chairman +61 457 289 582 locke@ktaresources.com

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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 forward-looking 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 Person’s Statement

The information in this announcement is based on, and fairly represents information compiled by Erik Conaghan, Exploration Manager, who is a Member of the Australian Institute of Geoscientists and a full-time employee of Krakatoa Resources. Mr Conaghan 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 Conaghan consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

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Table 1: Rock-chip sample assay results, for selected metals and IRGS pathfinder elements

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						Metals						Pathfinders
Sample ID	Easting (MGA94)	Northing (MGA94)	Sample Occurrence	Wt kg	Au ppm	Ag ppm	Pb ppm	Zn ppm	As ppm	Bi ppm	In ppm	Mo ppm	S %	Sb ppm	Sn ppm	Te ppm	W ppm
11328	465876	6060260	sorting pile	2.32	0.008	0.01	0.5	6	0.2	0.01	0.005	1.72	0.01	0.05	0.2	0.05	0.1
11329	465847	6060259	mullock	2.96	0.001	0.27	17.8	7	15.1	0.26	0.019	0.72	0.01	2.24	1.5	<0.05	1.2
11330	465846	6060258	mullock	2.34	0.153	0.04	7.7	15	9.5	0.15	0.008	1.3	0.01	0.62	1.2	<0.05	0.4
11331	465808	6060259	mullock	3.04	0.029	0.17	25.5	12	91.4	0.42	0.034	0.46	<0.01	2.05	6.9	<0.05	5
11332	465774	6060244	mullock	2.42	0.001	0.32	38	20	183.5	0.28	0.039	0.91	0.01	6.84	3.8	<0.05	5.8
11333	465718	6060287	outcrop	3.04	4.81	0.02	32.9	4	25.4	0.3	0.056	1.28	0.01	5.29	4.3	<0.05	3.9
11334	465738	6060274	mine face	2.66	0.065	0.46	17.3	7	20	0.22	0.021	0.82	<0.01	1.85	2.6	<0.05	1.5
11335	465688	6060270	mullock	2.16	14.45	0.31	78.2	2	1175	0.56	0.043	0.6	0.01	31.8	2.8	0.16	4.8
11336	465692	6060277	mullock	0.74	0.079	0.47	17.5	11	46.8	0.37	0.04	0.68	<0.01	10.5	2.6	<0.05	4.9
11337	465608	6060211	float	0.82	0.004	0.23	27.9	11	61.5	0.62	0.019	2.13	0.01	5.15	1.3	<0.05	1.3
11338	465557	6060248	float	1.64	0.006	0.11	49.5	2	29.4	0.79	0.043	1.26	0.01	2.63	3.1	<0.05	1.3
11339	465545	6060271	float	1.74	4.11	0.32	28	2	18.6	0.16	0.029	0.52	<0.01	5.11	3.3	<0.05	3
11340	465488	6060098	mullock	2.12	0.015	0.36	16.8	44	30.8	0.33	0.029	0.62	<0.01	6.33	2.6	<0.05	3.3
11341	465398	6060102	mullock	1.68	0.01	0.62	47	15	143.5	0.58	0.069	0.71	0.01	4.92	8.1	<0.05	7
11342	465465	6060166	mullock	2.04	0.018	0.11	19.6	4	215	0.33	0.05	1.84	<0.01	2.04	8.7	<0.05	4.7
11343	465565	6060191	float	1.96	21.7	0.13	13.9	3	23.9	0.12	0.013	1.5	<0.01	2.58	1.8	<0.05	1.5
11344	465407	6059977	mullock	2.76	1.075	0.6	13.5	15	56.3	0.21	0.025	0.9	0.01	5.44	2.9	<0.05	3.2
11345	465442	6060000	mullock	2.66	0.086	0.12	33.7	7	149.5	0.53	0.036	1.14	<0.01	3.42	7.3	<0.05	5.9
11346	465635	6060001	mullock	1.92	0.232	0.27	20.8	17	72	0.59	0.022	0.92	<0.01	2.53	5	<0.05	3.9
11347	465773	6060216	mullock	2.2	1.72	0.27	274	9	53.6	3.67	0.021	1.19	0.01	5.11	3.7	0.09	1.6
11349	465110	6059692	float	2.48	0.513	0.24	32.8	106	263	2.71	0.043	1.52	<0.01	3.42	8.7	0.06	7
11350	465127	6059712	subcrop	1.66	0.004	80.5	10700	3	4780	7.15	1.83	1.35	0.1	222	63	0.14	4
11351	465136	6059731	subcrop	1.86	0.001	0.12	31.7	4	17.9	0.22	0.013	1.26	<0.01	0.81	4.8	<0.05	1
11352	465167	6059771	subcrop	1.62	0.006	0.04	7.4	168	9.5	0.12	0.008	0.7	<0.01	0.27	3.5	<0.05	1.5
11353	465186	6059776	sorting pile	2.08	17.65	0.09	130.5	3	499	0.62	0.155	1.44	0.01	2.54	20.7	<0.05	11.7
11354	465185	6059777	sorting pile	1.86	0.035	0.71	23.5	2	46	0.25	0.023	2.62	<0.01	4.75	3	<0.05	3.6
11355	465315	6059771	float	1.66	0.003	0.11	25.1	3	15.8	0.38	0.02	1.09	<0.01	0.6	1.2	<0.05	0.4
11356	465207	6059673	float	1.3	0.002	0.04	4.5	15	13.3	0.13	0.015	0.7	<0.01	0.27	6.4	<0.05	2.5
11357	465189	6059652	float	0.68	0.01	0.04	52.7	51	431	0.43	0.061	1.11	<0.01	2.33	10.1	<0.05	9.3

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						Metals	Metals					Pathfinders	Pathfinders	Pathfinders
Sample ID	Easting (MGA94)	Northing (MGA94)	Sample Occurrence	Wt kg	Au **ppm **	Ag **ppm **	Pb **ppm **	Zn **ppm **	As **ppm **	Bi **ppm **	In **ppm **	Mo **ppm **	S %	Sb **ppm **	Sn **ppm **	Te **ppm **	W **ppm **
11358	465172	6059614	float	1.66	0.113	0.19	14100	82	>10000	2.42	0.133	1.17	0.26	66.6	12.6	0.1	7.8
11359	465225	6059400	float	1.84	0.137	0.5	25600	105	7940	3.44	1.415	1.31	0.35	24.7	22.7	0.07	6.9
11360	465300	6059422	float	1.74	0.646	0.41	1740	2	97.5	0.3	0.071	4.46	0.05	2.01	16.8	<0.05	7.4
11361	465279	6059540	mullock	2.04	0.015	0.65	46.1	72	4.9	1300	0.036	0.73	<0.01	0.61	2.7	1.76	6
11362	465247	6059513	float	2.6	0.001	0.08	228	5	42.1	1.39	0.055	0.52	0.01	0.6	7.8	<0.05	6.7
11363	465348	6059500	mullock	0.74	0.009	0.01	18.9	10	20.1	3.32	<0.005	2.1	<0.01	0.29	0.6	0.09	0.2
11364	465638	6059721	float	2.64	0.596	0.09	238	8	115	1.69	0.038	1.64	0.01	1.55	6.7	<0.05	4.3
11365	465721	6059392	float	1.8	0.004	0.12	23.9	5	26.6	0.73	0.023	1.18	<0.01	4.67	2.9	<0.05	1.4
11366	465842	6059470	subcrop	2.18	0.001	0.01	5.1	96	48.8	7.49	<0.005	1.22	<0.01	0.23	0.3	<0.05	0.3
11367	465937	6059643	mullock	2.56	0.008	0.01	40.8	5	1540	0.4	0.032	1.74	0.01	3.55	1.5	0.13	1.5
11368	465936	6059644	mullock	2.52	0.031	0.03	13.5	370	40.3	0.54	0.01	15	<0.01	0.81	0.6	<0.05	1.1
11369	465837	6059479	subcrop	1.94	<0.001	0.01	0.01	186	361	1.21	0.055	0.96	4.61	15.1	0.07	3.1	370

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ABOUT KRAKATOA:

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Krakatoa is an ASX-listed public Company, focused on copper-gold exploration in the world class Lachlan Fold Belt of NSW, and multielement metals including the increasingly valued rare earths in the highly prospective Narryer Terrane, Yilgarn Craton of WA.

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Belgravia Cu-Au Porphyry Project (Krakatoa 100%); Lachlan Fold Belt, NSW

The Belgravia Project covers an area of 80km[2] and is located in the central part of the Molong Volcanic Belt (MVB), East Lachlan province, between Newcrest Mining’s Cadia Operations and Alkane Resources Boda Discovery. The Project target areas are considered highly prospective for porphyry Cu-Au and associated skarn Cu-Au, with Bell Valley and Sugarloaf representing the two most advanced target areas. Bell Valley contains a considerable portion of the Copper Hill Intrusive Complex, the interpreted porphyry complex which hosts the Copper Hill deposit (890koz Au & 310kt Cu) and has highly prospective magnetic low features spanning 6km. Sugarloaf contains a 900m Deep Ground Penetrating Radar anomaly located within a distinctive magnetic low feature considered characteristic of a porphyry-style deposit and co-incident with anomalous rock chips including 5.19g/t Au and 1.73% Cu.

Turon Gold Project (Krakatoa 100%); Lachlan Fold Belt, NSW

The Turon Project covers 120km[2] and is located within the Lachlan Fold Belt’s Hill End Trough, a north-trending elongated pull-apart basin containing sedimentary and volcanic rocks of Silurian and Devonian age. The Project contains two separate north-trending reef systems, the Quartz Ridge and Box Ridge, comprising shafts, adits and drifts that strike over 1.6km and 2.4km respectively. Both reef systems have demonstrated high grade gold anomalism (up to 1,535g/t Au in rock chips) and shallow gold targets (up to 10m @ 1.64g/t Au from surface to end of hole).

Rand Gold Project (100%); Lachlan Fold Belt, NSW

The Rand Project covers an area of 580km[2] , centred approximately 60km NNW of Albury in southern NSW. The Project has a SW-trending shear zone that transects the entire tenement package forming a distinct structural corridor some 40 km in length. The historical Bulgandry Goldfield, which is captured by the Project, demonstrates the project area is prospective for shear-hosted and intrusion-related gold. Historical production records show substantial gold grades, including up to 265g/t Au from the exposed quartz veins in the Show Day Reef.

Mt Clere REEs, HMS & Ni-Cu-Co, PGEs Project (100%); Gascoyne, WA

The Mt Clere REE Project located at the north western margins of the Yilgarn Graton. The company holds 1,780km[2] of highly prospective exploration licences prospective for rare earth elements, heavy mineral sands hosted zircon-ilmenite-rutile-leucoxene; and gold and intrusion hosted Ni-Cu-Co-PGEs. Historical exploration has identified the potential presence of three REE deposits types, namely, Ion adsorption clays in extensive laterite areas; monazite sands in vast alluvial terraces; and carbonatite dyke swarms.

The information in this section that relates to exploration results was first released by the Company on 19 June 2019, 25 November 2019, 3 December 2019, 14 April 2020, 20 May 2020, 26 June 2020 and 6 July 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements.

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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.	 Rock-chips and grab/float samples taken with a geological hammer and collected into labelled calico bags.  The samples were assayed by ALS for gold and multi-element geochemistry. Gold (30g charge) by FA-AA (Au- AA21), ME by four acid digestion and ICP_MS finish (ME-MS61 for 48 elements).  Each sample was assayed for: Ag, Al, As, Au, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, and Zr.  Samples with over-range gold were re- analysed by GRA-21, samples with over-range Pb were re-analysed by OG-62.  Samples were crushed to a nominal 3mm then pulverised to 95% passing 75 micron.  Sample weights were recorded.
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 ifso, by what method, etc). _	 No Drilling
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.	 No Drilling
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. _	 Samples were geologically described at the time of collection. A photo of each sample and its location were taken on a digital camera for reference.  The descriptions were of sufficient detail to support the current work.
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 _	 The Project is at an early stage of evaluation and the suitability of sub- sampling methods and sub-sample sizes for all sampling groups has not been comprehensively established. The available data suggests that sampling procedures provide sufficiently representative sub- samples for the current interpretation.

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		samples.
		 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 _grainsize of the material being sampled. _
	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. _	 Internal laboratory checks confirm assay precision and accuracy with sufficient confidence for the current results.  Samples were submitted to ALS Laboratories in Orange, where they were prepared. They were sent to Perth where they were processed and analysed via fire assay and digested by four acid digest with ICP-MS analysis.
	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. _	 The samples were collected in the field by the exploration manager.  No adjustments were made to any assays of data.
	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.	 Sample locations were collected by handheld GPS (Garmin Map 62CSx), in GDA94, zone 55.
	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 spacings were random and were determined by the areas of rock outcrop located during prospecting work.
	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.	 Primary and secondary mineralisation, though identified, is currently being drilled (RC drilling). Most mineralised and mined structures are observed in the workings to dip moderately to steeply to the south or southeast. Some historical mine records describe mine geometries (such as mine strike and underlay shaft dips etc.). Furthermore, interpretation of magnetic datasets give a sound indication of structural locations and their strike/dip orientations.
	Sample security	 The measures taken to ensure sample security.	 Samples were collected in heavy- duty polywoven bags which were immediately sealed.
	Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 The competent person independently reviewed the laboratories internal sample quality information and considers that the results have been sufficiently verified to provide an adequate basis for the current reporting of exploration results.

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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	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 Rand Project (EL9000) is wholly-owned by Krakatoa Australia Pty Ltd, a wholly owned subsidiary of Krakatoa Resources Ltd  The Company holds 100% interest and all rights in the Rand Project
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Various parties have held different parts of the Rand Project in different periods and explored for different commodities  No party has ever completed systematic exploration across the Rand area, nor adequately considered the regolith during their work.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Project lies in the Wagga-Omeo Metamorphic Zone of the Central Lachlan Fold Belt, which includes the Wagga Tin- Tungsten Belt.  Major rock units through the project area are: o Ordovician metasedimentary rocks of the Abercrombie group o Silurian S-type granites of the Alma Park and Goombargana suites o Early Devonian volcanic rocks (e.g. Wallandoon Ignimbrite) o Devonian I-type granites (e.g. Jinderra)  The area is prospective for a range of deposit styles, including intrusion-related gold (IRG), shear-hosted (orogenic) gold, magmatic tin–tungsten deposits, rare earth elements, and copper–gold porphyries with associated epithermal systems.  IRG deposits are located either within or near granitic intrusions, often associated with tin-tungsten belts
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	 No drillholes are reported in the announcement.

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		Competent Person should clearly
		_explain why this is the case. _
	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 mineralisation widths and intercept lengths	 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 width not known’). _	 Primary mineralisation is yet to be drill tested.
	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.  Coordinates in MGA94 Z55.
	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 Competent person has reviewed this information and believes it is consistent with his observations and knowledge of the Project.
	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. _	 Undertaking high resolution aeromagnetic survey drove the exploration strategy at Bulgandry.  Field mapping, prospecting and ground geochemistry continue.
	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. _	 Regolith and geological mapping with surface geochemistry where appropriate.  Reconnaissance auger soil geochemistry where suitable.  Aircore and RC drilling.  The market will be updated as information comes to hand.

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