Kaili Resources Limited received all results from the 7 hole drilling program completed mid-February 2022 within the Canegrass tenementof the Gindalbie Gold Project in the Yilgarn Craton in Western Australia (WA). Elevated gold intersections >0.25 g/t Au were obtained in most drill holes with the southern-most line having 4 m composite intersections of 0.6 g/t Au and 0.5 g/t Au in addition to other intersection to 1 m @ 1.4 g/t Au. These and other 4 m composite intervals >4 m @ 0.25 g/t Au will be resampled as 4 x 1 m samples. The association of a significant regional fault, a competency contrast between the mafic and felsic volcanics and elevated gold/pyrite in the RC drilling indicates further drilling may be warranted once all the data has been reviewed along with all historical data. Significant gold intervals are shown below: CGRC001: 3 m @ 0.6 g/t 51-53 m including 1 m @ 1.0 g/t 51-52 m; CGRC003 3 m @ 0.38 g/t 69-71 m CGRC004 1 m @ 0.32 g/t 62-63 m CGRC006 4 m @ 0.52 g/t (4 m composite to be split into 1 m samples) CGRC007 4 m @ 0.6 g/t (4 m composite to be split into 1m samples) 1 m @ 0.54 g/t 73-74 m 1 m @ 1.4 g/t 77-78 m Two 4 m composites in holes CGRC006 and GCRC007 returned significant results over the interval and will be resampled as 4 x 1 m intervals (CGRC007 - 36-40 m and 64-72m, CGRC006 - 68-76 m and 84-88 m) for a total of 20 x 1 m splits of the original 4m composite samples. The planned program was for 90 m per hole for a total of 630 m. However, hole CGRC004 was terminated at 72 m due to a high percentage of clay that could not be drilled. That hole was at an adequate depth to ARBN 077 559 525 test the target given that all the other drill holes reached their planned depth of 90 m. The RC drilling was a follow up program to the 2020 Aircore drilling program that intersected 1 m @ 3.96 g/t Au 1 on the most southern line in hole CGAC025 that had the same collar as CGRC005 with the holes drilled at 90 degrees and 270 degrees respectively. The Canegrass area was targeted originally as comprising extensive mafic volcanics and intrusives with an associated regionally significant structure - Emu Fault which is associated with gold mineralisation to the north at the historic Gindalbie Mining Centre. The location of the 2022 RC drilling (Figure 2 and Table 1) program is a follow up to the 2020 Aircore Drilling Program which highlighted Area F as an area with elevated gold in the aircore drilling. Southern Geoscience compiled all available open file geophysical data and merged/processed the data. This was followed by an interpretation of structural elements and magnetic lineaments (Figure 3). The final phase of the interpretation was to construct a bedrock
interpretation of the tenement as shown in Figure 4. The interpretation is that the Emu Fault defines the contact between mafic (green) and felsic (yellow) intrusive/extrusive rocks with the prime exploration focus being the mafic dominant lithologies to the west of the Emu Fault. The 2020 aircore drilling intersected 1 m @ 3.96 g/t Au1 in hole CGAC025 located on the southern-most drill traverses in the Area F grid - 6672000mN. The RC program comprising 7 holes was aimed to test the gold anomalous southern line in addition to drilling 50 m to the north (6672250mN) and south (6672150N) Figure 5.Section 6672200 is Figure 6 and section 6672150 is Figure 7.