Kairos Minerals : 04/12/2020 – Pilbara Exploration Update

ASX ANNOUNCEMENT

4 December 2020

RC Drilling Underway at the Mt York Gold Project

Highlights

• Reverse Circulation (RC) drilling underway at the Old Faithful Deposit, with approximately 14 holes planned over the next two weeks.
• Drilling program designed to test new targets from a recently-completedSub-Audio Magnetics (SAM) survey, as well as targeting extensions to the current Resource and high-grade zones within the deposit.
• Detailed mapping, rock chip sampling and soil geochemistry programs have been completed at the Skywell Project, with initial results expected before the end of the year. This is part of the Company's target generation for Hemi-styleintrusive-related gold mineralisation
• Soil geochemistry program completed at the newly-defined Aqua prospect, targeting intrusion- related gold mineralisation.
• EIS funding secured for drilling at the Tierra prospect (Croydon Project).

Figure 1: Reverse Circulation (RC) drill rig at the Old Faithful deposit, Mt York Project.

Kairos' Executive Chairman, Terry Topping, said: "Our recent SAM survey has delivered a number of compelling targets at Old Faithful, which we will start testing over the next two weeks." "In addition, we will be looking to extend and upgrade the existing 89,400oz Old Faithful Resource and target additional high-gradezones within the deposit.

"We're also looking forward to shortly receiving assay results from recent exploration programs at the Skywell and Croydon Projects, which will help our drill targeting for 2021"

Figure 2 : Pilbara Gold Project, WA.

Kairos Minerals Ltd (ASX: KAI; "Kairos" or "the Company") is pleased to advise that a program of Reverse Circulation (RC) drilling is underway at its 100%-ownedPilbara Gold Project in WA, marking the final phase of the Company's successful 2020 field program before the onset of the northern-Australian Wet Season.

The current drilling program is focused on the Old Faithful Deposit, targeting extensions to the current Resource as well as high-grade zones within the deposit, with the aim of upgrading the current Unclassified, Inferred and Indicated Resources into higher-confidence categories.

Old Faithful has been prioritised for this late-season drilling due to highly positive results received from the recently-completedSub-Audio Magnetics (SAM) survey.

Kairos is awaiting results from recent exploration activities completed at the Skywell and Croydon Projects, including mapping, rock chip sampling and geochemistry programs. The Company is also expecting to receive remaining results from the Fuego and Tierra drilling programs in the upcoming weeks.

RC Drilling Program - Mt York Project

Kairos' drilling contractor, Mt Magnet Drilling Company, has commenced a two-week Reverse Circulation (RC) drill program over the Old Faithful deposit at the Mt York Project.

Approximately 14 holes are expected to be drilled, with the aim of testing some of the targets generated by the recently-completed SAM survey, as well as testing extensions to the known mineralisation both at depth and along strike. The drilling will also target higher-grade zones within the deposit, aiming to prove up the current Unclassified, Inferred and Indicated Resources into higher-confidence Resource categories.

Figure 3. Location of the Old Faithful deposit within the Mt York Project.

The current Mineral Resource at Old Faithful is 2Mt @ 1.37g/t Au for 89,400 ounces, limited to a maximum vertical depth of 140m (see ASX announcement 4 March 2020). The Old Faithful deposit is part of the larger Pilbara Gold Project, which has total Resources of 20.9Mt @ 1.30g/t Au for 873,500oz (including the Iron Stirrup and Mt York deposits). See Figure 3 for the location and details of each deposit.

The Old Faithful Resource calculation was based on the results of 166 historical RC holes for approximately 14,000m, and on the results of 10 historical diamond drilling holes for 1,194.1m.

Gold mineralisation at Old Faithful is hosted within or adjacent to strongly folded/faulted talc-chlorite- carbonate units with minor associated interflow sediments and cherts. The deposit is characterised by several different mineralisation orientations and dips.

The initial interpretation of the SAM survey, combined with analysis of the previous drilling results and surface mapping, supports the target generation for the current drilling program.

Prominent structural features were defined using the SAM survey results. The Total Field Electromagnetics (TFEM) component has defined two distinct targets, as well as the Reduced to Pole (RTP) component. Several magnetic conductors were also defined through the SAM survey results (see Figure 4).

Figure 4: SAM survey targets and current resources outline at the Old Faithful deposit, Mt

York Project.