Kaiser Reef : Nuggety Reef Drilling Results

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ASX RELEASE

1 March 2022

NUGGETY REEF DRILLING RESULTS AND HIGH PRIORITY

EXPLORATION TARGETS IDENTIFIED

HIGHLIGHTS

1. High Grade Drill Results such as 2.2m @ 10.3 g/t gold, including 0.4m @

52.8 g/t gold

1. Geophysical Exploration Targets Identified

Kaiser Reef Limited (ASX:KAU) ("Kaiser" or the "Company") is pleased to announce the first results from drilling at the Nuggety Reef historic gold mine, located at the northern end of the Union Hill gold mine in Maldon, Victoria. The Nuggety Reef mine was one of, if not the, highest grade significant Australian gold mines with recorded production of 301,000 ounces at 187 g/t recovered gold.

The Nuggetty Reef was discovered in 1856 and produced 301,000 ounces of gold from 50,000 tonnes of ore averaging 187 g/t Au over a 10-year period. The reef was mined over a strike length of 350 metres with four shafts, sunk to a maximum depth of 238m.

The Nuggety Reef is contained within the broader Nuggetty shear zone and is the most northern reef and mine in the Maldon Goldfield (Figure 1). The deposit is truncated by the Harcourt Granodiorite to the north and at depth, forming a south plunging footwall. The Nuggetty Reef is situated within steep eastern dipping metasediments that have been contact metamorphosed to cordierite - andalusite hornfels. The mine workings strike north

• south and comprise of 2 sub-vertical east dipping quartz reefs, referred to as the west reef and the east reef. These structures are joined at depth by near flat en-echelon reefs.

Surface Diamond Program (NSDH-001-004)

The surface diamond drilling was a small scale (4 hole) programme that targeted a better understanding of the mineralisation controls in both the eastern and western reefs, which are located within the main north-south Nuggetty shear zone (Figure 1).

Historic diamond holes being followed up include NUGD01 (0.46m @ 205 g/t Au) and NUDG02 which returned 1.4m @ 9.78 g/t Au - ASX release 19 July 2021. These structures are modelled slightly outside of the shear zone. Additional holes targeted other historic areas of interest.

Kaiser Reef Limited

Corporate Office: Unit 3, 335 Hay Street, Subiaco WA 6008

Tel: [phone]

Website: www.kaiserreef.com.au

Email: [e-mail]

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Figure 1: Surface diamond drilling rig at Nuggety Reef, Maldon

The plan view of the reef area (Figure 2) shows the main Nuggety envelope as defined by logging and arsenic assays and another trending in a north-north-eastern direction with associated gold mineralisation.

Elevated bismuth assays, one of these is the high gold zone (up to 52.8 g/t gold) in NG_SDH_002. The elevated bismuth mineralisation appears to also define a north-northeastern trend identified by gold and arsenic; this trend appears to be associated but subsidiary to the main Nuggety gold mine trend. Elevated bismuth is possibly also an important indicator element in this district.

Modelling of these mineralised trends (Figure 3) has identified an untested target with significant up and down plunge extents, additional to deeper down plunge trends within the main Nuggety mine trend.

Accessing ideal drilling positions has been extremely challenging from within the very narrow mining licence. Kaiser is keenly awaiting the grant of its large surrounding exploration licence that will facilitate far more effective drilling in the future.

The aim of future drilling at the Nuggety Mine will be to test down dip positions near the granite contact fand following the down plunge positions of the Nuggety Mine. Drilling will also be designed to delineate the bismuth mineralisation trend and coincident for a high- grade shoot within that.

Kaiser Reef Limited

Corporate Office: Unit 3, 335 Hay Street, Subiaco WA 6008

Tel: [phone]

Website: www.kaiserreef.com.au

Email: [e-mail]

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Figure 2: Mineralised trends with associated arsenic anomalism as pathfinder element

The Nuggety shear zone continues to the south and the prospective target contact with the Harcourt granite remains essentially untested down plunge. This recently identified north-north-eastern trend is also a high priority target.

Figure 3: Long section showing recent and historic drill holes in context

Kaiser Reef Limited

Corporate Office: Unit 3, 335 Hay Street, Subiaco WA 6008

Tel: [phone]

Website: www.kaiserreef.com.au

Email: [e-mail]

For personal use only

Further to the south, the underground drilling rig is continuing exploration from underground positions within the Union Hill decline (Figure 4). Early results have returned some excellent high-grade intervals - see ASX releases 15 November 2021 and 9 February 2022.

Figure 4: Historic long section of the Maldon gold field - showing location of the Nuggety Reef to the

North

(* Historic production figures detailed in ASX release dated 15 November 2021)

Geophysical Exploration Targets Identified

Exciting data review work has identified priority geophysical targets and regional high grade gold drill intercepts at Maldon. Although overprinted by granitic fluids, the style of the reef mineralisation seen at Maldon is similar to other Central Victorian fields, including Fosterville and Bendigo.

High grade gold is found in plunging shoots. Additionally, some parts of Kaisers Exploration Licence application are under cover, including a gravity ridge like the one on the eastern side of the main Maldon field. The field may contain undiscovered high-grade shoots, which do not "daylight" and have not been found by previous mining. Very little drilling of targets other than for extensions of known shoots has been undertaken.

In 1979 an IP survey conducted by Scintrex on behalf of CEC shows that at least some of the mineralisation is chargeable and resistive. An anomaly that was drilled in DDH05 by CEC returned 2m 23.9g/t in a previously unknown reef within Kaisers main Maldon mining licence (Figure 5). There is a real opportunity to use modern exploration techniques to target economic mineralisation.

Kaiser Reef Limited

Corporate Office: Unit 3, 335 Hay Street, Subiaco WA 6008 Tel: [phone]

Website: www.kaiserreef.com.au

Email: [e-mail]

For personal use only

Figure 5: Geophysical survey extent (blue) over tenement outlines (red lines) and historic drill collars (red

dots)

Figure 6: Gravity anomaly map showing prospective gravity ridges obscured by shallow cover soils located

to the east of Maldon but with the Kaiser exploration licence application

Kaiser Reef Limited

Corporate Office: Unit 3, 335 Hay Street, Subiaco WA 6008 Tel: [phone]

Website: www.kaiserreef.com.au

Email: [e-mail]