KGL Resources : Jervois Project - Rockface Records Copper Assay of 61.4%

Page 1 of 13

Rockface Records Copper Assay of 61.4%

only8 December 2021

• A new record assay of 61.4% copper, from massive bornite intersection at Rockface;
• The high-gradeassay is included in the total intercept of:

use	o 20.5% Cu & 302 g/t Ag over 4.21m1 from 698.80m downhole in Rockface hole
KJCD481D6;
	∙ Two new Rockface intersections of massive sulphides, awaiting assay results;
	∙ Six drill intercepts now extend massive sulphides over 160m, up and down plunge;
	∙ Rockface deposit remains open at depth and to the west;
personal	∙ Drilling continues at Rockface and Reward.

KGL Resources (ASX:KGL) is pleased to announce assay results from Rockface diamond drillhole KJCD481D6 (D6), which includes a record assay of 61.4% Cu, within a mineralised zone grading 20.5% Cu over an estimated true width1 of 4.21m.

As reported on 10 November, drillhole D6 intersected a zone of high-grade copper mineralisation. The zone included a hanging wall bornite-rich massive sulphide zone (0.84m) and a footwall chalcopyrite-rich massive sulphide zone (1.90m). In a similar manner to KJCD481D3, the massive sulphide zones are separated by weakly mineralized interburden (1.47m).

Table 1 provides details of the new assays and Figure 1 shows a photo of the mineralised drill core.

	Hole ID	Depth From	Depth To	Drilled Width	ETW	Cu	Ag	Au
	m	m	m	m	%	g/t	g/t
For		698.80	699.73	0.93	0.84	61.4	521.0	0.11
	699.73	700.50	0.77	0.70	1.5	28.7	1.43
KJCD481D6
700.50	701.35	0.85	0.77	0.2	2.5	<0.01
	701.35	702.40	1.05	0.95	18.8	446.5	1.14
	702.40	703.45	1.05	0.95	16.4	408.2	2.52
Weighted Average	698.80	703.45	4.65	4.21	20.5	302.4	1.09
	Grades

Table 1:Assay results from KJCD481D6

1 ETW - All intersections are reported as Estimated True Width (ETW) unless otherwise specified

KGL Resources Limited | Rockface Records Copper Assay of 61.4%

Rockface Records Copper Assay of 61.4% onlyuse

personalFigure 1: High-grade massive sulphide copper mineralisation in KJCD481D6 annotated with assay results Two additional holes (KJCD481D7 & KJCD481D8) have been completed at Rockface and both of these holes intersected intervals of massive sulphides which extends the up-downplunge extent of the Rockface North massive sulphide shoot to at least 160 metres.

KJCD481D7 (D7) intersected massive sulphides dominated by chalcopyrite, with subordinate pyrite over an interval of 1.24 metres, in the Rockface North structural position. The summary visual log of D7 is reported in Table 2 and the annotated photo of the relevant core is shown in Figure 2.

For

Table 2 Summary Geological log KJCD481D7 (*Visual observations, Assays pending)

KGL Resources Limited | Rockface Records Copper Assay of 61.4%

Page 2 of 13

Rockface Records Copper Assay of 61.4% onlyuse

Figure 2 KJCD481D7 diamond drill core with annotations - Rockface North Lode massive sulphides

KJCD481D8 (D8) was targeted deeper and is one of the deepest holes drilled at Jervois, eventually completed at 937.1 metres after testing the Rockface North and Main lode structural positions. In the core (Figure 3), Rockface North is manifested by a zone of massive sulphides over 0.72 metres, dominated by pyrite but still containing appreciable chalcopyrite. Table 3 provides details of the lithologies and mineralization encountered through the target zone. It is notable that at 0.84 metres of copper mineralisation was encountered in the Rockface Main position which is encouraging evidence that this lode may have deep extensions. D8 will be preserved to allow for a future DHEM survey.

personal	Depth From	Depth To	Drilled Width	ETW	Minerals	Nature	*Est %	Alteration	Lode
m	m	m	m	Sulphide
791.90	796.50	4.60	3.30	Chalcopyrite,	Disseminate,	Trace	Magnetite
Pyrite	Vein hosted
796.50	797.51	1.01	0.72	Pyrite,	Veined	60%	Magnetite	Rockface
Chalcopyrite
For	797.51	798.91	1.40	1.00	Pyrite,	Veined	10%	Magnetite	North
Chalcopyrite
798.91	800.00	1.09	0.78	Chalcopyrite,	Disseminated	4%	Magnetite
Pyrite
				Pelite,			Biotite,
800.00	838.89	38.89	28.37	Unmineralized	‐‐‐	magnetite,
Psammite
						garnet
838.89	912.80	73.91	54.79	Chalcopyrite,	Disseminated,	Trace	Garnet,
					Pyrite	vein hosted		chlorite
	912.80	913.90	1.10	0.84	Pyrite,	Veined	5%	Magnetite	Rockface
	Chalcopyrite	Main
	913.90	915.00	1.10	0.84	Chalcopyrite,	Disseminated	Trace	Magnetite
	Pyrite

Table 3 Summary Geological log KJCD481D8 (*Visual observations, Assays pending)

KGL Resources Limited | Rockface Records Copper Assay of 61.4%

Page 3 of 13

Rockface Records Copper Assay of 61.4%

onlyuse personalFigure 3 KJCD481D8 diamond drill core with annotations - Rockface North Lode massive sulphides

Figures 4 and 5 below show the approximate position of the pierce points of all the massive sulphide so far encountered in this program.

Expert comment from KGL's consulting geophysicist, Kate Hine of Mitre Geophysics Limited, "DHEM has proved highly effective at defining Rockface mineralised zones.

"The DHEM results from KJCD481D3 and D4 both show a very strong in-hole response from the very high grade bornite plus chalcopyrite intersected in the holes, combined with an off-hole response from the distal part of the Rockface North lode.

"The in-hole response is so strong that it mostly swamps the signal from the distant parts of the Rockface North lens. However, reviewing the results from KJCD481D3 and D4 in conjunction with the previous deep DHEM in this area indicate that the Rockface North is not closed off at depth, i.e., the DHEM does not indicate a 'lower edge' to the mineralisation. This confirms the potential for significant extensions to Rockface."

ForThe extensive geophysical surveys at Jervois for 2021 are complete and are currently in the final stages of analysis, along with the results from recent exploration drilling into the various targets indicated by the geophysics. These will form the basis for the exploration program that will be initiated in 2022.

KGL Managing Director, Simon Finnis, comments, "The new record copper assay from hole D6 at Rockface is extraordinary. Mineralogically, it represents 97% pure bornite and confirms the previous visual estimate. More importantly, together with previous results and the new visual mineral intersections announced here, they demonstrate that the high-grade shoot of massive sulphides has significant dimensions and grades that bode well for the future.

Equally exciting are the indications from the DHEM geophysics that the Rockface deposit remain open for significant extensions at depth."

"Drilling continues with 2 drill rigs on site, and this will continue into calendar 2022, focusing on a strong portfolio of exploration targets and brownfield potential to extend our existing deposits.

"The Feasibility Study, targeted for completion in early 2022 is progressing well with all major work packages being finalised."

This announcement has been authorised by the KGL Board of Directors.

KGL Resources Limited | Rockface Records Copper Assay of 61.4%

Page 4 of 13

ASX Announcement

use only
personal	Figure 4 Longitudinal Projection of the Rockface North Deposit showing latest DHEM interpretation (yellow shapes) and PFS underground mine outline shown.
	The PFS Rockface North indicated and inferred mineral resource outlines are also depicted The inset shows the pierce-points of the holes which have intersected
	massive sulphides (KJCD481D3, D4, D5, D6, D7 and D8).
KGL Resources Limited | Rockface Records Copper Assay of 61.4%	Page 5 of 13
r