KGL Resources : Jervois Resource Update

Better continuity of the Resource delivered by the increased drilling density has lowered the grade slightly at Bellbird but improved the mining strategy and delivered significantly more copper.

Although previously released to the market as each individual estimate became available, this release combines the three principal resource estimates underpinning the Jervois Copper Project. KGL made the decision not to include the previously reported Reward South mineral resource as it is not presently included in the Feasibility mine plan for the Project.

"Incorporation of the new resource models into the mine plan for the Feasibility Study is well underway, and the Study remains on schedule for delivery in Q2, 2022"

"It is good to see the Resource ore tonnage at Jervois grow by 3.8M tonnes, with increases across each of the three deposits. The processing plant has planned throughput of 1.6Mtpa so we anticipate this overall increase will result in a significantly enhanced mine plan. The addition of 56kt of copper metal (including 36kt of higher-confidenceJORC Indicated category) to our inventory is welcome, and is a testament to the extensive drilling program and of 2021. I would like to thank all our team at Jervois whose hard work and diligence has made all this possible.

KGL Managing Director Simon Finnis comments:

only	Jervois Resource Update
23 March 2022
	• Jervois Resource, indicated and inferred mineral resource estimate updated;
	o Comprising Reward, Rockface and Bellbird deposits;
use	o Mineral Resource tonnes increased by 20% to 22.87 Mt;
o 14% increase in contained copper metal to 465.62 kt;
o Copper grade above 2%;
o Silver metal up 12% to 18.93 Moz.
• Increased certainty in the resource at Jervois:

o Indicated copper metal up 36kt to 319.46kt;

• 1. Indicated resource tonnes up 24% to 13.83 Mt.
• Improved resource expected to extend mine life and improve Feasibility outcomes.

personalKGL Resources (ASX:KGL) is pleased to announce an update of the mineral resource estimate for the combined Jervois project. This estimate, unlike the previous estimate released in 2020, does not include the 2014 Reward South resources estimate as the Reward South deposit is not part of the Jervois project production schedule for the Feasibility Study.

This Jervois mineral resource estimate combines the updated estimates for Reward (announced on 10 January 2022), Bellbird (announced on 27 January 2022) and Rockface (announced on 7 March 2022).

Appended to this announcement is the long-form mineral resource report from Mining Associates Pty Ltd. The estimate is reported according to the JORC (2012) guidelines.

For

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Jervois Resource Update

Results

Table 1 presents the latest mineral resource parameters for the Jervois Project.

Table 1. Jervois Mineral Resource Estimate 2022

Resource			Mineralised		Grade			Metal
		Mass
	Area	Category	(Mt)	Copper	Silver	Gold	Copper	Silver		Gold
	(%)	(g/t)	(g/t)	(kt)	(Moz)		(koz)
	Reward	Indicated	3.84	1.80	39.4	0.31	69.06	4.86		38.2
	Inferred	0.65	0.92	9.2	0.07	5.91	0.19		1.5
Open Cut Potential > 0.5 % Cu	Bellbird	Indicated	2.03	2.20	13.1	0.16	44.55	0.85		10.5
	Inferred	1.44	1.36	9.3	0.15	19.50	0.43		6.9
	Sub Total		7.95	1.75	24.8	0.22	139.06	6.33		57.1
	Reward	Indicated	4.78	2.12	42.6	0.45	101.64	6.55		69.2
	Inferred	4.32	1.56	19.6	0.20	67.29	2.72		27.8
	Bellbird	Indicated	0.38	2.62	17.7	0.14	9.90	0.22		1.7
Underground Potential > 1 % Cu	Inferred	1.92	2.06	12.0	0.10	39.49	0.74		6.0
	Rockface	Indicated	2.80	3.37	21.4	0.23	94.31	1.93		21.1
	Inferred	0.73	1.92	19.0	0.18	13.97	0.45		4.2
	Sub Total		14.93	2.19	26.3	0.27	326.57	12.60		130.0
Sub Totals		Indicated	13.83	2.31	32.4	0.32	319.46	14.41		140.7
	Inferred	9.06	1.61	15.6	0.16	146.16	4.53		46.4
Total			22.87	2.04	25.7	0.25	465.62	18.93		187.1

* Due to rounding to appropriate significant figures, minor discrepancies may occur, tonnages are dry metric tonnes.

When compared to the most recent previous estimate (2020)1, the Jervois indicated and inferred mineral resource estimate delivers a 14% increase in contained copper metal to 465.6 kt (from 410.0 kt), and a 20% increase in resource tonnes to 22.87 Mt (from 19.07 Mt). Copper grade is reported at 2.04% and represents a 5% drop from 2.15% Cu. Figure 1 shows the progression of copper results from the past four Jervois mineral resource estimates (Reward, Bellbird and Rockface deposits only).

Gold and Silver

The mineral resource estimates show increased metal contents, in each precious metal, from the 2020 resource estimate to now. Figure 2 shows the progression of silver metal content and grade for the most recent three mineral resource estimates and Figure 3, similarly, for gold.

Does not include the Reward South resource estimate

Mineral resources are not ore reserves and do not have demonstrated economic viability.

Inferred resources have less geological confidence than indicated resources and should not have modifying factors applied to them. It is reasonable to expect that with further exploration most of the inferred resources could be upgraded to indicated resources.

1 Comparison with previous estimates does not include the Reward South deposit

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Jervois Resource Update

				Jervois Copper
							2.15%	2.04%
	600							2.00
	1.59%
MetalCopper(kt)	500	1.52%	410	466	1.50
400	369	375		127	146	gradeCu %
300			125
					1.00
	220
	200
			250		284	319	0.50
	100
	149
	0	2018	2019		2020	2022	0.00
				Indicated		Inferred	Cu Grade (%)

Figure 1: Showing the progression of Jervois copper mineral resource estimates from 2018 until the current estimate in 2022. The 2022 estimate provides a 14% increase in total copper metal and a 13% increase in Indicated copper metal compared with the 2020 estimate.

								Jervois Silver
	30.0																30.0
Ounces)			20.9 g/t				27.6 g/t		25.7 g/t
25.0									25.0
Troy
											18.9			g/t
20.0	16.7		16.9				20.0
Metal(Million					AgGrade
15.0				4.5			15.0
		11.6					12.1
			5.1					4.8
	10.0													14.4			10.0
	5.0															5.0
Silver
0.0																0.0
2019		2020		2022
						Indicated			Inferred	Ag Grade g/t

Figure 2: Showing the progression of Jervois silver mineral resource estimates from 2019 until the current estimate in 2022

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Jervois Resource Update

Jervois Gold

Ounces)	280.0	0.21 g/t		0.29 g/t			0.30
220.0
	260.0							0.25 g/t
	240.0									0.25
Troy(thousand	200.0					175.7	187.1	0.20	(g/t)GradeAu
180.0
170.3			46.4
	160.0					36.1
	140.0	61.4					0.15
	120.0
	100.0									0.10
Metal	80.0
				139.1	140.7	0.05
40.0
	60.0	108.9
Gold	20.0
0.0	2019	2020	2022	0.00
					Indicated		Inferred	Au Grade g/t

Figure 3: Showing the progression of Jervois gold mineral resource estimates from 2019 until the current estimate in 2022

This announcement has been approved by the directors of KGL Resources Limited.

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Jervois Resource Update

Competent Person Statement

The information in this announcement that relates to Mineral Resource Estimates is based on data compiled by Ian Taylor BSc (Hons), a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Taylor is a consultant working for Mining Associates Pty Ltd who were engaged by the Company to carry out the mineral resource estimate. Mr Taylor has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which is being undertaking to qualify as a Competent Person as defined in the 2012 Edition of 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Taylor consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Forward Looking statements

This release includes certain forward-looking statements. The words "forecast", "estimate", "like", "anticipate", "project", "opinion", "should", "could", "may", "target" and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of KGL are forward-looking statements that involve various risks and uncertainties. Although every effort has been made to verify such forward-looking statements, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. You should therefore not place undue reliance on such forward-looking statements.

Statements regarding plans with respect to the Company's mineral properties may contain forward looking statements. Statements in relation to future matters can only be made where the Company has a reasonable basis for making those statements.

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