King River Resources : HPA Project - Pilot Plant 99.9995% Purity

HPA PROJECT - DFS UPDATE

Australian Securities Exchange Announcement	3 December 2021
only	Project Status Update

Highlights

• Successful commission of Laboratory Scale Pilot Plant
• Bulk laboratory sample production runs now in progress
• 99.9995% purity of Type 1 Precursor obtained in Campaign 1.

useSummary

King River Resources Limited (ASX:KRR) is pleased to provide this update on the ongoing laboratory work which upports the Definitive Feasibility Study for the Type 1 Precursor Processing Plant. As previously reported (KRR ASX release 3 November 2021) KRR is focussed on the production of a variety of Aluminium Salt 5N (99.999%) purity Precursors required in the battery manufacturing industry and continuing testing with other Cathode Active

Materials precursors (P-CAM).

personalFor Figure 1: Campaign 1 Type 1 Precursor - Aluminium Salt

Source Certain International (SCI) has completed the commissioning of the Laboratory Scale Pilot Plant and has been successful in producing multiple batches of our Type 1 Precursor. The very first run up of the plant (Campaign 1) produced 99.9995% purity Type 1 Precursor which is an excellent result for a first run of the operation (Figure 1). Campaign 2 has been completed, with results pending. Campaign 3 has started with some continuous improvement feedback being incorporated into the process steps.

Figure 2: Repeat assays for Type 1 Precursor from Campaign 1

The Campaign 1 Precursor 1 Aluminium salt was produced from an industrial chemical compound feedstock by the ARC Process. SCI assayed Campaign 1 Precursor product using the ICP-MS and ICP-AES methods. SCI onlycompleted 4 duplicate analyses on the batch to improve confidence in the results (Figure 2) and the 99.995% purity is an average of the 4 repeat assays. Each Precursor purity result was calculated by the addition of all the assayed element impurities that reported above the detection limit then subtracting this result from 100%. Variability in the results is due to differences in the test sample and the analytical precision. The lower result of repeat assay 1 is thought to be due to contamination from the PTFE beakers used in the assay process while repeat assays 2-4 were conducted using single use polypropylene tubes. The main contaminants in the Precursor are potassium (K),

sodium (Na), iron (Fe) and calcium (Ca).

usepersonalOn 25 November, COMO Engineers' Senior Process Engineering team visited the laboratory to witness the pilot lant in operation and observe how the material handled, filtered and crystal properties.

Ongoing testing of the production of P-CAM's with recent samples of our Nickel-Cobalt-Aluminium (NCA) P-CAM Batch 5 submitted for sizing analysis and Scanning Electron Microscope (SEM) imagery, focussing on grain size

Fordistribution.

P-CAM's are an intermediate mixed metal hydroxide used in the manufacture of Lithium Ion Battery (LiB) cathodes. P-CAM's are made by a co-precipitation process where the nickel, cobalt, manganese and aluminium salts are precipitated as a mixed metal hydroxide of specific composition, morphology and particle size distribution.

SCI continued investigating using our Type 1 Precursor salt to produce other high purity aluminium based precursors, including:

• Type 2 Precursor: An aluminium compound which is used in the manufacture of LiB Cathodes and HPA.
• Type 3 & 4 Precursors: Aluminium Salts which are used in the manufacture of LiB Cathodes, as coatings for LiB electrodes, LED Phosphors and in the Electronics and Optics industry

The successful commissioning and production runs of the Laboratory Scale Pilot Plant along with the work on the Definitive Feasibility Study remain on track and are very exciting developments for King River Resources.

onlyThis announcement was authorised by the Chairman of the Company.

Anthony Barton

Chairman

King River Resources Limited

Email: [e-mail]

Phone: [phone]

useStatement by Competent Person

The information in this report is based on information compiled by Mr Ken Rogers (BSc Hons) and fairly represents this information. Mr Rogers is the Chief Geologist and an employee of King River Resources Ltd, and a Member of

both the Australian Institute of Geoscientists (AIG number 2359) and The Institute of Materials Minerals and Mining personal(IMMM number 43552), and a Chartered Engineer of the IMMM. Mr Rogers has sufficient experience in the ctivities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves

Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rogers consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

For

Appendix 1: King River Resources Limited HPA Project JORC 2012 Table 1

	SECTION 1 : SAMPLING TECHNIQUES AND DATA
	Criteria	JORC Code explanation	Commentary
	Sampling	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised	This ASX Release dated 3 December 2021 provides an update on KRR Precursor HPA Project,
	Techniques	industry standard measurement tools appropriate to the minerals under investigation,	including the production of 5N Precursor used to make precursor Cathode Active Materials (P-CAM)
only	such as down hole gamma sondes, or handheld XRF instruments, etc.). These	and high purity alumina (HPA) from an Aluminium chemical compound feedstock produced from
examples should not be taken as limiting the broad meaning of sampling.	other industrial chemical processes.
Include reference to measures taken to ensure sample representivity and the	Chemical precipitation and recrystallisation purification methods of KRR's ARC process have been
used in the separation and precipitation of the high purity Aluminium Precursor compound reported in
appropriate calibration of any measurement tools or systems used.
this announcement. The details of the process are a trade secret and commercial in confidence.
Aspects of the determination of mineralisation that are Material to the Public Report.	The Type 1 Precursor Aluminium Salt product reported in this announcement represents the results
In cases where 'industry standard' work has been done this would be relatively simple	of Campaign 1 of a series of planned test runs using KRR's laboratory scale pilot plant at the SCI
(e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was	laboratory.
		pulverised to produce a 30 g charge for fire assay'). In other cases more explanation
		may be required, such as where there is coarse gold that has inherent sampling	Campaign 1 Precursor Type 1 reported in this announcement used a 9.5kg sample of the industrial
		problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may	chemical feedstock.
		warrant disclosure of detailed information.
			Analytical duplicate subsamples were taken from the Precursor sample for analysis.
	Drilling	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger,	Not Applicable. The samples were generated from a feedstock of an industrial chemical.
	techniques	Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of
		diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what
		method, etc.).
	Drill sample	Method of recording and assessing core and chip sample recoveries and results	Not Applicable.
userecovery	assessed.
personalr	Measures taken to maximise sample recovery and ensure representative nature of the	Not Applicable.
samples.
		Whether a relationship exists between sample recovery and grade and whether sample	Not Applicable.
		bias may have occurred due to preferential loss/gain of fine/coarse material.
	Logging	Whether core and chip samples have been geologically and geotechnically logged to a	Not Applicable.
		level of detail to support appropriate Mineral Resource estimation, mining studies and
		metallurgical studies.
		Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.)	Not Applicable.
		photography.
		The total length and percentage of the relevant intersections logged.	Not Applicable.
	Sub-sampling	If core, whether cut or sawn and whether quarter, half or all core taken.	Not Applicable.
	techniques and	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or	Not Applicable.
	sample	dry.
	preparation	For all sample types, the nature, quality and appropriateness of the sample preparation	Not Applicable.
		technique.
		Quality control procedures adopted for all sub-sampling stages to maximise	Not Applicable.
		representivity of samples.
		Measures taken to ensure that the sampling is representative of the in situ material	Not Applicable.
		collected, including for instance results for field duplicate/second-half sampling.
		Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate to the grain size of the material being sampled.
	Quality of assay	The nature, quality and appropriateness of the assaying and laboratory procedures used	Source Certain International (SCI), previously TSW Analytical, Testwork

	Criteria	JORC Code explanation	Commentary
	data and	and whether the technique is considered partial or total.	Testwork on the Aluminium chemical feedstock includes chemical precipitation, solid liquid
	laboratory tests		separations, and purification steps, that produce purified intermediate Precursor precipitates. Assays
only		are conducted on solutions and solid precipitates.
	SCI is an established analytical service provider that has developed a reputation for providing
	accurate analyses of complex samples. The company's expertise has assisted with the development
			of hydrometallurgical flow-sheets for multi-element ore concentrates.
			The Aluminium Precursor products have been assayed using ICP-AES and ICP-MS. Samples are
			digested in nitric acid and then suitably diluted prior to analysis using ICP-AES and ICP-MS
			instrumentation.
			The primary and mother liquors have been analysed using ICP-AES and ICP-MS. The samples were
			diluted suitably for the appropriate ICP based analysis. Dilutions are used to bring the analyte
			concentration into the optimum analytical range of the ICP instrument used and to reduce matrix
			interference complications during quantification.
			Precipitation efficiency has been determined using the mass of the total analyte in the Precursor
			product divided by the mass of the total analyte in the initial liquor solution used. The resulting
			fraction is multiplied by 100 to give percent precipitation efficiency.
			SCI uses in-house standards and Certified Reference Materials (CRMs) to ensure data are "Fit-For-
			Purpose".
use	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters	Not Applicable.
used in determining the analysis including instrument make and model, reading times,
calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates,	Source Certain International (SCI)
external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias)	SCI reports concentrations as micrograms per gram (μg/g) in the solid (unless otherwise stated).
and precision have been established.	Instrumental response is measured against AccuTrace High Purity multi-element standards
	(Choice Analytical) to achieve quantitation. Data are subjected to in-house QA and QC procedures
	where an independent analyst recalculates instrumental output and compares the newly generated
rpersonal		data set with the original. Lack of equivalence between the two data sets triggers an internal review
	and if necessary re-analysis of the entire data set. Under these circumstances a third independent
	analyst will assess all generated data prior to sign off.
			Initial equivalence between the two data sets, generated by the analyst and reviewer, will clear
			data for remittance to the customer. In addition to these procedures, samples are regularly sent to
			selected analytical laboratories in Western Australia for confirmation of the analytical data
			obtained. Once completed, all reports are then reviewed by an independent analyst prior to
			submission to the customer and where necessary, relevant changes such as wording that may give
			rise to possible ambiguity in interpretation will be modified prior to the final report being sent to the
			customer.
			In order to validate analytical data, SCI circulates duplicate samples to selected analytical
			laboratories in Western Australia for confirmation of their results.
	Verification of	The verification of significant intersections by either independent or alternative company	Assay results have been verified by alternative SCI laboratory company personnel.
	ampling and	personnel.	SCI has completed analytical duplicate analyses on all batches produced.
	a saying
	The use of twinned holes.	Not applicable - no drilling.
			Multiple samples have been produced and assayed.
		Documentation of primary data, data entry procedures, data verification, data storage	Not applicable
		(physical and electronic) protocols.
		Discuss any adjustment to assay data.	Not applicable.
	Location of data	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),	Not Applicable.
		trenches, mine workings and other locations used in Mineral Resource estimation.