Kingwest Resources : Lake Goongarrie Nickel Sulphide Drilling Completed

Kingwest Resources Ltd

ASX: KWR

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Directors & Management

Chairman

Gregory Bittar

useCEO

Ed Turner

Non Executive Directors

Adrian Byass

Jonathan Downes

Jon Price

personalComp ny Secretary Stephen Brockhurst

Principal Place of Business

Unit 3, Churchill Court

335 Hay Street

Subiaco WA 6008

Registered Office

L v l 11

216 St Georges Terrace

Perth WA 6000

Contact

ForT 08 9481 0389

[e-mail] www.kingwestresources.com.au

Investor Relations

Lucas Robinson

T [phone]

1. [e-mail]

21 March 2022

Lake Goongarrie Nickel Sulphide Drilling Completed

• Assays Pending

• First pass aircore drilling targeting 11km of the nickel-fertile Highway Ultramafic unit has been completed at Lake Goongarrie
• 223 holes for 7,788 metres drilled. All assays are pending
• The Highway Ultramafic hosts several 'Kambalda-type' channel nickel sulphide deposits along strike to the south, including Auroch Minerals emerging Saints nickel sulphide deposits1 and the historic Scotia Nickel Mine which produced 30,800t Ni metal between 1969 and 19772
• Historic drill holes completed by Western Mining Corporation within Kingwest's tenements have returned intersections of up to 21m @ 0.4 % Ni
• Inaugural 4,000m diamond core drill testing of Sir Laurence gold targets is planned to commence in several weeks' time

CEO, Ed Turner commented "We are very pleased to have completed our first exploration drilling programme for nickel sulphide mineralisation within our Lake Goongarrie Project. Assay results are eagerly anticipated given that limited widespread historic drilling has already revealed anomalous Ni assays on several drill lines. Kingwest's Goongarrie tenement package hosts multiple nickel exploration targets directly along strike of the 'Saints' Kambalda-type,komatiite-hosted, channel nickel sulphide deposits. The 11km continuation of the nickel-fertile Highway Ultramafic within our land holdings has great discovery potential for nickel. The target areas also host numerous prospective litho-structural settings for gold mineralisation and so some additional drilling was completed to test these targets during this programme.

In addition, I look forward to the inaugural diamond core drill testing of the Sir Laurence gold Discovery which will commence in several weeks' time."

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INTRODUCTION

Kingwest has commenced exploring an 11km strike length of the nickel-fertile Highway Ultramafic

within the E29/996 and E29/966 licences. This section of the ultramafic is entirely covered by salt- lake sediments.

A total of 223 aircore holes (KGA0815 - KGA1033) have been completed for 7,788 metres (Figure 1 presents all drill traverses, Table 1 includes all drill hole collar details). All assays are pending. The Highway Ultramafic location, significant historic intersections and drill traverses are shown in more detail in Figures 2, 3 and 4.

DRILLING COMPLETED BY KINGWEST

Kingwest has completed 15 lines of closely spaced aircore holes across the aeromagnetically interpreted strike continuation of the nickel fertile Highway Ultramafic.

Figure 1 shows an overview of the drilling, with the recent KWR drill lines shown in blue. Figures 2, 3 and 4 show these drill lines in detail with previous shallow aircore nickel drilling by other companies.

The Kingwest drilling covers a strike length of approximately 11 km and closes up the average along- strike spacing to between 800 and 200 metres (previously up to 1.7km).

The drilling is an initial first pass and more closely spaced follow up drilling is required, as the targeted nickel sulphide bodies are thin and of narrow strike extent, although significantly elongated down- plunge. Their strike expression at surface is typically several hundred metres with no lateral primary geochemical halo.

The drilling had a number of objectives:

• To confirm the precise location of the Highway Ultramafic beneath the lake cover, as interpreted from Kingwest's recent high resolution aeromagnetic survey
• To establish the exact position of the most nickel-prospective eastern basal contact
• To investigate the geological facies of the komatiite flow units
• To confirm the presence of anomalous nickel-cobalt values reported from widely spaced 1990s shallow vertical reconnaissance aircore drilling by Western Mining Corporation, Breakaway Resources and Scotia Nickel.
• To follow up some of these historic nickel intersections with more closely spaced drilling
• To add infill drill lines across the ultramafic in between the historical drill lines so as to close up the line spacing along strike
• To provide an initial test of some thicker sections of the ultramafic that could be channel-flow facies komatiites
• To confirm the aeromagnetic interpretation of a number of outlying geological features
• Incidental to the above, to test several prospective cross-cutting geological structures for gold

All bedrock drill samples from below the alluvial interface have been submitted for nickel sulphide multielement analysis and gold assay. Nickel prospective komatiite samples are being analysed on site by portable X-ray fluorescence (pXRF) to provide an initial estimate of their Ni-Cu-Zn-Co-Cr content.

On this eastern, northern and southern sides of the lake, the alluvial cover is generally thinner and the lake surface less boggy than the central and western parts, apart from the area of Line N7, where the 80m deep Sir Laurence channel cuts across the stratigraphy.

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Figure 1: Lake Goongarrie tenement holdings and Highway Ultramafic location which is prospective for nickel

sulphide mineralisation on aeromagnetic image background

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Figure 2: Northern area of Lake Goongarrie (E29/966 tenement) with historical drilling and latest KWR Nickel

drilling lines on aeromagnetic image background

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Figure 3: The Central area of Lake Goongarrie (E29/966 tenement) with historical drilling and latest KWR

Nickel drilling lines on aeromagnetic image background

Figure 4: The Southern area of Lake Goongarrie (E29/996 tenement) with historical drilling and latest KWR

Nickel drilling lines on aeromagnetic image background