Krakatoa Resources Limited reported highly encouraging rock chip sample results of the reconnaissance mapping survey on tenements E09/2357, E52/3730 and E52/3731 undertaken during April/May 2021. The reconnaissance survey initiated the systematic tenement wide exploration program over its highly prospective Mt Clere Project, located in the north-western margins of the Yilgarn Craton, Gascoyne Region of Western Australia. Low impact exploration program included the collection of 266 stream sediment geochemical samples and over 40 rock and regolith samples. The exploration program was split into two phases with the initial phase undertaken on exploration license E09/2537 (reported in ASX announcement dated 5 July 2021), and the second phase over exploration licenses E52/3730 and E52/3731. The geochemical results presented in this report are for the rock samples taken over all exploration licenses. Krakatoa is currently awaiting the laboratory results from stream sediment programs over E52/3730 and E52/3731. Rock samples were collected from areas of interest identified from historical reports, existing geophysics and adhoc rock outcrops encountered along station tracks, which were used during the reconnaissance over the 1,080km2 area. Forty rock chip and regolith (fresh, duricrust, saprolitic) samples were collected across the three granted exploration licenses during the Company's initial reconnaissance field trip. Of the 40 samples only 28 were selected to undergo various laboratory assay. The selected 28 were nominated to represent a variety of rock types in areas of interest. Noteworthy rocks of interest were found in the headwaters or Wheelo and Errida Creeks were sample MCR21040, a gabbroic diorite returned significant rare earth elements (TREE 664.67ppm), including elevated neodymium (Nd 159ppm). Other samples within gabbroic diorites along strike returned significant TREE assays as well; MCR21036 (3.3km east northeast) and MCR21038 (5.5km north east). Within kilometres of these samples, sample MCR21037 returned 20.1ppb Pt, 12.6ppb Pd and elevated Cr, Ni, Cu and Co. The Bullbadger area rock chip sample MCR21020 returned significant Pt (19.4ppb), Pd (11.2ppb), Ni (714ppm), Cr (3,580ppm) within the Pyroxenite. REE were encountered in the granite and invasive quartz vein. Extensive outcrops of banded iron formations (BIF), scattered throughout the Narryer section of the project, returned Fe2O3 concentration ranging from 48.8 to 64.1%, with negligible deleterious elements. All showed magnetic reaction with the grain sizes ranging from medium fine to course. All samples were transported to ALS Perth and 28 were selected to undergo various analyses. Further details can be found in the JORC Code. Krakatoa is currently preparing for an intense 6-month exploration program over Mt Clere; which will commence immediately and include: field mapping and intensive soil and rock survey over identified geochemical areas of interest stream sediment sampling and reconnaissance mapping on newly granted licences; airborne EM surveys; electron paramagnetic resonance surveys; mineral petrology; Ionic geochemical sampling over prospective areas; target generation and selection for drill testing. The program will be reviewed and include the E52/3730 and E52/3731 license area once all stream and rock samples from the initial phase of exploration are received and interpreted. The presence of extremely anomalous REE within the license area provides exceptionally good news for shareholders. The Company is yet to confirm the prospectivity for clay-hosted-ion-adsorption-type REE deposits though suitable geological environments were identified in Tower and Wheelo Creek, among others. The host geology consists of reworked dismembered remnants of greenstone sequences (which are prospective for intrusion-related Ni-Cu-PGE's) and relatively high-grade granitic gneisses interlayered with metasedimentary rocks that are intruded by swarms of alkaline ultramafic dykes, granite and pegmatites occur within the area.