KGL Resources : Annual General Meeting Addresses

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Slide 1: Opening

Annual General Meeting

31 May 2022

Jervois Project Overview

Jervois Copper Project

• KGL Resources is creating the next Australian copper hub in the Northern Territory
• Consolidating the proximate & prospective Rew ard, Rockface and Bellbird deposits
• Robust PFS led to Feasibility Study.
• Direct access to key infrastructure- c.530km road access from mine to Glencore's Mt Isa complex. Plenty Highw ay to be sealed as part of Outback Way#
• Supported by long-term/extensive mining and exploration leases

Jervois Resource

Jervois Tenements

• Jervois Exploration Licence- 37.9 km2
• Jervois MiningLeases - 19.5 km2
• Unca Creek Exploration Licence- 72.7 km2
• Funding announced but timeline not finalised https://www.pm.gov.au/media/678-million-further-seal-and-upgrade-outback-way

KGL Resources Limited

As I acknowledged at last year's meeting, COVID-19 placed enormous pressure on our people and impacted our ability to progress scheduled activities due to lockdowns and restrictions on site visits.

As an example, the extensive WA border closure forced us to bring labour to site from the Eastern states given labour in the NT is in very short supply. The staffing of site activities was further impacted when the NT government put in place its own border restrictions, which changed multiple times.

As the world continues to recover from the effects of the global pandemic, strong growth, labour shortages and ongoing supply chain uncertainties are driving domestic and international cost pressures. These uncertainties of future costings have created some issues and delays in finalising the feasibility study. This can be seen in a number of projects currently under construction facing escalating capital costs and significant delays.

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Offsetting this is growing confidence in the resource base at Jervois, and a bull market in copper, with all-time highs in the market being seen during 2021 and continuing into 2022 and the value of the Glencore contract.

FS / Development Timeline

Development timeline

We aim to commence development in 1H 2023, following completion of the current Feasibility Study (FS) and subject to a final investment decision by the board by the end of 2022. And we are targeting copper metal production in 2024. But clearly this will depend upon effect of the post COVID issues such as inflation and labour availability.

In regard to the status of the feasibility study, we received the updated mine plan for the feasibility recently which will result in necessary further in-fill drilling to comply with the JORC Reserve estimate reporting requirement. We are developing necessary drill plans to estimate the time it will take which will clearly delay the completion of the feasibility.

We are using a raft of pricing assumptions on the key study inputs including fuel, equipment and labour rates, which, due to global and local inflationary pressures over the last few months, have become increasingly volatile. This is contributing to increased uncertainty for the study output that may reduce the risk appetite of potential financiers. In the current environment we believe a more appropriate strategy is to seek to have the key project inputs backed by negotiated contract terms to provide visibility of these key inputs over a 5- year term. We will use the time taken to do the JORC drilling to negotiate and sign off the major contracts to improve the confidence for financiers. Our aforementioned timetable is based on this.

Developing projects in the current environment requires an experienced team of professionals with a strong track record in mine development which is our current objective hence the inclusion of Jeff and Steven Rooney.

Mine infrastructure design and layout have been prepared, and inbound logistics for the planned work force and outbound logistics for copper concentrate were reviewed and optimised. A camp to sleep 300 and hybrid solar-diesel power station design were also

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consequence the mine plan was further optimised to meet our 10 year target. A recent review however has identified the need for further infill drilling to meet the JORC requirements to finally convert the resource to reserve as part of the feasibility study. The aim is to increase the proportion of indicated resources and extend the PFS mine life beyond

7.5 years to a minimum of 10 years.

Exploration Activity

A geophysical IP survey was carried out in August 2021, and together with Down Hole Electro Magnetic (DHEM) surveys, provided geological data for design of new holes, aimed at near mine extensions of existing resources.

Several new high-grade intersections were discovered at Rockface North, including a new record assay of 61.4% copper, from a massive bornite intersection at Rockface containing 19.8% Cu, 299 g/t Ag and 1.1 g/t Au over 4.0m true thickness from 698.88m downhole (KJCD481D6) and the DHEM indicates that the ore body may remain open at depth.

The Jervois and Unca Creek deposits remain under-explored and highly prospective for high grade copper, gold and silver. Our understanding of the geological structures continues to grow and our focus going forward will be on identifying additional high grade near mine extensions to the current resource.