KGL Resources : Bellbird Resource Update

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Bellbird Resource Update

27 January 2022

• Bellbird mineral resource estimate updated

1. 10% increase in contained copper metal to 113.4 kt o Resource tonnes up 28%
   o Copper grade lower at 1.97%

KGL Resources (ASX:KGL) is pleased to announce an update of the mineral resource estimate for the Bellbird deposit. The Bellbird deposit hosts one of the three principal mineral resources which comprise the Jervois Copper Project and has been subject to a significant program of resource-growth drilling during 2021.

This Bellbird update follows the updated mineral resource estimate update for Reward that was announced on 10th January 2022. The Rockface mineral resource estimate is underway, and these three (3) resource models will form the basis for feasibility study optimised mine designs.

Bellbird Resource Update

The mineral resource estimate was completed by experienced and independent consultants, Mining Associates Pty Ltd, and their summary report is included as part of this announcement. The mineral resource estimate incorporated the results from drilling during 2021, along with drilling results from previous years. The estimate is reported according to the JORC (2012) guidelines.

Results

When compared to the most recent previous estimate (2020), the Bellbird mineral resource estimate delivers a 10% increase in contained copper metal, to 113.4 kt (from 103.1 kt), and 28% increase in resource tonnes to 5.76 Mt (from 4.49 Mt), in the indicated and inferred categories. Copper grade is reported at 1.97% and represents a drop of 14% (from 2.30% Cu). The main reason for the drop in grade was the inclusion of more mineralised material at, or marginally below the cut-off grade, to improve the continuity of the interpreted lodes. Table 1 below presents the latest mineral resource parameters and Figure 1 show the progression of copper results from the past four Bellbird mineral resource estimates.

Table 1. Bellbird Mineral Resource Estimate 2022

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Bellbird Resource Update

Figure 1: Showing the progression of Bellbird copper mineral resource estimates from 2018 until the current estimate in 2022. The 2022 estimate provides a 10% increase in total copper metal compared with the 2020 estimate.

Gold and Silver

Both gold and silver grades have dropped slightly, but 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.

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Bellbird Resource Update

Bellbird Silver

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

Bellbird Gold

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

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Bellbird Resource Update

KGL Managing Director Simon Finnis comments: "Even though the copper grade at Bellbird is lower for this mineral resource estimate, the more continuously-defined mineralised lodes will greatly assist with our mining strategy. The 10% increase in Bellbird copper metal, along with the 20% increase in copper from Reward announced on 10th January, are both very solid results, meeting our expectations from the drilling conducted in 2021.

"The resource block models for both Reward and Bellbird are now with our mining engineers for open pit and underground mine design and optimisation. Initial engineering feedback is that substantially more mill feed can be scheduled from both deposits, compared to earlier designs, and this should have positive implications for the projected life of mine.

"We are anticipating the completion of the Rockface mineral resource estimate within the next four to six weeks and that will finalise the current round of resource updates.

"Further drilling was carried out north of Reward, known colloquially as Reward Gap, late in 2021 but slower than usual receipt of assay results may preclude them being included in the resources used for the feasibility study.

"The 2022 drilling campaign has commenced and is currently focussed at Reward, in areas where it is considered the best potential for easily accessible and additional ore is located."

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

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Bellbird Resource Update

Competent Person Statement

The information in this announcement that relates to the Bellbird 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.