Kaili Resources Limited announced the completion of surficial exploration at Prospect F within Canegrass EL 31/1113 over 4 target areas defined from the 2022 Induced Polarisation survey (ASX Announcement 9th December 2022 IP Survey Completed at Canegrass) Following a review of the results of the Canegrass IP Survey four areas have been chosen for field geochemical evaluation prior to RC drill testing proposed for Third Quarter 2023. A paleochannel runs NW to SE through Target 4 as such KLR has decided to use a MMI sampling approach with the soil samples collected on a 25 m x 25 m grid at 20 cm depth below the root layer and submitted to SGS in Kalgoorlie for gold and multi element analyses. The IP Survey successfully delineated four target areas (CGIP 1 to 4) located within the western half of the survey area (mafic domain).

The warm colours indicate areas of enhanced conductivity that are potential sulphide targets. This is the highest priority target being a conductivity high and linear magnetic high adjacent to the regionally significant Emu Fault. Discrete conductive target associated with a NE-SW splay off the Emu Fault.

Broad N-S conductive flat target, possibly lithological but worth testing to see if drilling is warranted. Weak IP conductive target to the south of the RC drilling testing where significant gold in drilling results have been obtained. The IP survey was conducted by Moombarriga Geoscience in November 2022.

Equipment used included a Search-Ex WB30 transmitter and a SmarTem 24 receiver system. Receiving electrodes were standard non- polarising porous pots and transmitter electrodes were buried steel plates or stakes. The survey consisted of six EW lines, each 1.3 km long.

Line spacing was 100 m. The survey utilised a roll along dipole-dipole (DDIP) configuration using 50 m transmitter dipoles and 16 m x 50 m receiver dipoles. Station moves were 50 m.