Kaili Resources Limited announced completion of the 7 hole drilling program that commenced on 7 February 2022 within the Canegrass tenement of the Gindalbie Gold Project in the Yilgarn Craton in Western Australia (WA). The planned program was for 90 m per hole for a total of 630 m. However, hole CGRC004 was terminated at 72 m due to a high percentage of clay that could not be drilled. That hole was at an adequate depth to test the target given that all the other drill holes reached their planned depth of 90 m. The Company has been fortunate in engaging an experienced Kalgoorlie based field crew and drilling team to complete the planned drilling with minimal delays in the current environment of interstate border closures, restrictions for the Company`s Sydney based personnel to travel to WA and lack of readily available drillers.

The drilling program was managed by geological consultancy BMGS using Goldfields Drilling. Drilling Area F within the area situated in Gindalbie Station and E31/113. Every drilled meter was sampled using the Company's Olympus Delta Pxrf.

A total of 285 samples have been dispatched to ALS Laboratory for gold and multi element analyses. Given the current high volume of samples being delivered by explorers and miners to the ALS Kalgoorlie facility, anticipated turn around for results is 34 weeks. A shallow (average drilling depth of 7 m) vacuum drilling was completed in 2019 across the Holey Dam and Canegrass tenements to look for gold geochemical signatures beneath transported overburden.

The program was followed by deeper (average depth of 45 m) Aircore drilling in 2020 at 4 target prospects. Of these 4 targets Prospect CG_F (Canegrass Area F) has been chosen for the current RC drill testing using 3 drill lines. Canegrass Prospect CG_F lies on the Emu Fault shown which transgresses the Canegrass tenement from North to South.

There is a group of several historical gold workings located to the north and just outside the Canegrass tenement (Gindalbie Workings) and they lie adjacent to the Emu Fault. The key gold mineralised intersections are shown on an RTP Aeromagnetic Image. A drill hole in the centre of the southernmost Aircore drilling program within CG_F intersected 4 m @ 0.16 g/t Au from 4852 m, which included 1m @ 3.96 g/t Au (4849 m) and 1m @ 0.88g/t (4950 m) in Aircore Hole CGAC025 which was terminated at 63m down hole.