Kaili Resources : RC Drilling Results at Canegrass, Gindalbie Project

Kaili Resources Limited

ABN 19 132 787 654 World Tower

Suite 1312, Level 13 87-89 Liverpool Street Sydney NSW 2000, Australia

T: [phone]

E:[e-mail]

4th April 2022

ASX Market Announcements

RC DRILLING RESULTS AT CANEGRASS (EL31/113) THE GINDALBIE GOLD PROJECT, YILGARN CRATON, WA

Kaili Resources Limited ("Company") is pleased to announce it has received all results from the 7 hole drilling program completed mid-February 2022 within the Canegrass tenement (Figure 1) of the Gindalbie Gold Project in the Yilgarn Craton in Western Australia (WA).

Encouraging results: Elevated gold intersections >0.25 g/t Au were obtained in most drill holes with the southern-most line having 4 m composite intersections of 0.6 g/t Au and 0.5 g/t Au in addition to other intersection to 1 m @ 1.4 g/t Au. These and other 4 m composite intervals >4 m @ 0.25 g/t Au will be resampled as 4 x 1 m samples. The association of a significant regional fault, a competency contrast between the mafic and felsic volcanics and elevated gold/pyrite in the RC drilling indicates further drilling may be warranted once all the data has been reviewed along with all historical data.

Significant gold intervals are shown below:

CGRC001 3 m @ 0.6 g/t 51-53 m including 1 m @ 1.0 g/t 51-52 m CGRC003 3 m @ 0.38 g/t 69-71 m CGRC004 1 m @ 0.32 g/t 62-63 m CGRC006 4 m @ 0.52 g/t (4 m composite to be split into 1 m samples)

CGRC007

4 m @ 0.6 g/t (4 m composite to be split into 1m samples)

1 m @ 0.54 g/t 73-74 m

1 m @ 1.4 g/t 77-78 m

Two 4 m composites in holes CGRC006 and GCRC007 returned significant results over the interval (see above) and will be resampled as 4 x 1 m intervals (CGRC007 - 36-40 m and 64-72m, CGRC006 - 68-76 m and 84-88 m) for a total of 20 x 1 m splits of the original 4m composite samples.

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 1

test the target given that all the other drill holes reached their planned depth of 90 m. The RC drilling was a follow up program to the 2020 Aircore drilling program that intersected 1 m @ 3.96 g/t Au1 on the most southern line in hole CGAC025 that had the same collar as CGRC005 with the holes drilled at 90 degrees and 270 degrees respectively.

Figure 1: Location of the Gindalbie Gold Project to the NE of Kalgoorlie

Figure 2: Aerial Imagery with tenure, aeromagnetic structures and RC drilling

Figure 3: Aeromagnetic Image with tenure, aeromagnetic structures and RC drilling

Figure 4: Bedrock Geology with tenure, aeromagnetic structures and RC drilling

Figure 5: RC Drill Collars with significant gold intersections

Northing_GDA94_Zone51	Easting_GDA94_Zone51	Prospect	Hole ID	Tenement	Drill_Type	Depth m	Inclination	Azimuth(magnetic)
6672250	389975	CG_F	CGRC001	Canegrass EPM 31 1113	RC	90	-60	270
6672250	389925	CG_F	CGRC002	Canegrass EPM 31 1113	RC	90	-60	270
6672200	390000	CG_F	CGRC003	Canegrass EPM 31 1113	RC	72	-60	270
6672200	389950	CG_F	CGRC004	Canegrass EPM 31 1113	RC	90	-60	270
6672200	389900	CG_F	CGRC005	Canegrass EPM 31 1113	RC	90	-60	270
6672150	389975	CG_F	CGRC006	Canegrass EPM 31 1113	RC	90	-60	270
6672150	389925	CG_F	CGRC007	Canegrass EPM 31 1113	RC	90	-60	270
612

Table 1 RC Drill Collars

The Canegrass area was targeted originally as comprising extensive mafic volcanics and intrusives with an associated regionally significant structure - Emu Fault which is associated with gold mineralisation to the north at the historic Gindalbie Mining Centre. The location of the 2022 RC drilling (Figure 2 and Table 1) program is a follow up to the 2020 Aircore Drilling Program which highlighted Area F as an area with elevated gold in the aircore drilling. Southern Geoscience compiled all available open file geophysical data and merged/processed the data. This was followed by an interpretation of structural elements and magnetic lineaments (Figure 3). The final phase of the interpretation was to construct a bedrock interpretation of the tenement as shown in Figure 4. The interpretation is that the Emu Fault defines the contact between mafic (green) and felsic (yellow) intrusive/extrusive rocks with the prime exploration focus being the mafic dominant lithologies to the west of the Emu Fault. The 2020 aircore drilling intersected 1 m @ 3.96 g/t Au1 in hole CGAC025 located on the southern-most drill traverses in the Area F grid - 6672000mN. The RC program comprising 7 holes was aimed to test the gold anomalous southern line in addition to drilling 50 m to the north (6672250mN) and south (6672150N) Figure 5.Section 6672200 is Figure 6 and section 6672150 is Figure 7.

400mRL

personal use only

LithologyAu(ppm)

>1.0

0.5-1.0

Magnetic Susceptibility

0.1-0.5

<0.1

Quartz veinDepth (m)

Regolith Regolith Regolith BLSA BLT METB AMPH FRK/FLTZ QV

0.014

CGRC004

CGAC024

0.012

4m

0.011

0.006

0.01

0.012

0.027

CGRC003

CGVD230

0.025

1m

GR

0.006

0.007

0.008

0.013

0.006

0.005

350mRL

0.019

0.006

3.96 0.88 0.005 0.011

weathered fresh

0.141 0.319 0.024 0.007 0.008 0.005 0.018

0.005

63m 66m

0.242 0.009 0.005 0.233 0.133 0.179 0.08 0.139 0.456 0.158 0.511

72m

300mRL

90m 90m

389850mE

389900mE

389950mE

390000mE

Figure 5 : Cross Section 6672200N

GINDALBIE Drillhole Cross Section 6672200N
Scale: 1:750	Date: March 2022