Kula Gold Limited reported that RC drilling at the Airfield Project near Southern Cross WA intersected thick >42m vertical kaolin clay development over the 300m drilled length at the newly named Boomerang Kaolin Prospect. The holes were drilled to test a magnetic anomaly and intersected the deep white kaolin zone. A total of 28 five metre composite samples were sent to Bureau Veritas ("BV") in Adelaide for sieving, XRF and ISO brightness analysis. The samples were wet sieved to remove quartz and mica to produce a coarser -180µm +45µm fraction and a finer -45µm fraction which were both assayed by XRF. The -45µm samples were then sent to CSIRO for XRD analysis to determine the kaolin-halloysite content. A sighter HPA leach test is in progress for the Boomerang Kaolin Project. Results for the 28 Boomerang composite kaolin samples show approximately 47% of the sample reports to the -45µm fraction which grades 37% Al2O3 with very low levels of impurities (Fe2O3 and TiO2) and high ISO brightness results. Results are very consistent across the three drill holes, and comparable to some of the higher quality deposits in the industry, albeit early stage as only three holes have been drilled to date. The bright white kaolin zone was discovered when drilling a geophysical based gold target in April this year. A 200m spaced RC drilling program (2000m) is planned to define and test the extents of the kaolinized zone above the granite in August. The company believes the Exploration Target is between 30 and 100Mt of kaolin material based on the current thickness and the nature of the process that forms the wide zones of kaolin in weathered granite. Drill testing will continue if wide zones are intercepted in the planned program. The target size is conceptual in nature and there has been insufficient exploration to estimate a mineral resource at this stage. Only three drillholes have been completed over a length of approx. 300m to date and it is uncertain if further exploration will result in the estimation of a mineral resource. The planned RC drilling is expected to be efficient given the spacing, and soft shallow profile. Drillholes will also be extended a further ~10m into fresh rock to test for gold below the kaolin on potential geophysical targets. Additional areas where the previous auger drilling identified bright white kaolin clays near surface are also planned to be RC drilled to verify the thickness of the kaolin clays. The Boomerang Kaolin prospect lies in a favourable location, being ~25km from the Kalgoorlie water pipeline and Highway 94 Perth to Kalgoorlie, and 42km to the Southern Cross Rail yard. The Company notes recent results from Western Australian Kaolin and Halloysite explorers, Andromeda Metals Ltd, Suvo Strategic Minerals Limited, Latin Resources Limited, FYI Resources Limited, WA Kaolin & Alpha HPA Ltd. Recent prices for Kaolinite end product have been quoted/published at up to $700/t. Higher grade Halloysite and some applications in the High Purity Alumina (HPA) sector can achieve prices as high at $30,000/t with further processing. Further details on the world kaolin market are attached at Appendix 1. Whilst Kula's results are preliminary and need to be confirmed by follow up drilling and assays, the Company believes that the initial assays are significant in grade and extent and require further investigation and drilling.