Kainantu Resources Ltd. provided an update on the May River Project (Project). The May River Project is located in the foothills of the PNG Highlands, in West Sepik Province, ~10km west of the world-class Frieda River Cu-Au deposits, containing 12.9Mt Cu and 20Moz Au. The key prospects at the May River Project are Iku Hill, Mountain Gate, Eserebe, Foya and the Skiraisa prospects, which are collectively aligned along an area known as the "Skygate Belt" (a 10-12km long cluster of epithermal-porphyry Cu-Au prospects that may replicate the Frieda River Deposit, which is located just 10km from the Frieda River Intrusive Complex).

Highlights of historical exploration conducted by Highlands Gold Ltd. (HGL) note drill intercepts from what is believed to be a lithocap underlying the Skiraisa Prospect, including 109m @ 1.53g/t Au, 44m @ 1.83g/t Au and 96m @ 0.89g/t Au. Further details on the Project are included in the Company's most recently published Management Description and Analysis report. By way of definitive agreements executed 2021, KRL has the right to manage and take full ownership of the Project.

KRL conducted an initial due diligence study focused on the Skiraisa prospect in 2021 and exercised an option to acquire 10% of the Project based on the results and observations. In 2022, further work was completed, and a study finalised for the Mountain Gate Prospect. Mountain Gate Study: The Mountain Gate Prospect was selected for study and further exploration activities in 2022 due to historical geochemical soil sampling, suggesting the likelihood of a shallow buried porphyry Cu-Au deposit in the area.

In summary in 2022, a total of 324 samples were collected during the second exploration campaign. Seventeen soil samples were taken along the ridgeline east of Mountain Gate (where a 0.52% Cu rock chip sample was located). Mapping and sampling of the creeks surrounding the prospect was conducted over a 9.5km stretch covering 23 creeks for 112 samples.

Au and Mo anomalous drainage located W-NW of Mountain Gate was inspected with 18 samples taken. Mapping and sampling of historic trenches was conducted with 154 samples covering 305m across 11 trenches. Twenty-three samples were taken during the follow up works on a VTEM-ZTEM anomalism outside the Mountain Gate areas.

The Au and Cu anomalism at Mountain Gate Prospect recorded from the historical HGL soil samples (and results taken by KRL in 2022) were centred on a ~500m x ~500m intensely altered intrusive complex representing a typical pipe-like porphyry Cu-Au surface signature, including a central 30mx 100m zone showing pervasive potassic alteration (magnetite-secondary biotite-adularia-illite-calcite alteration of late-stage hornblende-quartz-feldspar andesite porphyry with strong chalcopyrite-bornite-covellite-malachite disseminations and fracture fills. A petrology sample taken from this zone indicated proximity to an upflow zone of likely higher Au-Cu grade. A series of 8 x nominally 3m long continuous chip samples taken from a cleaned-up exposure within this zone, along the upper reaches of Koras Creek, returned the following values.

Mapping and sampling within the vicinity of this zone revealed a multi-phase intrusive complex displaying zoned alteration and strongly anomalous Au-Ag-Cu geochemistry. An initial geological model was drafted, to help guide further exploration over the Mountain Gate Prospect. The association of higher Au-Ag-Cu grades with late-stage altered and mineralized intrusive rocks is evident.

KRL has identified multiple areas of mineralisation and altered outcrops within the Mountain Gate Prospect area and surrounds. This includes 2 previously unidentified areas hosting epithermal style quartz veins peripheral to the porphyry target: Ikeini Creek in the north where local gold panning is being conducted. A 2.5m width of a vein in the banks of the creek returned 0.43ppm Au; and a quartz vein displaying clear evidence of epithermal texture (banded and partly chalcedonic) was noted in an area of historic airborne VTEM/ZTEM anomalism to the WNW of the Mountain Gate Prospect.

In summary, the 2022 study at Mountain Gate has demonstrated the highly prospective nature of the Project, as supported by the strongly anomalous Au and Cu samples reported, outcrops of mineralization uncovered, and the identification of at least 2 peripheral potential epithermal gold prospects in the area. Follow-up exploratory work during 2023 over the Mountain Gate Prospect and surrounds will be geared towards rapidly identifying drill targets. It is believed that the Koras Creek area, containing a potential mineralized porphyry apophysy, offers the best target thus far.

However, given the scale of the altered and mineralized footprint here, it is possible that other similar shallowly buried apophyses may be present in a complex multi-phase intrusive environment. Initial planning involves further mapping and sampling the prospect, extending the grid SE towards the Eserebe Prospect grid (Au-Cu anomalous soil open to the north), and including the peripheral potential epithermals, in conjunction with an IP survey over the Mountain Gate grid in order to delineate prospective porphyry targets for diamond drilling.