Announcement PDF QUARTERLY REPORT 31 January 2024 ABOUT KINGSTON RESOURCES Kingston Resources is a gold producer, focused on building a mid-tier gold and base metals company, with current production from the Mineral Hill gold and copper mine in NSW, and advancing its flagship development asset, the 3.8Moz Misima Gold Project in PNG. QUARTERLY ACTIVITIES REPORT For the period ending 31 December 2023 HIGHLIGHTS Mineral Hill Gold & Copper Mine, NSW • Mineral Hill has produced $24m of operating cash flow from the date of acquisition in January 2022 to December 2023 . • December Quarter production: CAPITAL STRUCTURE Shares on Issue: 497.9M Market Cap: A$41M Cash:(31 December 2023) A$10.5m • DIRECTORS & MANAGEMENT Mick Wilkes Non-Executive Chairman Andrew Corbett Managing Director & CEO Stuart Rechner Non-Executive Director Tony Wehby Non-Executive Director Stuart Hayward Chief Geologist Geoff Merrell GM, Mineral Hill • www.kingstonresources.com.au ABN: 11 060 156 452 E:info@kingstonresources.co m.au A: 202/ 201 Miller Street, North Sydney, NSW 2060 Share Register: LinkedIn: Kingston Resources Limited Twitter: @KSNResources o Average gold price A$3,041/oz o AISC of A$2,302/oz o A$11.2m in sales and A$2.64m in operating cash flow. o Near mine discovery into a new lode underground, showing potential to expand the life of mine. o Two drilling programs completed at the Southern Ore Zone (SOZ);. o High grade gold was intersected at the Eastern Ore Zone, with an intersection of 3m @ 25.94g/t gold adjacent to existing underground development. o An updated Mineral Resource and Ore Reserve estimate is planned for SOZ in 2024. Mine development: o Process plant refurbishment is progressing well, within budget and with re-commissioning scheduled to occur by June 2024. o Access to the underground development has been fully re-established in preparation for underground resource drilling with the decline pumped out, ground support installed and primary ventilation operational. o Capital programs completed across the site are continuing to build substantial value for the company. Misima Gold Project, PNG • Kingston remains focused on bringing the project into production and creating prosperity for all stakeholders. • Discussions are continuing with numerous interested parties in relation to potential partnerships and development pathways. Corporate • www.kingstonresources.com.au Gold sold 3,627oz Exploration: CORPORATE DETAILS ASX: KSN o Cash balance $10.5M as at 31 December 2023. 1 Kingston Managing Director, Andrew Corbett, said: "I am pleased to provide you with a comprehensive update on our company's performance for the fourth quarter of 2023. The past three months have continued to be a period of significant achievement for Kingston Resources. The Company has made significant progress during the quarter in our exploration and drilling activities at the Mineral Hill Mine in New South Wales. We have achieved multiple milestones, including the discovery of additional high-grade polymetallic lodes at the Southern Ore Zone (SOZ), intersection of zones of continuous high grade gold at the Eastern Ore Zone (EOZ) and the advancement of our capital programs across the site. It is an exciting time to be a gold producer in NSW. The market is experiencing renewed strength in the gold price and the company is capitalising on spot gold prices for our gold and silver production. Junior mining companies are facing numerous challenges in the current market, but having a producing asset within the portfolio provides substantial stability and financial strength. Kingston’s sales of $11.2m over the quarter demonstrates this strength clearly. The exploration work has the potential to significantly expand our underground Mineral Resources and extend the overall life of mine. We have focused our investment on re-establishing multiple cash producing orebodies across the site which will build substantial value for the company. With the successful milestones achieved and ongoing efforts, Kingston Resources is optimistic about the future and the opportunities that lie ahead." - Managing Director, Kingston Resources Figure 1: Board review on the progress of process plant refurbishment on July 23 www.kingstonresources.com.au 2 MINERAL HILL MINE Exploration During the quarter, Kingston made a material step forward in its exploration and drilling activities at the Mineral Hill mine in New South Wales. The company achieved multiple milestones, including high-grade polymetallic assays at the SOZ, near mine discoveries, and exploration drilling at SOZ and the Eastern Ore Zone (EOZ). These developments have the potential to expand the underground Mineral Resources and extend the company's life of mine inventory. Southern Ore Zone In October, Kingston conducted surface diamond drilling at the SOZ, which resulted in wide, high-grade portions indicating a strong potential for favorable margins in underground production (See ASX announcement on 11 October 2023). Key highlights include 5m @ 5.37% CuEq and 5.5m @ 3.83% CuEq. The mineralisation was observed exactly where the existing Mineral Resource is located, which has boosted the Company's confidence in the geological model for this area. In a subsequent drilling campaign, two new mineralised structures were intersected to the east of the SOZ Mineral Resource model (see ASX announcement on 1 November 2023). Structure #1 Figure 2: Near mine discovery in KSNDDH017 (200mN crosssection, +-50m window). was identified in historical drill holes and further confirmed through the recent drilling (see Figure 2). Additionally, a second high-grade polymetallic mineralised structure was intersected, revealing the discovery of a new zone of mineralisation (Structure #2). Significant assays over this zone returned 12.5m @ 3.41% CuEq. Figure 3: SOZGT02 significant intersections (325mN cross-section, +-12.5m window). www.kingstonresources.com.au A further six holes for 1,572.5m were drilled late in the quarter and into January to test the upper extents. The drilling aimed to increase the confidence Mineral Resource Estimate, which is currently Inferred and Indicated in these areas. Assay results are expected to be returned in the March quarter. The Southern Ore Zone currently has a Mineral Resource estimate of 3.8Mt at 1.29g/t Au, 19.2g/t Ag, 0.9% Cu, 1.6% Pb, and 1.4% Zn (refer to ASX announcement on 24 November 2022). 3 Table 1: Key highlights from hole KSNDDH017, Southern Ore Zone, Mineral Hill. Hole ID Interval (m) KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 KSNDDH017 1.00 22.00 2.00 1.00 3.55 2.60 0.80 4.00 6.00 1.00 1.00 3.00 1.00 5.00 4.00 12.50 4.00 4.00 1.00 incl incl incl incl incl incl incl From (m DH) 243 266 266 274 284 314 315 324 333 337 377 384 385 393 393 405 406.5 413.5 436 To (m DH) 244 288 268 275 287.55 316.6 315.8 328 339 338 378 387 387 398 397 417.5 410.5 417.5 437 Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) CuEqIS (%) CuEq (%) CuEqIS % COG 0.02 0.53 1.29 2.66 0.44 0.13 0.25 0.07 0.11 0.01 0.1 0.46 0.61 0.59 0.72 0.11 0.12 0.06 0.03 81 20 30 24 37 33 32 10 13 2 5 18 24 7 8 17 28 22 10 0.02 0.47 0.40 0.26 1.24 0.19 0.37 0.14 0.04 0.00 0.03 0.25 0.36 0.26 0.28 2.10 4.40 1.85 0.35 0.03 2.22 3.12 1.14 6.12 2.02 2.92 1.90 1.15 0.17 0.38 0.47 0.62 1.14 1.31 3.67 4.26 6.77 2.70 0.10 1.20 4.27 0.62 1.93 2.83 3.44 2.18 3.84 0.60 0.94 1.00 0.69 1.21 1.22 4.50 4.88 8.30 0.21 0.71 1.87 3.60 2.60 3.84 1.95 2.60 1.44 1.77 0.27 0.54 1.12 1.30 1.36 1.51 4.66 7.32 6.41 1.12 0.46 1.38 2.52 1.95 2.89 1.32 1.80 0.98 1.13 0.17 0.36 0.80 0.95 0.98 1.10 3.41 5.51 4.54 0.87 0.5 1.0 2.5 2.5 2.5 0.5 1.0 1.0 0.5 1.0 0.5 0.5 1.0 0.5 1.0 0.5 1.0 2.5 1.0 * DD cut core samples (Half core HQ3, Quarter core PQ3). 0.3m min to 1m max sample intervals. FAS 50g + 4 Acid Digest-ICP. QAQC checked and verified (Au + BM CRM, Pulp Blanks, Duplicates, Sample weights, DGPS Collar Locations, Single Shot Downhole surveys, Data verification). **Drill hole intervals are reported as continuous zones at CuEqIS cut off grade of greater than 0.5%,1.0% and 2.5%, with 2 metres maximum internal waste and minimum interval of 0.3mdh. *** Mineralised intercepts for reporting are derived from In-Situ Copper Equivalent (CuEqIS) using the following formula. Proportions are based on KSN forward looking USD$ commodity pricing and are not inclusive of metallurgical recovery. CuEqIS%= (Au_ppm*0.63)+ (Ag_ppm*0.0078)+ (Cu%*1.0)+ (Pb%*0.224)+ (Zn%*0.342) **** Assays and mineralised intercepts for KSNDDH017 are considered as final. Eastern Ore Zone Strong potential exists for Kingston to re-enter the existing underground development at the Eastern Ore Zone, where high grade gold-copper was historically mined. Assay results from a two-hole drilling program confirmed the presence of a continuous lode that extends along strike and down-plunge. Among the key highlights was an interval of 3m @ 25.94g/t gold. This intersection is on the same structure as other insitu high grade gold hits. Kingston has commenced updating the Mineral Resource estimates for the near term production areas (open pit and underground). The mineralisation at the EOZ is not included in the Company's current Mineral Resources, but there is potential to include the area in updated estimates given access to the underground development has been re-established. With the positive results from the recent drilling activities, Kingston Resources is optimistic about the potential to expand its Mineral Resources and extend the life of mine at Mineral Hill. The company will continue its exploration efforts, conducting further drilling to assess the extensions and infill zones. Kingston Resources remains committed to maximising the value of its mining operations and delivering long-term sustainable growth. www.kingstonresources.com.au 4 Figure 4: Long section view of Eastern Ore Zone (EOZ) showing extension potential. Operations Mineral Hill remains a foundational asset for Kingston as the company continues to produce ongoing cashflow from the tailings retreatment project. Since acquiring the project in January 2022, Kingston has produced $24m of operating cashflow from the site. Key operational activities during the quarter included mining and processing from Tailings Storage Facility 1 (TSF1), building additional capacity in in TSF2 with a new wall lift and refurbishment of the processing plant. Additionally, water was pumped out of the underground declines to gain access to the access drive at the Southern Ore Zone. These capital programs are renewing the asset value across the site and setting the company up for future operating cash flows. Over the life of the project so far, the average feed grade has been higher than the original Ore Reserve estimate. Mining and processing experienced a number of challenges during the quarter. Firstly, elevated copper and lead gradesimpacted the gold feed grade, recoveries and the ability to maintain tonnage throughput. Additionally, there were unplanned maintenance issues for the dozers, dragflow1 and the agitator blades within the processing plant, which also affected throughput levels. Kingston has resolved these issues by adding an additional dozer to maintain equipment availability, upgrading the hydraulic motors on the dragflow and replacing the agitator blades. The company has also recruited a new manager for Assets and Special Projects to focus on dragflow performance and mill supply. Electrical storms caused significant disruption during the quarter, with rapid rain events and regional power outages causing material downtime in the process plant. Additionally down time was caused by safety standdowns related to lightning proximity. 1 Dragflow is a submersible pump which turns the tailings into a slurry so it can be piped to the processing plant. www.kingstonresources.com.au 5 The rise in AISC from the previous quarter can mainly be attributed to the reduction in gold sold, but also due to the additional sustaining capital costs in preparation for transitioning to open pit and underground mining. The Company continues to realise the benefit of selling gold at spot prices, with the average realised gold price increasing 3.7% to $3,041/oz. Table 2: December 2023 quarter production summary. September Quarter December Quarter Q on Q change 146,910 136,531 -7.1% Average Feed Grade (g/t) 1.51 1.34 -11.0% Processing Recovery (%) 59% 58% -2.4% Gold Production (oz) 4,229 3,409 -19.4% Gold Sales (oz) 4,167 3,627 -13.0% Silver Sales (oz) 5,154 5,685 10.3% AISC (A$/oz) $1,830 $2,302 25.8% Realised Gold Price (A$/oz) $2,933 $3,041 3.7% Sales (A$m) $12.37 $11.20 -9.5% Operating Cashflow (A$m) $4.56 $2.64 -42.0% Tonnes Processed (t) Gold Sold (oz) AISC (A$/oz) Realised Gold Price (A$/oz) Gold Sales (oz) and AISC (A$/oz) 6,000 5,000 4,000 3,000 2,770 2,968 2,933 2,000 3,041 2,302 1,837 1,000 1,543 1,494 MarQ FY23 Jun Q FY23 Sep Q FY24 DecQ FY24 Figure 5: Quarterly gold sold, AISC and realised gold price. Capital Programs Re-entry works at the underground mining areas included pumping water down to the Southern Ore Zone access drives, completing all necessary ground support and installing power and other services to the work areas. The drives are now ready for underground resource drilling to commence over the next few months. www.kingstonresources.com.au 6 Portal Parkers Hill Red Terror Drill site 1 Southern Ore Zone (SOZ) Figure 6: Oblique long-section of the rehabilitated EOZ Decline and SOZ Access drives. The refurbishment of the processing plant at Mineral Hill is progressing well and within budget. Major work during the quarter included numerous steel replacements across the fine ore bins and some structural pillars. Clean-outs of the conveyors and flotation circuits was also completed. Kingston has maintained an “act like an owner” mentality in optimising these projects in terms of cost reduction and adherence to schedules. Safety, Environment Sustainability and There were no reportable environmental or safety incidents during the quarter. MISIMA GOLD PROJECT Kingston remains committed to realising the best value from the Misima Gold Project, which centres around bringing the project into production and creating prosperity for all stakeholders. The company has been in discussions with numerous interested parties in relation to potential partnerships and development arrangements. Figure 7: Refurbished conveyor tunnel from the fine ore bins up to the ball mills. www.kingstonresources.com.au 7 CORPORATE The Company’s closing cash balance at 31 December 2023 was $10.5 million in unrestricted cash and a further $7.2 million in restricted cash (environmental bonds). The consolidated group cash flow for the quarter is summarised below: Net cash from/(used in) Gross revenue ($m) 11.260 Production cost ($m) (5.060) Staff cost ($m) (1.780) Administration and corporate cost ($m) (0.081) Net interest payment ($m) (0.388) Net cash flow from operating activities($m) 3.940 Exploration and development expenditure ($m) (0.975) Net cash flow from investing activities ($m) (7.23) Net cash flow from financing activity ($m) (0.090) During the quarter, the Company made payments totaling $172,000 to associates or related parties reflecting fees, wages, and superannuation paid to Directors. www.kingstonresources.com.au 8 Table 3: Tenement Schedule (ASX LR 5.3.3) as at end of quarter Tenement Status Ownership Type Title Area EL1747 Misima, PNG Live 100% EL 180 km2 EL1999 Mineral Hill, NSW Live 100% EL 17 UNITS EL8334 ML5240 Mineral Hill, NSW Mineral Hill, NSW Live Live 100% 100% EL ML 100 UNITS 32.37 HA ML5267 Mineral Hill, NSW Live 100% ML 32.37 HA ML5278 Mineral Hill, NSW Live 100% ML 32.37 HA ML332 Mineral Hill, NSW Live 100% ML 22.36 HA ML333 Mineral Hill, NSW Live 100% ML 28.03 HA ML334 Mineral Hill, NSW Live 100% ML 21.04 HA ML335 Mineral Hill, NSW Live 100% ML 24.79 HA ML336 Mineral Hill, NSW Live 100% ML 23.07 HA ML337 Mineral Hill, NSW Live 100% ML 32.27 HA ML338 Mineral Hill, NSW Live 100% ML 26.3 HA ML339 Mineral Hill, NSW Live 100% ML 25.09 HA ML340 Mineral Hill, NSW Live 100% ML 25.79 HA ML1695 Mineral Hill, NSW Live 100% ML 8.779 HA ML1712 Mineral Hill, NSW Live 100% ML 23.92 HA ML1778 Mineral Hill, NSW Live 100% ML 29.05 HA ML5499 Mineral Hill, NSW Live 100% ML 32.37 HA ML5621 Mineral Hill, NSW Live 100% ML 32.37 HA ML5632 Mineral Hill, NSW Live 100% ML 27.32 HA ML6329 Mineral Hill, NSW Live 100% ML 8.094 HA ML6365 Mineral Hill, NSW Live 100% ML 2.02 HA www.kingstonresources.com.au Project Name & Location 9 About Kingston Resources Kingston Resources is currently producing gold from its Mineral Hill gold and copper mine in NSW and is developing the 3.8Moz Misima Gold Project in PNG. The Company’s objective is to establish itself as a mid-tier gold and base metals company with multiple producing assets. • • • • • • • • • • Mineral Hill Mine, NSW (100%) Mine plan out to the end of 2027: Open pit and underground mining. Significant upside: Current life of mine only utilises 22% of the current 8.9Mt of Mineral Resources. Infrastructure excellence: Extensive existing infrastructure with all permits and approvals in place. Exploration potential: Exceptional upside within current Mining Leases (ML) and Exploration Licenses (EL). Current Focus: Maximising returns from Tailings Project gold production, proactive exploration drilling, and underground re-entry. Misima Gold Project, PNG (100%) DFS Validation: potential for a robust, scalable, and low-cost open pit operation. Production Potential: Anticipated gold production of ~2.4Moz over a 20Year Mine Life (Avg. 128kozpa). Strong Financial Viability: Pre-Tax Net Present Value (NPV) of A$956 Million (based on a US$1,800/oz Gold Price). Gold Price Upside: Highly leveraged to the upside of the gold price, amplifying potential returns. Current Focus: Prioritising ESIA reports, strategic funding & development strategies. Mineral Hill is a gold and copper mine located in the Cobar Basin of NSW. In June 2023, the company updated its life of mine plan, including both open pit and underground mining until 2027. The processing plant currently operates a CIL, and work is underway to recommission the existing crushing, grinding and flotation circuits for copper, lead and zinc concentrate production. In addition to current production, the company is focused on meeting near mine production targets located on the existing MLs. The aim is to extend the mine’s life through organic growth and consider regional deposits that could be processed at Mineral Hill’s processing plant. Misima hosts a JORC Resource of 3.8Moz Au and an Ore Reserve of 1.73Moz. Placer Pacific operated Misima as a profitable open pit mine between 1989 and 2001, producing over 3.7Moz before it was closed when the gold price was below US$300/oz. The Misima Project also offers great potential for additional resource growth through exploration success targeting extensions and additions to the current Resource base. For further information regarding the Misima Mineral Resource and Ore Reserve estimate, see ASX announcements on 24 November 2020 and 15 September 2021 and 6 June 2022. Further information is included within the original announcements. The Mineral Hill Mineral Resource estimate outlined below was released in ASX announcements on 18 November 2021 (TSF), 15 March 2023 (Pearse South and Pearse North), 24 November 2022 (Southern Ore Zone), 21 March 2023 (Jack’s Hut) and 13 September 2011(Parkers Hill by KBL). The Ore Reserve estimate outlined below was released in ASX announcements on 18 November 2021 (TSF), 15 March 2023 (Pearse South and Pearse North). Further information is included within the original announcements. Kingston is not aware of any new information or data that materially affects the information included in this announcement. All material assumptions and technical parameters underpinning the Mineral Resources and Ore Reserve estimates continue to apply and have not materially changed. www.kingstonresources.com.au 10 This release has been authorised by the Kingston Resources Limited Board. For all enquiries, please contact Managing Director, Andrew Corbett, on +61 2 8021 7492. Mineral Resources and Ore Reserves Misima JORC 2012 Mineral Resource & Ore Reserve summary table Resource Category Cut-off (g/t Au) Tonnes (Mt) Gold Grade (g/t Au) Silver Grade (g/t Ag) Au (Moz) Ag (Moz) Indicated 0.3 97.7 0.79 4.3 2.5 13.4 Inferred 0.3 71.3 0.59 3.8 1.4 8.7 Total 0.3 169 0.71 4.1 3.8 22.1 Reserve Cut-off (g/t Au) Tonnes (Mt) Gold Grade (g/t Au) Silver Grade (g/t Ag) Au (Moz) Ag (Moz) Probable 0.3 75.6 0.79 4.2 1.73 4.1 Mineral Hill JORC 2012 & JORC 2004 Mineral Resource & Ore Reserve summary table Resource Category Measured Tonnes (kt) 228 Gold Grade (g/t) 2.11 Silver Grade (g/t) 11 Cu % 1.3% Pb % 0.5% Zn % 0.3% Au (koz) 15 Ag (koz) 80 Cu (kt) 3 Pb (kt) 1.2 Zn (kt) 0.7 Indicated 5,582 1.06 28 1.2% 1.7% 1.1% 191 4,244 47 70 42 Inferred 3,091 1.17 23 0.7% 1.4% 1.2% 116 2,242 22 42 38 Total 8,901 1.13 26 1.0% 1.6% 1.1% 323 6,566 72 113 81 Reserve Category Proved Tonnes (kt) - Gold Grade (g/t) 0.00 Silver Grade (g/t) 0 Cu % Pb % Zn % Au (koz) - Ag (koz) 0 Cu (kt) Pb (kt) Zn (kt) Probable 1,431 1.55 57 71 470 Total 1,431 1.55 57 71 470 Competent Persons Statement and Disclaimer The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Stuart Hayward BAppSc (Geology) MAIG, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr. Hayward is an employee of the Company. Mr. Hayward has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Hayward confirms that the information in the market announcement provided is an accurate representation of the available data and studies for the material mining project and consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. The Competent Person signing off on the overall Misima Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the information pertaining to the Misima Ore Reserve in the form and context in which it appears. The Competent Person signing off on the overall Pearse Opencut Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the information pertaining to the Pearse Opencut Ore Reserve in the form and context in which it appears. www.kingstonresources.com.au 11