Announcement PDF KINGSTON RESOURCES LIMITED ABN 44 009 148 529 QUARTERLY ACTIVITIES REPORT AND APPENDIX 5B for the period ended 31 March 2015 Highlights  Additional South Australian government financial support provides further validation for Kingston’s exploration approach.  3D inversion modelling of gravity and magnetics reveal compelling IOCG drill targets at Six Mile Hill. Drilling to commence in June.  Farm In agreement executed for Orbost Copper Project.  Appointment of Executive Director strengthens technical skills ahead of Six Mile Hill drilling campaign. Award of South Australian government co-funding for drilling at Cootanoorina project Kingston (or “the Company”) was recently awarded $70,000 in drilling co-funding from the South Australian government for our Cootanoorina project on the northeastern Gawler Craton. The new funding follows the Company’s selection last year as one of two industry participants in the South Australian government funded Mineral Systems Drilling Program 2015. Kingston’s Technical Lead, Mr Barry Bourne, said: “this second award of funding from the South Australian government is further validation of the innovation and high technical standards applied by Kingston to exploration”. Figure 1: South Australian Minister for Resources and Energy (left), Kingston Directors (centre) and Director of the Geological Survey of South Australia (right) following award of PACE discovery drilling co-funding Kingston Resources Limited & its Controlled Entities 2 3nd Quarter Report for the period ending 31 March 2015 Kingston’s Six Mile Hill project and the Mineral Systems Drilling Program During the quarter there was significant progress at the Company’s Six Mile Hill project. Kingston completed detailed 3D inversion modelling of high resolution gravity and magnetic data over three key areas at Six Mile Hill. The modelling has revealed several compelling Iron Oxide Copper Gold (IOCG) targets. Diamond core drilling of at least four of these targets under the government-supported Mineral Systems Drilling Program will commence in June 2015. Figure 2: Residual Regional Bouguer gravity (2.67g/cc) with gravity features from regional data in blue. Key areas selected for 3D inversion modelling in yellow polygons. IOCG targets as stars. Figure width ~33km. SM SM SM SM Figure 3: Detailed image of central target area. Residual detailed Bouguer gravity (2.67g/cc) with preliminary 100m x 100m x 50m gravity model on the right. Gravity (blue) – Isosurfaces of density, +0.075g/cc light blue outer shell,+0.15g/cc in dark blue inner. Main target areas shown in red. Kingston Resources Limited & its Controlled Entities 3nd Quarter Report for the period ending 31 March 2015 3 About the Mineral Systems Drilling Program The Mineral Systems Drilling Program 2015 (MSDP) is a joint collaboration between the South Australian Department of State Development (DSD), the Deep Exploration Technologies Cooperative Research Centre (DET CRC), Kingston and fellow explorer Minotaur Exploration Ltd. The aim of the MSDP is to map and understand various components of mineral systems in the northern Eyre Peninsula region with the potential to lead to discovery of new mineral deposits. DSD is providing $2 million in funding to MSDP through PACE Frontiers Initiative, DET CRC is providing new technologies related to drilling and real-time analysis of the rocks being drilled, and Minotaur and Kingston are providing the local concepts, resources and access. Detailed information about the MSDP is available at: https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/plans/sarig1/image/DDD/204606-019 Kingston enters Farm In agreement for Orbost Copper Project in Victoria During the quarter Kingston entered into a Farm In agreement with Dakota Minerals Limited (ASX: DKO) for the Orbost Copper Project (EL 4933) in eastern Victoria. The Farm In Agreement expands Kingston’s portfolio of copper projects into Victoria. Under the terms of the Farm In, Kingston will earn a 40% interest by undertaking surface sampling and drilling 2 holes to test a geophysical target. By the expenditure of a further $1 million, Kingston can earn a further 40% interest. Full details of the Orbost project are available in the Company’s announcement of 27 January 2015. Kingston’s Exploration Assets The Company holds interests in 11 exploration licences on the eastern margin of the Gawler Craton. This region hosts several major mineral projects (including the world class Olympic Dam mine). Figure 4: Kingston’s projects and major IOCG mines and deposits of the Gawler Craton, South Australia Kingston Resources Limited & its Controlled Entities 4 3nd Quarter Report for the period ending 31 March 2015 Of the Company’s Tenements, nine are wholly owned and two are in joint venture with ASX-listed Strategic Energy Resources Ltd (SER). The principle aim of the Company’s exploration programs is the discovery and development of Iron Oxide Copper Gold – IOCG – deposits. Tenement State Project Km2 Grant Date Ownership Change since EL 4462 SA Cootanoorina 710 6/04/2010 100% N/A EL 5487 SA Cootanoorina East 311 1/10/2014 100% N/A EL 5101 SA Mt Morgan 909 16/11/2012 100% N/A EL 5479 SA Mt Morgan East 92 29/09/2014 100% N/A EL 4915 SA Mt Eba 440 19/04/2012 100% N/A EL 4524 SA Yalymboo 280 20/06/2010 100% N/A EL 4494 SA Six Mile Hill 296 17/05/2010 100% N/A EL 5498 SA Six Mile Hill East 540 13/10/2014 100% N/A EL 5011 SA Myall Creek 381 13/09/2012 50% N/A EL 5379 SA Sunset Hill 160 24/11/2008 100% N/A EL 5010 SA Spencer 321 13/09/2012 25% N/A Figure 5: Tenement Schedule (ASX LR 5.3.3) CORPORATE Appointment of Executive Director On 23 February 2015 Kingston appointed Mr Stuart Rechner as Executive Director. Stuart brings significant technical skill and experience to the Kingston Board and is responsible for the technical execution of the Company’s exciting exploration activities. Mr Rechner holds degrees in both geology and law from the University of Western Australia and is a graduate of the Australian Institute of Company Directors. Completion of Unmarketable Share Sale Facility On 19 February 2015 Kingston completed the Unmarketable Share Sale Facility with the sale of 5,038,707 shares on market. The Unmarketable Share Sale Facility allowed shareholders with less than a marketable parcel of shares to exit the Company’s register without brokerage fees, reducing administrative and other share registry fees associated with those small holdings. Expenditure Please refer to the Appendix 5B quarterly commitments report for period ended 31 March 2015. Dated this 28th day of April 2015. Mr Jonathan Davies Chairman Kingston Resources Limited Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Rule 5.5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013 Name of entity KINGSTON RESOURCES LIMITED (ASX: KSN) ABN Quarter ended (“current quarter”) 44 009 148 529 31 MARCH 2014 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Current quarter $A’000 Year to date (9 months) $A’000 - - (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) (80) (88) 2 (297) (296) 13 - - Net Operating Cash Flows (166) (580) - - - - (166) (580) Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward) + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 1 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (166) (580) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other – expenses related to issue of shares 1 (70) 754 (145) Net financing cash flows (69) 609 Net increase (decrease) in cash held (235) 29 1.20 1.21 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 988 - 724 - 1.22 Cash at end of quarter 753 753 1.14 1.15 1.16 1.17 1.18 1.19 Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 44 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions Nil Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows On 25 February 2015, the Company issued 379,170 shares at a deemed price of $0.015 per share in lieu of a $5,687.55 cash liability for consultant geophysical services provided to the Company for exploration work on its projects. On 23 March 2015, the Company issued a further 548,333 shares at a deemed price of $0.015 per share in lieu of a $8,225 cash liability for consultant geophysical services provided to the Company for exploration work on its projects. + See chapter 19 for defined terms. Appendix 5B Page 2 01/05/2013 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available $A’000 3.1 Loan facilities 3.2 Credit standby arrangements Amount used $A’000 - - - - Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration 300 75 375 Total Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A’000 Previous quarter $A’000 5.1 Cash on hand and at bank 15 10 5.2 Deposits at call 738 978 5.3 Bank overdraft - - 5.4 Other (provide details) - - 753 988 Total: cash at end of quarter (item 1.22) + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 3 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Changes in interests in mining tenements and petroleum tenements Tenement reference and location 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed * 6.2 Interests in mining tenements and petroleum tenements acquired or increased * Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter *Refer to attached Quarterly Report for LR 5.3.3 Tenement Information Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 7.2 7.3 7.4 7.5 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions +Ordinary securities Total number Number quoted - - Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks +Convertible debt securities (description) - Issue price per security (see note 3) (cents) - Amount paid up per security (see note 3) (cents) - - - - 145,453,078 105,111,418 379,170 548,333 379,170 548,333 Nil $0.015 $0.015 $0.015 $0.015 Nil + See chapter 19 for defined terms. Appendix 5B Page 4 01/05/2013 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 7.6 7.7 7.8 7.9 7.10 7.11 7.12 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter Debentures (totals only) Unsecured notes (totals only) Nil Nil 10,302,500 15,400,000 28,624,769 10,302,500 28,624,769 Nil Nil Nil Nil Nil Nil Exercise price $0.20 $0.20 $0.07 Expiry date 31 December 2015 31 December 2015 30 June 2016 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here: ............................................................ Date: 28 April 2015 (Director/Company secretary) Print name: Mathew Whyte Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 01/05/2013