Announcement PDF ASX/Media Announcement 30 September 2024 Six Year Mine Life at Mineral Hill Building the foundation for a long-term gold and copper operation Highlights: • Initial Underground Ore Reserve: 0.7Mt for 0.8% Cu, 1.4g/t Au, 20g/t Ag, 1.9% Pb and 1.6% Zn. • Updated Open Pit Ore Reserve: Estimates updated for the Pearse pits using A$2,859/oz gold price. • Production Target extended to 2030: Six-year life of mine (LOM) plan incorporating Ore Reserves and Mineral Resource inventory. • Gold & Copper expected to account for 85% of life of mine metal production with copper production to commence in FY26. Kingston Resources Limited (ASX:KSN) (‘Kingston’, or ‘The Company’) is pleased to announce the release of a maiden Ore Reserve for the underground Resources at Mineral Hill. An updated open pit Ore Reserve is also included in this announcement, underpinned by the recent Mineral Resource update at Pearse North, revised metal pricing and other modifying factors. The underground Ore Reserve marks a pivotal milestone for Kingston, delivering a substantial boost in technical and financial certainty. Through extensive technical studies, the company has effectively minimised operational risks and established a solid foundation for future growth. Kingston confidently views this as the launchpad for the expansion of the life of mine at Mineral Hill as operations will pivot to underground mining following the current open pit mining operations. Production Target Highlights: • • • • • Open pit and underground mining scheduled out to 2030. Ore Reserves in the mine plan of 1.1Mt. Open pit mining of 0.5Mt @ 2.8g/t Au and 47g/t Ag. Underground mining of 1.7Mt @ 2.0g/t Au, 12g/t Ag, 0.9% Cu, 1.2% Pb and 0.9% Zn. LOM production of 207koz gold equivalent (AuEq) payable (see Table 4 for the metal split) Kingston Resources Managing Director, Andrew Corbett, comments: “We are thrilled to announce the significant progress we have made at Mineral Hill. The extension of our mine life to 2030 is a significant step forward, strongly supported by the increase in Ore Reserves to 1.1Mt. This achievement is testament to our team’s commitment to sustainable, long-term value creation. We have now firmed up a strong mine plan that is backed by comprehensive metallurgical and engineering studies. As we build cash from our open pit mining operations, our focus will shift to extensional drilling to grow the life of mine and support the central west community well into the future. Kingston is well positioned with a fully approved and operating mine, high-grades, extended mine life, and abundant resource growth opportunities.” ASX: KSN Shares on Issue: 707M Market Cap: A$61M Cash: (30 June 2024) A$8.36m 202/201 Miller Street, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au @KSNResources CAUTIONARY STATEMENT The LOM Production Target is based on Probable Ore Reserve estimates for the Pearse open pits and the Southern Ore Zone (SOZ). Additionally, Mineral Resources from Pearse open pits, SOZ and Jack’s Hut have been used to estimate the Production Target. The estimated Ore Reserves and Mineral Resources underpinning the Production Target have been prepared by Competent Persons in accordance with the requirements in the JORC Code. All material assumptions on which the Production Target is based are detailed in the Mineral Resource and Ore Reserve sections included in this announcement and in the original technical reports included in the appendices. While Kingston considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Production Target will be achieved. The Production Target comprises 51% Ore Reserves, 11% Measured & Indicated Resources and 38% Inferred Resources. The first 12 and 36 months of the Production Target are underpinned by 89% and 80% of Measured and Indicated Resources respectively. Table 1: Life of mine Production Target by resource category Source Tonnes Mined (mt) % Measured and Indicated Gold g/t Silver g/t Copper % Lead % Zinc % Open Pit 0.4 91% 3.5 49 - - - Underground 1.7 55% 2.0 12 0.9% 1.2% 0.9% Full Production Target 2.1 62% There is a low level of geological confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the determination of Indicated Resources or that the Production Target itself will be realised. The Company notes that the Project forecasts a positive financial performance under a scenario where only the Ore Reserve component is mined. Inclusion of Inferred Resources in Production Target reporting is not the determining factor in overall Project viability and it is reasonable to report the LOM plan with Inferred Resources. The Company has concluded that it is has a reasonable basis for providing the forward-looking statements included in this announcement. The detailed reasons for that conclusion are outlined throughout this announcement. See section titled IMPORTANT NOTICES for additional information. www.kingstonresources.com.au 2 PRODUCTION TARGET SUMMARY Mine plans were prepared based on the open pit and underground Ore Reserves included in this announcement and as a separate Life of Mine production target which includes a portion of Inferred resources within the open pit designs and underground stopes. Table 2: Open pit Production Target physicals. Open Pit Mining Oxide Tonnes Sulphide Tonnes Ore Tonnes Grades Gold Silver Metal Gold Silver Material Movement Waste Tonnes Ore Tonnes Material Movement Strip Ratio Processing Gold Processing Recovery Recovered Gold Recovered Silver Unit kt kt kt Open Pit 79 443 522 g/t g/t 2.8 47 koz koz 47 791 kt kt kt W:O 3,453 522 3,975 7 % koz koz 80% 38 516 Table 3: Underground Production Target physicals. Underground Mining Mining Development Ore Tonnes Stope Ore Tonnes Total Ore Tonnes Grades Gold Silver Copper Lead Zinc Metal Gold Silver Copper Lead Zinc Material Movement Waste Tonnes Ore Tonnes Material Movement www.kingstonresources.com.au Unit Underground kt kt kt 211 1,485 1,696 g/t g/t % % % 2.0 12 0.9% 1.2% 0.9% koz koz kt kt kt 107 664 15 20 15 kt kt kt 484 1,696 2,180 3 Mineral Hill has now fully transitioned to hard rock mining, with open pit mining underway in the Pearse North open pit. Both Pearse North and Pearse South will be mined by conventional drill and blast methods using hydraulic excavators and mining trucks. Processing of the oxide ore commenced during August 2024 upon the recommissioning of the crushing and grinding circuits. Open pit mining will be sequenced by focusing initially on Pearse North, followed by a cutback and deepening of the existing pit at Pearse South. Initial output from the open pit ore will be gold/silver dore from the oxide at Pearse North, followed by production of a gold/silver concentrate from both pits. The commissioning and operation of the flotation circuit will be finalised in Q2FY25. The open pit Ore Reserve estimate is included in this announcement and lists out the material assumptions used to generate the production target. Table 4: Life of mine Production Target physicals. Open Pit Ore Reserve Mt 0.35 Open Pit Mineral Resource Mt 0.19 Underground Ore Reserve Mt 0.7 Underground Mineral Resource Mt 1.0 Total Life of Mine Mt 2.2 Annual Processing Rate ktpa 380 Payable Gold koz 117 Payable Copper kt 12 Payable Silver koz 858 Payable Lead kt 11 Payable Zinc kt 6 AuEq Payable Ounces koz 207 Gold Price US$/oz 1,944 Silver Price US$/oz 24 Copper Price US$/lb 4.30 Lead Price US$/lb 0.95 Zinc Price US$/lb 1.19 AUD:USD 0.68 The non-Reserve component of the reported Production Target comprising Mineral Resources includes adjustment of tonnes and grade by application of Modifying Factors. The Production Target is being reported from 1 October 2024 Access to the underground workings has already been established, with pumping and rehabilitation of the access drive to the Southern Ore Zone (SOZ) completed at the start of the year. Resource definition drilling is due to commence in March 2025 Quarter. Underground development and mining are forecast to commence in the second half of 2025, delivering base metal ore to the ROM pad for processing. SOZ will be the primary production centre in the early phase, followed by the addition of Jack’s Hut. The SOZ Ore Reserve estimate and Life of Mine Production Target are based on bottom-up mining by long hole stoping and uncemented rock fill. Access will be via the existing Eastern Decline with its portal in the Eastern Ore Zone (EOZ) Pit. The SOZ production rate will be approximately 30,000t per month. www.kingstonresources.com.au 4 Dec-30 Jun-30 Dec-29 Jun-29 Dec-28 Jun-28 Dec-27 Jun-27 Dec-26 Jun-26 Dec-25 Jun-25 Dec-24 Jun-24 Dec-23 Jul-23 Process Plant Refurbishment Process Plant Commissioning Open Pit Mining Open Pit Processing UG Pre-Production Development UG Mining UG Processing Figure 1: LOM mining and processing schedule overview. Mined Tonnage (kt) 425 450 388 400 382 345 350 325 300 300 250 200 150 96 100 50 0 FY25 FY26 FY27 FY28 Open Pit Mining UG Mining FY29 FY30 FY31 Total Mined Tonnes Figure 2: Mineral Hill life of mine schedule. Payable Metal (koz AuEq) 45 40 40 36 36 36 35 30 25 24 24 20 15 12 10 5 FY25 FY26 FY27 Gold Copper FY28 Silver Lead FY29 Zinc FY30 FY31 AuEq oz Figure 3: LOM forecast of payable metal. www.kingstonresources.com.au 5 OPEN PIT ORE RESERVE ESTIMATION Open Pit Mining Summary The Ore Reserves are based on extraction by open pit mining from two adjacent pits. The Pearse South Pit will be a pushback of an existing pit. The Pearse North Pit is a new development. The Pearse orebodies comprise mainly sulphide and transitional gold/silver mineralisation with some minor oxide material. The sulphide and transitional ore will be processed by flotation to produce a precious metal concentrate for sale. The oxide ore and flotation tailings will be leached in a CIL circuit to produce dore. The majority of the value in both the concentrate and dore comes from the gold. Table 5 Pearse Ore Reserves Summary Cut Tonnes off kt Au g/t Pit Pearse South Probable Ore Oxide Sulphide/Transition Subtotal Waste Waste:Ore Ratio Pearse North Probable Ore Oxide Sulphide/Transition Subtotal Waste Waste:Ore Ratio Total Probable Ore Oxide Sulphide/Transition Subtotal Waste Waste:Ore Ratio Au g/t Ag g/t Sb ppm As ppm S % Au koz Ag koz 1.5 0 19 19 0 370 370 0 250 250 0 620 620 0.8 1.5 0 140 140 1,930 14.1 0.0 4.3 4.3 0 85 85 0.8 1.3 10 220 240 2,200 9.3 2.5 3.2 3.2 10 34 33 1,220 727 0.7 1 23 24 10 360 370 4,130 11.1 2.5 3.6 3.6 10 53 52 1,770 451 0.4 1 42 43 2,680 2,911 2. 3. 4. 5. Notes: The tonnes and grades shown in the totals rows are stated to a number of significant figures reflecting the confidence of the estimate. The table may nevertheless show apparent inconsistencies between the sum of components and the corresponding rounded totals. There are no Proved Ore Reserves. Probable Ore Reserves are derived from Indicated Mineral Resources. The Ore Reserves do not include, or depend upon, Inferred Mineral Resources. The Ore Reserves form part of the Mineral Resources. 6. The reference point is the mill feed at the primary crusher and includes consideration for operational modifying factors. 1. www.kingstonresources.com.au 6 Figure 4: Pearse North open pit mining operations. Changes from previous Ore Reserves Estimate Kingston previously released an Ore Reserves Estimate for the Pearse deposits in the ASX Release “Pearse Open Pit – Ore Reserve Update” dated 15 March 2023. The open pit Ore Reserves Estimate in this announcement is an update of the March 2023 estimate. Key changes in this update include: • The inclusion of an updated Mineral Resource Estimate for Pearse North which included further drilling and a revised geological interpretation (see ASX Announcement dated 14 May 2024). • Long term gold price forecast has increased from A$2,571/oz in March 2023 to A$2,859/oz in June 2024. • Revision of gold and silver payabilities as well as concentrate land and sea transport from information provided by commodity brokers. The exact terms of the payabilities are commercially sensitive for both Kingston and its trading partners. • Revised application of metallurgical test results from the test work conducted on Pearse North ore. Pearse South metallurgy is still based on the historical performance, so separate recovery parameters are now used for both pits. • Revision of the mining, processing and site administration unit costs at a higher level of confidence as a result of the inclusion of actual costs from the ongoing mining and processing operations. www.kingstonresources.com.au 7 • Further detailed geotechnical assessment has been conducted for the slip area on the east wall of Pearse South Pit. Table 6 Changes from Mar-2023 to June-2024. Pit Pearse South Oxide kt Oxide Au g/t Oxide Ag g/t Fresh kt Fresh Au g/t Fresh Ag g/t Waste kt Pearse North Oxide kt Oxide Au g/t Oxide Ag g/t Fresh kt Fresh Au g/t Fresh Ag g/t Waste kt Total Oxide kt Oxide Au g/t Oxide Ag g/t Fresh kt Fresh Au g/t Fresh Ag g/t Waste kt Contained Metal Gold koz Siver koz Mar-23 Jun-24 Change Change % 0 0.0 0 140 4.0 84 1,660 0 0.0 0 140 4.3 85 1,930 0 0.0 0 0 0.3 1 270 0% 0% 0% 0% 8% 1% 16% 10 2.4 5 110 3.4 26 1,010 10 2.5 10 220 3.2 34 2,200 0 0.1 5 110 -0.2 8 1,190 0% 4% 100% 100% -6% 31% 118% 10 2.4 5 250 3.8 58 2,670 10 2.5 10 360 3.6 53 4,130 0 0.1 5 110 -0.2 -5 1,460 0% 4% 100% 44% -5% -9% 55% 31 470 43 620 12 150 39% 32% Criteria Used for Classification Only Indicated Mineral resources are considered in the Ore Reserve Estimate. There are no Measured resources in the current Mineral Resource Estimate. Probable Ore Reserves are derived only from Indicated Mineral Resources. In the opinion of the Competent Person, when taken as a whole, the modifying factors have been defined to a level of confidence commensurate with a Probable Ore Reserve. There are no issues currently identified which are likely to have a material impact on the viability of the project and the Ore Reserves as stated. Mining Method and Assumptions Open cut mining will be by conventional drill and blast methods using hydraulic excavators and mining trucks. Pearse North is a new pit and Pearse South Pit will be a pushback and deepening of the existing pit. Commencement of mining in Pearse South is timed so that Pearse North can continue to supply ore until the Pearse South pushback reaches the depth of the main ore benches. There will be a period when the mining fleet is shared between the two pits which are 350 metres apart. www.kingstonresources.com.au 8 Dilution was modelled by re-blocking the resource model to 2.5 x 2.5 x 2.5 metre blocks. This is the planned mining flitch height and is coarser than the narrowest mining widths reported anecdotally. Compared to the original sub-blocked resource model, the re-blocked version shows approximately 20% dilution at low gold grade and 5% ore loss. Kingston will mine the two Pearse pits using the company’s own operators with a hired fleet and contract drill and blast. Mining costs are from the current project budget based on actual wages, fleet hire costs, the drill and blast contract and additional costs such as grade control. The life of mine opencut mining cost in the financial model is A$7.28 per tonne of ore and waste. Processing Methods for the Open Pits Pearse North and South are both gold / silver deposits and have the same mineralisation style. Apart from a small tonnage of oxide mineralisation in Pearse North, all the ore is transitional or fresh (sulphide). Oxide ore will be processed to gold / silver dore using the existing CIL circuit. Using oxide process records from 2015 and recent process assessments, KSN estimates an oxide CIL recovery 85% for gold and 79% for silver. The process route for sulphide ore is: • Crushing / grinding / flotation to produce a gold / silver concentrate for sale. • CIL recovery of gold and silver from the flotation tailings. The metallurgical recoveries for each of these process routes is detailed in Table 7. Open Pit Ore Reserve Estimation Methodology The Ore Reserve Estimate was undertaken by initially undertaking an optimisation study over the resources with the key inputs outlined in this announcement. Mining design was subsequently undertaken with consideration of geotechnical and mining parameters. The Basis of the Cutoff Grade and Material Modifying Factors Cutoff grades were calculated separately for both oxide and sulphide material. Both were determined by calculating the gold head grade which covers the costs of processing, site administration, concentrate transport, payabilities, gold refining and royalties. Silver was included in the calculation by reporting the average silver to gold ratio for each deposit. The oxide cutoff is 0.8 g/t Au and sulphide cutoff grades are 1.50 g/t Au for Pearse South and 1.30 g/t Au for Pearse North. The key factors used to determine the open pit cutoff grades and other material modifying factors are generally considered to be at least at a pre-feasibility level of assessment, with support from current operational data. Key factors considered in the preparation of the Ore Reserve estimate are listed in Table 7. Table 7: Key modifying factors for the Pearse open pit Ore Reserve estimates. Modifying Factor Basis Processing and Site Administration Costs Updates in 2024 of process and site G&A operating costs using data from the tailings retreatment operation and current preparations for sulphide ore processing. Metallurgical Recovery Oxide CIL recovery is estimated at 85% for gold and 79% for silver, based on process records from 2015. www.kingstonresources.com.au 9 Estimated recoveries to concentrate for the two pits average 65% for gold and 65% for silver. CIL recoveries of 10% for gold and 8% for silver were applied to flotation tailings based on 2015 / 2016 production records. Commodity Prices Gold and silver prices are based on a consensus forecast for calendar years 2024 to 2028. Gold is set at US$1,944/oz and silver at US$24/oz and long-term A$:US$ exchange rate at 0.68. Contaminant concentrations Concentrate contaminant grades are expected to average 2.3% As and 1.0% Sb. These grades will not incur penalties. Royalties NSW Government ad valorem formula with a 4% base royalty. An additional 2% NSR royalty is paid to Quintana. SOZ MINERAL RESOURCE UPDATE The Mineral Resource estimate for the Southern Ore Zone (SOZ) has been updated to include the additional 11 diamond drill holes completed by Kingston during 2023-2024. This drilling primarily focused on the A-Lode mineralisation and so this lode has been the primary change since the 2022 estimate. The 2024 SOZ Mineral Resource Estimate as at 1 June 2024 is shown in Table 8. . Table 8. SOZ Mineral Resource Summary (> A$50 NVPT) * Due to rounding to appropriate significant figures, minor discrepancies may occur, tonnages are dry metric tonnes. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. Inferred resource have less geological confidence than Measured or Indicated resources and should not have modifying factors applied to them. It is reasonable to expect that with further exploration most of the inferred resources could be upgraded to indicated resources. Changes from previous Mineral Resource Estimate In comparison to the 2022 SOZ MRE (see ASX Announcement on 22 November 2022), the most significant factors influencing the 2024 estimate include: • Inclusion of the 2023-2024 drilling results. • Updated A-Lode geological interpretation. • Inclusion of material outside the High-Grade wireframed lodes (i.e. within Lode_ID 53). • Change in metal pricing. • Metallurgical assumptions within the NVPT formula. The inherent assumption in 2022 was that saleable copper, lead and zinc concentrates (and dore) could be produced from all lodes within the deposit, despite some of the lodes having very low head grades for some www.kingstonresources.com.au 10 of the metals. In the updated 2024 estimate, the type of concentrate products produced would depend on the lode being mined. Certain lodes may produce a copper concentrate only, as it would not be feasible to economically produce a lead and zinc concentrate. These changes have been brought into effect within the NVPT formula which is used to state the resources. In terms of tonnage, the 2024 MRE has no material difference compared to the 2022 estimate (Table 9, Table 10). Gold and copper grades have increased materially overall (10% and 42%). Grades within the Measured and Indicated portions have all increased except for copper, which has reduced by 2%. The change in the NVPT formula has allowed for a selection of higher value material and provided greater certainty on the potential for eventual economic extraction. Table 9: 2022 SOZ Mineral Resource Estimate. Table 10: Percentage difference between the 2022 and 2024 Mineral Resources. Classification Measured Indicated Inferred Total Tonnes Meas + Ind 2% 3% -4% -1% 3% Cu Grade Pb Grade Zn Grade Au Grade Ag Grade Cu Metal Pb Metal Zn Metal Au Metal Ag Metal -5% -4% 14% -4% -1% -3% 0% 14% -2% 1% -3% 21% 14% 7% 16% -1% 25% 17% 10% 19% 27% -51% -60% 85% -40% 21% -53% -62% 78% -43% 10% -15% -25% 42% -13% 9% -15% -25% 41% -14% -2% 24% 17% 8% 18% -2% 24% 17% 8% 18% Geology and Geological Interpretation The mineralisation style at SOZ is an epithermal to mesothermal polymetallic (Cu–Au to Cu-Pb-Zn-Ag-Au system) vein and breccia system hosted by the Late Silurian to Early Devonian Mineral Hill Volcanics. Mineralisation is structurally controlled and comprises lodes centred on hydrothermal breccia zones within and adjacent to numerous faults, surrounded by a halo of quartz-sulphide vein stockwork mineralisation. Lodes are identified as A through to H, with A, B and C being polymetallic while D to H are copper/gold dominant. SOZ lodes primarily occur beneath the Top Shear, a major fault structure within the mine sequence. Mineralisation has been interpreted using a copper equivalent grade cut-off greater than 1.0%. www.kingstonresources.com.au 11 Figure 5. Oblique View showing interpreted domains (green – unchanged, red – added and updated, pink – ALode). Drilling Techniques The predominant drilling and sampling methods at SOZ have been HQ diamond drilling, RC drilling, underground sludge (percussion) drilling and face channel sampling. All new and historical drill holes have been utilised estimating resources except for face samples and sludge holes, which were merely used to guide geological interpretations. Table 11: Summary of drilling by drill hole type. Hole Type DDH RC DDH Dataset Total SOZ DDH Total SOZ RC KSN and SOZGT (included within Total SOZ DDH) Count 268 30 26 Metres 46,385 4,886 3,499 Sampling and Sub-Sampling Techniques Historical core regarded as significantly mineralised was half sawn for sampling. KSN drill core was subsampled by the logging geologist with sampling intervals varying between 30 cm to 1 m. When sub-sampling RC chips a riffle splitter or conical splitter is typically employed directly off the cyclone. A portable XRF was used to determine low-grade or background intervals which were spear sampled to provide 4 m composites for analysis. If anomalous results were subsequently received from the Lab, the original 1 m bulk sample (stored in green plastic bags) were riffle split and individual 1 m samples were submitted for analysis. www.kingstonresources.com.au 12 Sample Analysis Method Historical samples were analysed for copper, lead, zinc, silver and gold using Aqua Regia. All gold values >5 g/t were then repeated with a 50 g Fire Assay. All pulps returning >1% Cu, >1% Pb, >1% Zn, and/or >25 g/t Ag were repeated with method Aqua Regia digest (0.5 g) and flame AAS finish. KSN uses SGS in Townsville for sample preparation and analysis. Samples undergo a 4-acid digest and ICPOES finish with near to total digestion of the sample as possible. Gold analysis is determined by Fire Assay using lead collection technique, with a 50 g sample charge weight and AAS instrument finish. Estimation Methodology The estimation methodology begins by assigning the interpreted geological domains to the assay dataset and compositing the data to down hole lengths of 1m. Grades are capped by analysing histograms and probability plots for each metal within each lode (see the table of capping values in the Detailed Estimation Reports). The difference between the assays with increasing distance was analysed using variography. Semivariograms were created using normal scores transformation for Au, Ag, Cu, Pb and Zn. Variography was also completed for arsenic, antimony and sulphur. The resulting parameters were used in the estimation routines within Micromine software. Ordinary Kriging (“OK”) was selected for grade estimation of all elements. Grades were estimated into orthogonal blocks measuring 5m E x 10m N x 5m Z. Sub-blocking down to 1.25m in all directions allowed for an accurate representation of the lode volumes. The search radius was 50m in the first estimation run and 100m in the second. Density was estimated using the percentages of the three main sulphide minerals using the following formula. Density = (Cu%/0.3463 x 4.2 + Pb%/0.8660 x 7.5 + Zn%/0.6709 x 3.75 + (100 - Cu%/0.3463 - Pb%/0.8660 - Zn%/0.6709) x 2.65)/100 An analysis comparing the theoretical densities to the measured readings and this showed a good correlation and sufficient confidence in the calculations from the multielement assays. For other areas of the deposit that did not produce a calculated result, the default density of 2.65 t/m3 was used, based on the dominant host rock (Tuff). The grade estimation was validated by comparing estimated grades to sample grades in cross-section, comparing to previous estimates, and plotting profiles of estimated vs sample grades along the northing and elevation axes. Classification Criteria Blocks have been classified as Measured, Indicated or Inferred based on drill hole spacing, geological continuity and estimation quality parameters. These criteria were used to determine areas of implied and assumed geological and grade continuity. Classification was assessed on a per domain basis and resource categories were stamped onto the individual domains. The Basis for the Selected Cutoff Grades The deposit has been reported above a Net Value per tonne (NVPT) of A$50. The NVPT considers the metal prices, concentrate grade, mining and processing costs, site G & A costs, metallurgical recoveries, payables and deductions of copper, lead, zinc, gold and silver. NVPT differs from net smelter return (NSR), which is an often-used metric for polymetallic projects. NSR excludes the on-site costs, such as mining, processing and site G & A. www.kingstonresources.com.au 13 Adjusting the NVPT cutoff from an expected A$70/t for mining selection down to A$50/t accommodates for scenarios where economics could eventually allow for potential mining of lower grade material. Table 12: Metal prices used within the NVPT formula. US$ A$ FX AUD:USD Gold $/oz $ 1,944 $ 2,859 Silver $/oz $ 24.0 $ 35.2 Copper $/lb $ 4.30 $ 6.32 Lead $/lb $ 0.95 $ 1.40 Zinc $/lb $ 1.19 $ 1.75 0.68 Material Modifying Factors Considered to Date The NVPT formula considers an exhaustive set of modifying factors to assess the potential for eventual economic extraction. These include metal prices, concentrate grade, mining and processing costs, site G & A costs, metallurgical recoveries, payables and deductions of copper, lead, zinc, gold and silver. The level of consideration is now at a level where the type of concentrate product(s) from each lode is considered in determining if the material can be included in the Mineral Resource. UNDERGROUND ORE RESERVE ESTIMATION Ore Reserves Summary Underground mining is schedule to re-commence in the SOZ orebodies during the second half of calendar year 2025 (see Figure 2). The maiden SOZ Ore Reserve estimate is based on bottom-up mining by long hole stoping and uncemented rock fill. Access will be via the existing Eastern Decline with its portal in the Eastern Ore Zone (EOZ) Pit. The SOZ production rate will be approximately 30,000t per month. The 30 June 2024 SOZ Ore Reserve Estimate, summarised in Table 2, is for an underground sulphide zone of an operating project with 350ktpa to 400ktpa flotation capacity and 700ktpa carbon-in-leach (CIL) capacity. It is based on mine plans prepared using the June 2024 Mineral Hill SOZ Mineral Resource estimate, with adjustment for depletion of resources from historical mining. Table 13: Mineral Hill Mine Southern Ore Zone 30 June 2024 Probable Ore Reserves Estimated Grade Estimated Contained Metal Mt Copper % Lead % Zinc % Gold g/t Silver g/t Copper kt 0.7 0.8 1.9 1.6 1.4 20 5.5 Notes: 1. 2. 3. 4. 5. 6. Lead kt 13 Zinc kt 11 Gold koz Silver Moz 30 0.45 The tonnes and grades shown are stated to a number of significant figures reflecting the confidence of the estimate. For the estimated contained metal: a. The contained copper estimate is shown to the nearest 0.5kt. b. The contained gold estimate is shown to the nearest 5koz. c. The contained silver estimate is shown to the nearest 0.05Moz. There is no Proved Ore Reserve. The Probable Ore Reserve is derived from Measured and Indicated Mineral Resources. The Ore Reserve only includes Inferred Mineral Resources as unavoidable dilution within stope shapes, or within development required