Announcement PDF ASX/Media Announcement 27 June 2023 $6.5m Capital Raising for Mineral Hill Production Expansion Enhancing Kingston’s Strategic Position in the Cobar Basin Highlights  Initial mine life for hard rock mining to enable significant gold, silver, copper, lead and zinc production at Mineral Hill in the southern Cobar Basin.  Broad scope for production increases through processing throughput optimisation and focused exploration targeting resource growth.  Placement of $5.5m to fund processing plant refurbishment and underground redevelopment works. Kingston will also seek to undertake a Share Purchase Plan to raise an additional c.$1.0m. Long-term diversified gold-copper producer in NSW          Currently producing gold from a high margin Tailings Project. Open pit and underground mining scheduled out to the end of FY2027. Total Life-of-Mine (LOM) production of 123koz gold equivalent (AuEq) payable. Current life of mine only utilises 22% of the current 8.9Mt of Mineral Resources. Copper production to commence by the end of CY24. All required permits & approvals in place. Extensive existing infrastructure including underground declines and processing plant. Forecast copper from the underground deposits lifts annual payable production by 69% in FY25. Significant exploration potential exists over Mineral Hill’s mining and exploration tenure. Expanded Mining & Processing Pipeline     Open pit mining of 258kt @ 3.72g/t Au & 57g/t Ag. Underground mining production target 885kt @ 3.51g/t AuEq. LOM tailings, open pit and underground processing target of 2,000kt @ 2.3g/t AuEq. Flotation plant capacity of 350ktpa, and CIL plant capacity of up to 700ktpa. Production of gold & silver dore, plus separate concentrates for gold, copper, lead and zinc. Financial Information1     Restart capital: $16m. LOM revenue: $325.6m, LOM EBITDA: $115m, Free cash flow: $50m. AISC of A$1,368/oz. Post-tax NPV of $44m, IRR of 161%, pay-back 1.3 years. Capital Raising to fund Mineral Hill growth   Current cash balance $11.5m as at 31 May 2023. Institutional placement of $5.5 million. Share Purchase Plan (SPP) of $1.0 million. 1 See the Appendix of this announcement for the Underground Production Target Key Assumptions. ASX: KSN Shares on Issue: 416M Market Cap: A$43M Cash: A$11.5M (31 May 2023) 202/201 Miller Street, North Sydney, NSW 2060 +61 2 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au @KSNResources Management Comments According to Andrew Corbett, the Managing Director of Kingston, the release of the LOM plan signifies the beginning of a new phase of growth for Mineral Hill and propels Kingston into the enviable position of a copper and gold producer in an outstanding jurisdiction. “The Kingston team has been working hard to deliver the updated LOM plan, which includes metallurgical studies, geological modelling, engineering optimisation and design, as well as thorough cost estimation and minimisation. This comprehensive technical work will ensure a successful transition back to conventional mining and establish the foundation for long-term growth. We view the current Tailings Project results as evidence of our ability to evolve from an explorer/developer to a profitable gold producer. This represents Phase 1 of our Mineral Hill story. The LOM plan now marks Phase Two of our long-term plans at Mineral Hill. Our team has finalised the initial Mineral Resource and Ore Reserve inventory, and we know there is huge extension potential within the Mining Lease alone. Additionally, we have identified priority exploration targets across our two adjoining exploration leases, and we have a pipeline of resource development targets that could feed our processing plant well beyond the LOM inventory. We are confident that we can further demonstrate our expertise in open pit and underground mining, and explore opportunities to expand our mining inventory through organic means or acquisitions in the region. This would bring us into Phase Three, where we will focus on increasing the processing plant’s capacity and sourcing additional high-grade gold and copper dominant ore. The fully approved mine with abundant infrastructure at Mineral Hill was a key attraction for Kingston when the project was acquired in January 2022. The significant plant and equipment located within the processing plant enables us to rapidly increase cashflow from operations and maximise utilisation across our assets. Our comprehensive permits and approvals provide us with a regulatory advantage, enabling us to transition immediately from the Tailings Project to hard rock mining. We are hugely excited to be taking this next step in scaling our operations. With the launch of the Placement and SPP, alongside existing cash and debt facilities, we will now have the funds to progress Kingston’s growth plans in earnest. The Company is very pleased with the level of support from our existing shareholders and we are also pleased to welcome several new quality institutional investors to the Kingston register through their participation in the Placement transaction. We remain committed to working closely with Lachlan Shire, the Wiradjuri People, and our local community in Condobolin to identify opportunities for mutual growth and to increase prosperity and well-being across the region.” www.kingstonresources.com.au 2 Cautionary Statement The Scoping Study referred to in this announcement has been undertaken for the purpose of re-establishing open pit and underground mining at Mineral Hill. It is a preliminary technical and economic study of the potential viability of the project. The LOM plan includes Probable Ore Reserves from the Tailings Project and the Pearse open pits, as well as Mineral Resource Estimates for the Southern Ore Zone (SOZ) and Jack’s Hut to estimate the production target. All Ore Reserves and Mineral Resources underpinning this LOM plan have been prepared by Competent Persons in accordance with the 2012 JORC reporting guidelines. The production target is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further exploration drilling, evaluation work and appropriate studies are required to estimate ore reserves and refine the economic forecasts. The Scoping Study is based on the material assumptions outlined in this announcement. 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 Scoping Study will be achieved. The Company advises that the Probable Ore Reserve provides 48% of the LOM processing plant feed tonnage. The underground production target is based on Mineral Resource Estimates which are classified as Measured, Indicated and Inferred Resource and comprise 3%, 16% and 34% of the LOM plan respectively. There is a low level of confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The planned mining and processing up to the end of CY24 is comprised of 96% Probable Ore Reserves and 4% remaining Measured, Indicated and Inferred Mineral Resources. The stated production target is based on the Company’s current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. The Company notes that the Project forecasts a positive financial performance and is therefore satisfied that the use of Inferred Resources in production target reporting and forecast financial information is not the determining factor in overall Project viability and that it is reasonable to report the LOM plan with Inferred Resources. Mineral Hill has all major infrastructure in place to execute the mine plan and only minor refurbishment is required to reinstate the comminution circuit and floatation circuits. The cash flow from the Ore Reserve inventory at the front end of the schedule is the main driver of the project payback of 16 months. Underground drilling is planned for the December quarter 2023, which will test the Inferred portions of the production target. This will allow for an updated MRE and an initial Ore Reserve in the June quarter of 2024. The infrastructure and operational layout at Mineral Hill are highly scalable, meaning the inclusion or exclusion of Inferred material does not influence Kingston’s decision to make a financial commitment to the project. 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 3 Metal Equivalents This announcement quotes metal equivalent grades for the life of mine plan, Mineral Resources and Ore Reserves. Price assumptions used are based primarily on consensus forecasts with adjustments based on company expectations. Gold equivalent (AuEq) conversion factors are used within the announcement and are calculated by dividing price/unit for each commodity (Cu/t, Au/oz, Ag/oz, Pb/t, Zn/t) and multiplying by the metallurgical recovery. Copper, lead and zinc grades also use a lb/tonne multiplied by grams/oz conversion. Since the metallurgical recovery varies according to deposit type, the metal equivalent factors are unique for each deposit (namely, Tailings Project, open pit and underground). AuEq g/t = (Cu CAu * Cu %) + (Au CAu * Au g/t) + (Ag CAu * Ag g/t) + (Pb CAu * Pb %) + (Zn CAu * Zn %) Metallurgical recoveries are based on historical production (2010-2016) as well as recent metallurgical test work and are applied to the Resource and Reserve calculated grades for each commodity. The Company is of the opinion that all the elements included in the metal equivalent calculations have a demonstrated potential to be recovered and sold. Mineral Hill will have a CIL circuit, Cu flotation circuit, Pb flotation circuit and Zn flotation circuit to produce three different concentrates as well as gold dore. Table 1: Commodity prices, metallurgical recoveries and metal equivalent factors for each deposit. Commodity Unit Price Gold Silver Copper Lead Zinc US$/oz US$/oz US$/lb US$/lb US$/lb 1,780 Tailings 22 4.12 Open Pit 1.15 1.38 Underground www.kingstonresources.com.au Deposit Commodity Gold Silver Gold Silver Gold Silver Copper Lead Zinc Recovery AuEq Factor (%) (CAu) 60 0.60 60 0.01 64 0.64 69 0.01 76 0.76 64 0.01 81 128.46 79 35.06 60 31.98 4 Overview Kingston’s Life of Mine (LOM) plan for Mineral Hill forecasts production out to middle of 2027. The forecast includes a 69% increase in payable metal output between FY23 and FY25 from 17koz AuEq to 29koz AuEq. The company will transition from gold and silver dore production today, adding gold concentrate within CY24 and then adding separate copper, lead and zinc concentrates by the end of CY24. A key strength in the mine plan is the large proportion of gold production over the LOM, complemented with copper and base metal credits. Figure 1 shows the ramp up of payable metal for all projects at Mineral Hill up to FY25. Forecast mined grade increases to 3.3g/t AuEq in FY25 with the commencement of underground mining. The polymetallic nature of the underground production target contributes to a high LOM grade of 3.3g/t AuEq (grades in recovered terms). All-in-sustaining costs2 average A$1,368/oz over the LOM. 4.0 3.3 Payable Metal (AuEq oz) 30,000 3.5 3.0 25,000 2.5 20,000 2.0 15,000 1.5 1.0 10,000 0.8 1.0 5,000 Mined Grade (recov.) (g/t AuEq) 35,000 0.5 - 0.0 FY23 Gold FY24 Silver Copper Lead FY25 Zinc AuEq Grade (recov.) Figure 1: Ramp up of payable metal production3. The mining sequence will commence with the continuation of the Tailings Project, which has been reconciling positively to the original Resource & Reserve estimates and providing an average free cash flow of over $1.5m per month this calendar year to date. Ore Reserves within the two open pits will be mined over a period of 13 months, commencing in December this year. Access to the existing underground development will begin this year to allow for infill and extensional diamond drilling. Underground development will commence in October 2024, however there is already substantial development proximal to the planned stopes, so there is potential to deliver material cash flow early in the underground mining phase. 2 All-in-sustaining cost (AISC) includes mining, processing, site general & administration, realisation, royalties and sustaining capital costs. 3 FY23 forecast includes actual results to the end of April 2023 and forecasts to 30 June 2023. www.kingstonresources.com.au 5 The financial results of the LOM plan are summarised in Table 2. Cash flow from open pit mining makes a substantial contribution to free cash flow forecasts. Table 2: Mineral Hill LOM financial summary4. Economics Unit Revenue Operating expenses EBITDA Restart capital Project NPV (6% WACC) Project IRR Payback6 $Am $Am $Am $Am $Am % Months EBITDA LOM Total Base Case 326 (224) 115 (16) 44 161% 15 Capital Expenditure LOM Total Spot Prices5 346 (225) 134 (16) 62 Free Cash Flow $40 $35 Base metal production substantially increases EBITDA in FY25 $30 $25 A$M $20 $15 $10 $5 $$(5) FY23 FY24 FY25 Capital expenditure associated with plant refurbishment $(10) Figure 2: Near term estimated EBITDA and free cash flow forecasts7 4 See the Appendix of this announcement for the Underground Production Target Key Assumptions. 5 Spot prices as of 27 March 2023 6 Calculated from 28 February 2023 closing cash balance to first positive cumulative free cash flow. 7 FY23 forecast includes actual results to 31 December 2023 and forecasts to 30 June 2023. www.kingstonresources.com.au 6 Mining Tailings Project Kingston acquired Mineral Hill Mine as an operating asset on 18 January 2022, with the Tailings Project already being commissioned. The performance of the project has been dramatically improved by the Company, with processing recoveries increasing from 40% in February 2022 to 65.8% in April 2023. Increasing the mining rate and optimising feed density have been key factors in lifting gold production and recovery. The Tailings Project has been a demonstrable technical and financial success for Kingston. The Company reported A$1.3m of net profit for the half year period ending 31 December 2022. May 2023 production results demonstrated that gold production remains strong at 1,827 oz produced and cost management has kept all-insustaining costs at A$1,312/oz. Importantly, the unhedged position allowed for an average gold price of A$2,999/oz during May and this is making a substantial contribution to the company’s cash balance, which was approximately A$11.5m as of 31 May 2023. Gold Sales (oz) and AISC (A$/oz) Gold Sold (oz) AISC (A$/oz) 2,000 1,500 1,000 500 0 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Figure 3: Mineral Hill monthly AISC (A$/oz) and production (oz) from the Tailings Project. The transition to open pit feed is scheduled to occur in April 2024, approximately two months prior to the full depletion of the Tailings Project. This provides a buffer on ensuring gold output is maintained over this period. The estimated remaining Tailings Project Ore Reserve is shown in Table 3. Table 3: Tailings depleted Ore Reserve estimated from 1 January 2023. Mining Tonnage Gold Grade Gold Metal Recovered Gold www.kingstonresources.com.au Unit t g/t oz oz Tailings 840,534 1.3 34,145 21,942 7 Figure 4: Plan view of the TSF block model estimate. Open Pit Mining The Pearse deposits are comprised of two separate ore bodies located 1km northwest of the Mineral Hill processing plant site. The mining schedule for open pit mining is based on the Pearse Ore Reserves 8. Pearse South will be a cut back and deepening of the existing pit and Pearse North will be a new pit. All permits and approvals are in place to commence mining in December 2023. Historical mining at Pearse South totalled 219kt at 6.06g/t Au and 64g/t Ag. Pit optimisation and design parameters used to build the mine plan are shown in Table 4. The high-grade nature of the ore is a key factor driving the profitability of the pits. Details on the assumptions and unit rates for the open pit reserve were released to the market on 15 March 2023. The open pit mining physicals are shown in Table 5. . Table 4: Pit optimisation and design parameters. Pit Design Gold Price Silver Price US$/A$ exchange rate Berm width Unit US$/oz US$/oz m Batter angle deg Bench height Ramp width Ramp angle Pearse North slope angle Pearse South slope angle m m % deg deg Parameter 1780 22 0.68 10 50° (<15m) 70° (>15m) 10 15 10 40° 36° - 40° 8 See KSN announcement on 15 March 2023 for details on the key assumptions for the open pit reserve. www.kingstonresources.com.au 8 Table 5: Mining & processing physicals for open pit mining. Mining Oxide Tonnes Sulphide Tonnes Total Ore Tonnes Gold Grade Silver Grade Metal Gold Silver Material Movement Waste Tonnes Total Material Movement Strip Ratio Processing Metallurgical Recovery Recovered Gold Recovered Silver Unit kt kt kt g/t g/t Open Pit 7.8 250 258 3.7 58 koz koz 31 470 kt kt W:O 2,674 2,933 10 % koz koz 65% 20 322 Figure 5: Pit designs for Pearse North and South. www.kingstonresources.com.au 9 Underground Mining The existing underground infrastructure is a major advantage for recommencing underground production at Mineral Hill. Capital development is minimised over the LOM because of the site’s mining history and the location of existing declines adjacent to planned stope production. The underground mining plan commences with an initial phase of refurbishment and capital works. This involves reinstating the underground development, communication & electrical upgrades, safety installations and water pumping. Table 6 lists out the required work and associated capital expenditure. Table 6: Underground re-entry capital costs. Underground Re-Entry Capital Underground access Communication & Ventilation Safety Electrical Pumping Contingency Total $Am 0.7 0.1 1.4 0.3 0.1 0.2 $2.8 The Underground production target is based on the Southern Ore Zone (SOZ) and Jack’s Hut Mineral Resource Estimates (MRE) (see ASX announcements on 11 November 2022 and 21 March 2023). The mining method will consist of long hole stoping with partial rock back fill. Underground Stope Optimisation The Mineable Shape Optimiser (MSO) program in Datamine™ Studio UG was used to generate mineable stoping shapes. The evaluation was driven by a net value per tonne (NVPT) field in the block model, calculated using the process recoveries and costs, site fixed costs, product pricing and royalties. Fixed and variable mining costs were estimated based on supplied contractor budget prices with adjustments made for owner mining. Stoping and development costs were then estimated by applying fixed and variable costs to the mining physicals. Average stoping and development cost assumptions used in Kingston’s financial analysis were assumed to be $70/t for stoping and $6000/m for development. The processing flow sheet assumes sequential flotation of copper, then lead, then zinc, followed by a CIL tail treatment. Process and site fixed costs are based on the operation’s production history with adjustments for current labour, power and reagent costs. Processing recoveries by metal, concentrate stream and lode were used for the optimisation. The full list of parameters used to derive the initial optimised stope shapes and the subsequent Financial Model is shown in Table 7. www.kingstonresources.com.au 10 Table 7: Financial Model input parameters. Stope Optimisation & Design Gold Price Silver Price Copper Price Lead Price Zinc Price US$/A$ exchange rate Material Classification Stope cut-off (NVPT) Default (waste) density Level spacing Stope length Minimum stope width Average stope width Maximum stope width Minimum waste pillar width Hangingwall dilution Footwall dilution Dilution Mining recovery Unit US$/oz US$/oz US$/lb US$/lb US$/lb $/t t/m³ m m m m m m m m % % Parameter 1,780 22 4.12 1.15 1.38 0.68 Measured, Indicated & Inferred 70 2.6 20 20 3 9 20 7 0.5 0.5 10 85 Underground Mining Design After the MSO process, each stope was analysed to determine the length of development required for potential economic extraction. The parameters used for underground development design are shown in Table 8. The LOM underground mining physicals are listed in Table 9. Plan maps and sections of the underground development and stope designs are shown in Figure 6 and Figure 7. Table 8: Underground development design parameters. Development Design Decline gradient Stockpile interval Stockpile length Decline Lateral waste Lateral ore Ventilation rise Long hole rise Escapeway rise www.kingstonresources.com.au Unit m m m m m m m m Parameter 1:7 120 15 5.5 x 5.8 5.0 x 5.8 4.5 x 4.5 3.5 3.0 x 3.0 1.5 11 Table 9: Underground mining physicals. Mining Physicals Mining Development Ore Tonnes Stope Ore Tonnes Grades (Dev & Stope) Gold Silver Copper Lead Zinc Metal Gold Silver Copper Lead Zinc Material Movement Waste Tonnes Ore Tonnes Total Material Movement Lateral Development Capital Development Operating Development Total Lateral Development Vertical Development www.kingstonresources.com.au Unit Underground kt kt 112 773 g/t g/t % % % 1.7 18 0.9% 1.6% 1.3% koz koz kt kt kt 47 503 kt kt kt 309 885 1,194 m m m m 1,509 6,845 8,354 8 14 11 12 Parker’s Hill Development and Voids EOZ decline Figure 6: Southern Ore Zone MSO stope wireframes (blue) and existing underground development. Parker’s Hill Dev. and Voids Existing Development EOZ decline Figure 7: Jack's Hut trend MSO wireframes (blue) and existing underground development. www.kingstonresources.com.au 13 Metallurgy and Processing Comprehensive data on processing capabilities and metallurgical recovery of the existing plant is available from historical mining records and from recently acquired test work. Expected recovery from the underground production target has been forecast by lode, metal and concentrate product. Table 10: Flotation Metallurgical recovery assumptions (excludes gold dore). Commodity Cu Con Pb Con Zn Con Total Recovery Copper 63% 18% 0% 81% Gold 43% 15% 1% 59% Silver 10% 45% 4% 60% Lead 3% 76% 0% 79% Zinc 1% 0% 59% 60% Transitioning to open pit and underground ore feed will require refurbishment of the comminution and flotation circuit. The initial open pit phase will produce gold concentrate and dore. The processing of the underground ore will produce separate copper, lead and zinc concentrates. Treatment of the flotation tail through the CIL will also occur to extract the remaining precious metals. Figure 8 shows the detailed process flow sheets for open pit and underground ore types. All major processing infrastructure and facilities exist to execute Kingston’s updated LOM plan. Feasibility study level cost estimation and scheduling for the processing plant refurbishment was completed by Maxwell Energy and Resources and the key capital cost estimates are listed in Table 11. (a) (b) Figure 8: Process flow sheet for open pit precious metals ore (a) and underground polymetallic ore (b). Table 11: Plant refurbishment capital. Plant Refurbishment Capital Indirects and Owners Costs Supply Packages Construction Packages Infrastructure Contingency Total www.kingstonresources.com.au A$m 3.4 3.7 3.6 0.8 0.9 12.4 14 Mine Scheduling The key phases in transitioning to open pit and underground mining are shown in Figure 9. Cash flow from the Tailings Project will continue alongside underground re-entry works, processing plant refurbishment and open pit waste stripping. Processing of open pit oxide and sulphide ore is due to commence in Q2 CY24. Processing of underground production target inventory will commence at the end of CY24. Figure 9 shows the full LOM mining schedule. Figure 9: Gannt chart of the transition to conventional open pit and underground mining. The flotation plant is scheduled to operate at a 380ktpa processing rate (above the 350ktpa nameplate), equating to an average of 32kt per month. The Company plans to maximise the plant’s utilization and then investigate ways to increase capacity. Mineral Resources within the Mining Lease amount to 8.9Mt, drilling and exploration focussed on increasing confidence on the Inferred portions, resource extensions and new discoveries. The LOM mining inventory comprises 96% Ore Reserves to the end of CY24. Planned underground drilling aims to increase the confidence of Inferred Mineral Resources and potentially expand the Ore Reserves. Mining higher grades in the open pits and underground is one of the main drivers in the substantial increase in payable metal output over the next three years. Payable metal is forecast to increase 69% between FY23 and FY25 based on the company’s LOM projections (see Figure 12). Figure 10: LOM processing throughput schedule. www.kingstonresources.com.au 15 Table 12: Proportion of LOM production by Ore Reserve and Mineral Resource classification. Classification Ore Reserve Measured Indicated Inferred Production Target Total LOM Total Ore Reserve Measured Indicated Inferred Ore Reserve Measured Indicated Inferred Unit kt g/t AuEq koz AuEq kt g/t AuEq koz AuEq kt g/t AuEq koz AuEq kt g/t AuEq koz AuEq kt g/t AuEq koz AuEq kt g/t AuEq koz AuEq Tonnage basis (% annual production) Contained metal basis (% annual production) LOM 1,108 1.44 51 80 3.62 9 292 4.98 47 566 2.68 49 937 3.47 105 2,045 2.37 156 54% 4% 14% 28% 33% 6% 30% 31% H2-FY23 327 1.47 15 327 1.47 15 100% 0% 0% 0% 100% 0% 0% 0% FY24 647 1.04 22 647 1.04 22 100% 0% 0% 0% 100% 0% 0% 0% FY25 134 3.32 14 15 3.78 1.8 27 2.96 2.6 112 3.05 11.0 154 3.10 15 288 3.20 30 46% 5% 9% 39% 48% 6% 9% 37% FY26 0.00 14 5.72 2.6 131 6.05 25.5 193 2.68 16.6 338 4.11 45 338 4.11 45 0% 4% 39% 57% 0% 6% 57% 37% FY27 0.00 51 2.99 4.9 133 4.35 18.6 261 2.52 21.1 445 3.12 45 445 3.12 45 0% 11% 30% 59% 0% 11% 42% 47% Figure 11: Proportion of Ore Reserve and Mineral Resource classification comprising annual processing feed. www.kingstonresources.com.au 16 4.0 3.3 Payable Metal (AuEq oz) 30,000 3.5 3.0 25,000 2.5 20,000 2.0 15,000 1.5 1.0 10,000 0.8 1.0 5,000 Mined Grade (recov.) (g/t AuEq) 35,000 0.5 - 0.0 FY23 Gold Silver FY24 Copper Lead FY25 Zinc AuEq Grade (recov.) Figure 12: Payable metal output in gold equivalent terms. Infrastructure Existing infrastructure on site includes a CIL circuit, floatation circuit, power and water supply, waste rock dump, haul roads, tailings storage facility, offices, workshop and site access. Accommodation for employees is based in Condobolin. All concentrate produced will be bulk shipped in containers utilising the same route that was used previously for the transport and sale of base metal concentrates from site. Shipping containers will be trucked approximately 135km to the Narromine rail head via the public road network for aggregation into suitable train loads for onforwarding to Port Botany. Sea containers will then be loaded onto cargo ships for export to overseas markets. Kingston Resources has a targeted long-term employment plan for the mine and is committed to local training and employment at the Project. The emphasis will be on recruiting from the local shire and building mining skillsets to sustain a long-term operation for the region. Approvals and ESG Kingston’s LOM plan is within approved mining licences and the company has officers qualified for fulfilling all the statutory requirements. The list and status of mining tenure is included in the Appendix. The site has an EPA license that covers all current and proposed activities, methods and reagents. EPL3151 allows for the processing of 700ktpa. There is a bore license in place for the dewatering of the underground workings and this covers all site water requirements up to 630ML pa (80BL242753) with current extraction in the order of 230ML pa. The site has a Rehabilitation Management Plan and the associated rehabilitation bond, cash backed, is in place to cover all currently approved mining and processing activities. There are no impediments to the LOM plan from native title or local landholder access. www.kingstonresources.com.au 17 Product Marketing The LOM plan forecasts sale of gold dore, gold concentrate and three separate concentrates for copper, lead and zinc. Kingston is currently selling gold dore to ABC Refinery in Sydney. Based on current discussions with metal traders, gold concentrates can be sold with as low as 15 g/t Au. All concentrate from the two Pearse pits is expected to be above 30 g/t Au and should be readily saleable. Base metal concentrates were sold from Mineral Hill when the mine was previously in production. Discussions are underway with concentrate marketing agents and there is indication of strong demand for all concentrates. Project Economics Revenue Copper and gold sales collectively make up 74% of forecast revenue over the LOM (see Table 13). As the site transitions into polymetallic ore from the underground mine, revenue from base metals becomes more material. The Company is excited about the potential of increasing mineral inventory in this part of the deposit and the possibility of moving this forward in the schedule. Table 13: LOM revenue by commodity9. Commodity Copper Gold Silver