Kaili Resources Limited (KLR) announced the commencement of surficial exploration at Prospect F within Canegrass EL 31/1113 over 4 target areas defined from the 2022 Induced Polarisation survey. Following a review of the results of the Canegrass IP Survey four areas have been chosen for field geochemical evaluation prior to RC drill testing proposed for the third quarter 2023. A paleochannel runs NW to SE through Target 4 as such KLR has decided to use a MMI sampling approach with the soil samples to be collected on a 100 m x 50 m grid at 20 cm depth below the root layer and to be submitted to SGDS in Perth for gold and multi element analyses.

The IP Survey successfully delineated four target areas (CGIP 1 to 4) located within the western half of the survey area (mafic domain). The warm colours indicate areas of enhanced conductivity that are potential sulphide targets. CGIP 1 - This is the highest priority target being a conductivity high and linear magnetic high adjacent to the regionally significant Emu Fault.

CGIP 2 ­ Discrete conductive target associated with a NE-SW splay off the Emu Fault. CGIP 3 ­ Broad N-S conductive flat target, possibly lithological but worth testing to see if drilling is warranted. CGIP 4 ­ Weak IP conductive target to the south of the RC drilling testing where significant gold in drilling results have been obtained.

Background: Following the results of the RC drilling program in March 2022 at Canegrass Prospect F, KLR completed the IP to test an area of low magnetics that corresponds to the results of elevated gold to 1 m @ 3.96 g/t Au2 and likely also to be associated with silica and chlorite altered basalt. The IP survey was for a total of 7.8 line kms using six (6) E-W lines to explore for deeper conductivity targets for future drilling beneath the March 2022 RC drilling. Survey Specifications: The IP survey was conducted by Moombarriga Geoscience in November 2022.

Equipment used included a Search-Ex WB30 transmitter and a SmarTem 24 receiver system. Receiving electrodes were standard non- polarising porous pots and transmitter electrodes were buried steel plates or stakes. The survey consisted of six EW lines, each 1.3 km long.

Line spacing was 100 m. The survey utilised a roll along dipole-dipole (DDIP) configuration using 50 m transmitter dipoles and 16 m x 50 m receiver dipoles. Station moves were 50 m. Presentation of Results: Note the chargeable anomaly on lined 2600 to 2400 centred on 389800E. This chargeable anomaly is spatially associated with a linear N-S magnetic high.

There is a chargeable anomaly on most lines between 389400 to 389600E and has been interpreted by the consultant geophysicist as a lithological target. This anomaly is in areas where there has been no drilling, so several field traverses will be completed to see if there are any geological or regolith surface expressions for this anomaly. This target may be drill tested to confirm the nature of the anomaly.

There is a weak chargeability feature 100 m south of the RC drilling to be further investigated. Discussion of Results: There is generally good agreement between the 2D and 3D inversion models for the Canegrass DDIP data. This adds to the confidence that can be placed in the models.

The resistivity data shows very conductive cover across the eastern half of the survey area. This cover has resistivity values less than 10 m and is around 50 m to 70 m thick. The western half also has cover of around 50 m thickness although it is not as conductive with resistivity values of 20 to 50 m. Below the cover is resistive basement (> 100 m).

The chargeability data maps an extensive NS trending chargeability high (10-15 mV/V) along the western side of the survey area (centred on 389500E). The zone appears to be 200 m to 300 m wide, basically flat lying with a depth extent of around 50 m, and it sits beneath the conductive cover layer. This is expected to be a stratigraphic or lithological response.

There is a secondary NS trending chargeability high in the centre of the survey area across the three northern lines. It is located around 389800E at depths between 50 m and 150 m, again below the conductive cover layer. The zone is strongest on line 2500N and 2600N (7 to 10 mV/V).

The 2D inversion model for 2600N suggests a sub-vertical shape with potential for depth extent of 200 m to 250 m. This zone is directly along strike to the north from the existing drilling at Canegrass and is directly adjacent to a linear magnetic high. KLR is carrying out field traverses across the area of the IP survey to map the geology and regolith and use the information gained in conjunction with the results of the RC survey to plan the next round of drill testing within the Canegrass tenement. The Canegrass area was targeted originally by KLR as comprising extensive mafic volcanics and intrusives with an associated regionally significant north-south structure (Emu Fault) which is associated with gold mineralisation to the north of E31/1113 at the historic Gindalbie Mining Centre.

The location of the March 2022 RC drilling program was a follow up to the 2020 Aircore Drilling Program which highlighted Area F as an area with elevated gold and that intersected 1 m @ 3.96 g/t Au2 on the most southern line in hole CGAC025 that had the same collar as CGRC005 with the holes drilled at 90 degrees and 270 degrees respectively. The March 2022 RC program comprising 7 holes aimed to test the gold anomalous southern line in addition to drilling 50 m to the north (6672250mN) and south (6672150N).