Kaili Resources Limited announced that upon securing the services of Moombarriga Geoscience the planned IP (Induced Polarisation) survey has commenced at the Canegrass prospect within the tenement E31/1113 in Western Australia Following the results of the RC drilling program in March 2022 at Canegrass, the Company decided that an IP survey is required to test an area of low magnetics that corresponds to the results of elevated gold to 1m @ 3.96 g/t Au2 and likely also to be associated with silica and chlorite altered basalt. The current IP survey is planned for a total of 7.7 line kms using five (5) EW first priority lines and two (2) second priority lines. The second priority lines will be completed based on encouraging results, if any, from the first priority lines.

The IP survey will be used to explore for deeper conductivity targets for future drilling beneath the March 2022 RC drilling. The Canegrass area was targeted originally by the Company as comprising extensive mafic volcanics and intrusives with an associated regionally significant northsouth 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 was aimed to test the gold anomalous southern line in addition to drilling 50 m to the north (6672250mN) and south (6672150N), Section 6672150 and section 6672200. The 7 RC holes for 612 m drilling in March 2022 returned the following results: Elevated gold intersections >0.25 g/t Au were obtained in most drill holes with the southernmost line having 4 m composite intersections of 0.6 g/t Au and 0.5 g/t Au in addition to other intersection to 1 m @ 1.4 g/t Au. Two 4 m composites in holes CGRC006 and GCRC007 returned significant results over the interval and have been resampled as 4 x 1 m intervals (CGRC007 - 3640 m and 6472m, CGRC006 - 6876 m and 8488 m) for a total of 20 x 1 m splits of the original 4m composite samples.

Significant gold intervals are shown below: CGRC001 3 m @ 0.6 g/t 5153 m including 1 m @ 1.0 g/t 5152 m CGRC003 3 m @ 0.38 g/t 6971 m CGRC004 1 m @ 0.32 g/t 6263 m CGRC006 4 m @ 0.52 g/t (4 m composite to be split into 1 m samples) CGRC007 4 m @ 0.6 g/t (4 m composite to be split into 1m samples) 1 m @ 0.54 g/t 7374 m 1 m @ 1.4 g/t 7778 m The RC sections were interpreted. The surface layer comprises ferricrete and silcrete that grades downwards into upper saprolite (usually mottled), lower saprolite and saprock as fresh bedrock is approached. The ferricrete is magnetic comprising maghemite.

All holes intersected basalt or variations of a mafic extrusive rock and in some cases the basalt was altered (silica and chlorite) with local quartz veins and trace to 5% disseminate pyrite. The association of a significant regional fault, a competency contrast between the mafic and felsic volcanics and elevated gold/pyrite in the RC drilling indicates further drilling may be warranted once all the data including those from the current IP survey has been reviewed along with all historical data.