Kaili Resources : RC Drilling Commences at Gindalbie Gold Project WA

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ARBN 077 559 525

Kaili Resources Limited

ABN 19 132 787 654

World Tower

Suite 1312, Level 13

87-89 Liverpool Street

Sydney NSW 2000, Australia

T: [phone]

E: [e-mail]

7th February 2022

ASX Market Announcements

RC DRILLING COMMENCES AT THE GINDALBIE GOLD PROJECT

YILGARN CRATON, WA - CANEGRASS (EL31/113)

Kaili Resources Limited ("Company") is pleased to announce that a 7 hole drilling program for 630 m commences today within the Canegrass tenement (Figure 1) of the Gindalbie Gold Project in the Yilgarn Craton in Western Australia (WA).

With inter-state border closures, restrictions faced by Company personnel to travel to WA and lack of readily available drillers, the Company has been fortunate in engaging Goldfields Drilling, an experienced Kalgoorlie based field crew and drilling team, to carry out the planned drilling. The drilling program is managed locally by geological consultancy BMGS .

Figure 1: Location of the Gindalbie Gold Project to the NE of Kalgoorlie

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Figure 2: Location of Canegrass drill area CG_F

Drilling Area F is shown in Figure 2 with the area situated in Gindalbie Station and E31/1113.

A shallow (average drilling depth of 7 m) vacuum drilling was completed in 2019 (see ASX Releases of 12th and 17th September 2019) across the Holey Dam and Canegrass tenements to look for gold geochemical signatures beneath transported overburden. The program was followed by deeper (average depth of 45

1. Aircore drilling in 2020 (see ASX Releases of 17th and 21st September 2020 and 3rd December 2020) at 4 target prospects shown in Figure 2. Of these 4 targets Prospect CG_F (Canegrass Area F) has been chosen for the current RC drill testing using 3 drill lines.

Easting_GDA94_Zone51	Prospect	Hole ID	Name	Drill_Type	Planned Depth m	Inclination	Azimuth(magnetic)
389975	CG_F	CGRC001	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
389925	CG_F	CGRC002	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
390000	CG_F	CGRC004	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
389950	CG_F	CGRC005	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
389900	CG_F	CGRC006	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
389975	CG_F	CGRC008	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
389925	CG_F	CGRC009	Canegrass EPM 31 1113	Reverse Circula tion	90	-60	270
					630

Table 1 Canegrass Target F Drill Collars

Canegrass Prospect CG_F lies on the Emu Fault shown in Figure 3 which transgresses the Canegrass tenement from North to South. There is a group of several historical gold workings located to the north and just outside the Canegrass tenement (Gindalbie Workings) and they lie adjacent to the Emu Fault. The key gold mineralised intersections are shown in Figure 4 on an RTP Aeromagnetic Image. A drill hole in the centre of the southernmost Aircore drilling program within CG_F intersected 4 m @ 0.16 g/t Au from

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ARBN 077 559 525

48-52 m, which included 1m @ 3.96 g/t Au (48-49 m) and 1m @ 0.88g/t (49-50 m) in Aircore Hole CGAC025 which was terminated at 63m down hole. (see ASX Release of 3rd December 2020).

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Figure 3: Canegrass CG_F Prospect with structures interpreted from processed aeromagnetics.

Note CG_F is located on the regionally significant Emu Fault.

Figure 4: Canegrass CG_F Prospect showing significant Aircore gold drill intersections in yellow.

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ARBN 077 559 525

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Figure 5: Canegrass CG_F Prospect with structures on interpreted geology.

Figure 5 shows the interpreted geology for CG_A showing the Emu Fault located at the boundary of mafic dominant rocks (basalt and dolerite) to the west and felsic dominant (felsic volcanics and intrusives) rocks to the east. The significant gold intersections are located within the mafic dominant rocks where spectral mineralogy carried out on the drill pulps by ALS Laboratory as part of the geochemical analyses highlighted a white mica (sericite) trend adjacent to the Emu Fault. The program will comprise 3 lines of drilling (Table 1 and Figure 6) with one line the same as the southern line of the Aircore Program of 2020 (Figures 4 and 5) with two further drill lines 50 m to the north and 50 m to the south (Figure 6). As indicated, the RC drillholes will be angled towards 270 degrees as shown in drill section 6672200N in Figure 7.

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Figure 6: Canegrass CG_F Prospect showing the open nature of the terrain - in this program holes

CGRC 1,2,4,5,6,8,9 will be drilled to 90m angled towards 270 degrees (North is towards the top).

Figure 7: Canegrass CG_F Prospect showing drill section 6672200N with the 3 proposed 90 m RC drill

holes CGRC04 to 06 in relation to the Aircore Drillhole CGAC025.

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