Kainantu Resources Ltd. announced encouraging initial results from the Ontenu Prospect at KRL South (including consistently high grade results of up to 1.55 g/t Au, 0.39% Cu, 20.8 g/t Ag and 460ppm Mo from surface). The KRL South claims are located 27 km southwest of the K92 Mining operations and are also situated on the Kainantu Transfer Structure. Background: As previously announcement by the Company on 14th September, 2022, KRL has focused exploration activities at the Ontenu Prospect in KRL South (contained within EL2660).

This area was identified as a priority area of interest following analysis of geology, historic exploration and the Company's MobileMT survey results. It is located along the world renowned Kainantu Transfer Structure, in a district associated with highly successful mining projects, including K92 Mining. The Ontenu Prospect has emerged as a stand-out prospect and is ranked as a priority for the Company in the highly prospective KRL South project (with potential to accelerate a focussed drill programme at Ontenu). Ontenu is approximately 15 kilometres east of the Tirokave area of interest (where KRL continues exploration activities) and 27 kilometres south-southwest of the K92 operations. Geology and Geophysical Signatures at the Ontenu Prospect: A work programme was undertaken and completed in H2 2022. Initial results have now been received and are detailed below. Ongoing field work and analysis has identified a cluster of interpreted mineralized porphyry and intrusion related targets around Ontenu, a highly Au-Cu fertile area demonstrated by historic exploration results. Encouraging geophysical survey results also support the potential of Ontenu for extensive bulk grade with attendant higher-grade mineralization, making this an area of heightened focus for the Company.

In relation to the Company's geophysical survey, strongly anomalous areas were highlighted around the Ontenu Prospect. Specifically, several discrete zones of high apparent conductivity along both NW and NE trends were apparent. A central zone at the intersection of the most prominent NW and NE trending structures coincides with a stockwork zone in a landslide exposure returning highly anomalous Au geochemistry; historically reported by Barrick.  Further zones in both NW and NE directions appearing to be prospective and underlain by discrete magnetic highs. Two prominent apparent conductivity anomalies (O5 and O6, the tops of both interpreted as approx.

200m below surface), in addition to a curvilinear conductor (O7), all occur in the vicinity of the prospects historically defined.  While not the focus of previous operators' exploration activities, O5 is the strongest and most depth-persistent conductor in all areas surveyed by the Company and may represent a significant under-explored shallowly buried mineralization system. The O6 anomaly partially underlies the most focussed and successful exploratory work undertaken by prior explorers and is associated with a coincident NW trending linear conductivity and magnetic anomaly (O2), which appears to represent a significant controlling structure. Coincidentally, this is the same orientation as the high-grade Kora-Irumafimpa-Judd epithermal vein system underlaying K92's operations.

The O1 feature in the southern part of the survey area comprises broken magnetic anomalies interpreted as an intrusive complex, or volcaniclastic sediments, likely the Yaveufa Formation. Shallow linear asymmetric conductivity anomalies (O3 and O4) may represent sediments thickening towards significant NE trending structures. Quartz-limonite stockwork veining hosted by Tertiary conglomerates immediately overlying a regional unconformity with basal Mesozoic metamorphics support the area around O4, termed the Onerunka anomaly.

This is a location for further field work investigation (noting artisanal miners are active here). Field work and analysis: Work focussed on implementing a planned programme over the O6 target and surrounds that included verification of previous exploration (DDH pads and trench excavations), mapping and re-sampling selected trenches, gridded soil sampling (14 soil lines with 100m NS spacing and 50m E-W sampling interval), and 19.5km of creek traversing, mapping, and sampling, focussing on the identification of lithologies, alteration and mineralization styles, and controlling structures. Intrusive lithologies, including ultramafics, microdiorite, andesite, and dacite are hosted by siltstone, likely the Omaura Formation (which is hornfelsed and occasionally skarnified). Hydrothermal alteration mapped within the prospect affects all observed lithologies to some degree. Mineralization is present in all lithologies, but found to be more prevalent in the intrusives, particularly within the microdiorite and andesite, as moderately disseminated pyrite-chalcocite±bornite±covellite and occasional sheeted and stockwork quartz-sulphide veins/veinlets.

Of particular interest is one rock float sample (interpreted close to source and assaying 1.06ppm Au) exhibiting vuggy residual quartz hosting enargite mineralization, suggesting the remnants of a mineralized lithocap remaining in some areas. The structures identified within the prospect indicate a complex regime comprising NW trending (fault breccias and faults), NE trending (faults, shear zones) and late NNW-N and NNE-E trending displacement faults. These faults act as major controlling structures to alteration and mineralization and as openings for the emplacement of younger intermediate and mafic porphyry intrusions and associated contact brecciation. During the mapping and sampling programme, a total of two E-W grid soil lines across the center of the Priority 1 area were completed with 95 soil samples taken from the C horizon, varying from 0.8m to 2.1m depth. Outcrop, trench, and creek traverse mapping and sampling saw a total of 63 largely mineralized rock chip samples taken.

Rock Geochemistry: Gold results from fire assay, along with ICP results of 52 elements recently became available for the 63 rock chip samples taken. Next Steps: The high priority O6 target has been identified as a possible mineralized porphyry based on integrated geological, geochemical, and geophysical signatures discussed above. The intention is to produce zoned geochemical and alteration maps to aid in vectoring towards drill targets (with potential to move towards a focussed drill programme in the near term).

The highly promising O5 target (very similar in character to O6), along with others identified in the Ontenu area, will also undergo detailed exploration during 2023. The Company views the Ontenu area as extremely encouraging for potential economic Cu-Au-Ag-Mo mineralization at KRL South. KRL will regularly conduct social awareness and community engagement to support field work at Ontenu from H1 2023 onwards.