16 Oct 2015 Last update of Pre-Feasibility Pre‐Feasibility Study...

16 Oct 2015 Last update of Pre-Feasibility

Pre‐Feasibility Study shows strong economics of KGL’s Jervois Copper‐Silver Project

 Low C1 cash cost of US$0.88/lb over mine life  3.2 years payback

“Jervois is confirmed as a robust, mid‐level scale mining project with an initial annual production of more than 20,000 tonnes of copper, one million ounces of silver, plus lead and zinc, with a mine life of more than 8 years.” “In 2015, we increased and upgraded the mineral resource, simplified the metallurgical processing and reduced the operating costs.” “The additional studies now show Jervois to be:‐  a conventional copper flotation project with strong economics  with a C1 (cash) cost of US$0.88/lb and C3 (including depreciation, amortisation and royalty) cost of US$2.13/lb  among the lowest cost of the world’s probable new mines.” “The PFS benefited from the upgrading of mineral resources and increases in silver, lead and zinc tonnages"

Since there we've had two years of non stop drilling and DHEM highly effectively and efficiently expanding this resource with far better grades and extent of resource.

Would suggest KGL is completely off radar, particularly given previous baggage with Kyrgyst and Murchison chaos. This is where the market is not up with the play and hence current SP IMHO, particularly given the length of time since we've and a decent full update on PFS.

Like this resource and having the local State government in behind this project does no harm at all. Also like the fact there is no sovereign risk and consents are well ahead the game.

DYOR AIMHO