Ann: KCGM Media Release 18 August 2020, page-3

We await a susbttitute statement from SAR and NST.

Clause 51 is below.

Reporting of In Situ or In Ground Valuations
51. The publication of in situ or ‘in ground’ financial valuations breaches the principles of the Code (as setout in Clause 4) as the use of these terms is not transparent and lacks material information. It is alsocontrary to the intent of Clause 28 of the Code. Such in situ or in ground financial valuations must notbe reported by companies in relation to Exploration Results, Mineral Resources or deposit size.

The use of such financial valuations (usually quoted in dollars) has little or no relationship to economicviability, value or potential returns to investors.

These financial valuations can imply economic viability without the apparent consideration of theapplication of the Modifying Factors, (Clause 12 and Clauses 29 to 36), in particular, the mining,processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, andgovernmental factors.

In determining project viability it is necessary to include all reasonable Modifying Factors (Clauses 29 to36) to determine the economic value that can be extracted from the mineralisation.Many deposits with large in ground values are never developed because they have a negative Net PresentValue when all reasonable Modifying Factors are considered.
By reporting such financial valuations as a component of Exploration Results or when evaluating depositsthat commonly include large portions of Inferred Mineral Resources, companies are not necessarilyrepresenting the economic viability of the project, or the net economic value that can be extracted fromthe mineralisation.

Code is in normal typeface, guidelines are in indented italics, definitions are in bold.

Clauses 14, 12, 29-36 can be obtained from http://jorc.org/docs/JORC_code_2012.pdf