Ann: SEM Imaging Confirms Qualitative Nature of Halloysite, page-34

There you go

SUMMARY AND NEXT DRILLING PROGRAM

The bright white kaolin zone was discovered when drilling a geophysical based gold target in April this year (See Figure 2 above).

A 200m spaced RC drilling program (2000m) is planned to define and test the extents of the kaolinized zone above the granite in August. The company believes the Exploration Target is between 30 and 100Mt of kaolin material based on the current thickness and the nature of the process that forms the wide zones of kaolin in weathered granite. Drill testing will continue if wide zones are intercepted in the planned program. The target size is conceptual in nature and there has been insufficient exploration to estimate a mineral resource at this stage. Only three drillholes have been completed over a length of approx. 300m to date and it is uncertain if further exploration will result in the estimation of a mineral resource.

The planned RC drilling is expected to be efficient given the spacing, and soft shallow profile. Drillholes will also be extended a further ~10m into fresh rock to test for gold below the kaolin on potential geophysical targets. Additional areas where the previous auger drilling identified bright white kaolin clays near surface are also planned to be RC drilled to verify the thickness of the kaolin clays.

The Boomerang Kaolin prospect lies in a favourable location, being ~25km from the Kalgoorlie water pipeline and Highway 94 Perth to Kalgoorlie, and 42km to the Southern Cross Rail yard.

The Company notes recent results from Western Australian Kaolin and Halloysite explorers, Andromeda Metals Ltd (ASX:ADN), Suvo Strategic Minerals Limited (ASX:SUV), Latin Resources Limited (ASX: LRS), FYI Resources Limited (ASX:FYI), WA Kaolin (ASX:WAK) & Alpha HPA Ltd (ASX:A4N). Recent prices for Kaolinite end product have been quoted/published at up to $700/t. Higher grade Halloysite and some applications in the High Purity Alumina (HPA) sector can achieve prices as high at $30,000/t with further processing. Further details on the world kaolin market are attached at Appendix 1.

Whilst Kula’s results are preliminary and need to be confirmed by follow up drilling and assays, the Company believes that the initial assays are significant in grade and extent and require further investigation and drilling.