Earnings release
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Highlights During the quarter, KGL has been progressing the development / construction readiness activities including planning for enabling works, project optimisation work in response to higher metal prices and discussions / negotiations with potential funding partners. Project Development and Construction Readiness • Progress continues on construction planning and readiness for the Jervois Project. Key activities include: o Planning for enabling works. o Advancing the procurement processes for major work packages. o Appointment of experienced project execution partners to integrate with KGL’s team. o Tendering the Open Cut mining package of works. Project Optimisation • In response to higher metal prices, KGL has initiated further optimisation efforts. Focus areas include: o Evaluating incremental open cut resource development within the current mine life/plan. o Improving capital estimates and risk management to enhance project economics. Funding Progress • KGL and its advisors, Cutfield Freeman & Co and amicaa Advisors, are actively engaged with potential funding partners as the Company explores a range of optimal funding and transaction structures. KGL is advancing the due diligence process, including management presentations, access to the dataroom with site visits to Jervois conducted. • With positive interest received from a number of parties , discussions are progressing with a view to securing attractive terms on the funding stack. Near Mine and Regional Exploration Potential • KGL is finalising its 12 -month exploration and drilling plan aimed at unlocking further value across the Jervois–Unca Creek tenement. • Key objectives include: Expanding open pit resources near existing deposits; Advancing high- priority targets identified through 3D joint inversion modelling; Extending the 3D seismic survey coverage across the Jervois and Unca Creek leases; Integrating new data into an updated 3D joint inversion modelling program to refine targeting and support future resource growth. Commodity Market Update • A structural shift in demand across copper, silver and gold continues to support a favourable long-term market outlook. Financing efforts align with multi-year highs in copper, silver and gold prices. KGL’s planned production of silver (~1 Moz p.a.) and gold (~8.4 koz p.a.) adds value whilst enhancing the cost-competitiveness of the Jervois Project. Corporate • Current cash & cash equivalent as at 30th September 2025 was $2.73 million. • Resource Capital Fund (‘RCF’) became a substantial shareholder during the month. • A share placement was announced 31 October 2025 raising approximately A$11m, before costs. 31 October 2025 For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Project Development & Construction Readiness Given the strong outlook for copper , silver and gold , KGL is actively progressing an interim funding package to support early -stage construction readiness activities at the Jervois Project. This phase includes detailed planning, early procurement, and integration of execution partners to ensure construction efficiency and readiness. • KGL’s owner’s team has been integrated with experienced project execution partners to support and advance the enabling works program, focussed on derisking and maintaining the overall Jervois project delivery schedule. • The Enabling Works are proposed to commence in late 2025 / early 2026 , preparing the site for full-scale construction. The key activities are summarised below: • The Process Plant front end engineering & design for Long Lead Items (LLI), has been proposed by the EPC contractor, to facilitate vendor engagement and early procurement activities to maintain the focus on the project delivery schedule. • The Camp and Village enabling works include a combination of initial upgrade of the existing camp to house people carrying out the Enabling Works on site as well as progressing work on the additional (initial) 100-man component of the Village. • The Civil & Infrastructure works consist of deconstruction of legacy structures , aggregate crushing, building the MIA pad , airstrip & roads construction and the refurbishment of a raw water tank. • Borefield & Water Supply (Stage 1) includes the design, supply and installation of groundwater reticulation to the process area (10l/s), to enable earthworks commencement. • Personnel & flights include the provision Transport and charter flights for the KGL integrated Owners Team to deliver the site-based activities associated with the Enabling Work program and ongoing site visits for external contractors and investors. • A Reclamation Bond relates to the provision of a financial security to the Northern Territory Government (or other relevant authority) in accordance with the approved Mining Management Plan. The funding for the Enabling works is a component of the overall Project Capex. Procurement and approvals are aligned to the milestone plan, with timing linked to funding release. Other critical path packages in preparation for tendering and evaluation during the Enabling Works period includes. o Contracting for the Process plant construction and delivery workflow; o Open cut mining contract; o Civil works; o Communications infrastructure; and o Fuel supply. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement The following figure summarises the overall project delivery timetable which is subject to securing acceptable terms on the funding stack to support a Financial Investment Decision, construction and into operations1. 1 Timetable is indicative only and subject to change. Commencement of construction is subject to FID, securing adequate funding and there are inherent timing risks throughout construction and ramp up of operations Project Optimisation In response to higher metal prices, KGL has initiated further optimisation efforts. Current optimisation activities are focussed on the open-cut mine plan which has potential expansion opportunities in the areas covered by existing resources. An updated open-cut mine plan is currently being developed for an incremental increase in the copper contained in the ore feed which can be processed through the plant during the midpoint of the current processing schedule, using available plant capacity. Ongoing work to reduce project capital and working capital costs is focusing on civil works, open cut prestrip, crusher and mills and selected support infrastructure. Discussions with potential off -takers have commenced regarding Bismuth penalties and possible recognition of value. A tender process for the open cut mining, has shortlisted a number of parties targeting firm offers that can result in awarding an operating contract that supports the Financial Investment Decision process. Funding Progress KGL Resources, together with financial advisors amicaa Advisors and Cutfield Freeman & Co, continue to advance a comprehensive project construction financing process. The Company is in discussions with a short list of potential funding partners who have provided non- binding indicative finance term sheets and other proposals and is working with its advisors to refine the optimal funding package and terms for a Financial Investment Decision in due course. Near Mine and Regional Exploration Potential The strong drilling results over the last several years have underpinned KGL’s strategy of incremental near-mine growth while enabling step-out targeting across the broader exploration tenements. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement KGL’s key objectives for the exploration plan in the medium term include: • Expanding open cut resources near existing deposits to support mine life growth and add tonnages to the middle of the mine plan schedule; • Advancing high-priority targets identified through 3D joint inversion modelling; • Extending MT survey coverage across the Jervois and Unca Creek leases; and • Integrating new data into an updated 3D joint inversion modelling program to refine targeting and support future resource growth. Next-Gen Geophysics Unlocks New Scale Potential KGL continues to advance a strategic, data -driven exploration program across its highly prospective 110 km² Jervois –Unca Creek tenement. With over a decade of geological, geochemical, and geophysical data, the Company is now leveraging advanced 3D cross gradient inversion modelling to drive resource expansion and district-wide discovery. Figure 1. Tilt angle of magnetic data reduced to the pole (left) across both the Jervois and Unca Creek tenements, with struc tural interpretations derived from magnetic data. The right panel displays copper concentrations (ppm) from soil geochemistry: lega cy data over the Unca Creek tenement and samples collected in 2014 and 2015 by KGL Resources over the Jervois tenement. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Strategic Exploration Pathway The integrated geophysical and geological dataset lays the foundation for: • Low-cost, high-impact drill targeting. • Near-term resource expansion and future reserve conversion. • Discovery of new mineralised corridors across the tenements. Joint inversion modelling has confirmed several promising targets: • Reward South trend continuation on the eastern limb of the J -Fold (Area 4) , potentially amenable to open cut mining. • Western limb of the J-Fold (Scarp to Crowe’s Nest), with DHEM survey and an additional drill hole planned. The Central J-Fold structure identified as Area 1, potentially links to the Scarpe– Crowe’s Nest trend. • Bellbird South (Area 2) and south of Rockface (Area 3) — both drill-ready. Expanding Magnetotelluric (MT) survey coverage across the full tenement area will significantly enhance confidence in anomalies identified through single -domain inversions. Additionally, Induced Polarisation (IP) resistivity data may further improve model resolution and geological insight. Targets will be ranked based on: • Geological prospectivity. • Proximity to development infrastructure. • Capital efficiency. Future drilling and geophysical programs will be sequenced in alignment with development milestones and financing strategy, ensuring capital discipline while building long-term resource scale. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Figure 2. Horizontal slice of the joint magnetic imagery guided MT and gravity inversion model at 0.0 mRL (approximately 350 m below surface). Resistivity is displayed using the colour scale, while inverted density is represented by contour lines. Purple t riangles denote MT sounding stations, and black lines indicate structural interpretations derived from magnetic data. Several anomalies have been identified within Jervois Tenement (EL25429): Area 1 is positioned directly over the F3/J -Fold axis, Area 2 de fines a distinct parallel trend to Bellbird, Area 3 forms an offset parallel trend to Rockface, and Area 4 aligns closely with the Reward South trend. Figure 3. Cross section at 7492418.00mN looking north highlighting resistivity of Area 1 (J-fold centre). For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Market Commentary & Commodity Exposure The Perfect Storm: Strategic Market Tailwinds for KGL’s Metals Complex Global commodity markets are undergoing a structural transformation, with copper, silver, and gold all experiencing accelerating demand and tightening supply. The International Energy Agency (IEA) forecasts a 30 –40% copper supply deficit by 2035, driven by electrification, AI infrastructure, and defence technologies. This shortfall is compounded by declining ore grades, long mine development timelines, and underinvestment in new projects. [ecofinagency.com] CRU Group reports that Chile’s historical cost advantage in copper production is narrowing sharply — from 17% in 2021 to just 4% by 2030 — due to rising energy intensity and declining ore grades. Bank of America has raised its copper price forecast to US$1 3,501/t by 2027, with potential peaks around US$15,000/t (US$6.80/lb), citing a “supply perfect storm” driven by persistent disruptions, resilient demand, and historically low inventories. [crugroup.com] [nai500.com] Strategic Value of Precious Metal Exposure Silver and gold prices recently hit all time highs of US$54/oz and US$4,400/oz , up ~86% and ~69% respectively year-to-date. Silver demand continues to grow strongly from solar, electronics, and EV applications, reinforcing its dual industrial–monetary role. The silver market faces a structural deficit of ~115–149 million ounces in 2025, with supply unable to keep pace due to its by -product nature and inflexible production response. [financialexpress.com] Gold remains supported by central-bank accumulation, de-dollarisation, and geopolitical hedging. Spot prices recently surged to over US$4,000/oz, driven by safe-haven demand and expectations of interest rate cuts. Analysts expect gold to consolidate before resuming its uptrend, with projections of US$5,000/oz by 2026. [invezz.com] [cnbctv18.com] Meanwhile, resource nationalism, cost inflation, and long development lead times continue to constrain new supply across key jurisdictions. KGL’s Strategic Positioning KGL is strategically positioned to capture value from the convergence of three enduring structural drivers — electrification-driven copper demand, the dual industrial–monetary strength of silver, and the safe-haven appeal of gold. Recent advanced geophysical modelling provides the strongest evidence to date that Jervois may host a significantly larger and deeper copper–silver–gold mineral system than previously understood. This enhances the potential for long-term expansion beyond the current development plan. The alignment of favourable commodity fundamentals with emerging district -scale exploration materially enhances the strategic and financing attractiveness of the Jervois Project, supporting a clear pathway for value growth over time. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Corporate Current cash & cash equivalent as at 30th September 2025 was $2.73 million. RCF became a substantial shareholder during the quarter and invested in KGL Resources via Resource Capital Fund VIII AIV -A. RCF has an extensive history of partnering with investors, innovators, and operators to mobilise capital into critical minerals, metals, and mining. A share placement offer was announced 31 October 2025 raising approximately A$11m, before costs. Outlook & Next Steps KGL and its advisors continue to advance discussions with a range of strategic partners and funding providers. The Company remains focused on securing an optimal funding solution that supports: • Construction commencement in 2026. • First production in 2027. KGL is committed to maximising shareholder value while supporting regional economic growth, employment opportunities, and long-term sustainability outcomes. This announcement has been approved by the Board of KGL Resources Limited For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Tenements Tenement Number Location Beneficial Holding ML 30180 Jervois Project, Northern Territory 100% ML 30182 Jervois Project, Northern Territory 100% ML 30829 Jervois Project, Northern Territory 100% EL 25429 Jervois Project, Northern Territory 100% EL 30242 Mt Cornish, Northern Territory 100% EL 28340 Yambah, Northern Territory 100% EL 28082 Unca Creek, Northern Territory 100% ML 32277 Lucy Creek Borefield, Northern Territory 100% Mining Tenements Acquired/Granted and Disposed during the quarter* Location Beneficial Holding EL 28271 (relinquished) Yambah, Northern Territory 100% Tenements subject to farm-in or farm-out agreements Location Beneficial Holding Nil Tenements subject to farm-in or farm-out agreements acquired or disposed of during the quarter Location Beneficial Holding Nil Related Party Payments As reported in the quarterly cash flow report part 6.1, amounts paid to related parties of $41k consist of directors’ fees and expenses for the quarter. For personal use only
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Quarterly Activities Report Period Ended 30 September 2025 ASX Announcement Forward Looking statements This presentation includes certain forward -looking statements. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statement s. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of KGL are forward-looking statements that involve various risks and uncertainties. Although every effort has been made to verify such forward-looking statements, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. You should therefore not place undue reliance on such forward-looking statements. Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements. Statements in relation to future matters can only be made where the Company has a reasonable basis for making those statements. Competent Person Statement The information in this announcement that relates to a Production Target and the forecast financial information derived from the production was first released to the market on 10 February 2025. KGL Resources Limited confirms that all the material assumption s underpinning the production target and forecast financial information derived from the production target continue to apply and have not materially changed. The information relating to 3D Inversion results was originally reported on 30 July 2025. The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed For personal use only
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Rule 5.5 ASX Listing Rules Appendix 5B (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity KGL Resources Limited ABN Quarter ended (“current quarter”) 52 082 658 080 30 September 2025 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 1. Cash flows from operating activities 120 120 1.1 Receipts from customers – GST receipts 1.2 Payments for - - (a) exploration & evaluation (b) development - - (c) production - - (d) staff costs (185) (185) (e) administration and corporate costs (1,284) (1,284) 1.3 Dividends received (see note 3) - - 1.4 Interest received 71 71 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (1,278) (1,278) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) tenements - - (c) property, plant and equipment - - (d) exploration & evaluation (1,090) (1,090) (e) investments - - (f) other non-current assets - - For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 2.2 Proceeds from the disposal of: - - (a) entities (b) tenements - - (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other – payment of security deposits - - 2.6 Net cash from / (used in) investing activities (1,090) (1,090) 3. Cash flows from financing activities - - 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings (163) (163) 3.7 Transaction costs related to loans and borrowings – lease interest (5) (5) 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities (168) (168) 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 5,265 5,265 4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,278) (1,278) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (1,090) (1,090) 4.4 Net cash from / (used in) financing activities (item 3.10 above) (168) (168) For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 2,729 2,729 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 1,080 1,080 5.2 Call deposits 1,500 1,500 5.3 Bank overdrafts - - 5.4 Other (security deposit) 149 149 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 2,729 2,729 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 41 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. N/A 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (1,278) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (1,090) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (2,368) 8.4 Cash and cash equivalents at quarter end (item 4.6) 2,729 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 2,729 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.15 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: Yes. The Company is progressing its project readiness and exploration p lanning. Whilst this work is being completed, the onsite activities will be limited to soil sampling and geological modelling. 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: KGL has completed a share placement in October 2025 raising $11m before cost. For personal use only
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Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report ASX Listing Rules Appendix 5B (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes. KGL believe it will be able to continue its stated objective as detailed above. Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 31st October 2025..................................................... Authorised by: Kylie Anderson on behalf of the Board (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, t he definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee ”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its Managing Director and CFO that, in their opinion, the financial records of the entity have been properly maintained , that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. For personal use only