KGL Resources announced an update of the mineral resource estimate for the Reward deposit. The Reward deposit hosts one of the three principal mineral resources which comprise the Jervois Copper Project and has been subject to a significant program of resource-growth drilling during 2021. Mineral resource estimate updates for the other two deposits, Bellbird and Rockface, are underway and together they will underpin feasibility study updated mine plans.

Taking into consideration this resource update and the expected updates on Bellbird and Rockface, along with COVID-19 restrictions and industry wide challenges, the Feasibility Study is now scheduled for delivery in mid-2022. Reward Resource Update: The mineral resource estimate was completed by experienced and independent consultants, Mining Associates Pty Ltd, and their summary report is included as part of this announcement. The mineral resource estimate incorporated the results from drilling during 2021 along with drilling results from earlier times.

The estimate is reported according to the JORC (2012) guidelines. Results: When compared to the most recent previous estimate (2020), the Reward mineral resource estimate delivers a 20% increase in contained copper metal, to 244 kt, and 20% increase in resource tonnes to 13.58 Mt, in the indicated and inferred categories. Copper grade remains consistent at 1.80%.

Gold and Silver: Both gold and silver grade has dropped slightly, but the mineral resource estimates show increases in both metal contents from 2020 to 2022. Feasibility Study: KGL Resources Limited had expected the Jervois Feasibility Study would be complete in First Quarter 2022, however industry-wide challenges including Covid-19 related restrictions impacting site activities has led to a delay in completing the Jervois mineral resource and ore reserve updates, subsequent finalisation of the optimised mine plan and, therefore, the completion of the Feasibility Study itself. Bellbird resource update should be completed in early 2022, and it will be a number of months before Rockface will be complete.

Whilst the delay to mid-2022 is disappointing, it will allow KGL to: include recent Rockface results in the mineral resource update; add to mineral resources, most likely at Reward and Rockface based on recent drilling; further optimise the mine plan; finalise offtake arrangements; identify and define any cost pressures to refine capital and operating costs, and; continue to explore optimal project financing options, including the potential for Government assistance (NAIF), and develop an appropriate funding strategy. The clear benefit of this additional time will be the likely easing of some of these industry-wide challenges, and subsequent cost pressures, and a more detailed and considered understanding of the project and funding requirements. Inclusion of the recent high-grade results in mineral resource base and mine plan will assist in offsetting the impact of rising capital and logistics costs related to the remote location of Jervois.

Despite the ongoing challenges the project is emerging as a significant copper and silver project located in a first-world jurisdiction, where all approvals are now in place. Jervois will offer customers a long-term supply of copper concentrate, with gold and silver credits, from a secure and stable operating environment in comparison to similar mines operating in more difficult geo-political jurisdictions.