Kula Gold : Diamond Drilling of the Crayfish Gold Prospect Complete

The company has projects within the Southern Cross WA region including Rankin Dome and Marvel Loch, as well as

only

near Kurnalpi and Brunswick. The company has a history of large gold resource discoveries with its foundation

Woodlark Island project in PNG.

Competent Person Statement

The information in this report that relates to geology and exploration is based on information compiled by Mrs.

Melanie Hickman, a Competent Person who is a member of the Australian Institute of Mining and Metallurgy and the

Australian Institute of Geoscientists. Mrs. Hickman is a Geology and Exploration Consultant who has been engaged

by Kula Gold Ltd. Mrs. Hickman has sufficient experience, which is relevant to the style of mineralisation, geology

and type of deposit under consideration and to the activity being undertaken to qualify as a competent person under

use

the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves

(the 2012 JORC Code). Mrs. Hickman consents to the inclusion in the report of the matters based on her information

in the form and context in which it appears.

Summary of Drill Holes.

Pre-collar

EOH

Hole ID

Northing

Easting

RL

Dip

Azimuth

Depth

Depth

(m)

(m)

21CYRD003

746201

6520947

387

-60

090

65.3

145.8

21CYDD001

746204

6520946

387

-60

135

54.4

141.4

21CYDD002

745994

6520154

387

-60

315

57.7

141.2

personal

Table 1.

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (eg cut

• Samples were taken in generally

channels, random chips, or specific

1m intervals from NQ2 diamond

specialised industry standard

core, cut in half along the long core

measurement tools appropriate to the

axis, from which up to 3kg was

minerals under investigation, such as

pulverized to produce 25g for aqua

down hole gamma sondes, or

regia digest and mass

handheld XRF instruments, etc). These

spectrometry finish for gold and 33

examples should not be taken as

limiting the broad meaning of sampling.

elements.

• Include reference to measures taken to

For

ensure sample are representative and

the appropriate calibration of any

measurement tools or systems used.

• Aspects of the determination of

mineralisation that are Material to the

Public Report.

• In cases where 'industry standard'

work has been done this would be

relatively simple (eg 'reverse

circulation drilling was used to obtain 1

m samples from which 3 kg was

pulverised to produce a 30 g charge for

fire assay'). In other cases more

explanation may be required, such as

where there is coarse gold that has

inherent sampling problems. Unusual

commodities or mineralisation types

(eg submarine nodules) may warrant

disclosure of detailed information.

Drilling techniques

• Drill type (eg core, reverse circulation,

• Diamond drilling was NQ2 with

open-hole hammer, rotary air blast,

nominal 50.6mm core diameter.

Criteria

JORC Code explanation

Commentary

auger, Bangka, sonic, etc) and details

o 21CYRD003 was a diamond tail

(eg core diameter, triple or standard

on RC hole 21CYRC003, pre-

tube, depth of diamond tails, face-

collared to 65.3m downhole.

sampling bit or other type, whether

o 21CYDD001 & 21CYDD002

core is oriented and if so, by what

were drilled were pre-collared

method, etc).

from surface using mud rotary

drill technique, with no sample

returned until drilling of NQ2

commenced at 54.4m and

57.7m respectively.

Drill sample recovery

• Method of recording and assessing

• The diamond drillers use a core

only

core and chip sample recoveries and

barrel and wire line unit to recover

results assessed.

the core, with the aim to recover all

• Measures taken to maximise sample

core at all times and adjust their

recovery and ensure representative

drilling methods and rates to

nature of the samples.

minimize core loss, i.e. different

• Whether a relationship exists between

use

techniques for broken ground to

sample recovery and grade and

ensure as little core as possible is

whether sample bias may have

washed away with drill cuttings.

occurred due to preferential loss/gain

of fine/coarse material.

• Kula Geologists orientated and

measured all core, recording any

intervals of core loss.

• There is no known relationship

between sample recovery and

grade.

Logging

• Whether core and chip samples have

• Geological logging is completed for

personal

been geologically and geotechnically

all core and is representative

logged to a level of detail to support

across the prospect. The lithology,

appropriate Mineral Resource

alteration, grainsize, texture,

estimation, mining studies and

colour, weathering, oxidation,

metallurgical studies.

veining, presence of any sulphides

• Whether logging is qualitative or

and structural orientation readings

quantitative in nature. Core (or

were digitally logged into excel

costean, channel, etc) photography.

• The total length and percentage of the

spreadsheets at the time of drilling.

relevant intersections logged.

• Core was not geotechnically

logged due to the early nature of e

• Logging is both qualitative and

quantitative depending on the field

being logged.

• All core was logged from the start

of the NQ2 (after pre-collar) to end

of hole.

Sub-sampling techniques and sample

• If core, whether cut or sawn and

• Diamond core was cut in half along

reparation

whether quarter, half or all core taken.

the long core axis using a Clipper

• If non-core, whether riffled, tube

For

CM42 Brick Saw with NQ2 core

sampled, rotary split, etc and whether

carrier.

sampled wet or dry.

• The core was consistently cut 10-

• For all sample types, the nature,

15⁰ clockwise from the orientation

quality and appropriateness of the

line, with the same "side" of the

sample preparation technique.

core consistently sampled.

• Quality control procedures adopted for

all sub-sampling stages to maximise

• The entirety of the core was

representivity of samples.

sampled generally on 1m intervals,

• Measures taken to ensure that the

however sample intervals were

sampling is representative of the in situ

adapted to respect the logged

material collected, including for

lithology, alteration and structures

instance results for field

of interest.

duplicate/second-half sampling.

• Duplicate samples were taken from

• Whether sample sizes are appropriate

zones of interest, and standards

to the grain size of the material being

inserted where the competent

sampled.

person felt appropriate. 275

samples in total were taken,

including 5 duplicates and 5

standards.