QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2022

New team to undertake strategic technical review and prioritise key assets

Highlights

  • • Cash position at the end of March of $7.5M.

  • • Experienced executives Mr Phil Coulson and Mr Zane Lewis appointed to board

  • • Company undertaking a thorough strategic and technical review of all lithium and gold projects

  • • Executive search underway for CEO/Managing Director

  • • New gold target identified at Mt York with anomalous rock chip samples up to 4.6g/t

  • • Lithium targets identified at Lalla Rookh Project

  • • Large surface lithium and caesium anomaly defined at Roe Hills Project

  • • Large number of assays in laboratory - results expected Q2:

    • • Mt York (RC): over 4,000 single-metre samples and over 400 four-metre composite samples

    • • Mt York (Aircore): over 400 four-metre composite samples

    • • Kangan (Aircore): over 500 four-metre composite samples

    • • Kangan (Aircore): over 80 single-metre samples

    • • Croydon (Soil samples): over 300 samples

    • • Roe Hills (Soil samples): over 3,000 samples

CORPORATE

During the quarter, Mr Terry Topping and Mr Bruno Seneque tendered their resignations as directors. As a result of these resignations, the 249D notices received by the Company referred to in the ASX announcement on 8 March 2022 were withdrawn and Messrs Phil Coulson and Zane Lewis have been appointed as Directors effective 24 March 2022.

Upon appointment, Messrs Coulson and Lewis have initiated a strategic and technical review of the Company's gold and lithium projects with a view to optimising exploration expenditure to match strategic objectives and exploring all opportunities to enhance shareholder value.

CASH ON HAND

At the end of the March 2022 quarter, the Company had cash and cash equivalents of $7.52million. In addition the company holds $432K of investments in ASX listed entities.

During the March 2022 quarter, there was a net increase in cash and cash equivalents of $2,449K as a result of 157,185,104 shortfall shares being issued to clients of CPS Capital in accordance with the Underwriting Agreement to raise $3.9 million before costs. Transaction costs of $357K relating to the issue of the shortfall shares was paid in the quarter.

Expenditure of $1,486k related to payments for exploration activities conducted on the Company's Pilbara and Eastern Kalgoorlie (Roe Hills) exploration projects as detailed in the activities report below.

Administration costs increased for the quarter due to the termination payments for Messrs Topping and Seneque, legal fees and other operating activities.

The Company is reviewing all corporate expenditure with a view to minimising overheads where applicable.

EXPLORATION

PILBARA GOLD PROJECT, PILBARA REGION (KAIROS: 100%)

Figure 1. Pilbara Gold and Lithium Projects, regional geology.

MOUNT YORK PROJECT (KAIROS 100%)

RC Drilling Program - Mt York Project

During the quarter the Company received assay results from five more RC drill holes completed at the Mt York Project. KMYC183 returned exceptional assay results and extended a historical, thick intercept of 117.4m @ 1.97g/t Au some 50m down-dip (see Figure 2 for a cross-section). The results are from four-metre composite samples, with one sample returning 4m @ 6.16g/t Au from 108m.

Drill hole KMYC187 returned a significant result of 28m @ 0.85g/t Au from 76m in "the Gap" area west of the historical Breccia Hill pit, where minimal historical drilling has been conducted. This result included a zone of 4m @ 2.22g/t Au from 100m.

Significant four-metre composite samples' results from the last assays received are reported below:

  • • 80m @ 0.93g/t Au from 108m in KMYC183, including:

    • o 12m @ 2.73g/t Au from 108m and 4m @ 6.16g/t Au from 108m, including:

    • o 4m @ 2.37g/t Au from 172m, and

    • o 4m @ 2.12g/t Au from 184, and

    • o 4m @ 0.98g/t Au from 184m.

  • • 4m @ 0.68g/t Au from 84m in KMYC184, and

    • o 4m @ 0.56g/t Au from 116m, and

    • o 4m @ 0.73g/t Au from 132m, and

    • o 8m @ 2.06g/t Au from 172m, including

    • o 4m @ 3.37g/t Au from 172m.

  • • 56m @ 0.99g/t Au from 96m in KMYC186, including

    • o 4m @ 3.38g/t Au from 108m, and

    • o 4m @ 2.61g/t Au from 148m.

  • • 28m @ 0.85g/t Au from 76m in KMYC187, including:

    • o 4m @ 2.22g.t Au from 100m.

  • • 8m @ 1.31g/t Au from 96m in KMYC188, and

    • o 8m @ 0.53g/t Au from 128m

The single-metre resplit samples have been collected where the four-metre composite sample was anomalous. All samples were submitted to Intertek Laboratories in Perth for gold and multi-element analysis.

Assay results remain pending for 23 drill holes including over 4,000 single-metre samples and over 400 four-metre composite samples from recent RC and Aircore drilling conducted in October/November 2021. Assay results are expected in the June quarter.

Figure 2. Schematic cross-section with the recent assay results from hole KMYC183

Steamboat Prospect

The first-stage geochemistry sampling program conducted by Kairos geologists and contractors identified a new target area, located approximately 500m south-east of the Old Faithful deposit, with anomalous rock chip samples of up to 1.1g/t Au coincident with an arsenic-in-soils anomaly trend (see ASX release, 24 September 2021). The anomalous gold results were returned from brecciated cherts and BIFs.

The Company followed up on the initial results with a drone survey, rock chip sampling and a heritage survey. Kairos has received initial results from the second-stage rock chip sampling program, with assays of up to 4.6g/t Au confirming and extending the target area at surface. The high-resolution drone survey assisted the field mapping

(Figure 3), and a digital terrane modelling (DTM) was generated . Critical geological features were observed from the drone survey and will assist with further mapping and drill-hole planning.

A heritage survey was conducted over the target area late last year in order to obtain access clearances for drilling.

Figure 3: Steamboat prospect drone survey image and rock chip sample location.

Figure 4: Pilbara Gold Project Location and Mineral Resources.

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Kairos Minerals Ltd. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 01:49:07 UTC.