Kaiser Reef : Maldon goldfield-Exploration Results

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ASX RELEASE

15 November 2021

Early Success - Maldon Goldfield

• High Grade First Exploration Results from the 100% owned Maldon Goldfield (past production exceeding 1.74M Oz @ 28 g/t gold)
• Second Diamond Drill Rig booked to target the Nuggetty Reef Historic Gold Mine within Maldon (past production of 301,000 Oz @ 187 g/t)
• Significant Preliminary results include:

• 1. UH-UDH-001:0.3m at 54.5 g/t gold within 1.2m @ 14.1 g/t gold o UH-UDH-005: 0.65m @ 33.4 g/t gold
     o UH-UDH-006: 0.8m @ 63.6 g/t gold within 1.8m @ 29.6 g/t gold
     o UH-UDH-018: 0.8m @ 12.1 g/t gold and 0.3m @ 11.7 g/t gold
     o UH-UDH-021: 1.5m @ 6.5 g/t gold
• Exploration initially targeting the Eaglehawk Reef within Maldon at depth (past production from the Eaglehawk Reef is 491,400 Oz gold)
• Decline power and ventilation - the decline was subject to minor upgrades such as the electrical distribution to support the underground activities
• Drilling ongoing

Kaiser Reef Limited (ASX:KAU) ("Kaiser", or the "Company") is extremely pleased to announce the first exploration results for the high-grade Maldon historic gold mine located between Bendigo and Ballarat. The Maldon Goldfield is 100% owned by Kaiser and is comprised of several historic underground mines. After some minor refurbishment work a modern established decline under the goldfield is being used by Kaiser to support this drilling activity.

The results were returned from underground diamond drilling at the high-grade Maldon gold mine with a powerful LM90 Boart Longyear diamond drilling rig (Figure 1). The drilling rig is operating well from underground at the Union Hill decline. The results returned some excellent high-grade intervals (Figure 2) which are characteristic of previously mined areas at Maldon. In the context of the "contained metal" we are pleased to report that 5 of the 11 drillholes returned an exceptionally high average "gram x metre" interval of 20.5 g/t gold. Most of the

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drill holes intercepted the Eaglehawk target reef at its projected location. The drilling results are included in Table 1.

Managing Director, Jonathan Downes stated that "We are delighted that we are finding high grade gold in our first trial drilling campaign. Maldon is one of the great goldfields and it has received extraordinarily limited modern exploration. The significant amount of gold historically won (1.74Moz @ 28g/t gold), mostly within 300 metres of the surface, offers fabulous opportunity at depth. We are just warming up in exploring this wholly owned, high grade multimillion ounce goldfield. We have a talented geological team and the ongoing drilling programme will be increasingly stepped out, expanded and exploration for new lodes at depth will be targeted."

The diamond drilling rig is currently located in the "1060 Access" area of the Union Hill decline which represents the deepest level within modern day development.

The initial drilling target is near the Alliance South deposit - see Figure 3,4 & 5. The Alliance South deposit is defined by the north-south striking Eaglehawk Reef, at the southern termination of the Central Maldon Shear zone. The Alliance South deposit comprises a fault bound shallow dipping western and steep dipping eastern reef which make up the overall Eaglehawk Reef structure which was mined extensively from the Alliance group of shafts. Higher grades are associated with the Western Reef with occasional widths historically reportedly exceeding 5m.

The Alliance South lode is located on a nexus of the structural zone where the Eaglehawk Reef passes from the east limb of the German Anticline into the hinge zone of the German Syncline. The up-dip projection of the Eaglehawk Reef was stoped to the south on the 1080 and 1060 Levels. The planned drilling is poised to delineate a down-dip resource in addition to following up on regions that returned historic high-grade intersections such as DDH104 (2.8m @ 14.87 g/t Au).

The Alliance South lode within the Eaglehawk Reef represents a structural domain south of a major fault known as the Moons Cross Course and north of the Nankivell Cross Course. This structural domain had limited historical mining due to these major discontinuities inhibiting underground development for risk of flood inundation and related geotechnical conditions that were beyond historic engineering capabilities.

Kaiser owns a small-scale Kempe Diamond drilling rig which was initially utilised to commence early drilling, before the arrival of the larger LM90 from Kaiser's A1 where it had been drilling for over 9 months. Production and effectiveness of the Kempe rig was substantially below expectations and some of the deeper targets were not tested and it was retired as soon as the more powerful diamond drilling rig arrived on site. Nevertheless, the Kempe drilling rig did intercept mineralisation at the targeted locations and the results are detailed in Figure 6 and Table 2.

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Figure 1: Underground LM90 diamond drilling rig at Maldon

Figure 2: Eaglehawk reef showing typical mineralised quartz/sulphide lodes, UH-UDH-006: 59.73m to 61.5m for 1.77m @ 29.6

g/t gold

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Figure 3: Long section of Maldon goldfield showing the two drilling areas as reported

• The historic production from Maldon, as reported in the Kaiser prospectus dated 7 December 2020. Alluvial gold
  production has been excluded.

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Figure 4: Plan view showing the two drilling areas

Figure 5: Drill hole section showing UH-UDH-005 and 006