Kaiser Reef : Ongoing High Grade Gold Results

For personal use only

ASX RELEASE

9 February 2022

Further Outstanding Drill Intercepts at Maldon of up to

0.65m at 37.6 g/t gold

Diamond drilling at the Maldon Goldfield reveals further gold mineralisation

• Supporting Exploration Results from the 100% owned Maldon Goldfield (past production exceeding 1.74M Oz @ 28 g/t gold)
• Diamond Drilling at the Nuggetty Reef Historic Gold Mine within Maldon (past production of 301,000 Oz @ 187 g/t) complete and awaiting assay results
• Significant results include:

• 1. UH-UDH-029:0.65m at 37.6 g/t gold o UH-UDH-027: 6.5m @ 6.2 g/t gold o UH-UDH-013: 0.66m @ 20.6 g/t gold o UH-UDH-022: 0.47m @ 12.8 g/t gold
• Exploration is targeting the near access to the Eaglehawk Reef within Maldon (past production from the Eaglehawk Reef is 491,400 Oz gold)
• Deeper step out drilling commencing shortly
• Drilling ongoing

Kaiser Reef Limited (ASX: KAU) ("Kaiser", the "Company") is pleased to announce further 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 high grade underground mines. Drilling is being conducted from the modern established decline under the goldfield.

The results were returned from underground diamond drilling at the high-grade Maldon gold mine, revealing further intervals of gold mineralisation which are characteristic of previously mined areas at Maldon. Most of the drill holes have intercepted the Eaglehawk target reef at its projected location. The drilling results are included in Table 1. This is encouraging ongoing exploration in the Company's first drilling campaign at Maldon.

For personal use only

Maldon is one of the premier goldfields and has enjoyed surprisingly limited modern exploration. The significant amount of gold historically exploited (1.74Moz @ 28g/t gold), mostly within 300 metres of the surface, offers further opportunity at depth, which is supported by limited, yet encouraging previous exploration.

The diamond drilling rig is currently located opposite Stockpile 13 (SP13) with drilling also conducted in the 1010 Access, Stockpile 14 (SP14) and the 1080 Access areas of the Union Hill Mine (Figure 1). The 1060 Access represents the deepest level within modern day development. Other drilling areas have provided the advantageous access points to intersecting the Eaglehawk Reef. Further encouraging results have been returned including UH-UDH-027: 6.5m @ 6.2 g/t gold (Figure 2).

Figure 1: Long section of Maldon goldfield showing the 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.

For personal use only

Figure 2: Cross section showing drill holes UH-UDH 027 and 028.

The initial drilling target is near the Alliance South Shoot deposit. The Alliance South Shoot deposit is defined by the north-south striking Eaglehawk Reef, at the southern termination of the Central Maldon Shear zone. The Alliance South Shoot 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 further north from the Alliance group of shafts. Higher grades are associated with the Western Reef, including occasional widths historically reportedly exceeding 5m.

The Alliance South Shoot 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 targeting down-dip mineralisation in addition to following up on regions that returned historic high-grade intersections such as DDH104 (2.8m @ 14.87 g/t Au).

For personal use only

The Alliance South Shoot 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 has experienced limited historical mining.

The Maldon Goldfield

The town of Maldon is located between Bendigo and Ballarat in the Victorian Goldfields. The Maldon Project (Maldon) is within a 100%-owned licence area that has produced over 1.74M ounces of gold at 28 g/t (2.1M ounces including alluvial gold). Maldon hosts one of Australia's highest grade historic gold mines, the Nuggety Reef, that produced 301,000 ounces of gold at 187 g/t.

Maldon has an established and serviced decline which allows excellent underground access for drilling high-grade shoots and is currently facilitating the underground drilling and ultimately, could allow recommencement of modern mining if exploration is successful.

The Maldon goldfield is located in the Bendigo Zone and is hosted in similar geology and has undergone the same broad structural deformation and mineralisation events as regional Bendigo. Large deposits within the Bendigo area currently being exploited include the Fosterville Mine operated by Kirkland Lake Gold (Canada). The regional-scale mineralisation event is also the driver of goldfields at Bendigo, Fosterville, Castlemaine, Maldon and Daylesford.

One of the Maldon's key advantages is the extensive existing infrastructure and proximity to Kaiser's operating gold processing plant (3 km away) and that it is held under a granted Mining Licence. If exploration proves successful, rapid and low- cost development could be implemented utilising Kaiser's mining fleet and experienced mining team for minimal capital cost.

The drilling programme is intended to continue for a prolonged period, with an initial programme including over 30 drillholes from underground. The programme may be extended based on results. Drilling results will be released in batches once assay results are received.

Kaiser considers Maldon to be an underexplored and prospective prolific high grade historic goldfield. Exploration at Maldon remains a high priority objective for Kaiser.

Drilling has initially targeted the projected extensions to historic high-grade mineralisation at the Alliance South Shoot lode within the Eaglehawk Reef, one of Maldon's largest high-grade lodes that produced nearly 500,000 ounces of gold (Figure 3). The initial drilling program targeted regions identified as being close to the existing underground development and with historical encouraging results

For personal use only

within the Union Hill decline. This drilling will initially test identified mineralised areas and step out to explore for and define economic ore zones.

Some of the historic high-grade gold drilling results from across Maldon that require follow up include:

1. 0.90m @ 103.0 g/t gold o 2.73m @ 42.2 g/t gold o 2.75m @ 22.6 g/t gold o 0.44m @ 205.0 g/t gold o 2.00m @ 58.0 g/t gold o 2.30m @ 12.5 g/t gold o 0.83m @ 80.0 g/t gold o 1.0m @ 45.5 g/t gold o 3.55m @ 11.9 g/t gold o 2.95m @ 18.5 g/t gold o 0.85m @ 114.6 g/t gold

Figure 3: Long section of Maldon goldfield showing the potential reef extensions and historic workings.