Kingston Resources Limited - $8.4 Million Equity Raising

About this update from Kingston Resources Ltd.

Kingston Resources Limited (ASX: KSN) ('Kingston' or 'The Company') has received firm commitments under a Placement Offer to raise $6.4 million (before costs) by issuing 85.33 million shares ('New Shares') (the 'Placement') at $0.075 per New Share. Kingston will also be conducting a Share Purchase Plan ('SPP') to raise $2.0 million , also at $0.075 per share. Delphi Unternehmensberatung Akteingesellschaft ('Delphi'), who own 15% of the Company, will fully underwrite the $2.0 million SPP. Highlights $8.4 million Equity Raising: Comprising of a Placement of $6.4 million and an SPP to raise $2.0 million . Strong support from existing major shareholders. SPP fully underwritten: the SPP is fully underwritten by Delphi, an existing major shareholder and sophisticated investor. Accelerating Growth: Funds will be used to accelerate surface exploration, drill underground resource extension targets and expand resources for production growth at Mineral Hill. Building value on multiple fronts: o Free cash flow from the Pearse open pits to fund growth capital projects as part of the recently announced 6-year mine life at Mineral Hill. o Value realisation from the Company's 100% owned Misima Gold Project in PNG via the recently initiated Strategic Process1. o Near-mine and regional exploration at Mineral Hill. o Mineral Hill processing plant has approvals in place to operate at 700ktpa, providing optionality to expand from the existing 350-400ktpa. The SPP will be undertaken in accordance with ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547. The Company expects that the issue of the shares under the SPP (other than the shares issued to the Underwriter, which will utilise the Company's placement capacity under Listing Rules 7.1 and 7.1A), will fall within Listing Rule 7.2 Exception 5 or, in respect of director participation in the offer, Listing Rule 10.12, Exception 4. Shareholders who have registered address in Australia , New Zealand or in limited circumstances, Germany as at 5:00pm (AEDT) on 6 December 2024 (Record Date) will be eligible to participate in the SPP. Kingston Resources Managing Director & CEO, Andrew Corbett , comments: '2024 has been a transformative year for Kingston. We have successfully completed the Mineral Hill tailings retreatment, finalised the refurbishment of the Mineral Hill polymetallic processing plant and commenced open pit mining at Mineral Hill. We are very excited for the year ahead in the Cobar Basin , with expected free cash flow from mining the Pearse open pits as we transition to long-term mining of the high-grade polymetallic underground resources. The recently commenced strategic process on the Misima asset has the potential to both unlock shareholder value and materially strengthen the Company's balance sheet. We are delighted with the broad investor interest in this raising. Our ownership of quality processing infrastructure sets Kingston apart, especially given the regulatory hurdles and capital cost risks associated with permitting and building new mineral processing plants. Kington has the option to increase Mineral Hill processing capacity from 350-400ktpa to 700ktpa under current approvals. New funds from this equity raising will allow Kingston to accelerate exploration drilling at both underground and regional targets. We are working to build our mineral inventory through successful drilling on our under-explored ground - a crucial step in our plan to double production at Mineral Hill. Contact: Tel: +61 2 8021 7492 Email: [email protected] (C) 2024 Electronic News Publishing, source ENP Newswire

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