Ann: Geophysics Survey Update, page-6

Geophysics Survey Update

Kalia Limited (“Kalia” or “the Company” is pleased to provide an update on the data collection for the geophysical analysis of the Exploration Licences 03/2017 and 04/2017 (“EL03” and “EL04” on Bougainville Island, Autonomous Region of Bougainville, Papua New Guinea.

The helicopter data collection programme was completed on 30 November 2018.

Key statistics of the data collection process: • Area of EL03 and EL04 is 1,704km2 • Height of flying was 65m above terrain • Line spacing at 200meters • 10,636.38km of data collected

Terry Larkan, Managing Director of Kalia, said “The team in Bougainville were very excited to report that, after checking the data quality from the day’s flying, the data collection was complete.

The historic value of completing this programme will not be lost on those familiar with Bougainville; it was certainly not lost on our geology team who sent the message through.

This is the first exercise of its kind to be completed in Bougainville since the 1980’s.

I must express out thanks to the landowners for allowing the project to proceed and the Department of Mineral and Energy Resources of the Autonomous Bougainville Government who worked with us and the landowners to successfully complete the programme.

Of course, the dedicated team at Thomson’s Aviation for their efforts and teamwork with our staff must also take credit for this pioneering work in Bougainville.

We are excited to see what secrets will be revealed as the data is processed by Fathom Geophysics who specialise in exploration under cover and are experienced in epithermal terranes. We expect the work to be completed in December and we will make an announcement, probably in January, after the results from Fathom have been analysed and interpreted by our geologists.

In the interim we will continue with the fieldwork at the target areas identified using the results from the previous survey that covered on 20% of the EL03 and EL04 area.”