Cazaly at Goongarrie, A 1.3km Gold Trend Emerges

Gunggar Gold Project – 2025 Results & 2026 Plans

Key Concepts:

• Farm-in Agreement: A staged earning agreement where one company (Kazali in this case) funds exploration to earn an increasing percentage of ownership in a project.
• Mensy Shear: A major geological structure within the region, considered highly prospective for gold mineralization.
• RC Drilling (Reverse Circulation): A drilling technique used to obtain rock samples for analysis.
• Air Core Drilling: A faster and cheaper drilling method used for initial exploration, providing shallower samples.
• Anomalous Mineralization: The presence of mineralization above background levels, indicating potential for a larger deposit.
• Strike Length: The length of a geological feature (like a shear zone) measured along its trend.
• Plunge Direction: The angle at which a mineralized zone dips or slopes downwards.
• Geophysics: Using physical properties of the earth to investigate subsurface structures.
• De-risking: Reducing the uncertainty and risk associated with an exploration project.

1. Project Acquisition & Initial Progress

Kazali exercised its option to earn into the Bright Stars Green Gary goal project (Gunggar Gold Project) in March 2025, initiating a staged earning agreement. This agreement involves a $3 million expenditure to earn up to 80% of the Gunggar project. The first stage of this farm-in agreement has been successfully met, marking a significant milestone. The company emphasizes a methodical and systematic approach to exploring the project. The region is known to host multi-million ounce gold deposits, including Paddington and Aphrodite, suggesting significant potential.

2. 2025 Exploration Campaign – Key Results

The 2025 campaign focused on extending mineralization from the Duke of York historical workings. The approach employed was a staged exploration strategy, considered a good de-risking method for exploration projects. Initial RC drilling at Duke of York yielded encouraging results, including intersections of 6m at 10.3 g/t gold and 10m at 5.7 g/t gold. A subsequent step-out drilling program, approximately 350m south of Duke of York, identified anomalous gold mineralization at the Duchess prospect, returning 19m at 1.12 g/t gold, with a higher-grade interval of 4m at 4.7 g/t gold.

Further air core drilling along the Mensy Shear revealed anomalous gold mineralization along a significant trend, demonstrating the shear’s potential. This is considered a crucial technical step, enhancing understanding of the structural controls on mineralization.

3. Geological Context & Scale of the Project

The Gunggar project is situated within a well-mineralized district, specifically along 20 km of strike length of the Mensy Shear. The company believes they are “just scratching the surface” of the project’s potential. The Mensy Shear and associated structural complexities are considered key targets for mineralization. The presence of regional gold deposits like Paddington and Aphrodite supports the prospectivity of the area.

4. 2026 Exploration Plans & Objectives

The 2026 exploration program will be highly active, focusing on:

• Deeper Drilling: Expanding drilling at depth around Duchess and Duke of York to assess the potential for the mineralized system to grow.
• Plunge Direction Determination: Conducting more drilling to better understand the plunge direction of mineralization, which will refine future drilling targets.
• Hastings Prospect: Testing the Hastings prospect, which previously returned 38m at 3.1 g/t gold.
• Sir Lawrence Prospect: Re-logging historical data and conducting geophysical surveys at the Sir Lawrence prospect to advance understanding of the area.
• Expanding Exploration: Testing other highly anomalous prospects along the 20 km Mensy Shear trend.

5. Technical Approach & Understanding Mineralization

The company emphasizes the importance of understanding the structural controls on mineralization, particularly the interplay between the Mensy Shear and later-stage cross structures. Air core drilling results have provided valuable data in this regard, helping to build a geological model. The focus is on identifying zones of structural complexity where mineralization is likely to be concentrated.

6. Notable Statements

“It does feel like we’re just scratching the surface here.” – This statement highlights the company’s belief in the significant untapped potential of the Gunggar project.

“Our initial RC campaign tested the historical workings at Juke of York uh and we did have success there.” – Demonstrates the initial positive results that spurred further exploration.

7. Data & Statistics

• Farm-in Expenditure: $3 million to earn up to 80% of the Gunggar project.
• Duke of York Intersections: 6m at 10.3 g/t gold, 10m at 5.7 g/t gold.
• Duchess Prospect Intersection: 19m at 1.12 g/t gold (including 4m at 4.7 g/t gold).
• Hastings Prospect Intersection: 38m at 3.1 g/t gold.
• Mensy Shear Strike Length: 20 km.
• Mineralization Extension: Mineralization extended from Duke of York for over 1,300m.

Conclusion:

The 2025 exploration campaign at the Gunggar Gold Project has delivered encouraging results, successfully extending mineralization and providing valuable geological data. The company is well-positioned for an active 2026 program focused on deeper drilling, structural analysis, and expanding exploration across the 20 km Mensy Shear trend. The staged farm-in agreement and methodical exploration approach are designed to de-risk the project and unlock its significant gold potential. Kazali is committed to keeping shareholders informed as they continue to build the story of the Gunggar project.