King River Resources Ltd T.KRR.W

A Growing HGO Project Pipeline and Exploration.

[pierreg]

A Growing HGO Project Pipeline and Exploration. KRR MD&A, Aug. 10th '20

« During the second quarter, resource, infill and extensional drilling at the current Baloo and Fairplay North open pit operations continued to support ongoing mining activities of both pits. Grade control drilling has also commenced at the Hidden Secret open pit, to be closely followed at Mousehollow. Mining of these pits is expected to commence in the third quarter of 2020 with all necessary approvals now in place. Both pits are within 10 kilometres of the HGO treatment plant. Resource definition drilling at the Pioneer deposit continues with the aim of advancing the project to mine-ready as part of Higginsville pipeline of open pit projects. The HGO production pipeline strategy is to attempt to maintain a minimum of two open pits operating in tandem at any time, to ensure flexibility with ore production and fully optimise the feed blend into the HGO plant. The Eundynie area which surrounds the Hidden Secret and Mousehollow pits has been identified as having significant exploration potential with particular interest around the old historic Eundynie mining centre located only 500 metres north of the planned pits. Last known mining at Eundynie occurred in 1915 with records showing multiple historic shafts, some extending to depths of up to 120 metres and grades as high as 210 g/t over approximately 0.9 metres. The Exploration potential below these workings is yet to be tested and could provide an opportunity for additional high grade mineralization. Drilling is planned for later in the year. Following the renegotiation of the Morgan Stanley royalty announced on December 19, 2019, Karora has implemented an aggressive exploration program at Higginsville. Given the number of exploration targets now available within the HGO tenements, work is underway to ensure target definition is focused on initially extending the Life-of-Mine (“LOM”) production mining centres and major greenfield exploration targets. »