Production Increasing and High Grade Lodes

Figure 1: Kaiser employees charging the first production hole of the Queens Lode ore body, with firing recently completed.

Kaiser's Managing Director, Jonathan Downes, said: "We are very pleased to commence commercial mining at the Queens Lode- a lot of exploration and development work was required to get to this point and it is a testament to the determination of the team. In addition, achieving a 20 g/t gold head grade delivered to the mill is a great outcome. As we reach lower levels in this mine, we can expect to see increasing amounts of this high-grade material which is also very exciting."

Commercial mining of the Queens Lode is now being conducted from the 1260mRL and the decline has been extended to the 1250mRL. The Queens Lode is expected to deliver a substantial increase in mined tonnes but at a lower head grade.

Kaiser is also pleased to report the increased production from high grade lodes at the 1280mRL and these are delivering a strong increase in head grades. These areas have only become accessible to Kaiser through the extension of the decline which commenced in mid-2021. This is reflected in production from the 4 weeks up to 13 February, where the gold feed grade at the plant was estimated at 20.0 g/t gold with an estimated 98% gold recovery, after milling and processing.

Encountering previously unmined lodes is a pleasing trend which the Company believes will continue as the operations approach a depth in the mine that has seen progressively less historic mining. Ultimately, an increase in grade is anticipated when the historic mining limit is reached, bearing in mind that the historic recovered grade of approximately 26 g/t gold (Figure 2).

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