Mineral Hill Operational Update and Capital Raising

• Pearse South open pit suspended due to geotechnical incident
• Strategic pivot to underground exploration and development
• Capital raising of $11.6 million planned to support new strategy
• Significant staff reductions and cash flow impact noted
• Kingston remains committed to Mineral Hill's long-term value

Kingston Resources Limited (ASX: KSN) has announced a suspension of mining activities at the Pearse South open pit due to a geotechnical incident, marking the second such incident in the pit. The Pearse South pit was set to be mined for another four months, but the instability caused by a soft graphitic shale and exacerbated by rainfall has rendered the access ramp unsafe. As a result, the company has decided to pause underground development and delay the commencement of underground production in favor of an intensive resource and near-mine exploration drilling program. The company plans to undertake a 25,000m drilling program to unlock the maximum value from its existing infrastructure and strategic location. The capital raising, comprising a $2.55 million placement and a $9.1 million entitlement offer, will support the new strategy. The company expects significant staff reductions and a cash flow impact due to the closure of the Pearse South pit.

Revenue reduction of approximately $39 million through June to September period

Kingston is committed to realizing the full potential of Mineral Hill through an extensive exploration program and strategic pivot to underground development.