SPMC.V · 2022-03-10 12:00:00

Kainantu Resources Completes Successful Airborne Geophysical Survey; Updates ON Krl North

Exploration Programs

KAINANTU RESOURCES COMPLETES

SUCCESSFUL AIRBORNE GEOPHYSICAL

SURVEY; UPDATES ON KRL NORTH

VANCOUVER, BC

March 10, 2022

/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) ("KRL" or the

"Company"), the

Asia-Pacific

focused gold mining company, has completed an airborne geophysical

survey over both its KRL North and KRL South projects.

Data is currently being analysed. Assuming a positive assessment and in combination with mapping

and geochemical sampling, this work is a key milestone step for the Company; and supports the

objective of accelerating activities towards a drilling program.

Whilst being independently reviewed for KRL, mobilisation of the airborne program was successfully

undertaken in co-ordination with other successful operators in the Kainantu region,

Papua New

Guinea

("PNG").

Highlights

Increased confidence of the extension of high-grade mineralization extending from Bilimoia

Mineral Field (K92 area) into KRL North;

Increased likelihood of buried porphyry system at depth at KRL North, likely to be associated

with a ring feature located on the southern border with K92;

Interpreted related style Au-base metal veins systems located in the central part of KRL

North/EL 2558, associated with a relatively high density of cross-cutting lineaments and mapped

structures;

Airborne geophysical survey conducted at both KRL North and KRL South, in co-ordination with

Kainantu district miners:

Accelerates moves to delineate drilling targets in highly cost effective manner;

Focuses on delineating the possible extension of mineralization from K92's project into KRL

North, especially in relation to the Arakompa/Maniape veins along elements of the Kainantu

Transfer Structure;

Final analysis pending, but delivers encouraging indications; especially when overlain with

other recent published regional survey results – see Figure 2; and

Work programme to intensify activities at KRL North during 2022.

Matthew Salthouse

, CEO of KRL, commented:

"This is the first time in over 10 years that an airborne geophysical survey has been done in

Kainantu gold belt. While our teams are assessing the data, preliminary trends look positive and

support a view that KRL North is highly prospective, especially given its location adjacent to other

successful miners, some of which has notably expanded resources and signified gold and

resource extensions near KRL properties.

In addition to the cost savings from regional cooperation on the geophysics program, completing

this work means KRL will be in a strong position to accelerate moves towards drilling at both KRL

North and KRL South."

Background

KRL holds two highly prospective projects in the Kainantu region of PNG:

KRL North (88.65 km

in size comprising EL 2558 and EL 2655 and adjacent to K92 Mining's

tenements); and

KRL South (596.75 km

in size comprising EL 2559, EL 2650, EL 2652 and EL 2660 and

approximately 25 km SW of K92 mine, with the Company actively focusing exploration efforts on

two prospects: East Avaninofi and Yaoro Ridge in the Tirokave area amongst others).

Both projects are located along the world renowned Kainantu Transfer Structure, associated with

highly successful precious metal mining across the district.

At KRL North, historic aeromagnetic data sourced from the PNG Mineral Resource Authority library

has indicated proximity and structural similarities between this project and Bilimoia Mineral Field

hosting the K92 mine.

Within 2 to 4 km SE of KRL North and on strike and along trend, two identified significant mineralised

vein systems (Maniape and Arakompa) have been observed, with a conceptual mineralising porphyry

source underlying the ground between Arakompa and the SW corner of KRL North (see Figure 1).

While non-JORC compliant (or subject to an NI 43-101 technical report), historic data from drilling by

a former miner in the 1980s and 1990s reported to indicate a resource of 560,000 oz Au at 2.2 g/t

at Maniape; and 798,000 oz Au at 9.0 g/t at Arakompa.

Figure 1: Location of KRL North Relative to Known and Conceptual Mineralisation

Figure 1: Location of KRL North Relative to Known and Conceptual Mineralisation (CNW

Group/Kainantu Resources Ltd.)

In 2021, the Company conducted a mapping and sampling programme to identify further porphyry

related alteration and mineralisation targets within KRL North, as potential extensions of Maniape

and Arakompa.

Amongst other objectives, this programme was intended to assess whether the enhanced structural

permeability extends to KRL North from the adjacent rich Bilimoia Mineral Field (where K92

operates). Assuming positive outcomes, KRL would then be justified to conduct further

investigations (including an airborne geophysics program).

In this regard, results have been extremely encouraging and do support a decision to undertake

further studies.

Outcomes at KRL North in 2021

As noted above and during 2021, KRL completed a comprehensive stream sediment and soil

sampling programme covering the eastern, central, and western stream systems forming the major

drainage pattern within EL 2558/KRL North.

Mapping and sampling was concentrated within the southern half of KRL North, where several

altered and intrusive bodies were observed and interpreted as associated with the Elandora

Porphyry.

For initial coverage, a total of 741 samples were collected (including 246 rock outcrop and float chip,

33 stream sediment, 14 pan concentrate and 448 soil samples) – see Attachment 1 below for

details. Results returned a number of high Au spot values in correlation with anomalous pathfinder

elements; in particular clustered within the central south of EL 2558. In summary, analysis

uncovered an Pb-Zn-Te signature towards the north; and a Mo-Bi-Sb-As signature towards the

south: see Attachment 1 for further particulars.

Combined with lineament analysis, sampling also indicated the presence of both Au base metal veins

and potential porphyry style mineralisation at depth, associated with a ring feature of approximately

1.5km in diameter located on southern boundary of KRL North (see Figure 2 and further discussion

below).

The ring feature may indicate a buried and/or recently emergent intrusive complex which tends to

dome the surrounding host rocks. In this regard, it is also noted the ring feature lies close to where

an underlying potential mineralised porphyry source has previously been hypothesized by earlier

explorers.

Further ring features were also verified from dykes mapped and geochemical analysis undertaken to

the N and W of EL 2558/KRL North; with doming in some areas interpreted as due to the intrusion of

Elandora Porphyry and Akuna Igneous Complex rocks

Overall, the 2021 field work and analysis confirms the Company's view as to the prospective nature

of KRL North the project and the likely extension of high-grade mineralisation from the adjacent K92

project in the Bilimoia Mineral Field.

Figure 2: KRL North: Structural Features; Published Regional Airborne Geophysical Survey

Mapping – Apparent Conductivity

Figure 2: KRL North: Structural Features; Published Regional Airborne Geophysical Survey Mapping

– Apparent Conductivity (CNW Group/Kainantu Resources Ltd.)

2022 Field Studies

During H1 2022, KRL will undertake further soil sampling and mapping adjacent to the ring feature

identified at KRL North (combined with more refined lineament analysis to incorporate SE aspects of

the project in EL 2655).

Airborne Geophysical Survey

Encouraging sampling results and analysis has confirmed the Company's views on the prospective

nature of KRL North, justifying an immediate airborne geophysical survey of the area. In

combination with ongoing mapping and sampling, such a survey will enable to Company to

accelerate steps to delineate exploration and drilling targets.

In this regard, KRL co-operated with other miners in the Kainantu region in Q4 2021/Q1 2022 to

share resources to mobilise for airborne geophysical surveys over respective projects. While data

collected was not pooled and will be independently assessed by each company (including KRL), the

co-operation arrangements enabled KRL to complete a survey of both KRL North and KRL South in

January 2022.

Airborne survey data was collected under contract for KRL by the Canadian firm, Expert Geophysics

(who operate the Mobile Magneto Tellurics, or Mobile MT system and have successfully used the

technology internationally).

The airborne geophysics programme was flown over all of KRL North; and in addition to key areas

of interest in and around the Tirokave area of KRL South (including the East Avaninofi and Yaoro

Ridge prospects). The total area covered was 186 km

(involving 1,000 line-kilometres of survey).

At KRL North, the area covered was contiguous with the adjacent K92 project, which has also

published positive results from their recent geophysical survey. In this regard, please refer to Figure

2 (above), which overlays recently published airborne survey analysis against KRL's regional

lineament map inclusive of KRL North.

This clearly demonstrates the likely strong NE trending conductivity towards KRL North, possibly

indicating underlaying sulphide-rich ore bodies. While work in progress, KRL expects the Company's

own survey analysis will further demonstrate such conductivity.

KRL is analysing the data received and expects to complete a final report during April, inclusive of

recommendations for areas of further work leading towards defining drilling targets amongst other

positive outcomes. While awaiting further feedback, preliminary analysis is encouraging and

continues to support KRL's view as the prospective nature of both KRL North and KRL South.

Completing the geophysics survey is a highly satisfactory outcome for KRL. It has enabled the

collection of data at a fraction of the cost of mobilising as a single company entity; potentially also

reducing the lead time to commence drilling by up to 18 months.

Next steps

KRL will continue field programmes at both KRL North and KRL South to define drilling targets.

Further updates will be provided in due course, including the outcome of final analysis from the aerial

geophysical survey.

Stock Options

The Company also announces the grant of 770,000 stock options that are exercisable for a period of

five years at a price of

C$0.19

per share to various directors and officers. The options will be

subject to vesting over two years and certain hurdle price conditions. The granting of stock options is

part of KRL's strategy to attract and retain talent, as well as motivating its team to work towards

ensuring the success and value creation at KRL.

Attachment 1:

EL 2558 - Elevated Au-in-soil and Associated Pathfinders

Au (ppb)

0.2

1.5

0.8

207

0.9

0.4

0.1

2.7

0.2

1.4

0.3

106

5.4

1.1

0.1

1.1

0.3

0.6

0.3

0.2

0.6

0.2

112

0.3

366

0.4

0.3

0.2

0.8

0.5

0.4

111

0.2

0.8

0.2

0.7

0.3

0.2

0.4

0.3

0.1

1.9

0.3

0.2

146

264

0.3

0.1

0.7

0.1

0.5

188

0.2

1.4

Note: Covers an area 636m E-W x 115m N-S in the central south half of the EL; all results in ppm apart from Au in ppb

Qualified Person

The scientific and technical information disclosed in this release has been reviewed and approved by

Graeme Fleming

, B. App. Sc., MAIG, an independent "qualified person" as defined under National

Instrument 43-101,

Standards of Disclosure for Mineral Projects

About Kainantu Resources (KRL)

Kainantu Resources 'KRL' is an

Asia-Pacific

focused gold mining company with three highly

prospective gold-copper projects, KRL South, KRL North and the May River Project. All projects are

located in premier mining regions in PNG.

Both KRL North and KRL South show potential to host high-grade epithermal and porphyry

mineralisation, as seen elsewhere in the high-grade Kainantu Gold District. The May River project is

in close proximity to the world-renowned Frieda River Copper-Gold Project, with historical drilling

indicating the potential for significant copper-gold projects. KRL has a highly experienced board and

management team with a proven track record of working together in the region; and an established

in-country partner.

For further information please visit

https://kainanturesources.com/

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of

the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer and

Forward-Looking Information

Mineralization hosted on adjacent and/or nearby properties is not

necessarily indicative of mineralization hosted on the Company's property

The data disclosed in

this release relating to drilling results is historical in nature. Neither the Company nor a qualified

person has yet verified this data and therefore investors should not place undue reliance on such

data, and no representation or warranty, express or implied, is made by the Company, its affiliated

companies, or any other person as to its fairness, accuracy, completeness, or correctness.

This

release contains forward-looking statements, which relate to future events or future performance

and reflect management's current expectations and assumptions. Such forward-looking statements

reflect management's current beliefs and are based on assumptions made by and information

currently available to the Company. All statements, other than statements of historical fact, are

forward-looking statements or information. Forward-looking statements or information in this news

release relate to, among other things: formulation of plans for drill testing; and the success related

to any future exploration or development programs. These forward-looking statements and

information reflect the Company's current views with respect to future events and are necessarily

based upon a number of assumptions that, while considered reasonable by the Company, are

inherently subject to significant operational, business, economic and regulatory uncertainties and

contingencies. These assumptions include; success of the Company's projects; prices for gold

remaining as estimated; currency exchange rates remaining as estimated; availability of funds for

the Company's projects; capital, decommissioning and reclamation estimates; prices for energy

inputs, labour, materials, supplies and services (including transportation); no labour-related

disruptions; no unplanned delays or interruptions in scheduled construction and production; all

necessary permits, licenses and regulatory approvals are received in a timely manner; and the

ability to comply with environmental, health and safety laws. The foregoing list of assumptions is

not exhaustive. The Company cautions the reader that forward-looking statements and information

involve known and unknown risks, uncertainties and other factors that may cause actual results

and developments to differ materially from those expressed or implied by such forward-looking

statements or information contained in this news release and the Company has made assumptions

and estimates based on or related to many of these factors. Such factors include, without

limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials,

supplies and services (including transportation); fluctuations in currency markets (such as the

Canadian dollar versus the U.S. dollar); operational risks and hazards inherent with the business

of mineral exploration; inadequate insurance, or inability to obtain insurance, to cover these risks

and hazards; our ability to obtain all necessary permits, licenses and regulatory approvals in a

timely manner; changes in laws, regulations and government practices, including environmental,

export and import laws and regulations; legal restrictions relating to mineral exploration; increased

competition in the mining industry for equipment and qualified personnel; the availability of

additional capital; title matters and the additional risks identified in our filings with Canadian

securities regulators on SEDAR in

Canada

(available at

www.sedar.com

). Although the Company

has attempted to identify important factors that could cause actual results to differ materially, there

may be other factors that cause results not to be as anticipated, estimated, described, or intended.

Investors are cautioned against undue reliance on forward-looking statements or information.

These forward-looking statements are made as of the date hereof and, except as required under

applicable securities legislation, the Company does not assume any obligation to update or revise

them to reflect new events or circumstances.

SOURCE

Kainantu Resources Ltd.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/March2022/10/c9076.html

%SEDAR: 00046178E

For further information:

Enquiries: Kainantu Resources, Matthew Salthouse, Chief Executive

Officer (Tel: + 65 8318 8125), Callum Jones, Corporate Development Co-ordinator (Tel: + 61 450

969 697), Email: [email protected]; IR / Financial PR: Camarco, Gordon Poole / Nick Hennis, Tel:

+44(0) 20 3757 4980

CO: Kainantu Resources Ltd.

CNW 08:00e 10-MAR-22

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