Artificial Intelligence Partner Drilling New Copper Targets at the Cundumbul Project

• Exploration alliance partner Earth AI has commenced its maiden drilling program at the Cundumbul Project
  • A first phase program of up to 1800m of diamond core drilling has been approved by the Resource Regulator (NSW Government)
    • includes up to 3 holes at approximately 600m per hole
  • Initial program is expected to run for 1-2 months and be solely funded by Earth AI
• Earth AI's Artificial Intelligence and field based exploration has generated a pipeline of new intrusion related copper targets in the central portion of the project
  • Initial program tests a 2.2km x 800m zone of anomalous surface copper associated with a zoned hydrothermal quartz breccia system (and open)
  • Field mapping, soil and rock chip sampling program is ongoing to test both north and southern strike extensions, and open zones to the west and east, including higher grade surface geochemical anomalies (up to 5.2% Cu)
• The Cundumbul Project is located in the world-class Molong belt of the Macquarie Arc, 30km south of the Boda-Kaiser discoveries (>15Moz AuEq resource) and 70km north of Cadia (>90Moz AuEq endowment)

MELBOURNE, May 20, 2024 - Kincora Copper Ltd. (ASX: KCC) (TSXV: KCC) (Kincora or the Company) is pleased to announce Exploration Alliance partner Earth AI Pty Ltd (Earth AI) has commenced its maiden drilling program at the Cundumbul Project testing a number of new copper targets.

Sam Spring, President & CEO, commented:

"After multiple field based campaigns refining Earth AI's artificial intelligence model and geological theses the commenced diamond drilling program is a exciting catalyst in our success based exploration alliance and provides Kincora shareholders exposure to a fully funded, new discovery focused opportunity.

Prior explorer activities and limited drilling has confirmed fertile porphyry systems in both the north and south of Cundumbul located over 10km apart.

The initial new drill targets of this first phase program by Earth AI are associated with a newly identified zoned mineralised hydrothermal quartz breccia system in the previously untested central eastern portion of the project.

The hydrothermal quartz breccia system is open, already stretches over 1.8km, and the commenced program seeks to provide initial guidance on the down-hole extent and grade as plans are being advance to test further targets along strike."

Figure 1 (see PDF): Cundumbul is located in the world-class Molong belt of the Macquarie Arc, 30km south of Alkane's Boda-Kaiser porphyry project (>15Moz AuEq), 25km north of Copper Hill (>3Moz AuEq resource) & 70km north of Cadia (>90Moz AuEq endowment)

Previous surface exploration and limited drilling has confirmed porphyry potential both in the north and south of the Cundumbul project, located 10km apart

Figure 2 (see PDF): Earth AI's Artificial Intelligence and field based exploration has generated a pipeline of new intrusion related copper targets in the central portion of the project

Prior explorer activities and limited drilling has confirmed fertile porphyry systems in both the north (the Andrew's prospect) and south (the Bell prospect) of Cundumbul located over 10km apart.

The Earth AI team have undertaken multiple phases of field work to build a greater understanding of the Cundumbul project's geology and applying their proprietary approach for identifying and refining targets via ground truthing AI and machine learning predictions - an summary of this included in Figure 2.

Diamond drilling, utilising Earth AI's low cost Mobile Low Disturbance ("MLD") diamond rig, is now underway to test their new geological thesis and targets that have been defined in the central portion of the project. Multiple phases of mapping, petrographic studies, and, soil and rock chip analysis have been completed and identified a pipeline of new targets.

The commenced initial drilling program seeks to a 750m strike of anomalous surface copper associated with a zoned hydrothermal quartz breccia system mapped along a 1.8km strike (and open) within a 2.2km N-S x 800 W-E anomalous copper zone (and open).

A field mapping, soil and rock chip sampling program, and planning and permitting for a second phase drill program, is ongoing to test both north and southern strike extensions, and open zones to the west and east, including higher grade surface geochemical anomalies (including rock chips of 5.2% Cu, 3.2% and 1% Cu, and, up to 0.56g/t Au) - see Figure 2 for further details.

The "success based" Exploration Alliance between Kincora and Earth AI is unlike a "classic earn-in and JV model", with Kincora retaining 100% project ownership and Earth AI gaining a royalty only upon a new discovery (qualifying intercept).

Figure 3 (see PDF): Earth AI's low cost Mobile Low Disturbance ("MLD") diamond rig in operations at Cundumbul drilling hole ECU18D

Earth AI is a private San Francisco (USA) headquartered company focused on reducing the cost and improving the success rates of new critical mineral discoveries that has a vertically integrated metals exploration approach to targeting, testing and verifying discoveries that are required for the electric vehicle and renewable energy revolutions.

Earth AI has an in-house geological team, boots on the ground field assessment approach, proprietary cloud computing and integrated geological AI review and machine learning process supported by boots on the ground field assessment approach to identify, refine and de-risk targets for new discovery drilling.

Earth AI utilises its low cost Mobile Low Disturbance diamond rig, and associated equipment, drill testing targets and leveraging its NSW field based operations located in Young.

On October 6^th, 2022, Kincora announced a success-based Exploration Alliance Agreement ("Agreement") with Earth AI Pty Ltd ("Earth AI") to generate and drill test artificial intelligence and machine-based learning targets at the Cundumbul Project ("Strategic Alliance").

The Strategic Alliance allows for a co-funding model, whereby Earth AI has day-to-day management and control of exploration activities, is the lead funder of the project and will contribute up to A$4.5m of total exploration costs across the tenement over a two-year period, with the option to extend for a further year. Subject to a qualifying drilling intersection (as defined in the Agreement) being subsequently identified, Earth AI is entitled to a Net Smelter Royalty ("NSR") up to 3% in connection to be agreed upon area surrounding the technical and/or commercial discovery ("Area of Interest").

The agreement does not affect the capital structure of the Company or ownership in the project, with Kincora consolidating 100% project ownership in December 2023. Rights of first refusal customary for such an ownership and Exploration Alliance structure are in place.

Kincora is under no obligation to explore, develop or mine the Cundumbul Project during the period of the Exploration Alliance. However, upon Earth AI successfully drilling a Qualifying Drilling Intersection and having carried out a minimum of 1,500 metres of diamond drilling, whereafter the second anniversary of the Royalty Trigger Date if no mineral resource has been defined and the annual exploration expenditure in the Area of Interest falls below US$250,000, Earth AI will have the option to assume operational control and buy all of the Royalty Tenements that overlap with the Area of Interest under the Royalty Deed, for a cash purchase price equal to US$1,000,000 plus a 2% net smelter.

For further details and technical disclosures please refer to the October 6^th, 2022 "Alliance with Artificial Intelligence Explorer for Cundumbul project", May 2^nd, 2023 "Earth AI Commences Field Work at Cundumbul Project" and Kincora's quarterly financial reports (including MD&A) releases for further details.

The Cundumbul Project is located in the central Molong volcanic belt of the Macquarie Arc in Central West NSW. The project is approximately 30km south of Alkane's Northern Molong Porphyry Project (NMPP) that includes the Boda-Kaiser deposits (resources >15Moz AuEq), 25km north of Copper Hill (>3Moz AuEq resource) and 70km north of Cadia (>90Moz AuEq endowment).

Exploration efforts at the Cundumbul project were last lead by Mitsubishi Materials Corporation during an earn-in period (concluded 2015). Previous exploration has included mapping, soil sampling, rock chip sampling, induced polarisation ("IP"), gravity and magnetic geophysical surveying, with more limited follow up auger, RC and diamond drilling.

Mineralised monzonitic intrusions have been identified at both the Bells and Andrews prospects, in the north and south respectively of the Cundumbul project, located over 10km apart.

The Cundumbul Project includes one single license covering 34.6km² (EL6661) was secured initially by Kincora in the March 2020 agreement with RareX Limited ("REE" on the ASX) and in December 2023 Kincora increased its ownership to 100%.

Further details on the Cundumbul Project is available from the Independent Technical Report included in the Company's ASX initial public offering prospectus, with additional information on Kincora's portfolio in NSW and exploration strategy also available on the Company's website: https://kincoracopper.com

This announcement has been authorised for release by the Board of Kincora Copper Ltd. (ARBN 645 457 763)

The scientific and technical information this announcement is extracted from reports lodged as market announcements referred to above, quarterly reports and available on the Company's website www.kincoracopper.com .The Company confirms that it is not aware of any new information that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

The scientific and technical information in this announcement was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's staff under the supervision of Peter Leaman (M.Sc. Mineral Exploration, FAusIMM), Senior Vice-President of Exploration of Kincora, and John Holliday (BSc Hons, BEc, member of the Australian Institute of Geoscientists), Non-Executive Director and Chairman of Kincora's Technical Committee, who are Qualified Persons for the purpose of NI 43-101.

Information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves are those that have been previously reported (with the original release referred to in this announcement), in the case of Mineral Resources or Ore Reserves the material assumptions and technical parameters underpinning the estimates have not materially changed, and have been reviewed and approved by Paul Cromie, who is a Competent Person under the definition established by JORC and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. John Holliday and Peter Leaman consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The review and verification process for the information disclosed herein for the Trundle, Fairholme, Nyngan, Nevertire and Condobolin projects have included the receipt of all material exploration data, results and sampling procedures of previous operators and review of such information by Kincora's geological staff using standard verification procedures.

Certain information regarding Kincora contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Kincora believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Kincora cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Kincora currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. Kincora does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the Australian Securities Exchange accepts responsibility for the adequacy or accuracy of this release.

SOURCE Kincora Copper Ltd.