The California Creek alluvial mining operation is centrally placed on KML’s current California (EPM14877) and California West (EPM14357) tenements. KML have completed a due diligence sample program in order to assess the potential of California Creek to host significant volumes of alluvial tin. The deposit is covered by 15 mining leases held by Bookall Mining. As part of a sales agreement, KML targeted 3,000 metric tons (mt) of cassiterite (tin ore, SnO2) concentrate in order to proceed with the purchase of the mining leases and plant. Alluvial tin was freely panned by KML from surface diggings at multiple sites along the creek during an initial survey of the leases.

The area under consideration for purchase by KML is some 26 km in length and varies in width from 50 to 100+m, though the mining leases are limited to 100 m in width. California Creek is an active depositional- erosional alluvial system in Far North Queensland 20 km northwest of the township of Mount Garnet.

From the data, KML believes that there is potential for an exploration target of 3,000-6,000 metric tons of cassiterite from some 3 to 6 million cubic meters of alluvial material. Overburden across the leases is essentially non-existent with tin bearing alluvium at surface.

While this target is conceptual in nature and does not imply that a mineral resource has been or will be defined, the results from this sample program have provided KML with enough confidence to go through with the planned purchase of the leases.

Satisfaction of the due diligence has been notified to Bookall Mining Ltd. and progress to acquisition confirmed. Once final conditions are met, the final sum of $5.55 million will be payable to Bookall Mining. California Creek will undertake a staged start-up targeting 50 tons of concentrate a month during the testing phase, ramping up to 200 tons a month.