The Ono Project is LCL’s flagship asset, located in the same geological terrane as the world-class Wafi-Golpu and Hidden Valley mines.  Kusi Gold Skarn Resource (Inferred): 18.3 Mt at 1.4 g/t Au for 831,000 oz (WSP Australia, February 2025). Maiden resource defined by 21 drillholes for 5,258 m. Best intercept: 52 m @ 3.65 g/t Au (KU23DD004 from 164 m). Resource is open along strike and to the east and west. Good infrastructure with recently upgraded road to within 8 km of the Kusi resource.  Kusi Lower Limestone Target: Large prospective strike opening in the Lower Limestone unit with significant silver and base metal grades in addition to gold. Multiple intrusive centres indicated in magnetics. Geophysics programs in planning stage, funded by Rio Tinto.  Ono Geological Setting: 40 km long cross-arc structure hosting gold-rich porphyry, skarn and epithermal prospects. Very limited exploration work along trend, with potential highlighted by Garawaria trenches: 99 m @ 2.11 g/t Au and 62 m @ 4.01 g/t Au.  Rio Tinto Joint Venture (announced 23 March 2026): Rio Tinto Exploration has entered a binding earn-in and JV Agreement: $1.5 million in cash milestone payments to LCL; 51% interest earned by spending $8 million (must include 4,000 m drilling); 80% interest by spending $40 million or declaring a Resource >1.25 Mt CuEq and completing a Scoping Study; following a decision to mine, Rio Tinto must offer to fund and/or buy out LCL’s interest.

Kau Creek Project

The Kau Creek Project (EL2837) forms part of LCL Resources’ district-scale Ono Project in Papua New Guinea and secures exploration rights over the entire 40 km-long Ono mineralised trend. The licence grant marks a significant milestone under the Rio Tinto Farm-in Agreement, triggering a further A$200,000 milestone payment to LCL. The project is highly prospective for both high-grade low-sulphidation epithermal gold-silver mineralisation and large-scale copper-gold porphyry systems, with exploration supported by Rio Tinto’s technical expertise and extensive historical exploration database.

Historical exploration by CRA (now Rio Tinto) between 1984 and 1989 identified multiple high-grade gold-silver zones through extensive trenching, including 230 m @ 2.41 g/t Au & 15.0 g/t Ag, 70 m @ 7.92 g/t Au & 45.1 g/t Ag, including 10 m @ 40.35 g/t Au & 188.3 g/t Ag, and 106 m @ 2.10 g/t Au & 7.0 g/t Ag, demonstrating the scale and continuity of mineralisation. Limited historical diamond drilling confirmed high-grade mineralisation, with best results including 10 m @ 2.5 g/t Au & 179.3 g/t Ag and 2 m @ 13.6 g/t Au.

Located within the Owen Stanley Metamorphic Belt, which hosts the world-class Hidden Valley and Wafi-Golpu deposits, Kau Creek remains largely underexplored, with virtually no modern exploration since the late 1980s. Current exploration plans include regional geochemical sampling, geological mapping, geophysical surveys across the Ono trend, and community engagement programs ahead of field activities. The project significantly expands the exploration potential of the Ono district and strengthens LCL’s partnership with Rio Tinto in unlocking a highly prospective mineral corridor.