ASX Code: KGD

24 April 2019

ASX Announcement & Media Release

Quarterly Activities Report

For Period Ended 31 March 2019

OPERATIONAL OVERVIEW

Geopacific Resources Limited (“Geopacific”), continues to fund the Woodlark Island Gold Project through in the third earn-in period of the Farm-in Agreement.

During the quarter Geopacific focussed on pursuing project funding and aims to advance its project execution strategy by identifying potential lump sum turnkey solutions for the Project’s plant and infrastructure. Engineering companies have been engaged to provide proposals on the basis of their credibility and experience in delivering similar operations to Woodlark.

No significant exploration activities took place during the quarter as Geopacific is primarily focused on project financing and its associated activities.

CORPORATE OVERVIEW

During the quarter, Kula agreed to dispose of all its rights and interests in Woodlark Mining Limited to Geopacific.

Subject to requisite shareholder approvals of both companies, Kula will receive 150M Geopacific shares (which will be distributed in-specie to eligible Kula shareholders), an estimated A$0.7M in cash (which will be utilised to pay all Kula creditors) and cancellation of Geopacific’s 85% shareholding in Kula.

On completion Kula will cease to be a subsidiary of Geopacific and the joint venture will be extinguished. Messrs Heeks and Smith (directors appointed by Geopacific) will also both retire from the board.

For further information, refer to the ASX announcement ‘Sale of Woodlark Gold Project’ on 8 March 2019.

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Background on the Woodlark Island Gold Project, PNG

Kula Gold Limited owns 49% of the Woodlark Island Gold Project, which has been granted an Environmental Permit and Mining Lease. Geopacific Resources Limited (“Geopacific”) holds the other 51% of the Project and is also Kula’s largest shareholder with 85% of the Company. The Project is located 600 kilometres east of Port Moresby in the Milne Bay Province, Papua New Guinea.

Geopacific, Kula’s Joint Venture Partner and holding company, is in the second earn-in period of the Farm-in Agreement and advancing the Project by delivering defined milestones, to earn additional equity in the Project.

The Project has excellent upside potential through upgrading the existing JORC Resources and numerous nearby exploration targets within a short distance of the proposed process plant location.

The Resource Estimates were re reported and released on 12 March 2018 in accordance with JORC 2012.

Geopacific Resources’ Feasibility Study, based on a JORC 2012 Ore Reserve of 1,037,600 ounces of gold and a gold price of A$1,650/ounce, defined a Project with a life of thirteen years and a 2.4Mtpa gravity and carbon in leach plant (GPR ASX release 7 November 2018).

For further information, contact:

Garry Perotti

Chief Financial Officer

Kula Gold Limited

T: + 61 8 6143 5411

Directors and Management

Registered office

Level 1, 278 Stirling Highway

Claremont, WA 6010, Australia

T: + 61 8 6143 5411

E:[email protected]

W:www.kulagold.com.au Tw: twitter.com/kulagold

Auditor

Ernst & Young

11 Mounts Bay Road,

Perth, WA 6000, Australia

Office: +61 8 9249 2222

Share registry

Link Market Services Limited

Level 12, 680 George Street

Sydney, NSW 2000, Australia

T: 1300 554 474 or +61 2 8280 7111

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Competent Person’s Statement

The information in this announcement that relates to exploration results and exploration targets is based on information compiled by or under the supervision of James Kerr, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and General Manager, Geology for Geopacific. Mr Kerr has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is 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”. Mr Kerr consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Woodlark Mineral Resources is based on information compiled and reviewed by Mr Nicholas Johnson, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of MPR Geological Consultants Pty Ltd. Mr Johnson has sufficient experience which is relevant to the style of mineralization and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and is a qualified person for the purposes of NI43-101. Mr Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Woodlark Mineral Reserves is based on information compiled and reviewed by Mr John Battista, a Competent Person who is a Member and Chartered Professional of the Australian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of Mining Plus Pty Ltd. Mr Battista has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and is a qualified person for the purposes of NI43-101. Mr Battista has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Schedule of Tenements

Mining tenements held by Kula Gold Limited and its subsidiary at the end of the quarter, including tenements acquired and disposed of during the quarter:

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