Highlights

• Killi Resources said in its quarterly report for the period ended 30 September 2026 that the first phase.

• Killi holds an 80 per cent interest in Lodestone after completing the acquisition of Yukon Resources Pty Ltd.

• The company stressed that the mineral abundance figures are visual estimates, not assay results, and should not be.

• At Mt Rawdon West in Queensland, held 100 per cent, the King Louie breccia has about two kilometres.

Killi Resources (ASX:KLI) — said in its quarterly report for the period ended 30 September 2026 that the first phase of drilling at its Lodestone Iron Ore Project in Western Australia, nine diamond holes totalling 1,332.9 metres, intersected magnetite mineralisation outside the existing resource. The company is a mineral explorer with interests in iron ore, gold, copper and molybdenum, and its securities are ordinary shares.

Lodestone drilling

Killi holds an 80 per cent interest in Lodestone after completing the acquisition of Yukon Resources Pty Ltd on 20 August 2026, issuing 92,727,273 consideration shares. The existing Inferred Mineral Resource is 110 million tonnes at 33 per cent Davis Tube Recovery mass recovery, grading 69 per cent iron in concentrate.

A maiden 20,000 metre drilling programme began in August 2026. Hole KKDD001, about 100 metres south of the resource, intersected an estimated 80.2 metre downhole magnetite zone, which the company estimates as 40 to 50 metres in true thickness. Hole KKDD004, about 600 metres south of the resource, intersected a main zone of about 50 metres plus a hanging wall zone of about 16 metres.

The company stressed that the mineral abundance figures are visual estimates, not assay results, and should not be relied on as a proxy for laboratory results. Core is being processed before assaying and metallurgical testwork, and the resource is limited by the drilling completed to date, with subordinate banded iron formations poorly defined.

A second reverse circulation rig arrived on 1 October 2026. A drone magnetic survey covering 1,844 strike kilometres has been completed, and the company said interpretation is expected in the coming weeks.

Other projects

At Mt Rawdon West in Queensland, held 100 per cent, the King Louie breccia has about two kilometres of strike and peak surface gold values of 33 times background. Drilling may slip until after the summer fire season because access and environmental approvals are taking longer than expected.

At the West Tanami Gold Project in Western Australia, also 100 per cent owned, Gold Fields can earn up to 85 per cent by spending A$13 million within seven years. A total of 1,488 infill soil samples were collected in August 2026, with results expected before the end of the year.

Cash and corporate changes

Cash at 30 September 2026 was A$16.4 million, plus about A$0.4 million of listed investments comprising 1,290,860 Black Canyon shares. The company completed a A$15 million placement at A$0.22 per share, with Tranche 1 of about A$10.8 million in June 2026 and Tranche 2 of about A$4.2 million issued on 20 August 2026.

Quarterly operating cash outflow was A$1.771 million, exploration expenditure was A$1.34 million, equity proceeds were A$3.592 million and related-party payments were A$130,000. The company estimates 9.26 quarters of funding and has no debt facilities.

On the management side, Hamish Halliday became Managing Director effective 24 August 2026, Brett Smith is now General Manager, Technical, and chief executive Kathryn Cutler resigned.

Inconsistencies in the report

The report contains two discrepancies. The company's ABN appears as 35 647 322 790 in the header but as 74 647 332 790 in the Appendix 5B. The Mt Rawdon tenement area is given as both 305 and 309 square kilometres. Neither affects the exploration story but both should be corrected or clarified by the company.

Milestones and risks

Near-term milestones are interpretation of the drone survey, reverse circulation drilling of resource extensions, West Tanami soil results before year end, and possible Mt Rawdon drilling after the summer fire season. Assays, Davis Tube Recovery results and metallurgical testwork are all pending.

The principal risk is that the visual magnetite intersections may not translate into economic grades or recoveries once laboratory results arrive. Exploration results do not amount to a resource upgrade, and the report carries the usual forward-looking statement warnings about exploration and funding.