Kuniko Ltd (ASX:KNI) New Offset Mineralisted Zone Discovered at Silica Hill Phase 1 Drill Program Completed – Assays Pending

25 March 2026

Price Sensitive Announcement $

Highlights:

▪ New Discovery at Silica Hill: Significant sulphide mineralisation intersected in hole CMKNI004, comprising a broad 70m visual zone of disseminated and stringer sulphides, including a 0.5m thick sulphide vein. The intersection lies approximately 100m outside the previously modelled mineralisation wireframe and defines a new mineralised zone that remains open up-dip, down-dip and along strike.

▪ Additional Mineralisation at Commonwealth South: Holes CMKNI005 and CMKNI006 intersected variable widths of disseminated and stringer sulphide mineralisation, both outside existing identified mineralisation.

▪ Phase I Program Completed: A total of six diamond holes completed for 1239m, marking completion of the Phase 1 drilling program.

▪ Assays Pending: First assay results are expected in early April.

▪ Phase II Program: Now positioned to advance into a larger Phase II drilling program, targeting resource expansion and follow up of newly identified mineralised zones.

Overview:

Kuniko Limited (ASX: KNI) is pleased to report the discovery of a new offset zone of sulphide mineralisation at the Silica Hill prospect, located approximately 100m outside the previously modelled mineralisation. The mineralisation was intersected in hole CMKNI004 as part of the recently completed Phase I diamond drilling program and is interpreted to represent a down-dip extension of the Silica Hill system, remaining open up- and down-dip and along strike.

This announcement reports geological observations from the recently completed Phase I drilling program. Laboratory assay results for the current drilling are pending and are expected in early April.

New Mineralised Zone Discovered at Silica Hill

Hole CMKNI004 was designed to test a previously modelled fault plane interpreted to bound mineralisation along the southern margin of the Silica Hill lode. The fault was intersected at a greater depth than initially planned and returned a 0.5m thick sulphide vein (Figure 2) comprising arsenopyrite–pyrite–proustite, followed by a broad 70m zone of disseminated and stringer sulphide mineralisation hosted within sericite-altered rhyolite porphyry (Figure 3). Mineralisation comprises multiple narrow stockwork-style veins and veinlets, together with disseminated sulphides within the host rhyolite porphyry.

This represents the deepest drilling completed to date at Silica Hill, highlighting significant untested potential at depth and along strike. The style of mineralisation is consistent with, and may represent, a down-dip extension of the Silica Hill system.

Historical drilling in the vicinity has returned significant intercepts, including 41 m @ 2 g/t Au and 147 g/t Ag in CMIPT046 and 22.5m @ 1.7 g/t Au and 276 g/t Ag (including 0.3m @ 4,200 g/t Ag) in CMIPT077 highlighting the high-grade tenor of the system. Importantly, CMKNI004 represents a significant step-out beyond the previously modelled mineralisation, confirming mineralisation extends outside the existing wireframe and defining a new target zone.

Follow-up drilling is planned to test the extent of this mineralisation which is open up-and down-dip and along strike.

Drill Program Completed

Phase I drilling has now been completed, comprising six diamond drill holes for a total of 1,239m. The program was designed to test extensions to mineralisation at Commonwealth and Silica Hill. Encouragingly, all six holes intersected visible sulphide mineralisation, representing a strong start to Kuniko’s maiden drill program. Planning for Phase II follow-up drilling is already underway.

At Silica Hill, drilling successfully identified a new mineralised zone approximately 100m outside the previously reported mineralisation, while CMKNI003 was completed as a resource infill hole.

At Main Shaft, both holes CMKNI001 and CMKNI002 intersected massive sulphide mineralisation (refer ASX Announcement dated 5 March 2026). CMKNI001 was drilled as a resource infill hole, while CMKNI002 represents a significant step-out from the previously reported mineralisation, with mineralisation remaining open at depth.

At Commonwealth South, holes CMKNI005 and CMKNI006 were drilled as step-out holes targeting extensions to known mineralisation. CMKNI005 intersected approximately 30m of disseminated sulphides and stringer veins hosted within rhyolite porphyry and the footwall sequence. A deeper IP target was also tested; however, the anomaly is interpreted to be related to black shale units, which are known to produce strong IP responses. CMKNI006 intersected approximately 33m of similar-style mineralisation, and was drilled down-dip of historical hole CMIPT01 7 (7m @ 25 g/t Au, 62 g/t Ag, 2.8% Zn and 1.6% Pb).

All drill core has now been cut and dispatched for assay, with first results expected in early April. Kuniko looks forward to updating shareholders as results are received.

Next Steps

1. Report assay results for Phase I drilling program in early April.
2. Plan and design a Phase II drilling program to support the Company’s expansion and delivery of a maiden mineral resource estimate at Commonwealth–Silica Hill.
3. Undertake integrated geophysical and geochemical review, with Resource Potentials currently analysing MobileMT, geochemistry and geophysics datasets to identify additional drill targets.
4. Assessment of Gradient Array Induced Polarisation (GAIP) survey data across Geenobby and Gladstone West to identify zones of sulphide development and associated hydrothermal alteration.
5. Advance drill targeting at Gladstone West and Geenobby, with permitting to commence for a regional drill program.

Company Notes:

Maja McGuire, Managing Director, commented:

“This marks a significant step forward for Silica Hill and the success of our maiden drilling program. The intersection of a broad 70m sulphide zone in hole CMKNI004, including a 0.5m thick sulphide vein, is particularly encouraging given it lies approximately 100m outside the previously modelled mineralisation and defines a new mineralised zone.

With mineralisation remaining open in all directions, and additional sulphide intersected at Commonwealth South outside the existing identified mineralisation, we see strong potential to expand the system. With Phase I now complete and assays pending, we are well positioned to advance into a larger Phase II program targeting resource growth and follow-up of these newly identified zones, and we look forward to updating the market as assay results become available.

Kuniko thanks Titeline Drilling for the safe and efficient execution of the diamond drilling program and acknowledges the continued cooperation and support of the local landholder.”

Full ASX Announcement: KNI ASX Announcement