KAINANTU RESOURCES CLOSES FIRST TRANCHE OF $ 1.67 MILLION OF $ 1.5 MILLION OVER-SUBSCRIBED FUNDING

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VANCOUVER, BC, January 4, 2022 / CNW / – Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0) (“KRL” or the “Company”), on Asia Pacific specialist gold mining company, is pleased to announce that it has completed the first tranche of its previously announced private placement financing plus $ 2 million (the “Offer”). The Offer was initially announced on December 1, 2021 raise a gross product of up to 1.5 million Canadian dollars (which detailed the relevant financing terms), and, due to excess subscriptions, the Offer was subsequently increased to generate gross proceeds of up to 2 million Canadian dollars as announced on January 4, 2022.

As part of the first tranche of the offering, the Company issued a total of 9,268,825 units of the Company (the “Units”) to raise gross proceeds of a total of CA $ 1,668,388. Each unit is made up of one common share of the Company (each, a “common share”) and one common share purchase warrant (each, a “warrant”), each warrant being exercisable. for one common share at an exercise price of CA $ 0.36 per common share at any time up to 36 months after the closing date of the offering, each warrant may be accelerated in certain circumstances.

A second and final tranche of the Offer up to approximately 0.3 million Canadian dollars should close on or before January 13, 2022.

Matthew salthouse, CEO of KRL, commented:

“We are encouraged by the enthusiastic response to our first post-IPO funding and welcome new investors and stakeholders to KRL as we develop and advance our portfolio of high quality assets in Papua New Guinea. Several catalysts are expected to arrive at KRL during the first part of 2022 that we believe will continue to generate shareholder value. “

Product use

The net proceeds of the offering are intended for, without limitation, exploration programs at KRL North and KRL South leading to the delineation of drill targets, sampling and technical reports for the May River project, as well as only for general working capital purposes.

Research costs

As part of the Offer, the Company previously announced that it could pay cash intermediation fees equal to 6% of the gross proceeds raised from buyers presented by these discoverers, and the issuance of warrants. non-transferable compensation (“Compensation Vouchers”) in the amount of 6% of the number of Units purchased by buyers introduced by these finders. Each of these compensation warrants may be exercised for one common share at an exercise price of CA $ 0.36 per common share at any time up to 36 months after the closing date of the offering and have been issued on substantially the same terms and conditions as the warrants, except that the netting warrants will not be subject to a clause. acceleration.

At the closing of the first tranche of the Offer, the Company paid the following finder’s fees and issued the following indemnification warrants to these inventors:

Name of researcher

Species search costs

Compensation mandates

Hampton Securities Limited

40 $ 127.88

222 932

PI Financial Corp

$ 11,520.00

60,000

Haywood Securities Inc

$ 324.00

1,800

Jemini Capital Inc

$ 12,642.00

70 233

Intrynsync Capital Corporation

$ 16,620.00

96 333

Canaccord Genuity Company

$ 14,850.00

82,500

TOTAL

$ 96,083.88

533,798

All securities issued in connection with the offering, including common shares issuable upon the exercise of warrants or compensation warrants, are and will be subject to a hold period of four months and one day thereafter. the closing date of the relevant tranche of the offering.

About Kainantu Resources (KRL)

KRL is a Asia Pacific Specialized gold mining company with two very promising gold projects, KRL South and KRL North, in a leading mining region, the high-grade Kainantu gold district of Papua New Guinea which is famous for one of the newest and highest grade gold mines K92 Mining (main grade 9g / t).

Both KRL projects show the potential to host high grade epithermal and porphyry mineralization, as seen elsewhere in the district. KRL has a very experienced board and management team, with a proven track record of working together in the region; and an in-country partner in Asia Pacific Energy Ventures (APEV).

Disclaimer and forward-looking information

Statements contained in this press release that are not historical facts are forward-looking statements that involve various risks and uncertainties affecting KRL’s business. In making forward-looking statements, KRL has applied certain assumptions which are based on available information, including KRL’s strategic plan for the short and medium term. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking information. KRL does not undertake to update forward-looking information except in accordance with applicable securities laws.

Some of the statements made and information provided in this press release are forward-looking information within the meaning of applicable Canadian securities laws. Often, this forward-looking information can be identified by the use of words such as “plans”, “awaits”, “is planned”, “budget”, “continuing”, “planned”, “planned”, “estimates”, ” foresees ”,“ intends to ”,“ anticipates ”or“ believes ”or the negative aspects of these or the variations of these words and expressions or statements that certain actions, events or results“ could ”,“ could ” , “Could”, “could”, “could” “or” will “be taken, occur or be achieved.

The forward-looking information contained in this press release includes, without limitation, statements or information regarding: the offer, the ability of the Company to close the offer and the use of the proceeds of the offer.

Forward-looking information, by its nature, is based on assumptions and involves known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially. different from the expressed future results, performances or achievements. or implied by such forward-looking information.

We have made certain assumptions regarding forward-looking information. Although our management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be correct. Many assumptions can be difficult to predict and are beyond our control.

In addition, if one or more of the risks, uncertainties or other factors materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from those described in the forward-looking statements or information. These risks, uncertainties and other factors include, among others: global epidemics of infectious diseases, including COVID-19; geopolitical and economic climate (global and local), risks associated with tenure and mining permits; volatility of commodity prices; risks related to IT systems; the continued softening of the world market; risks relating to potential and pending litigation and arbitration proceedings relating to our business, properties and operations; risk of mining exploitation and development; financing risks; operational risks abroad; sovereign investment risks; regulatory risks and responsibilities, including environmental regulatory restrictions and responsibilities; mineral reserves and resources and metallurgical testing and recovery; additional financing needs; currency fluctuations; actions of communities and non-governmental organizations; speculative nature of exploration; dilution; the volatility of stock prices and the price of our common shares; competetion; the loss of key employees; and the defective title of mining claims or properties, as well as the risk factors discussed in the sections entitled “Forward-looking Information” and “Risk Factors” in the Company’s filing statement dated October 28, 2020. The reader is encouraged to carefully consider the detailed discussion of risks in our registration statement filed on SEDAR under our company name, which discussion is incorporated by reference in this press release, for a better understanding of the risks and uncertainties that affect the activities and operations of the company.

There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, you should not place undue reliance on forward-looking information contained in this document. Unless required by law, we do not plan to update forward-looking statements and information on an ongoing basis as conditions change.

SOURCE Kainantu Resources Ltd.

For more information: Kainantu Resources, Matthew Salthouse, Chairman and CEO (Tel: + 65 8318 8125); Callum Jones, Corporate Development Coordinator (Tel: + 61 450 969 697), Email: [email protected]; IR / Financial PR Europe: Camarco, Gordon Poole / Nick Hennis, Tel. : +44 (0) 20 3757 4980; North America Financial Public Relations: Jemini Capital, Kevin Shum / Jerry Huang [email protected], Phone. : +1 (212) 219-4680 | +1 (647) 725-3888 ext 702

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