POSEIDON NICKEL

Primed for the Nickel Revival

David Riekie, Interim CEO

Paydirt Nickel Conference, Perth 15 October 2019

Disclaimer

This presentation has been prepared for the purpose of providing general information about Poseidon Nickel Limited ("Poseidon"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in Poseidon or as an inducement to make an offer or invitation with respect to those securities. It is not recommended that any person makes an investment decision in relation to Poseidon in reliance on this presentation material.

This presentation contains forecasts and forward looking statements. Such statements are predictions only based on available data which maybe unreliable and is subject to inherent risks and uncertainties which could cause actual values, results, performances or achievements to differ materially from those expressed, implied or projected in this presentation.

This overview does not purport to be all-inclusive or to contain all information which its recipients may require in order to make an informed assessment of the projects prospects. Each of Poseidon, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Poseidon accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation.

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Corporate profile

ASX listed, nickel focussed company represented in all three major nickel provinces in Western Australia

Owner of three previously operated mines: Black Swan, Lake Johnston and Windarra. Combined Resource portfolio 395,530 contained Ni* tonnes**, 180,000 oz Au (Windarra tailings)***

Near term value driver in restart of Black Swan nickel mining operations.

Currently undergoing pre-restart safety activities. Intended processing capability 1.1mtpa over 3-4 years; Expected restart 6-9 months from Final Investment Decision ("FID")

Lake Johnston 1.5mtpa processing capability; underground JORC resource of 52Ni kt** and exploration potential

* Contained Ni metal

**Reference Mineral Resources Statement Table 1 attached

***Reference Mineral Resources Statement Table 2 attached

Capital Structure/Enterprise Value

ASX Code

POS

Shares on Issue

2.64bn

Share Price

~$0.053

Market Cap

~$140M

Cash (30 June 19)

~$60.1M

Debt (convertible note)

$US$17.5 (~AU$25M)

Significant Shareholders

Black Mountain Metals Ltd

~20%

Squadron Resources Ltd

~17%

Key Executive Appointments

David Riekie, Interim CEO

Brendan Shalders, CFO & Company Secretary

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Near term value through Black Swan Restart

  • Poseidon is working towards taking Final Investment Decision ("FID") on a restart of nickel mining operations at Black Swan
  • Range of activities underway to support FID in coming months, including updates to the July 2018 PFS
  • Company expects to be in a position to be able to consider restart FID final quarter of calendar 2019
  • FID will be contingent on other prevailing factors, including nickel price
  • First nickel concentrate is produced 6 to 9 months after FID
  • AU$2.9M of time critical precursor works already underway to enter production already started pre FID
  1. Mine escape ladderways rehab (6 months to complete) o Plant accessway rehab (2 months)
    o Pit dewatering (4-6 months)

Key Restart Metrics

  • Circa 7,500t nickel p.a.
  • 3 year mine life
  • 1.1Mtpa processing capacity
  • AISC - US$5.10* per pound (current spot Ni price ~US$8.00)
  • Capital cost circa AU$30m
  • Working capital circa AU$25m
  • PFS numbers currently being updated

*All figures ASX Announcement 18 July 2018

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Nickel treasury: 395kt contained nickel*

Black Swan Operations**

  • Silver Swan underground Ni mine 16.0kt Ni Tonnes* (Grade - 9.5%)**
  • Black Swan Ni open pit & stockpiles 179kt Ni Tonnes* (Grade - 0.7%)**
  • 2.2mtpa process plant capacity (intended restart 1.1mtpa operation)
  • Exploration upside potential

Lake Johnston Operations**

  • Maggie Hays Ni Mine 52kt Ni Tonnes* (Grade - 1.5%)**
  • Emily Ann Ni Mine - now closed
  • Recent Abi Rose Ni discovery - New geological model
  • 1.5mtpa process plant
  • Exploration upside potential

Windarra Nickel **

  • Mt Windarra & underground Ni mine 71.5kt Ni Tonnes* (Grade - 1.64%)**
  • Cerberus Nickel deposit 69kt Ni Tonnes* (Grade - 1.5%)**
  • Potential to upgrade and process ore at Black Swan
  • Gold Tailings - Au 183koz & Ag 670koz***

* Contained Ni metal

**Reference Mineral Resources Statement Table 1 attached

***Reference Mineral Resources Statement Table 2 attached

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Poseidon Nickel Limited published this content on 15 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2019 01:36:10 UTC