Poseidon Nickel : Black Swan Underground Drilling Success

November 12, 2019 at 05:50 pm EST

Corporate Directory

ASX Code: POS

Shares on Issue: 2,638M

Market Cap: ≈$140M

Cash & equivalents at 30 Sept 2019

$56.5M

Board of Directors

Non-Executive Chairman

Geoffrey Brayshaw

Non-Executive Directors

Felicity Gooding

Karl Paganin

Interim CEO

David Riekie

CFO & Joint Company Secretary

Brendan Shalders

Joint Company Secretary

Andrea Betti

Key Shareholders

Black Mountain Metals: 19.8%

Squadron Resources: 17.1%

Key Operating Nickel Assets (100%)

Black Swan/Silver Swan

Lake Johnston

Windarra

Principal & Registered Office

Unit 8 Churchill Court

331-335 Hay Street

Subiaco 6008

Western Australia

1. +61 8 6167 660
1. +61 8 6167 6649
admin@poseidon-nickel.com.au

www.poseidon-nickel.com.au

BLACK SWAN UNDERGROUND DRILLING

SUCCESS

13 NOVEMBER 2019

HIGHLIGHTS

Final 6 holes of 14-hole RC underground drill campaign completed
Multiple nickel bearing lodes encountered in all 6 drill holes
Assays for the first 2 holes (PBSC009 & PBSC010) have been received, significant intersections include:

-	Footwall Lode	9m @ 0.84% Ni (PBSC010)
-	Central Lode	37.5m @ 0.84% Ni (PBSC010)
-		including 7.5m @ 1.27% Ni
Hangingwall 1 Lode	9m @ 0.90% Ni (PBSC009)
-	Hangingwall 2 Lode	19.5m @ 0.84% NI (PBSC009)
		including 7.5m @ 1.10% Ni

Excellent up-hole drilling milestones achieved:
- Full sample recovery on longest up-hole of 237m (PBSC009)
- Continuous up-hole gyro survey to 200m
- Simultaneous recovery of sufficient metallurgical sample
- Refinements and future trials under consideration

Figure 1: Full up-hole continuous gyro survey

Page 2

Poseidon Nickel (ASX: POS, "the Company") is pleased to announce details of the successful completion of the last 6 holes (1,155m) of the underground Reverse Circulation (RC) drilling program on section 11340 North.

The Company has now completed Stage 1 of the planned 14-hole (2,481m) RC trial underground drilling program at Black Swan. The drill program was undertaken from the Gosling Access Drive, 200m below the Project's open pit (which is currently being dewatered).

Commenting on the results, David Riekie, Interim CEO said, "Our team has returned another round of impressive drilling results at our flagship Black Swan project.

"Building on the previous outcomes, we are seeing significant benefits utilising the novel "up-hole" drilling and survey technique, which has provided the team with important information on confirmation of the mineralisation at depth and extensions to this mineralisation.

"We continue to successfully explore and develop Black Swan, as we work our way towards making a Final Investment Decision this quarter on re-starting nickel mining operations."

Drilling Results Received

The last 6 holes of the RC drill program intersected multiple higher-grade lodes within the Black Swan disseminated envelope, with drilling activities now focused on confirming the continuity of the lodes below the open pit, and at depth extension. Assays have only been received for 2 holes, PBSC009 and PBSC010, and results for the other 4 holes are expected shortly.

Significant intersections are presented in Table 1 below with hole locations depicted in Figure 2.

Table 1 - Significant intersections from holes PBSC009 and PBSC010

Footwall Lode

Hole ID	m From	m To	Interval	Ni%	Cu%	Co%	MgO%	S%	True Width
PBSC009				NSA
PBSC010	18	27	9	0.84	0.03	0.02	34.05	0.58	9
Central Lode
Hole ID	m From	m To	Interval	Ni%	Cu%	Co%	MgO%	S%	True Width
PBSC009	87	114	27	0.78	0.03	0.01	31.55	1.03	26
including	91.5	103.5	12	0.94	0.05	0.02	31.92	1.11	11
PBSC010	75	112.5	37.5	0.84	0.04	0.02	34.82	1.28	37
including	81	96	15	0.93	0.05	0.02	33.99	1.74	15
and	105	112.5	7.5	1.27	0.05	0.02	34.95	1.25	7
Hangingwall 1 Lode
Hole ID	m From	m To	Interval	Ni%	Cu%	Co%	MgO%	S%	True Width
PBSC009	141	150	9	0.90	0.04	0.01	30.63	0.85	9
PBSC010	139.5	153	13.5	0.64	0.03	0.01	37.43	0.51	13
Hangingwall 2 Lode
Hole ID	m From	m To	Interval	Ni%	Cu%	Co%	MgO%	S%	True Width
PBSC009	178.5	198	19.5	0.84	0.04	0.01	36.00	0.74	19
including	190.5	198	7.5	1.10	0.05	0.02	35.68	0.99	7
PBSC010	190.5	198	7.5	0.95	0.04	0.02	34.31	0.77	7

Page 3

Milestone Reached

PBSC009 was drilled at +10 degrees for 237m directly across the Black Swan deposit, whilst utilising an up-hole continuous gyro technique (developed by Downhole Surveys) used to locate the hole traces over 200m (see Figure 1). Completion of drill hole PBSC009 resulted in the longest continuously sampled underground RC "up-hole" drilled by this form of RC rig.

The combination of these new technologies has allowed the Company to rapidly and accurately determine the extent and variability of mineralisation within the Black Swan Nickel Deposit.

These milestones could not have been achieved without the application of large-bore style sampling, and Management considers the use of this technique to be pivotal in unlocking the significant value at the Black Swan Deposit.

Geological Interpretation

Within drill hole PBSC009, the continuous downhole intersection from the start of the Central Lode to the end of the Hangingwall 2 Lode is 111m grading 0.6% Ni, and for drill-hole PBSC010 the total downhole intersection was 136.5m @ 0.57% Ni.

Both intersections represent more or less the true width of mineralisation, whilst the more enriched lodes lie within these broader intersections in both holes.

The location of the Gosling Access Drive has provided efficient drill access to these underground lodes, while the eastern-most hangingwall mineralisation was unable to be fully tested on this section due to physical drill depth limitations.

The four higher-grade lodes intersected are located within the open pit, and formed from multiple mineralised pulses within the Black Swan lava channel. The main Central Lode is continuous from the open pit to the current drilling area, and it is anticipated that mineralisation will continue down to the two diamond holes drilled 1km below surface by Poseidon earlier this year (see ASX announcement "Successful Phase 1 Drilling under Black Swan Open Pit" released 6 May 2019).

The initial trial drilling program also intersected the Central Lode some 80m to the south (see Figure 3 and ASX announcement "Black Swan Underground RC Drilling First Assay Results" released 14 October 2019).

Figure 2 - Location of significant intersections received for holes PBSC009 and PBSC010

Page 4

Figure 3 - Drill results from the 11260N section

Next Steps

Once all assays have been received, the Company will provide a more extensive interpretation of mineralisation for the 11340 North section.

The individual lodes within the broader intersections are continuous zones of richer primary mineralisation and are typically >0.8% Ni, reaching grades as high as 1.9% Ni. This continuity of mineralisation across lodes offers the possibility for successful underground mining or an extension of the open pit. The large-bore sampling technique will greatly assist the rapid evaluation of this opportunity.

On completion of the interpretation, Poseidon will analyse the results to determine what technical refinements to the system need to be made and will work towards planning further trials.

David Riekie
Interim CEO	For further information contact David Riekie : + 61 (0)8 6167 6600.

About Poseidon Nickel Limited

Poseidon Nickel Limited (ASX: POS, "Poseidon"), is a West Australian focussed nickel company that owns three

previously operating Nickel Sulphide mines: Windarra, Black Swan/Silver Swan and Lake Johnston. These 100% owned assets collectively had an operating capacity of 3.6mtpa (Lake Johnston 1.5mtpa; Black Swan 2.1mta). The processing facilities at Lake Johnston and Black Swan have been maintained through company managed, care and maintenance programs.

Poseidon released an upgrade to the resource at the Silver Swan deposit on 5th August 2019.

Poseidon is currently undertaking a number of de-risking and restart safety works and similar initiatives at and around Black Swan.

Poseidon has continued to explore at Lake Johnston, with recent diamond drilling at the Abi Rose prospect. These exploration results were released to ASX on 22 October 2018 and 21 November 2018.

Windarra has a number of near mine exploration projects including the extension of the original Windarra deposit, Cerberus, South Windarra and Woodline Well.

The current Resource Statement below shows a combined Nickel resource of 395,530 tonnes of Nickel (which should be read with the Competent Person statements below).

Page 5

Table 2 - Collar and survey details
Hole ID	Easting	Northing	RL	Depth	Dip	Azi (Mine)
PBSC009	10166.5	11340	11018	237	10.0		89.8
PBSC010	10166.5	11340	11019	231	23.3		89.2
PBSC011	10166.5	11340	11020	231	36.0		88.5
PBSC012	10165.7	11340	11020.5	168	50.6		88.3
PBSC013	10164.7	11340	11021	151.5	62.3		86.5
PBSC014	10163.7	11340	11021	136.5	75.7		84.3
Table 3 - Assay Results
HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC009	0	1.5	1.5	P0936A	0.38	0.00	0.01	21.35	0.16
PBSC009	1.5	3	1.5	P0937A	0.32	0.00	0.01	20.76	0.02
PBSC009	3	4.5	1.5	P0938A	0.30	0.00	0.01	21.43	0.00
PBSC009	4.5	6	1.5	P0939A	0.24	0.00	0.01	21.44	0.02
PBSC009	6	7.5	1.5	P0940A	0.25	0.00	0.01	21.21	0.01
PBSC009	7.5	9	1.5	P0941A	0.20	0.00	0.01	16.67	0.03
PBSC009	9	10.5	1.5	P0942A	0.00	0.00	0.00	2.42	0.43
PBSC009	10.5	12	1.5	P0943A	0.20	0.00	0.01	15.50	0.19
PBSC009	12	13.5	1.5	P0944A	0.24	0.00	0.01	19.44	0.29
PBSC009	13.5	15	1.5	P0945A	0.25	0.00	0.01	20.89	0.20
PBSC009	15	16.5	1.5	P0946A	0.27	0.00	0.01	20.61	0.17
PBSC009	16.5	18	1.5	P0947A	0.49	0.03	0.02	20.42	0.30
PBSC009	18	19.5	1.5	P0948A	0.62	0.03	0.02	20.08	0.30
PBSC009	19.5	21	1.5	P0949A	0.38	0.00	0.01	21.01	0.52
PBSC009	21	22.5	1.5	P0951A	0.30	0.00	0.01	20.54	0.39
PBSC009	22.5	24	1.5	P0952A	0.44	0.00	0.01	20.89	0.35
PBSC009	24	25.5	1.5	P0953A	0.51	0.00	0.01	21.51	0.63
PBSC009	25.5	27	1.5	P0954A	0.27	0.00	0.01	21.75	0.07
PBSC009	27	28.5	1.5	P0955A	0.20	0.00	0.01	21.41	0.00
PBSC009	28.5	30	1.5	P0956A	0.31	0.00	0.02	21.01	0.09
PBSC009	30	31.5	1.5	P0957A	0.22	0.00	0.01	21.54	0.02
PBSC009	31.5	33	1.5	P0958A	0.29	0.00	0.01	21.34	0.04
PBSC009	33	34.5	1.5	P0959A	0.22	0.00	0.01	21.23	0.02
PBSC009	34.5	36	1.5	P0960A	0.25	0.00	0.01	20.99	0.04
PBSC009	36	37.5	1.5	P0961A	0.19	0.00	0.01	21.49	0.03
PBSC009	37.5	39	1.5	P0962A	0.20	0.00	0.01	21.20	0.02
PBSC009	39	40.5	1.5	P0963A	0.23	0.00	0.01	21.08	0.02
PBSC009	40.5	42	1.5	P0964A	0.21	0.00	0.01	21.35	0.01
PBSC009	42	43.5	1.5	P0965A	0.22	0.00	0.01	21.84	0.01
PBSC009	43.5	45	1.5	P0966A	0.43	0.00	0.02	21.03	0.25
PBSC009	45	46.5	1.5	P0967A	0.91	0.01	0.02	19.50	1.35
PBSC009	46.5	48	1.5	P0968A	0.53	0.00	0.01	21.24	0.48
PBSC009	48	49.5	1.5	P0969A	0.19	0.00	0.01	21.53	0.08
PBSC009	49.5	51	1.5	P0970A	0.18	0.00	0.01	21.20	0.05
PBSC009	51	52.5	1.5	P0971A	0.17	0.00	0.01	20.82	0.06
PBSC009	52.5	54	1.5	P0972A	0.18	0.00	0.01	21.49	0.08
PBSC009	54	55.5	1.5	P0973A	0.18	0.00	0.01	21.65	0.04

Page 6

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC009	55.5	57	1.5	P0974A	0.16	0.00	0.01	21.33	0.04
PBSC009	57	58.5	1.5	P0976A	0.16	0.00	0.01	21.48	0.03
PBSC009	58.5	60	1.5	P0977A	0.44	0.01	0.01	21.37	0.33
PBSC009	60	61.5	1.5	P0978A	0.54	0.02	0.02	20.92	0.62
PBSC009	61.5	63	1.5	P0979A	0.41	0.01	0.02	21.12	0.48
PBSC009	63	64.5	1.5	P0980A	0.17	0.00	0.01	21.50	0.08
PBSC009	64.5	66	1.5	P0981A	0.68	0.00	0.02	19.69	1.13
PBSC009	66	67.5	1.5	P0982A	0.24	0.00	0.01	20.59	0.36
PBSC009	67.5	69	1.5	P0983A	0.53	0.01	0.02	20.12	0.74
PBSC009	69	70.5	1.5	P0984A	0.24	0.00	0.01	20.81	0.28
PBSC009	70.5	72	1.5	P0985A	0.27	0.01	0.01	20.35	0.28
PBSC009	72	73.5	1.5	P0986A	0.41	0.02	0.02	20.48	0.60
PBSC009	73.5	75	1.5	P0987A	0.63	0.02	0.02	20.02	0.87
PBSC009	75	76.5	1.5	P0988A	0.33	0.01	0.01	19.59	0.35
PBSC009	76.5	78	1.5	P0989A	0.61	0.02	0.02	19.35	0.82
PBSC009	78	79.5	1.5	P0990A	0.47	0.01	0.02	20.35	0.54
PBSC009	79.5	81	1.5	P0991A	0.54	0.02	0.02	19.69	0.80
PBSC009	81	82.5	1.5	P0992A	0.36	0.01	0.01	20.27	0.63
PBSC009	82.5	84	1.5	P0993A	0.53	0.03	0.02	20.94	0.88
PBSC009	84	85.5	1.5	P0994A	0.47	0.02	0.02	21.00	0.78
PBSC009	85.5	87	1.5	P0995A	0.50	0.02	0.02	20.71	0.96
PBSC009	87	88.5	1.5	P0996A	0.76	0.02	0.02	18.72	1.81
PBSC009	88.5	90	1.5	P0997A	0.56	0.03	0.02	19.43	1.25
PBSC009	90	91.5	1.5	P0998A	0.50	0.03	0.02	20.54	0.82
PBSC009	91.5	93	1.5	P0999A	1.09	0.07	0.03	19.59	1.94
PBSC009	93	94.5	1.5	P1001A	0.99	0.06	0.02	20.65	1.17
PBSC009	94.5	96	1.5	P1002A	0.62	0.03	0.01	20.17	0.68
PBSC009	96	97.5	1.5	P1003A	0.60	0.02	0.02	19.96	0.66
PBSC009	97.5	99	1.5	P1004A	0.61	0.04	0.01	18.57	0.59
PBSC009	99	100.5	1.5	P1005A	1.25	0.05	0.02	17.00	1.33
PBSC009	100.5	102	1.5	P1006A	1.59	0.06	0.02	18.35	1.63
PBSC009	102	103.5	1.5	P1007A	0.80	0.03	0.02	19.72	0.86
PBSC009	103.5	105	1.5	P1008A	0.40	0.02	0.01	20.83	0.34
PBSC009	105	106.5	1.5	P1009A	0.36	0.00	0.01	21.32	0.31
PBSC009	106.5	108	1.5	P1010A	0.60	0.00	0.01	18.04	0.92
PBSC009	108	109.5	1.5	P1011A	0.35	0.00	0.01	16.98	0.33
PBSC009	109.5	111	1.5	P1012A	1.29	0.08	0.02	18.45	1.25
PBSC009	111	112.5	1.5	P1013A	0.80	0.03	0.02	18.48	0.91
PBSC009	112.5	114	1.5	P1014A	0.90	0.03	0.02	15.72	1.68
PBSC009	114	115.5	1.5	P1015A	0.21	0.02	0.01	20.92	0.17
PBSC009	115.5	117	1.5	P1016A	0.27	0.00	0.01	19.35	0.17
PBSC009	117	118.5	1.5	P1017A	0.28	0.00	0.01	20.51	0.18
PBSC009	118.5	120	1.5	P1018A	0.21	0.00	0.01	21.40	0.09
PBSC009	120	121.5	1.5	P1019A	0.22	0.00	0.01	21.02	0.06
PBSC009	121.5	123	1.5	P1020A	0.29	0.00	0.01	21.08	0.13
PBSC009	123	124.5	1.5	P1021A	0.97	0.05	0.02	21.08	0.84
PBSC009	124.5	126	1.5	P1022A	1.25	0.05	0.02	20.79	1.10
PBSC009	126	127.5	1.5	P1023A	0.21	0.02	0.01	16.71	0.34

Page 7

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC009	127.5	129	1.5	P1024A	0.70	0.04	0.01	20.34	0.57
PBSC009	129	130.5	1.5	P1026A	0.53	0.02	0.01	18.78	0.39
PBSC009	130.5	132	1.5	P1027A	0.41	0.02	0.01	18.05	0.35
PBSC009	132	133.5	1.5	P1028A	0.28	0.01	0.01	19.13	0.18
PBSC009	133.5	135	1.5	P1029A	0.48	0.02	0.01	20.34	0.42
PBSC009	135	136.5	1.5	P1030A	0.16	0.00	0.01	19.73	0.07
PBSC009	136.5	138	1.5	P1031A	0.23	0.00	0.01	20.68	0.11
PBSC009	138	139.5	1.5	P1032A	0.23	0.01	0.01	22.60	0.14
PBSC009	139.5	141	1.5	P1033A	0.34	0.05	0.01	22.95	0.25
PBSC009	141	142.5	1.5	P1034A	0.85	0.02	0.02	22.08	0.66
PBSC009	142.5	144	1.5	P1035A	1.02	0.03	0.02	20.92	0.88
PBSC009	144	145.5	1.5	P1036A	1.40	0.07	0.02	17.78	1.46
PBSC009	145.5	147	1.5	P1037A	0.93	0.04	0.01	16.97	0.86
PBSC009	147	148.5	1.5	P1038A	0.65	0.03	0.01	16.10	0.62
PBSC009	148.5	150	1.5	P1039A	0.56	0.03	0.01	17.02	0.59
PBSC009	150	151.5	1.5	P1040A	0.30	0.01	0.01	18.78	0.24
PBSC009	151.5	153	1.5	P1041A	0.69	0.02	0.01	20.89	0.54
PBSC009	153	154.5	1.5	P1042A	0.28	0.00	0.01	22.26	0.16
PBSC009	154.5	156	1.5	P1043A	0.21	0.01	0.01	21.96	0.15
PBSC009	156	157.5	1.5	P1044A	0.21	0.00	0.01	22.44	0.13
PBSC009	157.5	159	1.5	P1045A	0.21	0.00	0.01	23.14	0.13
PBSC009	159	160.5	1.5	P1046A	0.86	0.03	0.02	22.12	0.83
PBSC009	160.5	162	1.5	P1047A	1.06	0.04	0.02	18.87	1.08
PBSC009	162	163.5	1.5	P1048A	0.24	0.01	0.01	19.67	0.20
PBSC009	163.5	165	1.5	P1049A	0.21	0.01	0.01	20.91	0.15
PBSC009	165	166.5	1.5	P1051A	0.09	0.00	0.00	16.93	0.13
PBSC009	166.5	168	1.5	P1052A	0.17	0.00	0.01	20.31	0.11
PBSC009	168	169.5	1.5	P1053A	0.21	0.00	0.01	21.91	0.12
PBSC009	169.5	171	1.5	P1054A	0.21	0.00	0.01	22.24	0.12
PBSC009	171	172.5	1.5	P1055A	0.51	0.02	0.01	22.11	0.42
PBSC009	172.5	174	1.5	P1056A	0.22	0.03	0.01	22.57	0.13
PBSC009	174	175.5	1.5	P1057A	0.30	0.00	0.01	22.61	0.21
PBSC009	175.5	177	1.5	P1058A	0.31	0.01	0.01	22.67	0.22
PBSC009	177	178.5	1.5	P1059A	0.21	0.00	0.01	22.69	0.12
PBSC009	178.5	180	1.5	P1060A	0.52	0.03	0.01	21.01	0.44
PBSC009	180	181.5	1.5	P1061A	1.08	0.08	0.02	21.82	0.98
PBSC009	181.5	183	1.5	P1062A	0.96	0.06	0.02	21.85	0.92
PBSC009	183	184.5	1.5	P1063A	0.64	0.03	0.01	22.24	0.61
PBSC009	184.5	186	1.5	P1064A	0.30	0.00	0.01	21.46	0.15
PBSC009	186	187.5	1.5	P1065A	0.24	0.00	0.01	22.65	0.15
PBSC009	187.5	189	1.5	P1066A	0.91	0.04	0.02	21.83	0.82
PBSC009	189	190.5	1.5	P1067A	0.70	0.03	0.01	21.79	0.62
PBSC009	190.5	192	1.5	P1068A	1.22	0.06	0.02	21.94	1.13
PBSC009	192	193.5	1.5	P1069A	1.40	0.07	0.02	21.35	1.28
PBSC009	193.5	195	1.5	P1070A	0.83	0.04	0.02	21.91	0.70
PBSC009	195	196.5	1.5	P1071A	1.02	0.05	0.02	21.36	0.91
PBSC009	196.5	198	1.5	P1072A	1.05	0.04	0.02	21.04	0.93
PBSC009	198	199.5	1.5	P1073A	0.29	0.01	0.01	22.25	0.19

Page 8

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC009	199.5	201	1.5	P1074A	0.22	0.00	0.01	22.78	0.12
PBSC009	201	202.5	1.5	P1076A	0.22	0.00	0.01	22.50	0.12
PBSC009	202.5	204	1.5	P1077A	0.29	0.00	0.01	22.23	0.18
PBSC009	204	205.5	1.5	P1078A	0.21	0.00	0.01	21.99	0.09
PBSC009	205.5	207	1.5	P1079A	0.18	0.00	0.01	20.84	0.08
PBSC009	207	208.5	1.5	P1080A	0.21	0.00	0.01	22.50	0.09
PBSC009	208.5	210	1.5	P1081A	0.28	0.01	0.01	22.32	0.15
PBSC009	210	211.5	1.5	P1082A	0.20	0.00	0.01	22.14	0.08
PBSC009	211.5	213	1.5	P1083A	0.20	0.00	0.01	22.45	0.06
PBSC009	213	214.5	1.5	P1084A	0.18	0.00	0.01	21.52	0.05
PBSC009	214.5	216	1.5	P1085A	0.20	0.01	0.01	22.19	0.06
PBSC009	216	217.5	1.5	P1086A	0.24	0.00	0.01	22.56	0.07
PBSC009	217.5	219	1.5	P1087A	0.19	0.00	0.01	21.85	0.06
PBSC009	219	220.5	1.5	P1088A	0.18	0.00	0.01	20.87	0.05
PBSC009	220.5	222	1.5	P1089A	0.17	0.00	0.01	20.28	0.05
PBSC009	222	223.5	1.5	P1090A	0.17	0.00	0.01	20.17	0.05
PBSC009	223.5	225	1.5	P1091A	0.19	0.00	0.01	20.82	0.05
PBSC009	225	226.5	1.5	P1092A	0.17	0.00	0.01	20.69	0.06
PBSC009	226.5	228	1.5	P1093A	0.20	0.00	0.01	21.08	0.06
PBSC009	228	229.5	1.5	P1094A	0.19	0.00	0.01	20.66	0.07
PBSC009	229.5	231	1.5	P1095A	0.18	0.00	0.01	20.73	0.05
PBSC009	231	232.5	1.5	P1096A	0.19	0.00	0.01	20.48	0.04
PBSC009	232.5	234	1.5	P1097A	0.19	0.00	0.01	20.33	0.04
PBSC009	234	235.5	1.5	P1098A	0.20	0.00	0.01	21.80	0.05
PBSC009	235.5	237	1.5	P1099A	0.20	0.00	0.01	21.82	0.06
PBSC010	0	1.5	1.5	P1101A	0.21	0.00	0.01	21.03	0.01
PBSC010	1.5	3	1.5	P1102A	0.22	0.00	0.01	20.84	0.01
PBSC010	3	4.5	1.5	P1103A	0.30	0.00	0.01	21.75	0.01
PBSC010	4.5	6	1.5	P1104A	0.26	0.00	0.01	21.11	0.01
PBSC010	6	7.5	1.5	P1105A	0.23	0.00	0.01	18.10	0.01
PBSC010	7.5	9	1.5	P1106A	0.00	0.00	0.00	2.13	0.34
PBSC010	9	10.5	1.5	P1107A	0.09	0.00	0.00	8.03	0.18
PBSC010	10.5	12	1.5	P1108A	0.30	0.00	0.01	18.98	0.36
PBSC010	12	13.5	1.5	P1109A	0.22	0.00	0.01	19.91	0.25
PBSC010	13.5	15	1.5	P1110A	0.26	0.00	0.01	20.80	0.27
PBSC010	15	16.5	1.5	P1111A	0.37	0.01	0.01	20.61	0.23
PBSC010	16.5	18	1.5	P1112A	0.43	0.02	0.01	20.40	0.31
PBSC010	18	19.5	1.5	P1113A	0.88	0.03	0.02	20.60	1.11
PBSC010	19.5	21	1.5	P1114A	1.05	0.04	0.02	20.24	0.80
PBSC010	21	22.5	1.5	P1115A	0.81	0.04	0.02	20.22	0.45
PBSC010	22.5	24	1.5	P1116A	0.75	0.04	0.02	20.04	0.40
PBSC010	24	25.5	1.5	P1117A	0.81	0.03	0.02	21.14	0.40
PBSC010	25.5	27	1.5	P1118A	0.75	0.02	0.01	20.99	0.34
PBSC010	27	28.5	1.5	P1119A	0.51	0.01	0.01	21.52	0.17
PBSC010	28.5	30	1.5	P1120A	0.27	0.00	0.01	21.46	0.04
PBSC010	30	31.5	1.5	P1121A	0.46	0.01	0.01	21.46	0.18
PBSC010	31.5	33	1.5	P1122A	0.63	0.03	0.02	21.34	0.23
PBSC010	33	34.5	1.5	P1123A	0.77	0.02	0.02	21.34	0.25

Page 9

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC010	34.5	36	1.5	P1124A	0.41	0.00	0.01	21.29	0.09
PBSC010	36	37.5	1.5	P1126A	0.35	0.00	0.01	21.10	0.09
PBSC010	37.5	39	1.5	P1127A	0.25	0.00	0.01	21.47	0.03
PBSC010	39	40.5	1.5	P1128A	0.22	0.00	0.01	21.90	0.01
PBSC010	40.5	42	1.5	P1129A	0.24	0.01	0.01	21.57	0.03
PBSC010	42	43.5	1.5	P1130A	0.35	0.00	0.01	21.86	0.20
PBSC010	43.5	45	1.5	P1131A	0.25	0.00	0.01	21.37	0.10
PBSC010	45	46.5	1.5	P1132A	0.23	0.00	0.01	21.50	0.03
PBSC010	46.5	48	1.5	P1133A	0.22	0.00	0.01	20.61	0.09
PBSC010	48	49.5	1.5	P1134A	0.24	0.00	0.01	20.44	0.15
PBSC010	49.5	51	1.5	P1135A	0.20	0.00	0.01	21.15	0.10
PBSC010	51	52.5	1.5	P1136A	0.74	0.00	0.02	20.07	1.33
PBSC010	52.5	54	1.5	P1137A	0.23	0.00	0.01	21.03	0.17
PBSC010	54	55.5	1.5	P1138A	0.19	0.00	0.01	21.51	0.05
PBSC010	55.5	57	1.5	P1139A	0.54	0.58	0.01	21.52	1.18
PBSC010	57	58.5	1.5	P1140A	0.19	0.00	0.01	21.52	0.01
PBSC010	58.5	60	1.5	P1141A	0.18	0.00	0.01	21.61	0.02
PBSC010	60	61.5	1.5	P1142A	0.17	0.00	0.01	21.58	0.00
PBSC010	61.5	63	1.5	P1143A	0.17	0.00	0.01	21.93	0.00
PBSC010	63	64.5	1.5	P1144A	0.16	0.00	0.01	21.84	0.01
PBSC010	64.5	66	1.5	P1145A	0.17	0.00	0.01	22.56	0.00
PBSC010	66	67.5	1.5	P1146A	0.16	0.00	0.01	22.02	0.00
PBSC010	67.5	69	1.5	P1147A	0.16	0.00	0.01	21.69	0.00
PBSC010	69	70.5	1.5	P1148A	0.21	0.00	0.01	21.29	0.02
PBSC010	70.5	72	1.5	P1149A	0.51	0.02	0.02	20.90	0.30
PBSC010	72	73.5	1.5	P1151A	0.35	0.01	0.01	18.98	0.14
PBSC010	73.5	75	1.5	P1152A	0.35	0.01	0.01	19.23	0.14
PBSC010	75	76.5	1.5	P1153A	0.68	0.03	0.02	20.86	0.84
PBSC010	76.5	78	1.5	P1154A	0.78	0.03	0.02	20.75	1.46
PBSC010	78	79.5	1.5	P1155A	0.59	0.02	0.02	20.55	1.29
PBSC010	79.5	81	1.5	P1156A	0.67	0.03	0.02	20.61	2.09
PBSC010	81	82.5	1.5	P1157A	0.78	0.05	0.02	20.34	2.11
PBSC010	82.5	84	1.5	P1158A	0.83	0.04	0.03	20.36	1.65
PBSC010	84	85.5	1.5	P1159A	0.93	0.04	0.03	20.84	1.42
PBSC010	85.5	87	1.5	P1160A	0.91	0.04	0.03	20.78	1.66
PBSC010	87	88.5	1.5	P1161A	0.90	0.04	0.02	20.05	2.01
PBSC010	88.5	90	1.5	P1162A	0.99	0.05	0.03	20.76	1.82
PBSC010	90	91.5	1.5	P1163A	1.05	0.04	0.02	20.51	1.87
PBSC010	91.5	93	1.5	P1164A	1.10	0.06	0.02	20.35	2.00
PBSC010	93	94.5	1.5	P1165A	0.97	0.06	0.02	20.36	1.66
PBSC010	94.5	96	1.5	P1166A	0.88	0.04	0.02	20.67	1.19
PBSC010	96	97.5	1.5	P1167A	0.69	0.03	0.02	21.04	0.78
PBSC010	97.5	99	1.5	P1168A	0.33	0.02	0.01	21.82	0.34
PBSC010	99	100.5	1.5	P1169A	0.25	0.00	0.01	22.75	0.17
PBSC010	100.5	102	1.5	P1170A	0.23	0.00	0.01	22.02	0.09
PBSC010	102	103.5	1.5	P1171A	0.44	0.03	0.01	21.92	0.44
PBSC010	103.5	105	1.5	P1172A	0.66	0.03	0.02	22.40	0.73
PBSC010	105	106.5	1.5	P1173A	1.25	0.04	0.02	21.72	1.28

Page 10

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC010	106.5	108	1.5	P1174A	1.75	0.06	0.02	20.85	1.83
PBSC010	108	109.5	1.5	P1176A	1.76	0.09	0.02	20.45	1.76
PBSC010	109.5	111	1.5	P1177A	0.85	0.04	0.02	20.98	0.79
PBSC010	111	112.5	1.5	P1178A	0.73	0.03	0.01	21.40	0.60
PBSC010	112.5	114	1.5	P1179A	0.46	0.01	0.01	17.55	1.49
PBSC010	114	115.5	1.5	P1180A	0.25	0.02	0.01	22.01	0.11
PBSC010	115.5	117	1.5	P1181A	0.33	0.02	0.01	21.31	0.19
PBSC010	117	118.5	1.5	P1182A	0.28	0.00	0.01	18.16	0.18
PBSC010	118.5	120	1.5	P1183A	0.19	0.00	0.01	17.62	0.09
PBSC010	120	121.5	1.5	P1184A	0.23	0.00	0.01	18.83	0.07
PBSC010	121.5	123	1.5	P1185A	0.32	0.01	0.01	19.05	0.18
PBSC010	123	124.5	1.5	P1186A	0.32	0.01	0.01	18.70	0.18
PBSC010	124.5	126	1.5	P1187A	0.39	0.02	0.01	19.34	0.24
PBSC010	126	127.5	1.5	P1188A	0.29	0.01	0.01	20.76	0.14
PBSC010	127.5	129	1.5	P1189A	0.31	0.01	0.01	20.89	0.15
PBSC010	129	130.5	1.5	P1190A	0.26	0.02	0.01	20.36	0.12
PBSC010	130.5	132	1.5	P1191A	0.33	0.01	0.01	20.78	0.17
PBSC010	132	133.5	1.5	P1192A	0.81	0.02	0.02	20.81	0.62
PBSC010	133.5	135	1.5	P1193A	0.39	0.02	0.01	18.50	0.26
PBSC010	135	136.5	1.5	P1194A	0.61	0.04	0.01	17.99	0.68
PBSC010	136.5	138	1.5	P1195A	0.58	0.02	0.01	20.95	0.44
PBSC010	138	139.5	1.5	P1196A	0.49	0.02	0.01	21.43	0.38
PBSC010	139.5	141	1.5	P1197A	0.71	0.04	0.02	22.96	0.52
PBSC010	141	142.5	1.5	P1198A	0.93	0.05	0.02	22.25	0.82
PBSC010	142.5	144	1.5	P1199A	0.74	0.04	0.02	20.80	0.72
PBSC010	144	145.5	1.5	P1201A	0.87	0.05	0.02	21.83	0.73
PBSC010	145.5	147	1.5	P1202A	0.24	0.01	0.01	22.52	0.14
PBSC010	147	148.5	1.5	P1203A	0.29	0.01	0.01	22.85	0.19
PBSC010	148.5	150	1.5	P1204A	0.30	0.01	0.01	23.71	0.16
PBSC010	150	151.5	1.5	P1205A	0.93	0.04	0.02	23.22	0.69
PBSC010	151.5	153	1.5	P1206A	0.79	0.04	0.01	23.06	0.64
PBSC010	153	154.5	1.5	P1207A	0.31	0.02	0.01	23.41	0.21
PBSC010	154.5	156	1.5	P1208A	0.60	0.03	0.01	23.65	0.45
PBSC010	156	157.5	1.5	P1209A	0.27	0.00	0.01	23.84	0.15
PBSC010	157.5	159	1.5	P1210A	0.25	0.00	0.01	23.31	0.14
PBSC010	159	160.5	1.5	P1211A	0.14	0.02	0.01	18.61	0.09
PBSC010	160.5	162	1.5	P1212A	0.27	0.03	0.01	19.55	0.24
PBSC010	162	163.5	1.5	P1213A	0.24	0.00	0.01	22.52	0.15
PBSC010	163.5	165	1.5	P1214A	0.23	0.00	0.01	21.05	0.13
PBSC010	165	166.5	1.5	P1215A	0.19	0.01	0.01	21.11	0.12
PBSC010	166.5	168	1.5	P1216A	0.62	0.03	0.01	23.05	0.48
PBSC010	168	169.5	1.5	P1217A	0.30	0.00	0.01	22.69	0.19
PBSC010	169.5	171	1.5	P1218A	1.11	0.06	0.01	22.74	0.94
PBSC010	171	172.5	1.5	P1219A	0.32	0.01	0.01	22.13	0.21
PBSC010	172.5	174	1.5	P1220A	0.23	0.01	0.01	22.16	0.12
PBSC010	174	175.5	1.5	P1221A	0.31	0.01	0.01	22.07	0.18
PBSC010	175.5	177	1.5	P1222A	0.24	0.00	0.01	22.74	0.13
PBSC010	177	178.5	1.5	P1223A	0.18	0.00	0.01	20.43	0.09

Page 11

HoleId	mFrom	mTo	Interval	SampleNo	Ni	Cu	Co	Mg	S
PBSC010	178.5	180	1.5	P1224A	0.34	0.02	0.01	21.14	0.25
PBSC010	180	181.5	1.5	P1226A	0.61	0.04	0.01	19.67	0.46
PBSC010	181.5	183	1.5	P1227A	0.12	0.06	0.01	17.28	1.12
PBSC010	183	184.5	1.5	P1228A	0.39	0.02	0.01	20.81	0.29
PBSC010	184.5	186	1.5	P1229A	0.21	0.01	0.01	22.05	0.10
PBSC010	186	187.5	1.5	P1230A	0.28	0.01	0.01	20.91	0.17
PBSC010	187.5	189	1.5	P1231A	0.63	0.04	0.02	21.68	0.47
PBSC010	189	190.5	1.5	P1232A	0.30	0.01	0.01	22.27	0.20
PBSC010	190.5	192	1.5	P1233A	0.64	0.04	0.02	21.94	0.50
PBSC010	192	193.5	1.5	P1234A	0.78	0.04	0.02	20.56	0.62
PBSC010	193.5	195	1.5	P1235A	0.77	0.04	0.02	21.49	0.57
PBSC010	195	196.5	1.5	P1236A	1.78	0.07	0.03	20.79	1.52
PBSC010	196.5	198	1.5	P1237A	0.79	0.03	0.02	18.69	0.62
PBSC010	198	199.5	1.5	P1238A	0.36	0.01	0.01	21.85	0.19
PBSC010	199.5	201	1.5	P1239A	0.23	0.00	0.01	21.96	0.08
PBSC010	201	202.5	1.5	P1240A	0.22	0.00	0.01	21.85	0.08
PBSC010	202.5	204	1.5	P1241A	0.36	0.01	0.01	21.05	0.19
PBSC010	204	205.5	1.5	P1242A	0.39	0.02	0.01	21.09	0.20
PBSC010	205.5	207	1.5	P1243A	0.31	0.00	0.01	22.33	0.13
PBSC010	207	208.5	1.5	P1244A	0.23	0.00	0.01	21.92	0.08
PBSC010	208.5	210	1.5	P1245A	0.25	0.00	0.01	19.54	0.12
PBSC010	210	211.5	1.5	P1246A	0.24	0.00	0.01	21.65	0.09
PBSC010	211.5	213	1.5	P1247A	0.24	0.00	0.01	19.97	0.09
PBSC010	213	214.5	1.5	P1248A	0.24	0.01	0.01	20.93	0.09
PBSC010	214.5	216	1.5	P1249A	0.22	0.00	0.01	21.39	0.07
PBSC010	216	217.5	1.5	P1251A	0.22	0.01	0.01	21.79	0.08
PBSC010	217.5	219	1.5	P1252A	0.21	0.00	0.01	22.51	0.08
PBSC010	219	220.5	1.5	P1253A	0.23	0.00	0.01	22.89	0.09
PBSC010	220.5	222	1.5	P1254A	0.20	0.00	0.01	22.14	0.07
PBSC010	222	223.5	1.5	P1255A	0.17	0.01	0.01	19.06	0.08
PBSC010	223.5	225	1.5	P1256A	0.24	0.01	0.01	21.31	0.12
PBSC010	225	226.5	1.5	P1257A	0.21	0.00	0.01	19.66	0.10
PBSC010	226.5	228	1.5	P1258A	0.17	0.00	0.01	19.69	0.06
PBSC010	228	229.5	1.5	P1259A	0.19	0.00	0.01	20.86	0.07
PBSC010	229.5	231	1.5	P1260A	0.19	0.00	0.01	20.35	0.07

Page 12

MINERAL RESOURCE STATEMENT

Table 1: Nickel Projects Mineral Resource Statement

Nickel Sulphide	JORC	Cut Off
Resources	Compliance	Grade

MINERAL RESOURCE CATEGORY

INDICATED	INFERRED	TOTAL

Tonnes

Ni%

Ni Metal

Tonnes

Ni%

Ni Metal

Tonnes

Ni%

Ni Metal

Co%

Co Metal

Cu%

Cu Metal

(Kt)

Grade

(t)

(Kt)

Grade

(t)

(Kt)

Grade

(t)

Grade

(t)

Grade

(t)

BLACK SWAN PROJECT


Black Swan	2012	0.40%	9,600	0.68	65,000		21,100		0.54		114,000		30,700	0.58		179,000	0.01		4,200	NA	-



Silver Swan	2012	4.50%	108	9.4	10,130		61		9.7		5,900		168	9.5		16,030	0.19		316	0.4	679




LAKE JOHNSTON PROJECT


Maggie Hays	2012	0.80%	2,600	1.60	41,900	900		1.17		10,100		3,500	1.49		52,000	0.05		1,800	0.10	3,400



WINDARRA PROJECT


Mt Windarra	2012	0.90%	922	1.56	14,000	3,436		1.66		57,500		4,358	1.64		71,500	0.03		1,200	0.13	5,700


South Windarra	2004	0.80%	772	0.98	8,000	-		-		-		772	0.98		8,000	NA		-	NA	-


Cerberus	2004	0.75%	2,773	1.25	35,000	1,778		1.91		34,000		4,551	1.51		69,000	NA		-	0.08	3,600



TOTAL


Total Ni, Co, Cu	2004 & 2012		16,775	1.04	174,030	27,275		0.81		221,500		44,049	0.90		395,530	0.02		7,516	0.03	13,379

Resources

Note: totals may not sum exactly due to rounding. NA = information Not Available from reported resource model. The Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves.

Black Swan Resource as at 22 July 2014 (see ASX announcement "Poseidon Announces Black Swan Mineral Resource" released 4th August 2014) Silver Swan Resource as at 5 August 2019 (see ASX announcement "Silver Swan Resource Upgrade…" released 5th August 2019)

Maggie Hays Resource as at 17 March 2015 (see ASC announcement "50% Increase in Indicated Resources at Lake Johnston" released 17th March 2015)

Mt Windarra Resource as at t November 2014 (see ASX announcement "Poseidon Announces Revised Mt Windarra Resource" released 7th November 2014)

South Windarra and Cerberus Resource as at 30 April 2013 (see ASX announcement "Resource Increase of 25% at Windarra Nickel Project" released 1st December 2011)

The Company is not aware of any new information or data that materially affects the information in the relevant market announcements. All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Table 2: Gold Tailings Project Mineral Resource Statement

Gold Tailings	JORC	Cut Off
Resources	Compliance	Grade

MINERAL RESOURCE CATEGORY

INDICATED	INFERRED	TOTAL

Tonnes	Grade	Au	Tonnes	Grade	Au	Tonnes	Grade	Au
(Kt)	(g/t)	(oz)	(Kt)	(g/t)	(oz)	(Kt)	(g/t)	(oz)

WINDARRA GOLD TAILINGS PROJECT



Gold Tailings	2004	NA	11,000	0.52	183,000	-	-	-	11,000	0.52	183,000


TOTAL



Total Au	2004		11,000	0.52	183,000	-	-	-	11,000	0.52	183,000
Resources

Note: totals may not sum exactly due to rounding.

Windarra Gold Tailings Resource as at 30 April 2013 (see ASX announcement "Windarra Definitive Feasibility Study Supports Low Cost, Long Life Nickel Operation" released 30th April 2013).

Page 13

ORE RESERVE STATEMENT

Table 3: Nickel Projects Ore Reserve Statement

			ORE RESERVE CATEGORY


Nickel Sulphide Reserves	JORC Compliance	PROBABLE

		Tonnes	Ni%	Ni Metal	Co%	Co Metal	Cu%	Cu Metal
		(Kt)	Grade	(t)	Grade	(t)	Grade	(t)
SILVER SWAN PROJECT
Silver Swan	2012	57	5.79	3,300	0.11	60	0.26	150
Underground

Black Swan	2012	3,370	0.63	21,500	NA	NA	NA	NA
Open pit
TOTAL

Total Ni Reserves		2012		3,427	0.72		24,800		0.11		60		0.26		150

Note: Calculations have been rounded to the nearest 10,000 t of ore, 0.01 % Ni grade 100 t Ni metal and 10t of cobalt metal.

Co & Cu grades and metal content for Black Swan require additional modelling prior to estimation.

Silver Swan Underground Reserve as at 26 May 2017 (see ASX announcement "Silver Swan Definitive Feasibility Study" released 26th May 2017) Black Swan Open Pit Reserve as at 5 November 2014 (see ASX announcement "Poseidon Announces Black Swan Ore Reserve" dated 5th November 2014).

The Company is aware that the 2019 upgrade to the Silver Swan Indicated Resource will materially affect the Silver Swan Reserve above which was based upon the 2015 Silver Swan Resource Estimate (refer to Table 1 above for the new Silver Swan Resource estimate). Such information is based on the information complied by the Company's Geologists and the Competent Persons as listed below in the Competent Person Statements.

The Company is not aware of any new information or data that materially affects the information in the relevant market announcements for the Black Swan Open Pit Reserve. All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Page 14

COMPETENT PERSON STATEMENTS:

The information in this report that relates to Exploration Results is based on, and fairly represents, information compiled and reviewed by Mr Steve Warriner, Chief Geologist, who is a full-time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists.

The information in this report which relates to the Black Swan Mineral Resource is based on, and fairly represents, information compiled by Mr Andrew Weeks who is a full-time employee of Golder Associates Pty Ltd. The information in this report which relates to the Black Swan Ore Reserve is based on, and fairly represents, information compiled by Mr Andrew Weeks who is a full-time employee of Golder Associates Pty Ltd and who is a Members of the Australasian Institute of Mining and Metallurgy.

The information in this report which relates to the Silver Swan Mineral Resource is based on, and fairly represents, information compiled by Mr Steve Warriner, Chief Geologist, who is a full-time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr Kahan Cervoj who is a full time employee of Optiro Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. The information in this report which relates to the Silver Swan Ore Reserve is based on, and fairly represents, information compiled by Mr Matthew Keenan who is a full-time employee of Entech Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy.

The information in this report which relates to the Lake Johnston Mineral Resource is based on, and fairly represents, information compiled by Mr Steve Warriner, Chief Geologist, who is a full-time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr Andrew Weeks who is a full-time employee of Golder Associates Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy. The information in this report which relates to the Lake Johnston Ore Reserves Project is based on, and fairly represents, information compiled by Mr Matthew Keenan who is a full time employee of Entech Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy.

The information in this report that relates to Mineral Resources at the Windarra Nickel Project and Gold Tailings Project is based on, and fairly represents, information compiled by Mr Steve Warriner, Chief Geologist, who is a full-time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr Ian Glacken who is a full time employee of Optiro Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. The Windarra Project contains Mineral Resources which are reported under JORC 2004 Guidelines as there has been no Material Change or Re-estimation of the Mineral Resource since the introduction of the JORC 2012 Codes. Future estimations will be completed to JORC 2012 Guidelines.

Mr Warriner, Mr Cervoj, Mr Weeks, Mr Glacken and Mr Keenan all have sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are 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' (the JORC Code 2012). Mr Warriner, Mr Cervoj, Mr Weeks, Mr Glacken and Mr Keenan have consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

FORWARD LOOKING STATEMENT - INFERRED RESOURCE STATEMENTS:

The Company notes that an Inferred Resource has a lower level of confidence than an Indicated Resource and that the JORC Codes, 2012 advises that to be an Inferred Resource it is reasonable to expect that the majority of the Inferred Resource would be upgraded to an Indicated Resource with continued exploration. Based on advice from relevant competent Persons, the Company has a high degree of confidence that the Inferred Resource for the Silver Swan deposit will upgrade to an Indicated Resource with further exploration work.

The Company believes it has a reasonable basis for making the forward looking statement in this announcement, including with respect to any production targets, based on the information contained in this announcement and in particular, the JORC Code, 2012 Mineral Resource for Silver Swan as of May 2016, together with independent geotechnical studies, determination of production targets, mine design and scheduling, metallurgical testwork, external commodity price and exchange rate forecasts and worldwide operating cost data.

FORWARD LOOKING STATEMENTS:

This release contains certain forward looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "except", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward looking statements

Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance.

Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially. These variations, if materially adverse, may affect the timing or the feasibility and potential development of the Silver Swan underground mine.

Page 15

ATTACHMENT A JORC (2012) Table 1

BLACK SWAN EXPLORATION AND RESERVE ESTIMATE

Page 16

BLACK SWAN EXPLORATION AND RESERVE ESTIMATE

SECTION 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

JORC Code explanation	Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Reverse circulation and diamond drilling have been used to obtain samples. Sampling is a mixture of full core, half core, quarter core and chip sampling. Generally, 1 m samples or smaller have been used for exploration drilling, whilst grade control drilling in the Black Swan pit is on 2 m sample lengths.

Samples have been obtained from drilling carried out on the tenements since 1968, incorporating several lease owners. Sampling protocols from drilling between 1968 and 1991 have not been well documented.

Diamond drilling sampling protocol since 1995 has followed accepted industry practice for the time, with all mineralised core sampled and intervals selected by geologists to ensure samples did not cross geological or lithological contacts. Core was halved, with a half quartered, with one quarter core sent for assay, half core kept for metallurgical testing, and the remaining quarter core retained for geological reference.

Samples from reverse circulation drilling were collected using cone splitters, with field splits taken every 20 samples.

The underground RC technique utilises air with water injection to flush sample material from the rods and send it through a rotary cone splitter. Three duplicate samples are collected and 1 in 10 duplicates are submitted for analysis as a check and balance to sample representivity.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Diamond and reverse circulation drilling are the primary methods by which drilling has been conducted.

The majority of diamond core is NQ, the rest being HQ size. Core orientation was carried out using either spear marks or the Ezimark system.

Surface RC drilling is limited to the extent of the Black Swan open pit.

The underground RC system being trialled by Poseidon uses a combination of technologies to perform a wet RC function utilising an underground long-hole drill rig. The system has been trialled in gold mines with large nugget effect. This is the first application of this technique to nickel.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Core recovery and presentation has been documented as being good to excellent, with the exception of one hole used in the estimation, BSD189, which suffered significant core rotation, but little loss, within the oxide zone.

Due to the good to excellent core recovery, Golder has no reason to believe that there is bias due to either sample recovery or loss/gain of fines.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

The total length and percentage of the relevant intersections logged.

Much of the drill core has been oriented prior to the core being logged. Recent data was electronically captured and uploaded in to the site Acquire® geology SQL database.

Golder has been provided with no record of core photography, nor the extent to which drilling was logged geologically.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core	Early diamond core is assumed to have been chisel cut, whilst most core
taken.	was cut using a core saw, with either half or quarter core used for
If non-core, whether riffled, tube sampled, rotary split, etc. and	sampling.

	Page 17

JORC Code explanation	Commentary

whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the	RC samples were collected by use of a cone splitter, with duplicates
sample preparation technique.	collected every 20 samples.
Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.	Later resource and grade control drilling was crushed to <3 mm and then
Measures taken to ensure that the sampling is representative of	split to 3 kg lots, then pulverised. This is appropriate given the sample
the in situ material collected, including for instance results for field	interval and mass.
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Pulps were prepared by acid digest and analysed by ICP-OES using standard laboratory practices. Both independent and laboratory internal QAQC were used.

Site specific standards were derived from two RC drill holes specifically designed for the purpose and prepared by ORE Pty Ltd in Melbourne. Analysis for these standards was for Ni, As, Fe and Mg.

For RC grade control drilling, blank samples were inserted 1 in 50 and 1 in 19 samples as standard.

Standard samples have a well-defined margin of error suitable for the deposit.

No external laboratory checks were conducted for drill samples.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Logging and assay data is electronically captured and up loaded in to the site Acquire® geology SQL database.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used. Quality and adequacy of topographic control.

All collar surveys were completed to an accuracy of ±10 mm. A local grid based on seven known AMG references was created. The Department of Land Information (formerly the Department of Land Administration) benchmark UO51 on the Yarri Road opposite 14 Mile Dam was used to tie the survey control stations to the Australian Height Datum (AHD). A height datum of AHD + 1000 m was adopted for the Black Swan project.

All Black Swan diamond drill holes have been routinely surveyed- generally every 30 m or less. In the case of the some early drill holes, however, only the hole dip component was measured, using the acid vial method. All subsequent diamond drill holes have been surveyed using Eastman single shot down hole survey instruments.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Surface drilling used a spacing of 20 m to 50 m across strike and approximately 50 m along strike.

In pit drilling is on a 10 m by 10 m staggered pattern. Underground drill data was also used in the estimate. Sample data was composited to 2 m.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Drill hole orientation was dominantly perpendicular to geological continuity and befits the requirements of resource estimation.

Sample security

The measures taken to ensure sample security.	There are no documented details available for sample security.
Audits or reviews
The results of any audits or reviews of sampling techniques and	Examination of duplicate, blank and standard data does not highlight any

Page 18

JORC Code explanation	Commentary

data.	material bias or systematic error.

Page 19

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Section 2: Reporting of Exploration Results

Mineral Tenement and Land Tenure Status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Black Swan open-pit is centred on M27/39 and extends into M27/200. Silver Swan is wholly located on M27/200. They are located 42.5km NE of Kalgoorlie. They are registered to Poseidon Nickel Atlantis Operations Pty Ltd, a wholly owned subsidiary of Poseidon Nickel Ltd, following the purchase of the assets.

Historical royalties of 3% NSR exist over the minerals produced.

Exploration Done by Other Parties

Acknowledgment and appraisal of exploration by other parties.

Refer to Section 1 (above)

The Black Swan Disseminated Resource has been explored by both MPI and Norilsk Nickel. Both companies followed best practise and Poseidon has validated all data handed over as a part of the purchase. Only minor errors have been found and corrected.

Geology

Deposit type, geological setting and style of mineralisation.	Refer to Section 3 (below)
Drill Hole Information
A summary of all information material to the understanding of the	Refer to the body of the announcement above.
exploration results including a tabulation of the following information for
all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level - elevation above sea level in
metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly
explain why this is the case.
Data Aggregation Methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Grades have been aggregated using the length x SG weighted average.

See body of text for individual sample grades.

Relationship Between Mineralisation Widths and Intercept Lengths

These relationships are particularly important in the reporting of	True widths are stated where necessary.
Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle
is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true
width not known').
Diagrams
Appropriate maps and sections (with scales) and tabulations of	Refer to the body of text above.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views
Balanced Reporting
Where comprehensive reporting of all Exploration Results is not	Not applicable.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration

Page 20

Results.

Other Substantive Exploration Data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Refer to body of text above.

Metallurgical recoveries for the stockpiled ore from the Black Swan Open Pit have been determined by stockpile as follows, based on historical processing data;

Yellow Stockpile: 73-78%%
HG Talc Stockpile: 49-61%%

Where possible exploration results and geological logging will reflect the

Yellow Stockpile (Serpentinite Mineralisation > 0.5% Ni) or the HG Talc

Stockpile (Talc Mineralisation > 0.5% Ni). The other stockpiles and associated recoveries come from blends of the above or low grade and not applicable to exploration results.

Metallurgical testing is yet to be conducted on the core subject to this announcement.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scalestep-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Poseidon expects to undertake further resource definition and grade control drilling at Black Swan.

Mineralogical and metallurgical recovery studies will be conducted on the drill samples.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

JORC Code explanation	Commentary

Database integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data validation procedures used.

Logging and assay data has been electronically captured and uploaded in to the site Acquire® geology SQL database.

The database gas been previously reviewed by Golder and was found to be in excellent condition. It is very clean and contains few errors, but does not contain sample and assay quality control information.

Golder conducted visual validation checks on the drill hole data, with holes not relevant to the estimation removed from the dataset.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

If no site visits have been undertaken indicate why this is the case.

Golder has previously visited the Black Swan site, with several visits conducted within the last five years. A further visit was not made for this resource estimate. Black Swan has a long history of exploration and has been an operating mine, with both open pit and underground mining operations taking place.

Geological interpretation

Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.

Nature of the data used and of any assumptions made.

The effect, if any, of alternative interpretations on Mineral Resource estimation.

The use of geology in guiding and controlling Mineral Resource estimation.

The factors affecting continuity both of grade and geology.

The geological interpretation is validated by drill and mining activity, as well as in-pit mapping by previous owners.

Where possible, estimation has been restricted to lithologies controlling and surrounding mineralisation. The geological domaining is based on data from previous resource estimates completed by Norilsk Nickel Pty Ltd and Gipronickel that have been reviewed by Golder previously, and for this resource estimate.

The interpretation for this Mineral Resource estimate relies solely upon data from drilling, and not on mapping or surface sampling.

Dimensions

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

The mineralisation associated with the Black Swan deposit runs along a strike length of approximately 250 m north-south and approximately 100 m east-west. Drilling has intercepted Ni mineralisation at up to 600 m below surface.

Estimation and modelling techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance

Mineralisation was estimated within domains defined by lithological information and statistical analysis of sample data in the composite file was used for estimation purposes.

	Page 21

JORC Code explanation	Commentary

of extrapolation from data points. If a computer assisted estimation
method was chosen include a description of computer software and	The block size is 12.5 m (X) by 25 m (Y) by 5 m (Z). The sub-block size is
parameters used.	3.125 m (X) by 12.5 m (Y) by 2.5 m (Z).
The availability of check estimates, previous estimates and/or mine
production records and whether the Mineral Resource estimate takes	High-grade restraining was applied to Ni in one domain, based on data
appropriate account of such data.	analysis of assayed samples. The high-grade samples were used only in the
The assumptions made regarding recovery of by-products.	estimation of blocks within a 25 m radius of the high grade sample.
Estimation of deleterious elements or other non-grade variables of
economic significance (e.g. sulphur for acid mine drainage	Using parameters derived from the modelled variograms, Ordinary Kriging
characterisation).	(OK) was used to estimate average block grades for Ni, As, MgO, Fe, and S.
In the case of block model interpolation, the block size in relation to
the average sample spacing and the search employed.	The estimation was conducted in three passes with the search size
Any assumptions behind modelling of selective mining units.
increasing for each pass. In some domains, where blocks had not been filled
Any assumptions about correlation between variables.	after three passes, a fourth pass was used, with samples from outside the
Description of how the geological interpretation was used to control	domain of interest used to fill the remaining blocks.
the resource estimates.
Discussion of basis for using or not using grade cutting or capping.	The model was validated visually and statistically using swath plots and
The process of validation, the checking process used, the comparison	comparison to sample statistics.
of model data to drill hole data, and use of reconciliation data if
available.
Moisture

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

Density measurements were performed using the immersion technique. The density was calculated as a wet density even though core was often left to dry for some time. In some sampling programmes a representative section of core was used for measurements, rather than the entire core. Therefore a 5% moisture factor was applied to the Specific Gravity (SG) values used in the resource estimate.

Cut-off parameters

The basis of the adopted cut-off grade(s) or quality parameters applied.

The resource model is constrained by assumptions about economic cut-off grades. The Mineral Resources were reported using a cut-off grade of 0.4% Ni which was applied on a block by block basis.

Mining factors or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

The block model uses a parent cell size of 12.5 m (X) by 25 m (Y) by 5 m (Z), primarily determined by data availability and the dimensions of the mineralisation.

Metallurgical factors or assumptions

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

Metallurgical recovery of nickel was assigned based on data calculated by the Black Swan mill whilst mining operations were in progress.

Environmental factors or assumptions

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

As the project has previously been mined, there are existing waste storage facilities and environmental considerations are not expected to pose any issues to the resumption of mining activity.

Bulk density

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

Bulk density estimates were calculated from core obtained from drilling programmes. Golder applied a moisture factor of 5% to account for the bulk density measurements being based on wet core, and that in some drilling programmes, selected portions of core being used to represent the

Page 22

JORC Code explanation	Commentary

The bulk density for bulk material must have been measured by	whole, rather than all core being measured for bulk density.
methods that adequately account for void spaces (vugs, porosity,
etc.), moisture and differences between rock and alteration zones
within the deposit.
Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
Classification

The basis for the classification of the Mineral Resources into varying confidence categories.

Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

Whether the result appropriately reflects the Competent Person's view of the deposit.

Resources were classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).

The classification of Mineral Resources was completed by Golder based on geological confidence, drill hole spacing and grade continuity. The Competent Person is satisfied that the result appropriately reflects his view of the deposit.

Continuous zones meeting the following criteria were used to define the resource class:

Indicated Resource

Blocks that were estimated with samples with an average of less than 30 m distance from blocks.

Number of drill holes confirming grade continuity.

Inferred Resource

Blocks that were estimated with samples with an average of less than 50 m distance from blocks.

Limited number of drill holes.

Mineral Resource classification was restricted to a Lerch-Grossman pit shell using a potential future nickel price. This was combined with the accuracy of the estimate ascertained by geological confidence, drill hole spacing and grade continuity from available drilling data.

Audits or reviews

The results of any audits or reviews of Mineral Resource estimates.

This Mineral Resource estimate is based on data from previous resource estimates completed by Norilsk Nickel Pty Ltd and Gipronickel that have been reviewed by Golder.

Discussion of relative accuracy/confidence

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

The relative accuracy is reflected in the resource classification discussed above that is in line with industry acceptable standards.

This is a Mineral Resource estimate that includes knowledge gained from mining and milling recovery data during production.

Section 4 Estimation and Reporting of Ore Reserves

JORC Code explanation	Commentary

Mineral Resource estimate for conversion to Ore Reserves

Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.

Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.

The Black Swan open pit and surface stockpile Ni Mineral Resources used as

the basis of this Ore Reserve were estimated by Golder Resources Pty Ltd and announced to market with the previous Ore Reserve estimate in November 2014. This Resource contains both in-situ material and previously mined material in surveyed ex-pit stockpiles.

The Co Resource used as the basis of this Ore Reserve was estimated by Entech Pty Ltd in April 2017 and has been announced concurrently with this

Page 23

JORC Code explanation

Commentary

Reserve.

Mineral Resources are reported inclusive of the Ore Reserves.

Site visits

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

If no site visits have been undertaken indicate why this is the case.

The Competent Person (Mr Matthew Keenan) visited the BSNO site on 7th June 2016. The visit included inspection of the Black Swan open pit and surface stockpiles.

The site visits did not give the Competent Person any reason to believe that any portion of the Reserve Estimate will not be mineable.

Study status

The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.

The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.

The Black Swan and surface stockpile material being converted from Mineral Resource to Ore Reserve is based on a Preliminary Feasibility Study undertaken in 2014.

Modifying factors accurate to the study level have been applied based on detailed selective mining unit (SMU) analysis. Modelling indicates that the resulting mine plan is technically achievable and economically viable.

Cut-off parameters

The basis of the cut-off grade(s) or quality parameters applied.

For the Black Swan open pit, a recovered nickel cut-off grade of 0.21% Ni was used to define ore and waste. This is approximately equivalent to an in- situ cut-off grade of 0.46% Ni for the serpentinite ore and 0.56% for the talc carbonate ore.

A nickel price of $US6.50/lb and a USD:AUD exchange rate of 0.76 was used to determine the cut-off grades.

Mining factors or assumptions

The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).

The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.

The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc.), grade control and pre-production drilling.

The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).

The mining dilution factors used.
The mining recovery factors used.
Any minimum mining widths used.
The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.
The infrastructure requirements of the selected mining methods.

Detailed mine designs were carried out on the Black Swan open pit, and these were used as the basis of the Reserve estimate.

The Black Swan open pit Ore Reserves are based on a conventional open pit mining method using hydraulic excavators and off-road trucks to haul the ore and waste from the pit and stockpiles.

The pit has already been developed. The current pit floor is approximately 120 m below the original surface. The strip ratio of the Reserve pit design is approximately 0.3:1 (waste:ore).

Open pit wall angles were determined based on independent geotechnical analysis and historical pit wall designs. A slip in the SE corner of the pit has been reviewed by independent geotechnical consultants and considered in the Reserve design.

Open pit grade control will be carried out by 25 m deep RC holes ahead of production.

Open pit mining dilution was estimated locally by modelling a selective mining unit of 12.5m x 12.5m x 5m. This was achieved by regularising the block model to conform to this block size.

A 95% open pit mining recovery factor was applied to the ore tonnage to account for mining related losses.

Surface stockpile tonnages are based on detailed site surveys carried out at cessation of previous mining operations. Stockpiles grades are based on site grade control models.

Surface stockpiles are assumed to be reclaimed by the processing plant ROM loader if <500 m from the plant. If >500m from the plant, an additional allowance has been made for reclaim load and haul.

Page 24

JORC Code explanation

Commentary

The mining method chosen is well-known and widely used in the local mining industry and production rates and costing can be predicted with a suitable degree of accuracy. Suitable access exists for all ore sources.

Allowance has been made for dewatering of the Black Swan open pit.

Independent geotechnical consultants MineGeotech Pty Ltd and Snowden

Mining Industry Consultants Pty Ltd (2008) contributed appropriate geotechnical analyses to a suitable level of detail. These form the basis of mine design for the open pit Reserve estimate.

Only the Indicated portion of the Mineral Resource was used to estimate the Ore Reserve. All Inferred material has had grade set to waste for the purposes of evaluation. The Ore Reserve is technically and economically viable without the inclusion of Inferred Mineral Resource material.

Most of the infrastructure required for the operations is already in place and has been under care and maintenance for approximately 8 years, including a processing plant and associated infrastructure, access roads, offices and ablutions, connections to the Western Power grid, power reticulation, and borefields. Allowance has been made for refurbishment of this infrastructure where required based on quotes provided by reputable independent vendors to an appropriate standard of detail.

Metallurgical factors or assumptions

The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.

Whether the metallurgical process is well-tested technology or novel in nature.

The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.

Any assumptions or allowances made for deleterious elements.

The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.

For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?

The Black Swan concentrator was successfully operated at throughput rates

up to 2.2Mtpa on the Reserve deposits during previous operations. All Reserve ore is expected to be processed through this concentrator at a rate of 1.1Mtpa. Suitable associated infrastructure is in place including water supply and storage, reagents storage, and tailings disposal and storage systems.

Extensive historical data exists on metallurgical characteristics of the Reserve orebodies.

The cost of plant refurbishment has been determined to a PFS standard of accuracy.

The metallurgical process is conventional, well understood and has many years of operational data to support the flotation responses of the Black Swan and Silver Swan ores.

The Black Swan Talc Carbonate ore has not, historically, been processed in large quantities at the Black Swan plant although it has been incorporated as a minor part of the feed blend at times. The majority mined has been stockpiled.

The metallurgical recovery of Black Swan Talc Carbonate ore has been tested and assessed by various groups in 2008 (Norilsk, AMEC and Ammtec) and 2010 (Gipronickel). The results from this testwork demonstrate that the recovery from Talc Carbonate ore is lower than Serpentinite ore but that flotation is technically feasible. Based on this work, the metallurgical recovery for the Black Swan open pit ore has been assumed at 65% for this Ore Reserve estimate.

Page 25

JORC Code explanation		Commentary

	Cobalt has been included as a by-product in the Ore Reserve estimate.
	Metallurgical recoveries for the stockpiled ore have been determined by
	stockpile as follows, based on historical processing data;
	-	Crushed Stockpile: 64%
	-	Yellow Stockpile: 73%
	-	Lime Stockpile: 69%
	-	HG Talc Stockpile: 49%
	-	Blue Indicated Stockpile: 52%

Environmental

The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.

Geochemical characterisation studies have been conducted that indicate that the rock mass is non-acid forming.

An additional geochemical study was conducted by MBS Environmental to assess the potential implications of storing tailings from the proposed ore blend on top of existing material in the tailings storage facility (TSF).

Works for the Stage 5 lift of the TSF commenced prior to the project being placed in care and maintenance. These works were incomplete and, as such, certification of the works by the Department of Environmental Regulation (DER) could not be obtained. The Works Approval authorising construction of the new embankment raise has since lapsed. A new Works

Approval will be required prior to completing the lift. Under current approvals tailings cannot be deposited above RL11378.5 m.

Based on current approvals, it is estimated that there is currently 4 years of storage capacity in the TSF. This is sufficient to cover storage of tailings generated by processing the estimated Reserve ore.

POS has advised that most required approvals already issued under the Mining Act and Environmental Protection Act from previous operations remain current.

At this point in time the Competent Person sees no reason permitting will not be granted within a reasonable time frame.

Infrastructure

The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.

The project site is already developed and on care and maintenance.

All required surface infrastructure is already in place and requires only minor refurbishment to the concentrator, TSF, workshops and haul roads.

As the site is 53 km from Kalgoorlie, a residential workforce will commute to site daily.

The mine is connected to the Western Power grid through two lines, one feeding the concentrator and one feeding the other surface infrastructure and underground workings.

The existing water supplies from the Black Swan borefield, Silver Swan underground dewatering system, Black Swan pit dewatering and the Federal pit are sufficient to operate the plant at a throughput of 1.1Mtpa.

Costs

The derivation of, or assumptions made, regarding projected capital costs in the study.

The project capital cost has been estimate to an accuracy of +/-25% based on detailed cost modelling and design work carried out in the Black Swan

	Page 26

JORC Code explanation	Commentary

The methodology used to estimate operating costs.	PFS.
Allowances made for the content of deleterious elements.
The source of exchange rates used in the study.
Derivation of transportation charges.	More detailed costs have been sourced for refurbishment of site
The basis for forecasting or source of treatment and refining	infrastructure.
charges, penalties for failure to meet specification, etc.

The allowances made for royalties payable, both Government and
private.	Operating costs for the open pit and processing plant were estimated from

	a combination of first principles, 2008/2009 historic operating costs and
	recent contractor quotations. They were also benchmarked against similar
	sized concentrators.
	The USD:AUD exchange rate assumed for the cost modelling was 0.76.
	Road transport charges for concentrate transport are based on factored
	quotes.
	WA state royalties of 2.5 % and a third-party royalty of 1% have been
	applied to gross concentrate nickel revenues.

Revenue factors

The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.

The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.

Forecasts for head grade delivered to the plant are based on detailed mine

plans and mining factors.

A global payable 68% of contained nickel metal has been applied to factor downstream treatment and refining charges. Payabilities are based on information provided by POS following discussions with potential offtake partners.

A flat USD:AUD exchange rate of 0.76 was used in the financial model.

Co by-products have currently been modelled in the Black Swan open pit. No by-products have been modelled from the surface stockpiles.

A flat nickel price of US$6.50/lb has been assumed for the financial analysis, based on forecasts provided by POS.

Deleterious elements (As and MgO) and associated penalties have been applied to the Black Swan pit concentrate pricing. These penalties are based on the historical concentrate grades generated by processing the Black Swan ore, and applying a penalty of US$3/dmt of concentrate for every 0.01% As grade over 0.2%, and a penalty of $40/dmt of concentrate for every unit of Fe:MgO ratio under 5. The penalties were advised by POS based on the 2014 study work and discussions with potential offtake partners. The total deleterious element penalty assumed for the Black Swan Reserve estimate works out to $151.32 per dmt of concentrate.

Market assessment

The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.

A customer and competitor analysis along with the identification of likely market windows for the product.

Price and volume forecasts and the basis for these forecasts.

For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.

POS is currently discussing offtake agreements with potential buyers.

The volume of concentrate produced by processing the estimated Reserve will be too small to have an impact on the global market of nickel sulphide concentrate.

Economic

The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.

The Black Swan pit and surface stockpiles Ore Reserves have been assessed both as combined and stand-alone projects in detailed financial models.

Page 27

JORC Code explanation	Commentary

NPV ranges and sensitivity to variations in the significant
assumptions and inputs.	All cases are economically viable and have a positive NPV at a 10% discount

	rate at the stated commodity price and exchange rate.
	Sensitivity analysis shows that the project is most sensitive to commodity
	price/exchange rate movements. The project is still economically viable at
	unfavourable commodity price/exchange rate adjustments of 10%.

Social

The status of agreements with key stakeholders and matters leading to social licence to operate.

A compensation agreement exists between the Black Swan Nickel Operations and Mt Vetters Pastoral Station. This has been updated periodically as the operation has changed. Compensation previously paid under this agreement has been adequate to address all impacts of the project. No further compensation is required under the terms of this agreement. However, previous practice may have resulted in an expectation of additional compensation if significant additional land clearance is proposed. Significant land clearance is not required under the current Reserve estimate plan.

POS will continue to communicate and negotiate in good faith with key stakeholders

Other

To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:

Any identified material naturally occurring risks.

The status of material legal agreements and marketing arrangements.

The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.

A formal process to assess and mitigate naturally occurring risks will be undertaken prior to execution. Currently, all naturally occurring risks are assumed to have adequate prospects for control and mitigation.

No marketing agreement has yet been signed but the Competent Person considers that such an agreement is reasonably likely. Interest has been expressed by various potential offtake partners for the concentrate and it was successfully marketed during previous operations.

Based on the information provided, the Competent Person sees no reason all required approvals will not be successfully granted within the anticipated timeframe.

Classification

The basis for the classification of the Ore Reserves into varying confidence categories.

Whether the result appropriately reflects the Competent Person's view of the deposit.

The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).

The Probable Ore Reserve is based on that portion of the Indicated Mineral Resource within the mine designs that may be economically extracted and includes an allowance for dilution and ore loss.

None of the Probable Ore Reserves have been derived from Measured Mineral Resources.

The result appropriately reflects the Competent Person's view of the deposit.

Audits or reviews

The results of any audits or reviews of Ore Reserve estimates.

The Ore Reserve estimate, along with the mine design and life of mine plan, has been peer-reviewed by Entech internally.

Discussion of relative accuracy/confidence

Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.

The Black Swan pit and stockpile design, schedule, and financial model on which the Ore Reserve is based has been completed to a Pre-Feasibility study standard, with a corresponding level of confidence.

Considerations in favour of a high confidence in the Ore Reserves include:

Approximately 17% of nickel metal tonnes are contained within ex-pit already mined surface stockpiles.
The mining process is simple, small scale and utilises proven technology
The Black Swan mill has a long operating history processing the Reserve material
The project, as previously operated, is fully permitted.

		Page 28

JORC Code explanation		Commentary

It is recognised that this may not be possible or appropriate in all		Additional approvals will be required for some tailings dam and
circumstances. These statements of relative accuracy and		road construction works.
confidence of the estimate should be compared with production
data, where available.
	Considerations in favour of a lower confidence in Ore Reserves include;
	-	Deleterious element penalties still need to be confirmed based
		on marketing agreements and metallurgical testwork on the
		proposed processing blend. Since the Black Swan concentrate
		was successfully sold during previous operations, it is not
		expected that such penalties will render the Reserve estimate
		unsaleable.
	-	Future nickel price and exchange rate forecasts carry an
		inherent level of risk
	-	There is a degree of uncertainty associated with geological
		estimates. The Reserve classifications reflect the levels of
		geological confidence in the estimates.
	-	There is a degree of uncertainty regarding estimates of impacts
		of natural phenomena including geotechnical assumptions,
		hydrological assumptions, and the modifying mining factors,
		commensurate with the level of study.
	-	A binding offtake agreement for the product has not yet been
		signed.
	The Ore Reserve is based on a global estimate. Modifying factors have been
	applied at a local scale.
	Further, i.e. quantitative, analysis of risk is not warranted or appropriate at
	the current level of technical and financial study.

Attachments

Original document
Permalink

Disclaimer

Poseidon Nickel Limited published this content on 13 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2019 22:49:06 UTC

Market Closed - Australian S.E. Other stock markets 01:47:20 2024-04-24 am EDT			5-day change	1st Jan Change
0.006 ^AUD	0.00%		0.00%	-50.00%

Mar. 18	Poseidon Nickel Divests Lake Johnston Project for AU$15 Million; Shares Fall 13%	MT
Mar. 18	Mineral Resources to Acquire Lake Johnson Nickel Concentrator from Poseidon Nickel	MT

Poseidon Nickel Divests Lake Johnston Project for AU$15 Million; Shares Fall 13%	Mar. 17	MT
Mineral Resources to Acquire Lake Johnson Nickel Concentrator from Poseidon Nickel	Mar. 17	MT
Poseidon Nickel Limited(ASX:POS) dropped from S&P/ASX Emerging Companies Index	Mar. 17	CI
Australia's MinRes to develop a lithium processing hub in Goldfields region	Mar. 17	RE
Australia's Mineral Resources to develop a lithium processing hub	Mar. 17	RE
Poseidon Nickel Limited Reports Earnings Results for the Half Year Ended December 31, 2023	Mar. 13	CI
Poseidon Nickel Identifies Prospective Structures at Windarra Project	Feb. 13	MT
Poseidon Nickel Enters Farm-In Deal for Mantis Resources' Tenements	Dec. 26	MT
Poseidon Nickel Secures a Farm-In Agreement with Mantis Resources	Dec. 21	MT
Poseidon Nickel Limited Appoints Peter John Harold as Director	23-10-27	CI
Rumble Resources Names Former Poseidon Nickel Chief as CEO	23-10-25	MT
Poseidon Nickel Begins Drilling at Lake Johnson Project	23-10-10	MT
Poseidon Nickel Limited Reports Earnings Results for the Full Year Ended June 30, 2023	23-09-22	CI
Poseidon Nickel Makes Leadership, Operations Changes Amid Black Swan Restart Deferral	23-09-21	MT
Poseidon Nickel Limited Announces CEO Changes, Effective on October 2, 2023	23-09-21	CI
Poseidon Nickel Limited Announces Management Changes	23-09-21	CI
Poseidon Nickel Limited(ASX:POS) dropped from S&P Global BMI Index	23-09-18	CI
Poseidon Nickel Delays Final Investment Decision for Black Swan Project	23-09-15	MT
Poseidon Nickel De-Risks Restart of Western Australian Nickel Mine With Resource Update	23-06-07	MT
Poseidon Nickel Advances Restart of Black Swan Project’s Smelter Plant	23-05-26	MT
Poseidon Nickel Limited(ASX:POS) dropped from S&P/ASX All Ordinaries Index	23-03-20	CI
Poseidon Nickel Limited Reports Earnings Results for the Half Year Ended December 31, 2022	23-03-14	CI
Poseidon Nickel Limited Reports Earnings Results for the Half Year Ended December 31, 2022	23-03-14	CI
Poseidon Nickel Advancing Restart of Western Australian Nickel Mine	23-03-06	MT
Poseidon Nickel Limited Announces Black Swan Progressing to Restart	23-03-05	CI

	1st Jan change	Capi.
POSEIDON NICKEL LIMITED	-50.00%	14.46M
PT MERDEKA BATTERY MATERIALS TBK.	-0.89%	3.76B
PT TRIMEGAH BANGUN PERSADA TBK	-7.00%	3.62B
IGO LIMITED	-19.67%	3.57B
PT VALE INDONESIA TBK	-4.87%	2.58B
NICKEL INDUSTRIES LIMITED	+26.62%	2.45B
NICKEL ASIA CORPORATION	-26.46%	954M
PT ADHI KARTIKO PRATAMA TBK	0.00%	300M
CANADA NICKEL COMPANY INC.	+31.58%	189M
PACIFIC METALS CO LTD.,	+6.26%	164M

Poseidon Nickel Limited

Equities

POS

AU000000POS4

Specialty Mining & Metals

Poseidon Nickel : Black Swan Underground Drilling Success

Latest news about Poseidon Nickel Limited

Chart Poseidon Nickel Limited

Company Profile

Income Statement Evolution

Analysts' Consensus

EPS Revisions

Annual profits - Rate of surprise

Sector Nickel Ore Mining