Lunnon Metals Limited provided an update on the progress of its discovery programme at the historical Foster nickel mine, part of its Kambalda Nickel Project (KNP). A diamond drilling programme has been completed on the 85H nickel deposit designed to collect core samples for metallurgical and geotechnical test work whilst also intersecting, and thus assessing the accuracy of, the existing Mineral Resource Estimate (MRE). The 85H currently contains a JORC Code (2012) MRE of 687,000t @ 2.4% Ni for 16,600t of nickel metal which is accessible off the historical Foster mine decline.

Assay results have now been received and include the following significant results (above a 1.0% Ni cut off, true widths are estimated to be approximately 95% of the drilled intercept): Cobalt, palladium and platinum values were elevated in the reported intervals, an observation consistent with results at the nearby Warren channel, also accessible from the Foster mine decline, and at the Company's Baker Shoot discovery. The MRE model for the 85H deposit in the locality of the intervals in both FOS22DD_004W3 and FOS22DD_005 reconciled well with this new drilling. The Company considers these results to be an excellent validation of the current MRE.

All diamond holes in the programme were drilled through to the Lunnon Basalt in the footwall of the 85H deposit to assess geotechnical aspects of the basalt in this locality. Hole FOS22DD_004W1 was geotechnically logged and also surveyed by acoustic teleview methods for geotechnical data collection purposes. FOS22DD_004 was drilled between the 9 and 10 mine levels at -67mRL (approximately 380m below surface) and targeted high-grade zones or shoots interpreted to be present in the mineralised surface.

For reference, the closest historical hole, drilled by WMC Resources Ltd. (WMC) is approximately 65m away. The parent hole did not successfully achieve target depth and so a wedge hole, W1, was drilled off the bottom of the hole. Two further wedge holes, W2 and W3, were also drilled with all three resultant mineralised intervals being located within 5m of each other.

W3 was cut and assayed while the other two wedged intervals were retained for metallurgical test work, with the assay results for these chosen intervals to be delivered when the test work is complete. FOS22DD_005 was drilled 52m up-plunge (shallowly to the north) from FOS22DD_004, between 8 and 9 mine levels and intersected the 85H deposit at approximately -37mRL (350m below surface). The closest historical WMC hole is 50m away.

Figure 1 illustrates an isometric view of the Foster mine decline and workings highlighting the location of the 8, 9 and 10 mine levels. The 85H development drives were face sampled by WMC on a regular basis as they advanced. Both historical face sample and diamond drilling data inform the current 85H MRE 1. Permitting to dewater the Foster mine decline and associated workings is well advanced with a Groundwater Licence (5C) approved to abstract 4.0Gl/year from the Foster and Warren historical workings and any future development at Baker by Lunnon Metals.

Permits to discharge that water from Foster mine decline, at an already approved discharge point on Lake Lefroy, are under final assessment. Once all regulatory approvals are received, the Company will be in a position to consider initiating the dewatering programme and subsequently excavating the portal entrance to the decline and re-entering the mine. In support of this objective, Warren and 85H metallurgical test work will run in parallel to the next round of test work at Baker which will be based on the soon to be completed MRE update for that deposit.

The update to the Baker MRE will incorporate the results of the extremely successful reverse circulation and diamond infill and extension programme completed between July and September 2022 (all relevant assay results for this programme have been reported to the ASX). Geotechnical work is also progressing at all three deposits and recommendations from these technical studies will be incorporated in the mine design work that will commence in the March 2023 quarter. Metallurgical test work, once all results are received and analysed, will be reported for each individual nickel Mineral Resource, as those studies are completed.