Lunnon Metals Limited updated the market on the completion of early stage exploration in the Somerset target area and final high priority assay results received from surface diamond drill holes targeting the Warren channel (part of the previously operated Foster nickel mine), at the Company's Kambalda Nickel Project (KNP). The Somerset area was originally targeted as part of the Company's Initial Public Offering (IPO) preparations and initially tested in 2021. Following the discovery of Baker, geophysical aeromagnetic anomalies in the Somerset area have been identified that are analogous to the one coincident with the Baker deposit.

As a result, the ranking of Somerset has increased and additional drill testing was warranted. An anomalous aeromagnetic high in the Somerset area, representing a possible early stage Baker look-a-like target, has now received first pass testing with over 4,300m of Reverse Circulation (RC) drilling completed in late 2022. Encouraging assay results have been returned that indicate there may be anomalous nickel sulphide mineralisation in the immediate locality.

Significant assay results at this early stage of exploration (above a 0.5% Ni cut-off, unless otherwise annotated) are as follows: COE22RC_011: 1.0m @ 0.85% Ni (128m); COE22RC_014: 1.0m @ 0.79% Ni (169m); COE22RC_015: 5.0m @ 0.89% Ni (133m); including: 2.0m @ 1.29% Ni (133m) above 1.0% Ni cut-off; COE22RC_019: 1.0m @ 0.74% Ni (125m); and COE22RC_020: 1.0m @ 0.62% Ni (113m). Further follow up drilling is being planned to investigate this nickel anomalism which all sits in the hanging wall position at the base of the second komatiite flow, which is the same as the Baker deposit. Some of the RC holes drilled also served to test a gold exploration target in the west of the programme area, termed Jubilation.

Significant gold assay results were received in multiple holes, with those above a 0.5g/t Au cut-off as follows: COE22RC_005: 1.0m @ 0.69g/t Au (33m); COE22RC_005: 2.0m @ 1.18 g/t Au (69m); COE22RC_006: 4.0m @ 0.64 g/t Au (64m); COE22RC_007: 1.0m @ 0.73 g/t Au (51m); COE22RC_008: 3.0m @ 0.60 g/t Au (42m); COE22RC_008: 2.0m @ 0.66 g/t Au (43m); COE22RC_008: 1.0m @ 0.58 g/t Au (92m); COE22RC_008: 2.0m @ 2.04 g/t Au (201m); and COE22RC_012: 1.0m @ 2.86 g/t Au (34m). The Company last reported assay results at Warren on 16 December 2022, which included the stand-out result of 7.48m @ 4.46% Ni in WRN22DD_008W5 2. Assay results for the three remaining wedge holes, that targeted nickel mineralisation adjacent to WRN21DD_001 (which intersected the Warren channel approximately 400m - 500m below surface)3, have now been returned as follows (above 1.0% Ni cut-off unless otherwise noted): WRN22DD_008W4: 0.67m @ 2.81% Ni, 0.20% Cu, 0.06% Co, 0.38g/t Pd & 0.40g/t Pt (477.82m); 0.97m @ 3.39% Ni, 0.24% Cu, 0.06% Co, 0.87g/t Pd & 0.42g/t Pt (485.60m > 0.5% Ni cut-off); including 0.50m @ 6.05% Ni, 0.41% Cu, 0.10% Co, 1.29g/t Pd & 0.72g/t Pt (486.07m); 0.33m @ 1.71% Ni, 0.09% Cu, 0.07% Co, 1.77g/t Pd & 0.25g/t Pt (496.79m). WRN22DD_008W6: 7.8m @ 0.69% Ni, 0.06% Cu, 0.02% Co, 0.26g/t Pd & 0.08g/t Pt (482.25m > 0.5% Ni cut-off); including 1.6m @ 1.22% Ni, 0.11% Cu, 0.03% Co, 0.57g/t Pd & 0.13g/t Pt (488.45m).

WRN22DD_008W7: 2.04m @ 1.15% Ni, 0.15% Cu, 0.03% Co (488.00m); 1.40m @ 1.89% Ni, 0.25% Cu, 0.04% Co, 0.70g/t Pd & 0.25g/t Pt (497.37m). Once more, cobalt, palladium and platinum values were elevated in the high grading nickel intervals, an observation consistent with previous results at Warren and at the Baker deposit.