LUNNON METALS LIMITED ABN: 82 600 008 848

N75C DEMONSTRATES UPSIDE OF HISTORICAL CORE PROGRAMME

22 APRIL 2022

BOARD/MANAGEMENT

HIGHLIGHTS

Mr Liam Twigger

NON-EXECUTIVE CHAIRPERSON

Mr Ian Junk

• • Lunnon Metals delivers first-time Mineral Resource from its Historical Core Programme

  NON-EXECUTIVE DIRECTOR

  Mr Ashley McDonald

• • Initial Mineral Resource for the N75C surface of 412,700 tonnes @ 2.3% nickel for 9,500 nickel tonnes

  NON-EXECUTIVE DIRECTOR

  Ms Deborah Lord

  NON-EXECUTIVE DIRECTOR

  Mr Edmund Ainscough

• • Global JORC 2012 nickel Mineral Resources at the Kambalda Nickel Project grow 24% to 1.65 million tonnes @ 2.9% nickel for 48,500 contained nickel tonnes

  MANAGING DIRECTOR

  Mr Aaron Wehrle

  EXPLORATION & GEOLOGY MANAGER

• • Outstanding potential upside on several fronts, including recent Baker discovery, additions to Warren, and ongoing application of the Historical Core Programme at Foster and Jan Shaft

• • "Foster Gap" results returned and support exploration opportunity in the southern, up-dip flank of the Foster mine area

OFFICE

Suite 5/11 Ventnor Avenue WEST PERTH WA 6005

Lunnon Metals Limited (ASX: LM8) (the Company or Lunnon Metals) is pleased to report on the initial nickel Mineral Resource estimate centred on the N75C surface, part of the former Foster nickel mine at its Kambalda Nickel Project (KNP).

POSTAL ADDRESS

PO BOX 470

The first-time Indicated and Inferred N75C Mineral Resource comprises:

WEST PERTH WA 6872

• - 270,700 tonnes @ 2.55% Ni for 6,900 nickel tonnes in Indicated Resource; and

  CONTACT DETAILS +61 8 6424 8848info@lunnonmetals.com.au

• - 142,000 tonnes @ 1.86% Ni for 2,600 nickel tonnes in Inferred Resource.

lunnonmetals.com.au

This result increases Lunnon Metals' global Mineral Resource across the KNP to 1.65 million tonnes at 2.9% Ni for 48,500 tonnes of contained nickel, an increase of 24%.

SHARE REGISTRY Automic Group

ASX CODE: LM8

Completion of the N75C Mineral Resource, the first from the Historical Core Programme since the Company listed in June 2021, demonstrates the potential of the 350km of historical core that is available at the KNP and the opportunity for the Company to continue to grow its Mineral Resource base independent of the discovery drilling programme.

The drilling programme has so far successfully discovered a new source of nickel, Baker, and is rapidly extending the number of significant drilling intercepts at Warren outside the existing Mineral Resource in that channel. These achievements highlight both the prospectivity of the Company's ground holdings in the world renowned Kambalda nickel district as well as the ability of the famous Kambalda nickel channels to continue to yield extensional and new discoveries on an ongoing basis.

The N75C surface was one of the many nickel surfaces mined during the operational life of the Foster mine. Total mine production recorded over 61,000 tonnes of nickel metal produced from some 2.37 million tonnes of ore.

Now that this Mineral Resource estimate is complete, the Company will continue to apply the Historical Core Programme at Foster, where approximately 45 sub-surfaces remain to be investigated, and also at Jan Shaft. The goal of this programme is to update and report previous historical estimates in accordance with the JORC 2012 Guidelines. This programme was a key opportunity outlined in the Company's Prospectus at the time of listing on the ASX.

Figure 1: Schematic WMC era long projection of the Foster Mine (looking north-east) with current N75C geological solid model

(purple) forming the basis of the N75C Mineral Resource estimation exercise draped over historical workings.

Permitting activities are under way in consultation with the Company's major shareholder, St Ives Gold Mining Co. Pty Ltd (St Ives), to dewater and then re-enter the Foster mine to continue exploration activities from underground. The N75C Mineral Resource grade estimation was completed by Cube Consulting Pty Ltd (Cube) in consultation with, and based upon, geological interpretations and 3D models compiled by Lunnon Metals staff.

Managing Director, Ed Ainscough, commenting said: "The Historical Core Programme was a key plank in our Prospectus 2-Year Work Programme, so it is pleasing to deliver its first Mineral Resource. These additions are not only material but come in parallel to the discovery drilling effort and due to their proximity to our existing Mineral Resource at Foster mine, immediately have an impact when considering what the mine may be capable of in the future. Dewatering the mine and re-entering so we can commence underground exploration in parallel to the surface drilling effort and Historical Core work, should see the Company continue to grow its nickel metal in JORC 2012 compliant resources. Throw in the discovery of Baker and the recently acquired rights to nickel at the Fisher- Silver Lake project at Kambalda and the Company's future certainly looks bright".

TECHNICAL SUMMARY - MINERAL RESOURCE ESTIMATION METHODOLOGY AND DATA

The N75C Mineral Resource, comprising the laterally continuous N75C, 18C and 24C nickel surfaces, was estimated by independent consultants from Cube in conjunction with Lunnon Metals geological staff. Full commentary on the relevant input parameters for the Mineral Resource are contained in Table 1, Sections 1, 2 and 3, contained in the Annexure to this announcement.

Location

The KNP area is located approximately 570km east of Perth and 70km south-southeast of Kalgoorlie within the Kambalda Nickel District, Eastern Goldfields, Western Australia (centred on 6,530,000mN, 384,000mE, GDA94/MGA zone 51). The KNP comprises 19 contiguous Mining Leases covering approximately 23km2. Each Mining Lease is approximately 1,500m by 800m in area. The KNP is broadly surrounded by tenements held by St Ives.

The KNP is located south and east of Lake Lefroy and is accessed via well-established mine road infrastructure and lake causeway from the Kambalda East township 19km to the north. St Ives' main administration office on the south side of Lake Lefroy is within 3.5km north of the KNP. BHP Nickel West Limited's Kambalda nickel concentrator is located 20km to the north.

The Project is located in the semi-arid climatic region of the Goldfields and experiences cool winters and hot, generally dry summers. The average daily maximum temperature is approximately 34.8°C in summer and 19.7°C in winter.

History and Prior Production

The N75C nickel shoot is hosted at the Foster nickel mine, within the Company's KNP. The principal historical production sources on the KNP are the historical Foster and Jan mines, which last produced nickel from sulphide ore in 1994 and 1986 respectively, together with the rights recently acquired to the Fisher and Silver Lake mines. Collectively, Foster and Jan produced over 90kt of nickel metal. The Foster workings were accessed via a decline with nickel ore both hoisted via shaft and trucked via the decline to surface. Production was largely via handheld airleg mining, with some stoping, and jumbo cut and fill.

At that time, the nickel ore was trucked across Lake Lefroy to the Kambalda Nickel concentrator, wholly owned by WMC Resources Ltd (WMC), now named BHP Nickel West. The Kambalda Nickel concentrator is currently in the process of re-starting activities related to the treatment of nickel bearing ore from Mincor Resources NL Cassini and Durkin-Long operations.

Geology

The KNP sits within the Kambalda-St Ives region, itself part of the Norseman-Wiluna greenstone belt, which comprises regionally extensive volcano-sedimentary packages. These rocks were extruded and deposited in an extensional environment between 2,700Ma and 2,660Ma. The mining district is underlain by a north-northwest trending corridor of basalt and komatiite rocks with several significant mafic intrusions. Nickel mineralisation is normally accumulated towards the base of the thick Silver Lake Member of the Kambalda Komatiite Formation above or on the contact with the Lunnon Basalt.

The Lunnon Basalt and favourable komatiite stratigraphy is exposed around the Kambalda Dome, then again in the Foster-Jan area and also in the Lanfranchi-Tramways area further south due to structural folding and later thrust faulting.

The nickel mineralisation at Foster typically occurs within a structurally modified channel on the western limb of the Cooee Anticline fold structure.

The N75C mineralisation is part of an extensive flanking position surface on the basal contact extending up-dip (up-flank) from the main Foster channel and sits stratigraphically below the 85H hanging wall mineralised surface that was estimated by Cube in 2021 (see Figures 1 & 2). The historical WMC nomenclature of the various parts of this flanking mineralised surface is based predominantly on their relative footwall lithologies as discussed below:

Foster N75C

The N75C is a flanking basal contact surface located up-dip from the main incised Foster nickel channel. The footwall to the surface largely comprises a dark, fine grained intermediate intrusive porphyry dyke (~3m-10m thick) which comes up sub vertically through the footwall Lunnon Basalt and then runs along the ~55 to 60⁰ south-west dipping nickel contact. In places there are thin slivers of ultramafic rock (and/or occasional sediment) between the N75C mineralisation and the porphyry and in other places the porphyry forms the immediate footwall. The N75C mineralisation itself is of moderate nickel grade largely characterised as 5-40% disseminated nickel sulphides increasing in intensity towards the base where there can be a narrower zone of stringer to massive nickel sulphides (see photo mosaic in Figure 3).

Foster 18C

To the south the N75C surface continues and becomes the 18C. The 18C is defined as a more traditional flanking surface with a continuous cherty to carbonaceous sediment footwall (~3m average width) sitting on the Lunnon Basalt. The mineralisation has the same character as the N75C although there appears to be a slight increase in mineralised sediment caught up with the basal portion of the mineralisation (see Figure 4).

Foster 24C

Sitting down flank of the N75C and 18C (and immediately above the main Foster channel) is the 24C which has a footwall almost exclusively of Lunnon Basalt (sediment free position). The mineralisation can be characterised the same as the N75C and 18C (see Figure 4).

The only difference between the flanking surfaces N75C, 18C and 24C is their immediate footwall lithologies and they have been estimated as one single continuous mineralised domain.

Drilling Techniques

One new oriented diamond drill hole was completed by Lunnon Metals to confirm the geological and mineralisation model and thus contribute to the Mineral Resource estimate. Diamond hole FOS21DD_003, intersected 7.7m of disseminated nickel sulphides on the N75C surface in an unmined block adjacent to historical WMC hole CD 54 (16.52m @ 3.05% Ni, true width 11.2m), returning 7.7m @ 2.92% Ni from 315.20m downhole (true width 7.2m est - see Figure 3).

The diamond hole was drilled with HQ3 (61mm) from surface within weathered and saprolite material before casing off within hard rock and completed with NQ2 (51mm) diameter core. All other drill holes were historical holes completed by WMC with NQ and BQ size surface drill core and underground BQ size diamond drill core. Bulk density measurements were taken with each mineralised sample for the Lunnon Metals drill hole together with the representative samples of mineralised core for re-sampled historical WMC holes.

Figure 3: Photo-mosaic showing grades of nickel sulphides in FOS21DD_003 - images show from downhole depth - for scale core/image width is 50mm

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