Nico Resources Limited advised that is has recently completed a 10,196m reverse circulation drilling program of works across the Company's Central Musgrave Project in the preeminent Musgrave Province. The Wingellina portion of the drill program focused on improving the definition of the highest-grade nickel and cobalt zones within the entire resource base. This material has been targeted for confirmatory reserve classification to feed into an updated mine schedule for the impending bankable feasibility study.

The program delineated 15 high grade starter pits which will form the basis of the first years of production and results in strong project valuation uplift. This recently completed Wingellina high-grade drilling program provided infill drill lines to spacings of 60m by 25m within the 15 proposed starter pits. This is the same drill density which currently supports the JORC Measured category within other portions of the larger deposit.

Data obtained will also provide additional orebody knowledge in regard to ore geometry, controls on mineralisation, grades and in turn anticipated mixed hydroxide precipitant grades. The RC drilling program undertaken at the Lewis Calcrete was completed as a follow-up to the 2019 program initiated by Metals X. An additional 302 holes have been completed in this 2022 program resulting in a total of 543 across the area prospective for calcrete. Based on the previous testwork and field acid testing during drilling, along with drill logs indicates calcareous material has been intersected in 301 of the 302 holes drilled.

The NiCo technical team believe this material will provide a solid foundation for the development of a maiden resource at the Lewis Calcrete prospect. The program has also delivered over 10 tons of RC chip material for demonstration scale test work required for the definitive feasibility study. Once all data is returned and validated, a resource model update will be completed for the Wingellina deposit.

A maiden resource estimate will also be undertaken for the Lewis Calcrete resource. Both estimates are expected to be delivered in early 2023. Associated mine studies will flow on from this work as primary feed inputs to support a Definitive feasibility study commencing in 2023.

Project financial and debt modelling to follow shortly after.