Poseidon Nickel Limited provided an update on the progress being made on the restart of the Black Swan project on the basis of the November 2022 Bankable Feasibility Study. Numerous work streams are being progressed as the Company moves towards the restart Final Investment Decision (FID), which is on track to be made in the second quarter of 2023. Black Swan Disseminated Resource Drilling Program: The Company has completed an 11,000-metre reverse circulation drilling program, from the bottom of the open pit, into the Black Swan Disseminated resource.

Approximately 20% of the assay results have been returned with all assays expected by the end of March 2023. The resource model update will then follow, during Second Quarter 2023. The principal aims of the drill program were: upgrade some of the large tonnages of Inferred Resources that are available within the proposed open pit shell to Indicated Resources category.

The higher confidence levels could lead to an increase in mining inventories and reportable open pit ore reserves; enhance the delineation of the metallurgically important serpentinite and talc-carbonate hosted ore types to quantify variations in their respective characteristics, such as talc and non-sulphide nickel levels as well as sulphur/nickel ratios, to optimise the mining schedules and ore blending strategies; optimise the mining schedule for the commencement of operations; and provide additional material for ongoing metallurgical testwork for the Expansion Project study. Any increase in the Ore Reserve of the Black Swan open pit would result in a longer mine life which would subsequently improve the NPV and the debt financing parameters for the project. Workstreams for the Restart: The main workstreams are: Offtake and debt financing; Pre-works at Black Swan: Open pit - dewatering completed; Underground - remaining rehabilitation works will be scheduled to coincide with the mine ramp up; Resource upgrade (in pit) to increase mine life - will be completed once all assay results received; Processing plant - finalise contract with selected engineering company for plant refurbishment; Major contracts - discussions will commence as required; Approvals - continue work on obtaining outstanding approvals required for the restart; Personnel onboarding - planning is well underway for the onboarding of the technical team; Accommodation - is recognised as one of the key execution risks and the Company is looking at various options in relation to having sufficient rooms in Kalgoorlie for the full complement of personnel required for the operating phase.

There is a temporary accommodation camp at site which will be utilised for the plant refurbishment.