Poseidon Nickel Limited (ASX: POS, 'the Company') is pleased to provide information on the proposed sale of the Lake Johnston Project to Mineral Resources Limited (MRL).

CEO, Craig Jones, commented: 'The proposed transaction will crystallise value for shareholders through the monetisation of one of our assets and will enable the Company to continue with its strategy to progress the exciting exploration targets identified at Windarra, maintain Black Swan as our near-term production asset and progress new opportunities that are complementary to our portfolio.

Under the Binding Heads of Agreement, Poseidon will be paid $15 million in cash while retaining an exposure to any exploration success at Lake Johnston with royalties from any future minerals or metals production from the project tenements. The proposed Lake Johnston divestment will also reduce our annual expenditure commitments by approximately $1.4 million and remove the rehabilitation provisions for that project from our balance sheet. Combined with significant cost reduction initiatives implemented over the past six months, the reset cost base along with $15 million cash consideration from the proposed sale of Lake Johnston strengthens the Company's balance sheet and provides sufficient funding for ongoing working capital requirements to successfully execute the Company's current strategy. ' Key terms of the Binding Heads of Agreement are presented in Annexure 1 to this announcement, including the conditions precedent required for completion of the divestment.

Contact:

Craig Jones

Tel: + 61 (0)8 6167 6600

About Poseidon Nickel Limited

Poseidon Nickel Limited (ASX Code: POS) is a nickel sulphide exploration and development company with two projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of over 420,000 tonnes of nickel and 180,000 ounces of gold1 . Poseidon's strategy is focused on the exploration and eventual restart of its established nickel operation in Western Australia with the aim of being a profitable and sustainable nickel producer. A critical element of this strategy has been owning operations with existing infrastructure, large nickel resources and geological prospectivity likely to lead to resource growth through the application of modern exploration techniques. Poseidon owns the Black Swan, Windarra and Lake Johnston Projects (with Lake Johnston in the process of being divested). In addition to the mines and infrastructure including concentrator at Black Swan, these projects have significant exploration opportunities demonstrated by the discovery of the Golden Swan Resource at Black Swan, and more recently the NW05 and NW04 targets at Windarra. The Company completed a Bankable Feasibility Study on Black Swan in November 2022 which is planned to be the first project to restart, subject to appropriate project financing structures being achieved, the outlook for the nickel price improving and all necessary approvals being obtained. A Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield was completed in mid-2022. In December 2023 Mt Morgans entered into a trial processing agreement with Poseidon on the Lancefield gold tailings and accessing the water in the South Windarra pit.

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