Poseidon Nickel Ltd. reported the outcomes of the Black Swan Bankable Feasibility Study ("BFS") for the 1.1Mtpa mill feed option (the "Project"). The Poseidon board and management are pleased to provide the outcomes from the Black Swan Bankable Feasibility Study (BFS) for a 1.1Mtpa feed to produce smelter grade concentrate scenario ("Phase 1 Black Swan Project" or the "Project"). The BFS is based on the plan to mine ore from the Black Swan disseminated (BSD) open pit (serpentinite ore only) and Silver Swan and Golden Swan high-grade underground mines, supplemented with Silver Swan Tailings and existing surface stockpiles (disseminated serpentinite material) and process these feed sources through the existing concentrator and associated infrastructure.

The study is based on refurbishing and operating the existing plant with a processing capacity of 1.1Mtpa to align with the available processing mine inventory of 5.0Mt, presenting a post development project life of four years. Plant refurbishment and mine development works are expected to take about 11 months. Over the life of the project, the Phase 1 Black Swan Project will produce 200kt of smelter grade concentrate averaging 15% nickel containing ~30kt of nickel from the various feed sources representing an average metal recovery of 68%.

Completion of the BFS is a key milestone in Poseidon's "Fill the Mill" strategy which aims to build Poseidon into a sustainable nickel producer delivering value through performance and growth. The Black Swan restart is the basis to achieving our first strategic pillar of our "Pathway to Production". Beyond a potential restart of Black Swan, the Company continues to progress growth opportunities including: the Feasibility Study on the 2.2Mtpa feed option to produce rougher concentrate (Phase 2 Black Swan Project).

a 10,000 metre resource drilling program at Black Swan to convert more Inferred BSD resource to Indicated, supporting the 2.2Mtpa feed scenario or increasing reserves for the Phase 1 Project; exploration activities at Lake Johnston to increase the resource base supporting a potential restart of operations at that site; mining studies at Windarra on the Mt Windarra orebody to determine the economics of mining and trucking the ore to Black Swan for treatment; and assessing business development opportunities which may provide third party feeds to either Black Swan or Lake Johnston. This BFS includes substantial work completed since the 2018 Black Swan Feasibility Study which significantly de-risks the project. Metallurgical breakthroughs with the addition of a rougher concentrate regrind stage and the blending of Silver Swan Tailings into the processing feed have reduced risks associated with high MgO levels in concentrate, which can impact the marketability of the concentrate product to conventional smelters.

This is further supported by the BSD Resource update which includes delineation of the talc content in the resource model to more accurately define the serpentinite ore zones which are more amenable to producing a smelter grade concentrate. A list of material activities completed since the 2018 Feasibility Study are detailed in Section 1 ­ Introduction. Mineral Resource updates following resource drilling of the BSD, Silver Swan and Golden Swan resources, the release of the Maiden Resource for the Silver Swan Tailings, plus inclusion of the surface BSD ore stockpiles, has confirmed a total combined Mineral Resource for Black Swan of 31.5Mt averaging 0.68% Ni for 214kt of contained nickel.

Conversion of Resources to Reserves for the BFS was contingent on feeding material types to the concentrator which are amenable to producing a smelter grade concentrate with an MgO content and Fe:MgO ratio that is suitable for potential offtake partners. Producing a conventional smelter grade concentrate limits the combined Mineral Reserves to the Measured and Indicated Resources of Silver Swan and Golden Swan and the serpentinite ore type in the BSD Measured and Indicated Resources with appropriate MgO levels. A portion of the BSD Resource not included in the Mineral Reserves is subject to the ongoing 2.2Mtpa rougher grade concentrate Feasibility Study which may convert a larger amount of the BSD Resource to Reserves.

The BSD Resource is large and continues well beyond a depth of the planned open pit for current feasibility studies. This portion of the BSD Resource may be subject to feasibility studies in the future, however, is not included in the current 1.1Mtpa smelter grade concentrate or 2.2Mtpa rougher grade concentrate studies. The available feed sources will be processed through the existing Black Swan plant to produce smelter grade concentrate.

Locked cycle tests confirmed the benefit of the two metallurgical breakthroughs for the project which reduce MgO content in concentrate and improve the Fe:MgO ratio being: inclusion of a rougher concentrate regrind stage in the flowsheet; and addition of Silver Swan Tailings to the feed blend. Results presented are typical range for each test. Refer to Section 8 ­ Metallurgical Testwork for further locked cycle test results and Section 9 ­ Concentrate Product Quality for further details on concentrate specifications.

Based on available feed sources, the BFS assumes that 5.0Mt of feed containing 44.3kt of nickel will be processed over a four-year period to produce 200kt concentrate grading 15% Ni containing 30kt of nickel (the Production Target). Metallurgical recoveries for each feed source are discussed in Section 8 ­ Metallurgical Testwork.