LUNNON METALS LIMITED — Capital/Financing Update 2021

Nov 18, 2021

==> picture [131 x 790] intentionally omitted <==

----- Start of picture text -----

LUNNON METALS LIMITED
ABN: 82 600 008 848
BOARD/MANAGEMENT
Mr Liam Twigger
NON-EXECUTIVE CHAIRPERSON
Mr Ian Junk
NON-EXECUTIVE DIRECTOR
Mr Ashley McDonald
NON-EXECUTIVE DIRECTOR
Mr Edmund Ainscough
MANAGING DIRECTOR
Mr Aaron Wehrle
EXPLORATION &
GEOLOGY MANAGER
OFFICE
Suite 5/11 Ventnor Avenue
WEST PERTH WA 6005
POSTAL ADDRESS
PO BOX 470
WEST PERTH WA 6872
CONTACT DETAILS
+61 8 9226 0887
info@lunnonmetals.com.au
lunnonmetals.com.au
SHARE REGISTRY
Automic Group
ASX CODE: LM8
----- End of picture text -----

==> picture [192 x 71] intentionally omitted <==

RC DRILLING HITS HIGH GRADE NICKEL AT WARREN

19th November 2021

HIGHLIGHTS

• Nickel sulphides confirmed in Warren channel

• 4m @ 3.44% Nickel up plunge from old workings

• Down channel deeper Diamond Drilling underway also intersecting nickel sulphides (assays pending)

Lunnon Metals Limited ( ASX: LM8 ) (the “ Company ” or “ Lunnon Metals ”) is pleased to report on RC drilling results and the progress of ongoing deeper Diamond Drilling (“DD”) on the Warren Shoot, at its Kambalda Nickel Project (“ KNP ”). Nickel sulphides have been confirmed both up and down plunge of the current Mineral Resource at Warren, highlighting the potential for these programmes to contribute to the Company’s growth plans.

Assay results from the initial first pass RC drilling at Warren, completed in the September quarter, have now been returned recording significant nickel intercepts, which include:

• 4m @ 3.44% Ni from 163m (WRN21RC_007 - channel position)

• 5m @ 0.78% Ni from 175m (WRN21RC_005 - channel flank)

• 4m @ 1.58% Ni from 58m (WRN21RC_004 - oxide)

• 4m @ 1.15% Ni from 42m (WRN21RC_001 - oxide)

WARREN NICKEL CHANNEL – THE OPPORTUNITY

The initial Mineral Resource at Warren stands at 211,000 tonnes at 3.1% Ni for 6,400 tonnes of nickel metal[1] . The exploration programme at Warren is designed to test the channel and surrounding area for nickel sulphides, both up and down plunge of the historical workings and demonstrate that Warren can mirror the main Foster channel, in length and prospectivity.

Foster has a current plunge length of 2.3km and runs parallel to Warren which is approximately 1.0km to the north-west. Foster produced over 60,000 tonnes of nickel metal from that 2.3km extent and has a current Mineral Resource of 32,600 tonnes of nickel metal.

By comparison, the Mineral Resource at Warren comes only from a combined length of 600m. The opportunity is clear and Lunnon Metals believes Warren is under-explored and inadequately tested by the past WMC drilling.

Commenting on these results Managing Director, Ed Ainscough said: "Warren has the potential to mirror the main Foster nickel channel which was mined between 1982 and 1994. The current programme is confirming nickel sulphides up- and down-plunge of our initial Mineral Resource and gives us great confidence that it can grow . If the Warren channel continues over the same plunge length as Foster, the opportunity for additional nickel metal is significant.”

1 Full details of the Mineral Resource reported at Warren are included the Prospectus and associated ITAR lodged on the ASX on 11 June 2021

P a g e | 1

==> picture [192 x 71] intentionally omitted <==

RC DRILLING RESULTS

RC drilling by Lunnon Metals has hit nickel sulphides above the historical mining at Warren on the margins of the present Mineral Resource boundary. Significant intercepts include:

• 4m @ 3.44% Ni from 163m (WRN21RC_007 – channel position, thicker, better grade than expected)

• 5m @ 0.78% Ni from 175m (WRN21RC_005 – test of flank position)

• 1m @ 0.99% Ni from 177m (WRN21RC_006 – channel position)

• 1m @ 0.65% Ni from 89m - (WRN21RC_002 - conceptual test, down flank contact, fresh)

WRN21RC_007 hit the interpreted channel some 20m above WRN21RC_006. Analysis of these results and the nickel mineralisation in WRN21RC_007, which was thicker and better grade than predicted and outside the current Mineral Resource boundary, indicates a possible steeper orientation to the nickel mineralised shoots.

This steeper orientation, angled across the main channel, was also seen in the upper levels at the Foster Mine where surface drilling alone could not define the orientation and number of shoots that were eventually mined. Recognising this is also the case at Warren enables the Company to plan follow up drilling with respect to the down plunge potential along these steeper trends which are open.

Figure 1 below presents a long projection of the upper Warren channel showing the location of the RC drilling results reported and the pierce points of historical WMC drill holes[2] .

A further objective of this first Warren RC programme was to track the channel up plunge to define the sulphideoxide boundary. This was successfully achieved with the following results recorded in oxide and transitional sulphide zones which were slightly deeper than modelled and also indicated an overall steeper orientation to the nickel mineralised zones as discussed above.

• 21m @ 0.74% Ni from 18m, including:

• 2m @ 1.19% Ni from 25m; plus

• 9m @ 0.88% Ni from 40m including 4m @ 1.15% Ni from 42m (all WRN21RC_001 - oxide)

• 8m @ 1.14% Ni from 56m, including 4m @ 1.58% Ni from 58m (WRN21RC_004 - oxide)

WRN21RC_003 drilled below the Mineral Resource boundary within the channel environment and returned no significant assays. All results will be incorporated into the geological and mineralisation model to refine this oxidesulphide boundary. The Company does not currently report oxide Mineral Resources.

2 The ITAR attached to the Prospectus lodged on the ASX on 11 June 2021 provides details of the basis for, and use of, all relevant WMC historical drilling in the Warren JORC’12 compliant Mineral Resource estimation.

P a g e | 2

==> picture [192 x 71] intentionally omitted <==

==> picture [591 x 164] intentionally omitted <==

==> picture [591 x 165] intentionally omitted <==

==> picture [591 x 82] intentionally omitted <==

Figure 1: Longitudinal Projection of the upper Warren Channel highlighting location of recent RC drill results and historical WMC holes

P a g e | 3

==> picture [192 x 71] intentionally omitted <==

DEEPER DIAMOND DRILLING AT WARREN

After the RC drilling finished, diamond drilling started in November targeting the Warren channel deeper down its plunge. This programme is still underway and includes a parent hole and at least two “daughter” holes branching off the parent.

Drilling of the parent hole has been completed with vein/blebby, stringer and brecciated nickel sulphides confirmed in the footwall basalt (see Table 1 below for details). Analysis of these 10-20cm zones by portable XRF (pXRF) unit has confirmed the presence of nickel and the hole is being logged, cut and sampled for assay. The Company is encouraged by these preliminary indications.

This parent hole, WRN21DD_001, is located 100m down plunge from the nearest part of the current Mineral Resource and over 400m down plunge of the historical workings. The Company believes it has hit the prospective nickel contact on the upper edge of the Warren channel. These nickel sulphides provide significant encouragement that a nickel mineralised channel is nearby.

==> picture [464 x 422] intentionally omitted <==

----- Start of picture text -----

Visual
Sulphide
Photograph/Width and Down Hole Depth of zone of interest (m) Sulphide
Texture
Estimate
0.20m from 491.70m Vein/Blebby 10%
0.20m from 493.0m Blebby 5%
0.20m from 493.50m Stringer 8%
----- End of picture text -----

P a g e | 4

==> picture [192 x 71] intentionally omitted <==

==> picture [464 x 484] intentionally omitted <==

----- Start of picture text -----

Visual
Sulphide
Photograph/Width and Down Hole Depth of zone of interest (m) Sulphide
Texture
Estimate
0.15m from 495.90m Breccia 5%
0.20m from 496.35m Breccia 3%
0.20m from 496.60m Stringer 10%
Table 1: Photographic record and visual sulphides estimates for WRN21DD_001
----- End of picture text -----

The visual sulphide zones contain pentlandite, pyrrhotite, pyrite and chalcopyrite. These sulphides are present in variable quantities within the following estimated ranges; pentlandite 10-20%, pyrrhotite 50-70%, pyrite 5-10% and chalcopyrite 0-5%.

Figure 2 below is a long projection of the current interpreted Warren channel. It shows WRN21DD_001 relative to the RC drilling reported above and historical mining. The figure illustrates the areas of untested down plunge potential on this channel.

Important Note: in relation to the reporting of visual mineralisation, the Company highlights that visual estimates of sulphide abundance, even when confirmed by pXRF analysis in the field, cannot be considered a substitute for laboratory analysis. Assay results are required to determine the exact widths and grades of the nickel sulphide mineralisation identified. When these results are available, the Company will provide an update to the market.

P a g e | 5

==> picture [192 x 71] intentionally omitted <==

==> picture [477 x 222] intentionally omitted <==

==> picture [477 x 111] intentionally omitted <==

Figure 2: Location of WRN21DD_001 in long projection showing insert location of Figure 1

NEXT STEPS

The above diamond hole will be surveyed by the DHTEM method and the wedge holes designed to target any conductive plates present in this channel setting. Assay results for the diamond hole will be reported when received. It is noted that current assay turnaround times being recorded are in the order of 10-12 weeks.

RC holes will be planned in the upper Warren channel to test the open plunge components of the steeper identified nickel trends.

This announcement has been approved for release by the Board of Lunnon Metals Ltd.

Edmund Ainscough Managing Director Phone: +61 8 9226 0887 Email: info@lunnonmetals.com.au

P a g e | 6

==> picture [192 x 71] intentionally omitted <==

Annexure 1: 2021 Warren – Drill Hole Collar Table – Lunnon Metals Drilling

==> picture [499 x 165] intentionally omitted <==

----- Start of picture text -----

EOH
Elevation Drill
Hole ID Easting^ Northing^ Dip Azimuth Hole Type Grid
(m ASL) Depth
(m)
WRN21DD_001 380,485 6,531,440 312 -71.9 45.2 600 Surface D MGA94_51
WRN21RC_001 380,251 6,532,111 313 -72.1 44.4 114 RC MGA94_51
WRN21RC_002 380,178 6,532,086 312 -65.1 50.4 138 RC MGA94_51
WRN21RC_003 380,329 6,532,069 314 -65.4 291.1 150 RC MGA94_51
WRN21RC_004 380,255 6,532,108 313 -89.4 77.5 114 RC MGA94_51
WRN21RC_005 380,293 6,531,928 312 -70.2 47.8 220 RC MGA94_51
WRN21RC_006 380,305 6,531,940 314 -67.9 49.3 199 RC MGA94_51
WRN21RC_007 380,317 6,531,952 313 -63.8 47.3 200 RC MGA94_51
----- End of picture text -----

^For current drilling, as pegged coordinates, final survey pick up of collar positions to occur on a campaign basis in the near future.

Annexure 2: 2021 Warren – Lunnon Metals Drill Results

==> picture [482 x 336] intentionally omitted <==

----- Start of picture text -----

From
Width
Hole ID (drill depth) Ni % Cu % Co % Fe % Mg %
(m)
(m)
Oxide - transition
WRN21RC_001 18 21.0 0.74 0.10 0.08 9.7 14.1
including
25 2.0 1.19 0.12 0.07 9.4 14.6
plus 40 9.0 0.88 0.17 0.03 15.2 10.5
including
42 4.0 1.15 0.27 0.05 20.7 10.7
WRN21RC_003 no significant assays
WRN21RC_004 16 3.0 0.79 0.05 0.03 6.6 5.0
52 1.0 1.29 0.19 0.03 12.5 13.2
56 8.0 1.14 0.10 0.02 15.1 10.2
including
58 4.0 1.58 0.10 0.03 18.2 10.4
Sulphide
WRN21RC_002 89 1.0 0.65 0.06 0.01 9.7 12.6
WRN21RC_005 175 5.0 0.78 0.08 0.02 9.7 14.8
WRN21RC_006 168 1.0 0.55 0.05 0.02 8.2 18.4
plus 177 1.0 0.99 0.10 0.03 9.8 12.9
WRN21RC_007 163 5.0 2.94 0.34 0.07 21.4 5.8
including
163 4.0 3.44 0.38 0.08 23.6 6.3
WRN21DD_001 Assays pending, hole being cut, sampled and dispatched for assay
----- End of picture text -----*

*true widths of the reported intercepts are estimated to approximate down hole widths closely

P a g e | 7

==> picture [192 x 71] intentionally omitted <==

==> picture [256 x 327] intentionally omitted <==

Figure 3: Regional Location of the Kambalda Nickel Project and other nearby nickel deposits

ABOUT THE KAMBALDA NICKEL PROJECT (“KNP”)

Lunnon Metals holds 100% of the mineral rights at KNP, subject to certain rights retained by St Ives*. Full details of the Company’s IPO and the transactions involved are in the Prospectus submitted to the ASX dated 22 April 2021 and lodged with the ASX on 11 June 2021.

KNP, shown in its regional location in Figure 3, is approximately 23 km[2] in size comprising 19 contiguous granted mining leases situated within the Kambalda Nickel District which extends for more than 70 kilometres south from the township of Kambalda (“Tenements”).

This world-renowned nickel district has produced in excess of 1.4 million tonnes of nickel metal since its discovery in 1966 by WMC Resources Ltd (“WMC”). In addition, close to 15 Moz of gold in total has been mined with WMC accounting for 5.9 Moz and over 8.3 Moz produced by Gold Fields Ltd since the purchase of the operation in December 2001 from WMC, making the Kambalda/St Ives district a globally significant gold camp in its own right.

*St Ives retains rights to explore for and mine gold in the “Excluded Areas” on the Tenements as defined in the subsisting agreements between Lunnon Metals and St Ives. This right extends to gold mineralisation which extends from the Excluded Area to other parts of the Tenements with select restrictions which serve to prevent interference with, or intrusion on, Lunnon Metals’ existing or planned activities and those parts of the Tenements containing the historical nickel mines. St Ives enjoys select rights to gold in the remaining areas of the Tenements in certain limited circumstances as described in detail in the Company’s Solicitor Report attached to the Prospectus submitted to the ASX dated 22 April 2021 and lodged with the ASX on 11 June 2021.

P a g e | 8

==> picture [192 x 71] intentionally omitted <==

COMPETENT PERSON’S STATEMENT & COMPLIANCE

The information in this announcement that relates to geology, nickel Mineral Resources and Exploration Results, is based on, and fairly represents, information and supporting documentation prepared by Mr. Aaron Wehrle, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Wehrle is a full time employee of Lunnon Metals Ltd, a shareholder and holder of employee options; he has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Wehrle consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

MINERAL RESOURCES

The detailed breakdown of the Company’s Mineral Resources is as follows:

==> picture [465 x 161] intentionally omitted <==

DISCLAIMER

References in this announcement may have been made to certain previous ASX announcements, which in turn may have included exploration results and Mineral Resources. For full details, please refer to the said announcement on the said date. The Company is not aware of any new information or data that materially affects this information. Other than as specified in this announcement and mentioned announcements, the Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcement(s), and in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement.

P a g e | 9

==> picture [192 x 71] intentionally omitted <==

JORC TABLE 1

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.	 All drilling and sampling were undertaken in an industry standard manner.  Reverse Circulation (RC) and Diamond Drill holes (DDH) at the Kambalda Nickel Project (KNP) were completed by Blue Spec Drilling Pty Ltd (Blue Spec) on behalf of Lunnon Metals following protocols and QAQC procedures aligned with industry best practice. RC  RC samples were collected on a 1.0m basis from a cone splitter mounted on the drill rig cyclone. 1.0m sample mass typically averages 3.0kg.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	 Industry prepared independent standards and blanks are each inserted, approximately every 50 samples.  Duplicate samples were also collected from the drill rig cyclone , at a rate of 1 in every 25 samples. Th idd lb h k h l hih did
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	 e nepenent aoratory ten taes te sampes wc are re, crushed and pulverized prior to analysis as described below.  For sample weights > 3kg the sample is dried, split and pulverised up to 3kg (with the reject discarded).  Sample sizes are considered appropriate for the material sampled.  The samples are considered representative and appropriate for this type of drilling.  RC samples are appropriate for use in a resource estimate. DDH  Core samples were collected with a diamond rig drilling HQ3 (61mm) from surface within weathered and saprolite material before casing off within hard rock and completing the hole with NQ2 (51mm) diameter core.  All DDH have been reconstructed and orientated over zones of interest, logged geologically, and marked up for assay at a typical minimum sample interval of 0.3m to ensure adequate sample weight and a typical maximum sample interval of 1.0m, constrained by geological boundaries.  After logging and photographing, selected sample intervals of drill core were cut in half with a diamond saw, with one half sent to the laboratory for assay and the other half retained.  Sample weights vary depending on sample width and density of the rock.  All DDH core is stored in industry standard core trays labelled with the drill hole ID and core intervals.  Industry prepared independent standards and blanks are each inserted, approximately every 50 samples.  The independent laboratory then takes the samples which are dried, crushed and pulverized prior to analysis as described below.  For sample weights > 3kg the sample is dried, crushed to 2mm, split and pulverised up to 3kg (with the coarse reject retained).  Sample sizes are considered appropriate for the material sampled.  The samples are considered representative and appropriate for this type of drilling.  DDH core samples are appropriate for use in a resource estimate.

P a g e | 10

==> picture [192 x 71] intentionally omitted <==

==> picture [501 x 628] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
pXRF
 Where a handheld XRF tool was used, it was done so to verify the
presence of nickel mineralisation. The XRF results themselves are
not reported and used as a logging/ sampling verification and
sulphide species identification aid only.
 Determination of materiality has been based on geological logging,
visual inspection and the use of the pXRF unit.
WMC Historical data
 Sampling procedures followed by Western Mining Corporation Ltd
(WMC) in the drilling, retrieval, and storage of diamond drill core
both surface and underground are considered to be in line with
industry standards at the time (1966 to 2001).
 The drill core was typically collected in steel core trays of 1.0m
lengths comprising five to seven compartments depending on drill
core diameter. The core trays were numbered with the downhole
meterage for the start of the first 1 m run and the end of the last 1
m run on the lip of the core tray and typically included core blocks
within the core trays demarcating the depth meterage of rod pull
breaks.
 The drillhole number and the ‘from’ and ‘to’ depth of the contained
drill core was labelled on the front of the core tray. The earlier
drilling was collected in wooden, and hybrid wooden/steel core
trays and occasionally depths recorded in feet.
Drilling Drill type (e.g. core, reverse  RC holes were drilled with a 5 1/2-inch bit and face sampling
techniques circulation, open-hole hammer, hammer.
rotary air blast, auger, Bangka, sonic,  DDH were drilled from surface using HQ3 (61mm) diameter in
etc.) and details (e.g. core diameter, weathered, broken ground before casing off and drilling NQ2
triple or standard tube, depth of (51mm) to end of hole.
diamond tails, face-sampling bit or  Some DDH utilised historical or new RC pre-collars of typical depths
other type, whether core is oriented of 100m to 150m.
and if so, by what method, etc.).  Although no documentation is available to describe the drilling
techniques used by WMC at the time it is understood that the
various drilling types used conventional drilling methods consistent
with industry standards. None of the diamond drill core was
oriented.
Drill sample Method of recording and assessing  RC samples are routinely checked for recovery, moisture, and
recovery core and chip sample recoveries and contamination.
results assessed.  DDH core recovery is measured for each drilling run by the driller
and then checked by the Company’s geological team during the
Measures taken to maximise sample
mark up and logging process.
recovery and ensure representative
 No sample bias is observed.
nature of the samples.
 There is no relationship between recovery and grade nor bias
Whether a relationship exists
related to fine or coarse sample material.
between sample recovery and grade  There are no available records for sample recovery for diamond
and whether sample bias may have
drilling completed by WMC; however, re-logging exercises
occurred due to preferential loss/gain
completed by Lunnon Metals of both underground and surface
of fine/coarse material.
diamond drillholes from across the KNP between 2017 and 2021
found that on average drill recovery was very good and acceptable
by industry standards.
Logging Whether core and chip samples have For both RC and DDH:
been geologically and geotechnically  Geology logging is undertaken for the entire hole recording
logged to a level of detail to support lithology, oxidation state, mineralisation, alteration, and veining.
appropriate Mineral Resource  DDH structural logging, recovery of core, hardness, and Rock
----- End of picture text -----

P a g e | 11

==> picture [192 x 71] intentionally omitted <==

==> picture [501 x 84] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
estimation, mining studies and Quality Designation (RQD’s) are all recorded from drill core over
metallurgical studies. intervals of interest.
 Geological logging (and where required, geotechnical logging) is
Whether logging is qualitative or
completed in sufficient detail to support future Mineral Resource
quantitative in nature. Core (or
estimation, mining and metallurgical studies to be undertaken with
costean, channel, etc.) photography.
confidence.
----- End of picture text -----

	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	 Geological logging (and where required, geotechnical logging) is completed in sufficient detail to support future Mineral Resource estimation, mining and metallurgical studies to be undertaken with fid
		conence.
	The total length and percentage of the relevant intersections logged.	 Additional metallurgical testwork will be completed if warranted in the future in addition to the geological logging and element assaying detailed below.  General logging data captured are qualitative (descriptions of the various geological features and units) and quantitative (numbers representing structural attitudes, vein and sulphide percentages, magnetic susceptibility and conductivity).  DDH core is photographed in both dry and wet form. WMC Historical data  There is no available documentation describing the logging procedures employed by WMC geologists at the Foster nickel mine or in the KNP area generally; however, the historical graphical hardcopy logs and other geoscientific records available for the project are of high quality and contain significant detail with logging intervals down to as narrow as 0.01 m. The geological logs document lithology, textures, structures, alteration, and mineralisation observed in drill core captured both graphically and in a five-character logging code (Lunnon Metals notes that a previous logging legend employed at WMC’s Kambalda nickel operations utilised a 3 letter code which is often represented on hard copy plan and cross sections of an older vintage and which was converted by WMC to the latter 5 character code at some later time). Stratigraphy is also captured in a three-character logging code. Sample intervals are recorded on the graphical log. These logging legends are well documented in lieu of a recorded procedure.  In regard geotechnical logging or procedures, there is no record of any formal relevant procedures or logging and based on personal experience of the Competent Person, such logging was not routinely completed prior to the introduction of Regulation 10:28 in the WA Mine Safety and Inspection Act, requiring the same in approximately 1996.  Based on the personal experience of the Competent Person(s) to this announcement, having worked for WMC in Kambalda between 1987 and 2001, it is known that WMC had a rigorous and regimented system for storing and archiving the graphical logs physically, microfilmed, and drafted on to master cross sections, plans, and long sections as well as capturing the interval data (logging and assays) digitally in database format.  Lunnon Metals sourced historical diamond core from the St Ives Kambalda core yard on Durkin Road where relevant to its investigations. A selection of high priority drillholes was typically identified based on proximity to the proposed area of interest. Thereafter a representative number of holes were re-logged to validate lithological and structural information whilst a lessor number of holes were logged for geotechnical data such as rock RQD,fracture count assessment and core recovery.

P a g e | 12

==> picture [192 x 71] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Sub-sampling techniques and sample	If core, whether cut or sawn and whether quarter, half or all core taken.	RC  RC sampling was carried out every 1.0m by a cone splitter on a rig cyclone.
preparation	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	 1.0m calico samples taken directly from the cyclone were submitted for analysis.  Field QAQC procedures involve the use of certified reference material (CRM) inserted approximately 1 in 50 samples.  A field duplicate, namely a second identical cone split at the cyclone, is collected every 25 samples. DDH  DDH core samples were collected with a diamond drill rig drilling NQ2 or HQ3 core. After logging and photographing, diamond core was cut within a Discoverer® Automatic Core Cutting Facility using a Corewise Auto Core Saw.  DDH core was cut in half, with one half sent to the laboratory for assay and the other half retained.  Holes were sampled over mineralised intervals to geological boundaries on a nominal 1.0m basis with a typical minimum of 0.3m
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	and a typical maximum of 1.0m.  Field QAQC procedures involve the use of certified reference material (CRM) and blank material, each inserted approximately 1 in every 50 samples.  Field duplicates were collected at a rate of 1 in 25 samples by cutting the core into quarters and submitting both quarters to the laboratory for analysis. RC & DDH  At the assay laboratory, each sample was dried, split (if sample weight was >3kg), crushed, and pulverised.  Sample sizes are considered appropriate for the style of mineralisation (potentially nickeliferous massive, matrix and disseminated sulphides, hosted in komatiite and basalt; and altered quartz veins/shear structures considered potentially auriferous in all lithological types). WMC Historical data  All historical core that was relevant to the mineralisation drilled and sampled by WMC as sighted by Lunnon Metals was sawn with half or quarter core sampling practices. It is assumed that all samples reported or otherwise contributing to any estimation of nickel mineralisation by Lunnon Metals were processed with this standard methodology.  Portions of drill core distal to the main high-grade mineralisation were sometimes ‘chip sampled’ by WMC. Lunnon Metals has chosen not to utilise such samples in any estimation of grade or mineralisation.  WMC typically sampled in interval lengths relevant to the underlying lithology and mineralisation such that sample interval lengths may vary from between minima of 0.05 m and maxima up to 2.00 m within any mineralised zone, shoot or nickel surface of interest. Intervals of no mineralisation or interest were not sampled. Review of historical drill core during re-logging and re-sampling exercises by Lunnon Metals indicated that there were no areas of interest relevant to nickel mineralisation that were not half or quarter core sawn and sampled byWMC and that the sample sizes

P a g e | 13

==> picture [192 x 71] intentionally omitted <==

Criteria	JORC Code explanation		Commentary
			were appropriate for the type, style and thickness of mineralisation being tested with sample breaks corresponding to lithological or mineralisation breaks being the norm. Although faded through time, sample depth intervals are evident as marked on the remaining half core as observed by Lunnon Metals and these correlate to sample interval depths in the original paper graphical drill logs and the database.  While the WMC procedure for logging, sampling, assaying and QAQC of drillhole programs was not available at the time of this announcement it is interpreted that it was of high quality and in line with industry standards at that time.  It is the opinion of the Competent Person(s) that the sample preparation, security, and analytical procedures pertaining to the above-mentioned historical WMC drilling are adequate and fit for purpose based on: - WMC's reputation of excellence in geoscience stemming from their discovery of nickel sulphides in Kambalda in the late 1960s; - identification of procedures entitled “WMC QAQC Practices for Sampling and Analysis, Version 2 - adapted for St Ives Gold” dated February 2001 and which includes practices for nickel; and - the first-hand knowledge and experience of the Competent Person(s) of this announcement whilst working for WMC at Kambalda between 1987 and 2001.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.		 Samples were submitted to Intertek Genalysis in Kalgoorlie for sample preparation i.e. drying and pulverising.  Pulverised samples were then transported to Intertek Genalysis in Perth for analysis.  Samples were analysed for a multi-element suite including Ni, Cu,
	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.		Co, Ag, Cu, As, Co, Fe, Mn, Pb, S, Zn. Analytical techniques used a four-acid digest (with ICPMS finish) of hydrofluoric, nitric, perchloric and hydrochloric acids, suitable for near total dissolution of almost all minerals species including silica-based samples.  Where considered necessary, Au was analysed using 50g lead collection fire assay and analysed by ICPOES.  These techniques are considered quantitative in nature. did il i id b h d h
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.		 As scusse prevousy, CRM s nserte y te Company an te laboratory also carries out internal standards in individual batches.  The resultant Lunnon Metals and laboratory QAQC data is reviewed upon receipt to determine that the accuracy and precision of the data has been identified as acceptable.  Where handheld pXRF results are referenced, the tool was used to verify the presence of nickel mineralisation in the zones disclosed. The unit is a Bruker, S1 Titan 900 model. WMC Historical data  There is no data available at the time of this announcement pertaining to the assaying and laboratory procedures nor the historical field or laboratory quality assurance and quality control (QAQC), if any, undertaken by WMC drilling programs at the Foster nickel mine or in the KNP area generally; however, it is expected that industry standards as a minimum were likely to have been adopted at the Foster mine, KNP area and the analytical laboratory, consideringWMC’s reputation for excellence ingeosciences.

P a g e | 14

==> picture [192 x 71] intentionally omitted <==

==> picture [501 x 639] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
 The extensive Lunnon Metals re-sampling programme of historical
½ or ¼ core drill core applied the methodology and practices as
recorded above for current RC & DDH.
Verification of The verification of significant  Significant intersections have not been independently verified and
sampling and intersections by either independent or no twinned holes have been completed.
assaying alternative company personnel.  Logging and sample intervals are uploaded by Company geologists
The use of twinned holes. once logging is completed into internal cloud hosted datasheets
and then to a database managed by Maxwell Geoservices Pty Ltd
Documentation of primary data, data
(maxgeo).
entry procedures, data verification,  Assays from the laboratory are checked and verified by maxgeo
data storage (physical and electronic)
database administrator before uploading.
protocols.  No adjustments have been made to assay data.
Discuss any adjustment to assay  Any assays results for a composited interval within a drillhole are
data. reported on a length weighted basis.
WMC Historical data
 Diamond core data - Lunnon Metals has undertaken exhaustive
analysis of historical WMC underground and surface diamond
drilling to inspect and visually validate significant drill assays and
intercepts that inform any interpretation of nickel mineralisation
including any MRE work.
 Firstly, confirmation is made of the sample ID and visual
presentation of the core (to match logged lithology). Then the re-
sampling exercise of remaining ½ or ¼ core drill core represents an
independent duplicate style of data verification of the original nickel
assay results obtained by WMC as stored in the database. The
analysis of the duplicate samples is undertaken through Intertek’s
laboratory in Perth using four-acid digest with ICP-OES or ICP-MS
finish with appropriate company and laboratory analytical QAQC
procedures.
 No significant anomalies have been identified and the Competent
Person is satisfied that the original data is representative of the
geology and mineralisation modelled; thus no adjustments to assay
data have been deemed necessary or made.
 No twin holes have been completed to date. No non company
personnel (other than in the assay laboratory processes) or
alternative company personnel have been involved in the exercise
due to the small size of the company and the robustness of the
procedures detailed herein.
 Lunnon Metals notes that the Kambalda style of nickel
mineralisation is highly visible permitting the nickel grade to be
relatively accurately estimated by experienced geologists; this is a
practise that is not uncommon in the nickel mining industry.
Location of data Accuracy and quality of surveys used  RC and DDH hole collar locations are located by handheld GPS to
points to locate drillholes (collar and down- an accuracy of +/- 3m.
hole surveys), trenches, mine  All drill holes were surveyed downhole at 5m intervals using the
workings and other locations used in REFLEX gyro spirit-IQ system (north seeking gyro) for both azimuth
Mineral Resource estimation. and dip measurements.
 Downhole surveys are uploaded to the IMDEXHUB-IQ, a cloud-
Specification of the grid system used.
based data management program where surveys are validated and
Quality and adequacy of topographic
approved by the geologist before importing into the database.
control.
 The grid projection is GDA94/ MGA Zone 51.
 Diagrams and location data tables are provided in the report where
relevant.
----- End of picture text -----

P a g e | 15

==> picture [192 x 71] intentionally omitted <==

==> picture [501 x 644] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
WMC Historical data
 Historical methods of drill collar survey pick-up are not known. The
easting, northing and elevation values were originally recorded in
local KNO (‘Kambalda Nickel Operations’) grid and later converted
to the currently used GDA94/MGA Zone 51 grid. Both the original
KNO grid coordinates and the converted coordinates are recorded
in the database. A representative number of historical drill collars
were located in the field and their locations cross checked via
differential GPS and/or handheld GPS to validate the database collar
coordinates.
 Historical hardcopy downhole survey data is generally available for
all surface drillholes and the records show that single shot magnetic
instruments were used. A representative number of these hardcopy
downhole survey records have been cross checked against the
digital records in the database.
 No new downhole surveys have been conducted however Lunnon
Metals has corrected where necessary incorrect data in the database
where down hole measurements from the hardcopy data were
incorrectly processed.
 No other significant errors or inconsistencies were deemed present
or capable of being detrimental to any interpretation of nickel
mineralisation including any MRE work.
Data spacing Data spacing for reporting of  The RC and DDH programme at KNP comprises drillhole spacings
and distribution Exploration Results. that are dependent on the target style, orientation and depth.
Drillholes are not drilled to set patterns or spacing at the exploration
Whether the data spacing and
distribution is sufficient to establish stage of the programme.
 If follow up drilling is warranted with the objective of progressing
the degree of geological and grade
the prospect towards a data density sufficient to support a future
continuity appropriate for the Mineral
Resource and Ore Reserve estimation Mineral Resource estimation, spacing may vary from 40m x 40m to
40m x 20m, again subject to the target style dimensions, orientation
procedure(s) and classifications
and depth.
applied
 All holes have been geologically logged and provide a strong basis
Whether sample compositing has
for geological control and continuity of mineralisation.
been applied.  No Mineral Resource or Ore Reserve estimations are presented for
the area the subject of the exploration results.
 No sample compositing has been applied except in the reporting of
drill intercepts within a single hole, as described in this table.
WMC Historical data
 The typical drill spacing for the early WMC drill traverses is
approximately 120m apart with drillhole spacing along the traverses
between 10m and 80m (close spacing where present was due to
between one and four wedge holes from each parent hole). These
traverses were sometimes infilled to about 60m spacing where
drillhole depths were less than approximately 450m.
Orientation of Whether the orientation of sampling  The preferred orientation of drilling at KNP is designed to intercept
data in relation achieves unbiased sampling of the target approximately perpendicular to the strike and dip of the
to geological possible structures and the extent to mineralisation where/if known. Subsequent sampling is therefore
structure which this is known, considering the considered representative of the mineralised zones if/when
deposit type. intersected.
 At Warren the majority of historical drill holes were collared
If the relationship between the
vertically and lifted/drifted in towards close to perpendicular with
drilling orientation and the
depth as the nickel contact was approached.
orientation of key mineralised
structures is considered to have  The chance of bias introduced by sample orientation relative to
introduced a sampling bias, this structures, mineralised zones or shears at a low angle to the drillhole
----- End of picture text -----

P a g e | 16

==> picture [192 x 71] intentionally omitted <==

Criteria	JORC Code explanation		Commentary
	should be assessed and reported if material.		is possible, however quantified orientation of the intercepted interval allows this possible bias to be assessed. Where drilling intercepts the interpreted mineralisation as planned, bias is considered non-existent to minimal.
Sample security	The measures taken to ensure sample security.		 Samples are collected by Company personnel in calico bags, which are in turn placed in bulka bags which are secured on wooden pallets and transported directly via road freight to the laboratory with a corresponding submission form and consignment note.  The laboratory checks the samples received against the submission form and notifies the Company of any missing or additional samples. Once the laboratory has completed the assaying, the pulp packets, pulp residues and coarse rejects are held in the Laboratory’s secure warehouse until collected by the Company or approved to be discarded. WMC Historical data  There is no documentation available at the time of this announcement which describes the historical sample handling and submission protocols during the WMC drilling programmes; however, it is assumed that due care was taken with security of samples during field collection, transport and laboratory analysis. The historical drill core remaining after sampling was stored and catalogued at the KNO core farm (now Gold Fields, St Ives’ core farm) and it remains at this location to the present day.  All drill core retrieved from the core farm and samples collected as part of the Lunnon Metals historical drill core re-sampling programme was done so by the Lunnon Metals Exploration Manager, the Site Representative and/or the Lunnon Metals Field Services Superintendent over a period of time. Once samples had been collected Lunnon Metals staff personally transported the samples on a daily basis in a closed and secure vehicle directly to the Intertek sample preparation facility in Kalgoorlie along with the requisite sample submission forms. Occasionally, collected samples remained overnight at the core farm in a secure locked room before beingtransported to Intertek Kalgoorlie.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.		 No external audits or reviews have been undertaken at this stage of the programme. WMC Historical data  Cube Consulting Pty Ltd are independent of Lunnon Metals and have been previously retained to complete the grade estimation for nickel mineralisation models and MRE exercises but also to review and comment on the protocols developed by Lunnon Metals to deal with, and thereafter utilise, the historical WMC Resources’ data, in particular the re-sampling and QAQC exercise completed by Lunnon Metals such that the data is capable of being used in accordance with current ASX Listing Rules where applicable and JORC 2012 guidelines and standards for the generation and reporting of MREs.  Cube has documented no fatal flaws in the work completed by Lunnon Metals in this regard.

P a g e | 17

==> picture [192 x 71] intentionally omitted <==

SECTION 2 REPORTING OF EXPLORATION RESULTS

==> picture [501 x 627] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
Mineral Type, reference name/number,  The property is located on granted Mining Leases. Although all of
tenement and location and ownership including the tenements wholly or partially overlap with areas the subject of
land tenure agreements or material issues with determined native title rights and interests in the two Ngadju
status third parties such as joint ventures, determinations, the company notes that the original grant of the
partnerships, overriding royalties, right to mine pre-dates 23 December 1996 and as such section 26D
native title interests, historical sites, of the Native Title Act will be applied to exempt any future renewals
wilderness or national park and or term extensions from the right to negotiate in Subdivision P of
environmental settings. the Act.
 The complete area of contiguous tenements that are the subject of
The security of the tenure held at the
this announcement is collectively referred to as the Kambalda Nickel
time of reporting along with any
Project (‘KNP’) area. Gold Fields Ltd’s wholly owned subsidiary,
known impediments to obtaining a
St Ives Gold Mining Company Pty Ltd (SIGM) was the registered
licence to operate in the area.
holder and the beneficial owner of the Project area until the Lunnon
Metals IPO.
 The rights to nickel and gold on the Project area were governed by
an Option and Joint Venture Agreement (‘JVA’) executed between
Lunnon Metals and SIGM which, in summary, granted rights to
nickel and gold to Lunnon Metals in such a manner and form as if
Lunnon Metals were the tenement holder, until such time as the JV
farm-in commitments were met at which point the requisite
percentage interest (initially 51%) was to be transferred to Lunnon
Metals.
 Lunnon Metals and SIGM subsequently varied the JVA and executed
a Sale and Purchase Agreement whereby Lunnon Metals, upon
listing on the ASX, now holds 100% of the rights and title to the
Project, its assets and leases, subject to certain select reservations
and excluded rights retained by SIGM, principally relating to the
right to gold in defined areas and the rights to process any future
gold ore mined at their nearby Lefroy Gold Plant.
 The KNP comprises 19 tenements, each approximately 1,500 m by
800 m in area, and three tenements on which infrastructure may be
placed in the future. The KNP area tenement numbers are as
follows:
M15/1546; M15/1548; M15/1549; M15/1550;
M15/1551; M15/1553; M15/1556; M15/1557;
M15/1559; M15/1568; M15/1570; M15/1571;
M15/1572; M15/1573; M15/1575; M15/1576;
M15/1577; M15/1590; M15/1592;
and additional infrastructure tenements:
M15/1668; M15/1669; M15/1670.
 There are no known impediments to potential future development
or operations, subject to relevant regulatory approvals, over the
leases where significant results have been reported.
 The tenements are in good standing with the Western Australian
Department of Mines, Industry Regulation and Safety.
Exploration Acknowledgment and appraisal of  In relation to nickel mineralisation, WMC, now BHP Nickel West Pty
done by other exploration by other parties. Ltd and a wholly owned subsidiary of BHP Ltd, conducted all
parties relevant exploration, resource estimation, development and mining
of the mineralisation at Foster and Jan mines from establishment of
the mineral licences through to sale of the properties to SIGM in
December 2001.
----- End of picture text -----

P a g e | 18

==> picture [192 x 71] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
		 SIGM has conducted later gold exploration activities on the Project area since 2001, however until nickel focused work recommenced under Lunnon Metals management, no meaningful nickel exploration has been conducted since the time of WMC ownership and only one nickel focussed surface diamond core hole, with two ‘daughter’ wedge holes, have been completed in total since WMC ownership.  Total production from Foster was 61,129 nickel tonnes and from Jan was 30,270 nickel tonnes.
Geology	Deposit type, geological setting and style of mineralisation.	 The relevant area is host to both typical ‘Kambalda’ style, komatiitic hosted, nickel sulphide deposits and Archaean greenstone gold deposits such as routinely discovered and mined in Kambalda/St Ives district.
Drillhole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes:  easting and northing of the drillhole collar  elevation or RL (elevation above sea level in metres) of the drillhole collar  dip and azimuth of the hole  down hole length and interception depth hole length.	 Drill hole collar location and directional information is provided within the body of the report and also within the relevant Additional Details Table in the Annexures.  RC and DDH drilling reported herein is included in plan and cross sectional orientation maps where relevant.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	 Grades are reported as intervals recording down-hole length and interpreted true width where this estimation is able to be made.  Any grades composited and reported to represent an interpreted mineralised intercept of significance are reported as drill-length weighted averages over that intercept.  The Company currently considers that grades above 0.5% Ni are worthy of consideration for individual reporting in any announcement of additional details tables provided.  Composite nickel grades may be calculated typically to a 0.5% Ni cut-off with intervals greater than 1.0% reported as “including” in any zones of broader lower grade mineralisation.  Other composite grades may be reported above differing cut-offs however in such cases the cut off will be specifically stated.  Reported intervals may contain internal waste however the resultant composite must be greater than either the 0.5% Ni or 1.0% Ni as relevant (or the alternatively stated cut-off grade).  As per other Kambalda style nickel sulphide deposits the Lunnon Metals composites reported may include samples of very high nickel grades down to lower grades approaching the 0.5% Ni or 1.0% Ni cut-off as relevant.  Gold assay results, if reported, are done so to a minimum cut-off grade of 1.0g/t Au and maximum internal dilution of 1.0m.  No top-cuts have been applied to reporting of assay results.  No metal equivalent values have been reported.  Other elements of relevance to the reported nickel mineralisation, such as Cu, Co, Fe, Mg and the like, are reported where the nickel grade is considered significant.

P a g e | 19

==> picture [192 x 71] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Relationship between mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	 In regard nickel exploration, the general strike and dip of the Lunnon Basalt footwall contact and thus the zones of contact nickel sulphides are considered to be well defined by past drilling which generally allows for true width calculations to be made regardless of the density or angle of drilling.  For nickel and gold exploration, drillhole design seeks to plan the drill holes to be approximately perpendicular to the strike of mineralisation.  Reported intersections are approximate, but may not be true width, as drilling is not always exactly perpendicular to the strike/dip of mineralisation.  Improved estimates of true widths will only be possible when all results are received, and final geological interpretations have been completed.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drillhole collar locations and appropriate sectional views.	 Plans, long projections and sections, where able to clearly represent the results of drilling, are provided in the main body of the report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	 Drill collar locations of drilling completed by Lunnon Metals are shown in figures and all results of that drilling, including those with no significant assays, are provided in this report.  If relevant, drill holes with pending assays are also shown in figures.  The report is considered balanced and in context.  The Company highlights the historical drill database contains more than 5,000 drillholes and more than 100,000 nickel assays (and more than 145,000 gold assays) and thus summary tables are provided in the Appendices A through D to the independent Technical Assessment Report attached to the Company’s Prospectus lodged with the ASX on 11 June 2021. These Appendices note and record: o nickel drillholes with significant assays i.e. the number of drillholes containing at least one assay value greater than or equal to 1.0% Ni versus total number of holes in the database; o number of nickel assay values greater than or equal to 1.0% in the database; o number of drillholes containing at least one assay value greater than or equal to 1.0 ppm Au versus total number of holes in the database; and o number of gold assay values greater than or equal to 1.0 ppm in the database.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 Drilling across the KNP is on-going.  The KNP has a long history of geological investigation, primarily for nickel, but also gold to a lesser degree.  Datasets pertinent to the KNP that represent other meaningful and material information include: o Geophysics - multiple ground and aerial based surveys of magnetic, gravity, SAM, characteristics o Geochemistry – nickel and gold soil geochemistry datasets across the KNP  Historical production data recording metallurgical performance of Foster mine nickel delivered to the Kambalda Concentrator

P a g e | 20

==> picture [192 x 71] intentionally omitted <==

==> picture [501 x 20] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code explanation Commentary
----- End of picture text -----

Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	 The planned two year (June 2021 - June 2023) work programme is summarised in the Prospectus dated 22 April 2021 and announced on the ASX on 11 June 2021.  In general terms, the current nickel mineral resources at Foster are not closed off down plunge and also have potential for further definition drilling up-plunge. Whilst some testing of these areas can be achieved via surface diamond and/or RC drilling, typically it would be undertaken from underground drill platforms which are yet to be established.  In relation to the drilling results reported in this announcement, further RC and DDH (drill type will be subject to the estimated depth to target) will be planned to both infill the drill spacing (RC), collect material for metallurgical testing and provide litho-structural data to aid thegeological modellingandgrade estimationprocess.

P a g e | 21