Lunnon Metals : Warren Wedges Continue to Impress

LUNNON METALS LIMITED ABN: 82 600 008 848

WARREN WEDGES CONTINUE TO IMPRESS

4 APRIL 2022

KEY POINTS

BOARD/MANAGEMENT

• • Latest Warren results confirm channel prospectivity

  Mr Liam Twigger

  NON-EXECUTIVE CHAIRPERSON

• • 9.05m @ 2.82% Ni in WRN21DD_003W1

  Mr Ian Junk

• • Down plunge wedge assays also record significant nickel results

  NON-EXECUTIVE DIRECTOR

• • 4.8m @ 3.09% Ni in WRN21DD_001W7

  Ms Deborah Lord

  NON-EXECUTIVE DIRECTOR

• • Results are an important step in growing Mineral Resources at Warren

  Mr Ashley McDonald

• • Update on N75C maiden Mineral Resource progress

NON-EXECUTIVE DIRECTOR

Mr Edmund Ainscough

MANAGING DIRECTOR

Lunnon Metals Limited (ASX: LM8) (the Company or Lunnon Metals) is pleased to provide an update on the progress of its discovery programme in the Warren channel, part of the previously operated Foster nickel mine at its Kambalda Nickel Project (KNP).

Mr Aaron Wehrle

EXPLORATION & GEOLOGY MANAGER

Diamond hole WRN21DD_003W1, reported on 7 March 2022 as intersecting an 8.5m zone (from 343.45m) of variably disseminated, matrix and massive nickel sulphide mineralisation, has now returned the following significant intersection (above a 1.0% Ni cut off):

• • 9.05m @ 2.82% Ni from 343.45m including:

  OFFICE

  • o 3.8m @ 4.84% Ni from 348.45m (Ni sulphide mineralisation at basalt contact)

Suite 5/11 Ventnor Avenue WEST PERTH WA 6005

Further down plunge, wedge holes W2, W3 and W7 from parent WRN21DD_001 have also been returned recording (above a 1.0% Ni cut off):

POSTAL ADDRESS

PO BOX 470

• • W7:

  WEST PERTH WA 6872

  • o 4.8m @ 3.09% Ni from 498.6m

  CONTACT DETAILS [phone]

• • W3:

  • o 3.05m @ 1.51% Ni from 501.75m; and

  lunnonmetals.com.au

  • o 0.95m @ 1.96% Ni from 541.45m

• • W2:

  SHARE REGISTRY

  • o 1.6m @ 1.18% Ni from 507.5m

Automic Group

True widths are estimated to be approximately 75% of the reported drill widths.

ASX CODE: LM8

Managing Director, Ed Ainscough, commenting said:

"Two significant areas that had been "gaps" in the WMC drill coverage are now being filled and continue to yield impressive widths and grades of nickel mineralisation; that's 400m of down plunge extent below the very limited historical mining where we continue to add nickel mineralisation. The opportunity now is to extend this programme further down plunge to the other side of WMC's Jardiniere Trough structure and keep expanding the area that may host nickel sulphides in the deepest known parts of the Warren channel".

DISCOVERY RATIONALE

Lunnon Metals' programme at Warren is designed to demonstrate that this channel, a separate nickel mineralised channel in its own right, has the potential to host substantially more than the current figure of 6,400t1 of nickel metal. The adjacent Foster channel, 1.5km to the immediate south-east, has an endowment of close to 94,000t of nickel at 2.92% Ni (>61,000t mined previously up to 1994 and 32,600t in the Company's current JORC Mineral Resource).

To achieve this goal the Company's simple objective at Warren is to target the prospective nickel contact between the very broad drill spacing left by WMC Resources Ltd (WMC) when the mine closed in 1994. Most importantly, these current results demonstrate the need to keep an open mind with respect to potential flanking mineralisation immediately above and below the previously identified channels, as now recorded in WRN21DD_001W7.

Figure 1: Long Projection of the Warren channel showing pierce points for WMC intercepts and the WRN21DD_003 parent and wedge programme together with wedges W2, W3 and W7 from WRN21DD_001 (new result call-outs shaded blue - see Figure 6 for approximate location of long projection in plan).

1 Full details of the Mineral Resource reported at Warren are included in the Prospectus and associated ITAR lodged on the

ASX on 11 June 2021

CROSS SECTION CONTEXT

A cross section for WRN21DD_003 parent and the completed and assayed wedge hole W1 is shown below.

Figure 2:

Cross section through WRN21DD_003 parent and the completed and assayed wedge hole W1 (new result call-out shaded blue).

Some 300m down plunge from the WRN21DD_003 programme, W7 was the fourth wedge hole completed from parent hole WRN21DD_001. This wedge W7 is targeting the Warren channel in an area where it is believed a concealed, prospective nickel contact may be present. A similar nickel contact setting is seen on the immediate south side of a later Proterozoic dyke, termed the Jardiniere Trough (see description reported on 15 February 2022), a further 160m down plunge. This wedge W7 complemented wedges W2 and W3 and successfully intersected nickel sulphides on the sediment covered outer flank contact (see Figure 1 for pierce point). The cross section below has been updated with the assay results for all completed wedges now annotated.

Figure 3 Cross section through WRN21DD_001 parent and associated wedged holes W2, W3 and W7 (new result call-outs shaded blue; W7 is approximately 20m off section).

WARREN WEDGE DRILLING UPDATE

Down hole depth (m)	Interval (m)	Host	Visual estimates
Sulphide % in rock	Mineralisation description
358.65	0.95	Talc magnesite ultramafic (Kambalda Komatiite)	5-30%	Disseminated blebby and weak matrix style pyrrhotite and minor pentlandite, pyrite and trace chalcopyrite
359.60	7.65	~5%	Disseminated with occasional blebs of pyrrhotite and minor pentlandite, pyrite and chalcopyrite in foliated ultramafic host
367.25	0.15	10-40%	Matrix style pyrrhotite as blebs/network, with minor pentlandite, pyrite and chalcopyrite
367.40	0.40	>80%	Massive >90% sulphides; pyrrhotite and pyrite dominant with pentlandite and chalcopyrite
375.10	0.15	Lunnon Basalt	>80%	A further 6.5m below contact, massive pyrrhotite / pentlandite pyrite remobilised into footwall basalt

As previously reported, the Down Hole Transient Electro-Magnetic (DHTEM) surveying of WRN21DD_003 recorded a high conductance, late time response modelled as a 55m x 40m plate. This plate was coincident with the presence of nickel sulphide mineralisation on the prospective komatiite-basalt contact in that hole (8.72m @ 3.54% Ni reported 4 January 2022) and the first wedge (W1), reported today.

A second wedge hole (W2) off parent hole WRN21DD_003, has hit nickel sulphides approximately 20m to the south and slightly down plunge from the parent hole. Once more this intercept was exactly at the downhole depth predicted by the DHTEM plate (see Figure 1 for approximate pierce point). Two further surface diamond holes yet to be commenced will target the northern and down dip edges of the 55m x 40m plate.

Geological logging summary (WRN21DD_003W2)

The diamond hole has been logged as having a 0.55m wide nickel sulphide zone on the Kambalda Komatiite - Lunnon Basalt contact, with further remobilised massive nickel sulphides present in the footwall of this contact indicative of a pinch-out position on a nearby minor or secondary trough. This is a narrower intercept than the mineralisation intersected in the parent and the first wedge hole reported above suggesting a location on the edge of the conductive DHTEM plate. Field analysis of these zones by XRF unit confirmed the presence of nickel.

The geological description for the wedge hole W2 is as follows:

Table 1: WRN21DD_003W2

Note: in relation to the reporting of visual mineralisation, the Company highlights that visual estimates of sulphide abundance, even when confirmed by XRF 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.