NickelX Limited reported that it has completed geophysical data re-processing and defined high priority nickel targets at the Cosmos South Nickel project which is located 10km south of the world-class, high-grade Cosmos nickel operations and 20km North of the world class large scale Leinster nickel operations, within the prolific Wiluna Greenstone Belt. Surface EM data re-processing over the Cosmos South Project has successfully defined a large, highly conductive feature (CS1), modelled at less than 100m from surface. The modelled plate from both MLEM and FLEM data is coincident with magnetic lineaments observed from regional aeromagnetic data over the project location.

The EM data suggests the conductor may extend south beyond the limits of the MLEM data coverage. Cosmos South M36/580 is situated within the highly nickel-endowed region of the Agnew-Wiluna Greenstone belt. The belt hosts world class nickel deposits of the Leinster nickel operations, Mt Keith, Yakabindie, Honeymoon Well and Cosmos.

The majority of M36/580 is covered by alluvium draining into Lake Miranda as are the Prospero, Tapinos and Anomaly 3 nickel deposits at the nearby Cosmos nickel operations, where the nickel mineralised systems are buried under deep transported material within the Lake Miranda drainage system. The southern portion of the NickelX tenure gently rises southwards where the bedrock is covered by residual laterite material, which is developed over and/or shed off from the subcropping-outcropping Archaean rocks to the south. The latter are host to the nearby Taurus, Sir Samuel and Sir Tristram nickel mineralisation, which are highly anomalous in nickel geochemistry that continues up into the southern area of M36/580.

Despite being surrounded by major nickel miners, M36/580 has undergone very limited exploration to date. The areas of outcropping-subcropping bedrock to the south and north of M36/580, on the other hand, have undergone considerable exploration resulting in the discovery of nickel mineralisation to the immediate south at the Taurus, Sir Samuel and Sir Tristram prospects. M36/580 is almost entirely covered by transported alluvial deposits and no systematic drilling has been undertaken on the tenure.

Despite poor coverage over this area, the available First Vertical Derivative (1VD) aeromagnetic image indicates that the ultramafic sequences that host nickel mineralization surrounding the tenement extend into M36/580. In particular, the magnetic ultramafic rocks appear to strike through the northern portion of the tenement, which contains the CS1 target. A MLEM survey, completed by Vortex Geophysics at M36/580 prospect in April 2017, was primarily designed to identify massive sulphide targets.

A total of 68 stations encompassing a total of 6 line kilometres were completed at the M36/580 Prospect. The data quality is excellent throughout the survey. A significant anomalous response was identified at mid- to late delay times.

CS1 is interpreted to consist of multiple large conductors of high to very high modelled conductance ranging from 6,000 to 12,000 Siemens. The time constant is estimated to be around 500ms consistent with massive sulphides conductors. The MLEM survey was followed up by a Fixed Loop EM survey.

The CS MLEM conductivity anomaly was confirmed by the follow-up FLEM survey, which revealed a large bedrock conductor with a strike length of 565m and depth extent of 850m (Figure 6). The modelled conductance of the FLEM plate is interpreted to be 11,300 Siemens consistent with the upper conductance range as obtained by the MLEM survey. The depth to the top of the conductor is interpreted to be around 80m below surface, approximately 30m deeper than suggested by the MLEM survey results.

The conductive source is interpreted to dip steeply (73 degree) to the west. The estimated time constant of 700ms and modelled conductance of 11,300 Siemens are consistent with a massive sulphides source. All prior drilling on the project is shallower than the interpreted 80m depth to the top of the conductivity anomaly.

Contingent upon shareholder approval, NickelX plan to conduct a detailed drone airborne magnetic survey over the entire tenement. This survey will help to better delineate the magnetic strata interpreted to represent continuations of the ultramafic komatiite lithologies that host nickel mineralisation to north and south of M36/580. This information will be critical for drill hole planning, targeting the most promising parts of the interpreted conductor/ultramafic package.

A maiden drill program consisting of 4 diamond drill holes is expected to commence in the March Quarter 2022.