Poseidon Nickel Ltd. reported that following the positive outcomes of the Black Swan Bankable Feasibility Study for a standalone 1.1Mtpa mill feed option to produce smelter grade concentrate (refer to Company ASX announcement "Positive Black Swan Feasibility Study", dated 21 November 2022), final work streams are underway as the Company heads towards the restart with the Final Investment Decision (FID) expected in the second quarter of 2023. The Company has commenced an 11,000 metre RC drilling program into the Black Swan Disseminated resource. The drilling program is scheduled to be completed early February 2023 with all assay results expected by the end of March 2023.

The principal aims of the drill program are: to convert more Inferred Resources to Indicated and increase the Measured and Indicated Resource and in particular the conversion of the large amount of the Inferred resources that are not currently in the mining inventory; enhance the delineation of the metallurgically important serpentinite and talc-carbonate hosted ore types to quantify variations in their respective characteristics such as talc and non-sulphide nickel levels as well as sulphur/nickel ratios, to optimise the mining schedules and ore blending strategies; provide more detailed production scheduling for commencement of operations; and provide material for ongoing metallurgical testwork programs on the Expansion Project. Any increase in the Ore Reserve of the Black Swan open pit would result in a longer mine life which should improve the debt financing parameters for the project. The Company has issued further information to parties that have previously expressed an interest in offtake and/or project financing.

The Company will short list a select group and move forward with detailed due diligence including access to the data room and site visits. The aim is to have both offtake and project financing concluded early in the second quarter of 2023 so the Final Invest Decision can be made during that quarter. Final Investment Decision ­ Restart Project (1.1Mtpa feed) With the completion of offtake and financing the Company is targeting FID during the second quarter 2023.

If that timing is achieved concentrate production could commence during second quarter 2024, based on the refurbishment timetable and mine production ramp up schedule.