Lunnon Metals : Warren Wedge Another Winner

LUNNON METALS LIMITED ABN: 82 600 008 848

onlyBOARD/MANAGEMENT Mr Liam Twigger

NON-EXECUTIVE CHAIRPERSON

Mr Ian Junk

NON-EXECUTIVE DIRECTOR

useMr Ashley McDonald

NON-EXECUTIVE DIRECTOR

Mr Edmund Ainscough

MANAGING DIRECTOR

Mr Aaron Wehrle

EXPLORATION &

GEOLOGY MANAGER

personalOFFICE

Suite 5/11 Ventnor Avenue WEST PERTH WA 6005

POSTAL ADDRESS

PO BOX 470

WEST PERTH WA 6872

CONTACT DETAILS [phone] [e-mail]

lunnonmetals.com.au

SHARE REGISTRY

Automic Group

ForASX CODE: LM8

WARREN WEDGE ANOTHER WINNER

7 MARCH 2022

KEY POINTS

• Nickel sulphides intersected again in latest Warren wedge diamond hole
• Interval at exact depth downhole predicted by 55m x 40m DHTEM plate recorded in parent hole
• Programme is successfully targeting gaps between WMC drill coverage to grow Mineral Resource at Warren

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

Figure 1: WRN21DD_003W1 core with massive nickel sulphides in first wedge daughter hole (from 350.9m)

Managing Director, Ed Ainscough, commenting said:

"Where the DHTEM survey gives us a strong response like it has in WRN21DD_003, with a 55m x 40m sized plate, we gain great confidence when we follow that up and hit the type of nickel mineralisation we see in the daughter hole at exactly the right downhole depth. Drilling an additional second daughter hole and two extra surface holes into this plate will complete the programme to fill this "gap" in the old WMC drill coverage. The widths and style of nickel mineralisation in the daughter look very consistent with the parent, which bodes well for our plan to link this mineralisation up and add it to our existing Mineral Resource at Warren".

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1.05

350.90

348.45

2.45

343.45

345.15

1.7

3.3

Interval

(m)

Down hole depth (m)

>80%

10-40%

Talc magnesite

ultramafic (Kambalda Komatiite)

10-40%

5-10%

Disseminated to weak-matrixore, pyrrhotite dominant with pentlandite and lesser chalcopyrite

Minor stringers and disseminated-blebby-vein pyrrhotite increasing towards base

Disseminated to matrix ore, pyrrhotite dominant with pentlandite and lesser chalcopyrite

Massive (>80% sulphides); pyrrhotite dominant with pentlandite and significant chalcopyrite

Mineralisation description

Sulphide % in

rock

Host

Visual estimates

DISCOVERY RATIONALE

Lunnon Metals' programme at Warren is designed to demonstrate that this channel, a separate nickel mineralised onlychannel 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.

WARREN PARENT AND WEDGE DRILLING PROGRESS

useDown 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 in that hole (8.72m @ 3.54% Ni reported 4 January 2022) on the prospective komatiite-basalt contact.

Drilling by wedging off the parent hole has now also hit nickel sulphides approximately 20m up-dip from the parent hole, exactly at the downhole depth predicted by the DHTEM plate (see Figure 2 for pierce point). This is the first in a programme of one further wedge and two further surface diamond holes that will target the 55m x 40m plate.

GEOLOGICAL LOGGING SUMMARIES

personalWRN21DD_003W1 diamond hole has been logged as having an 8.5m zone (from 343.5m) of variably disseminated to matrix nickel sulphide mineralisation including massive nickel sulphides in the last 1.05m of the intercept, hosted

immediately on the basalt contact.

Field analysis of these zones by XRF unit confirmed the presence of nickel. The geological description for this daughter hole is as follows (see Figure 1 for downhole depths annotated on the core photographs):

Table 1: WRN21DD_003W1

ForNote: 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.

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

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onlyuse personalForFigure 2:

Long Projection of the Warren channel showing pierce points for WMC intercepts and the WRN21DD_001 & WRN21DD_003 parent and daughter programmes (holes reported in this report - yellow fill).

Prior to the drilling of WRN21DD_003W1 and following on from the recent update provided on 15 February 2022, a fourth daughter hole was completed from parent hole WRN21DD_001, which is 300m down plunge from the intersection reported above.

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This wedge was completed up plunge from W2 and W3 and successfully intersected nickel sulphides on the sediment covered outer flank contact (again see Figure 2 for pierce point). The geological description of the W72

only

intersect is as follows:

Table 2: WRN21DD_001W72

Down hole

Interval

Host

Visual estimates

Sulphide % in

depth (m)

(m)

Mineralisation description

rock

Blebby to disseminated nickel sulphides,

use

494.3

7.32

Talc magnesite

5-40%

pyrrhotite dominant with minor pentlandite,

ultramafic

pyrite and trace chalcopyrite, minor chert

(Kambalda

and brecciated sheared zones (~20cm)

Komatiite) with

>80% (massive) with

Semi-massive to massive nickel sulphides,

501.62

1.78

interflow

interleaved zones

pyrrhotite with minor pentlandite and pyrite,

sediments

10-40% where

interleaved with sediment hosted nickel

sediment hosted

sulphides

Field analysis of these zones by XRF unit confirmed the presence of nickel.

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. personalAssay 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.

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

Edmund Ainscough

Managing Director

ForPhone: [phone]

Email:[e-mail]

2 The hole ID suffix is W7 as four "navi" cuts were required to direct this fourth daughter hole to the design target (i.e W4 through W7) - in effect this is the 7th wedge off the parent hole.

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onlyuse personalFigure 3: For

Plan of the Kambalda Nickel Project showing location of all work areas, highlighting the location of the Warren long projection A-B (see Figure 2).

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