East Trough First-Time Mineral Resource

Lunnon Metals Limited (ASX: LM8) (the Company or Lunnon Metals) is pleased to report a first-time, initial JORC (2012) nickel Mineral Resource estimate (MRE) for the East Trough deposit, located to the immediate south-west of the Baker deposit at the Kambalda Nickel Project (KNP). The initial East Trough MRE stands at:

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• 108,000 tonnes at 2.7% nickel for 3,000 contained nickel tonnes, all classified as Inferred Resource

The Company also reports that the 85H MRE at the historical Foster mine has been updated following a metallurgical diamond drill (DD) program. Only four new DD holes were completed within the limits of the previously reported resource and therefore the MRE did not change materially (see ASX announcement dated 8 February 2023 & 24 November 2022 for details of the drilling results).

• First-time Mineral Resource estimate records 3,000 tonnes of nickel metal1 at 2.7%
• East Trough resource complements future Baker nickel mine, with mineralisation remaining open down plunge
• 85H Mineral Resource estimate also updated
• Company ends 2023 with 2½ times more nickel metal than at June 2021 listing on ASX

These latest updates result in Lunnon Metals’ global MRE across the KNP increasing to 3.8 million tonnes @ 2.7% nickel for 104,400 contained nickel tonnes1 , a threefold increase in tonnes and more than 2½ times more nickel metal in MRE than at the time of the Company’s Initial Public Offering in June 2021.

Key implications of this initial East Trough MRE include:

• Potentially economic mineralisation in close proximity to Baker
• Nickel sulphide mineralisation remains open down plunge beyond 500 metres from surface
• Complementary production source for a future Baker underground mine

The grade of this initial MRE, its proximity to Baker and down-plunge potential makes East Trough a compelling opportunity that will likely enhance Baker’s economics .

Managing Director, Edmund Ainscough, commenting said:

"The drill program in the Baker locality has delineated East Trough and provided a growth opportunity in close proximity to any future potential underground mine at Baker. Advancing East Trough to an Inferred Resource category status allows us to factor its potential impact into the technical studies ongoing for Baker and Foster. The East Trough channel is open down plunge and as with a lot of the Kambalda nickel channels, offers the prospect of continuing discovery and extensions well into the future”.

MATERIAL INFORMATION SUMMARY – MINERAL RESOURCE ESTIMATION

Pursuant to ASX Listing Rule 5.8.1 and complementing JORC Table 1, Sections 1, 2 and 3, contained in the Annexure to this announcement, Lunnon Metals is pleased to provide the following information. The East Trough MRE was completed internally by Lunnon Metals based upon geological interpretations and 3D models compiled by its employees. Commentary on the relevant input parameters for the MRE process is contained at the end of this announcement.

East Trough Summary Result

The results reflect a combination of massive nickel sulphide, adjacent matrix and disseminated nickel sulphide mineralisation within the Inferred Mineral Resource classification. The breakdown of the MRE as at 18 December 2023 at a 1.0% Ni cut-off grade is as follows.

Table 1: MRE for the East Trough Nickel Deposit as at 18 December 2023.

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