MST Initiation of coverage Valuation – A$0.91/share

https://cannonres.com.au/wp-content/uploads/2022/07/MST-Access-CNR-Initiation-13Jul22.pdf

“Valuation – A$0.91/share (vs current market price of $A0.31/ share)”

“Longer term, we believe a reasonable resource target size for CNR is at least 200 Kt Ni. This is based on our view that

further infill and extensional drilling will likely lead to more growth in the resource base, particularly given the

success of the first two drilling programs since the IPO last year. Conceptually, if CNR were to reach this target and

assuming a 50–60% reserve grade rate of conversion from inferred to measured resource, CNR could expect to hold

mineable Ni of approximately 100–120 Kt. At this resource size and assuming a production rate of 10 Kt p.a., the

potential mine life would likely be at least 10 years.

Importantly, the resource at Fisher East shows mineralisation close to the surface, which provides easier access to

shallow mineralisation early in future mining plans.”