Ann: Quarterly Activities Report - March 2021, page-3

At this rate with $15,4M cash no debt, POS has enough cash till 31 Dec
The offtake discussions have commenced so the term sheet will be likely $40M upfront prepayment and $20M line of credit with a 3 year DSO deal with BHP at a 50% margin (high margin)[presuming AISC at same as PAN aud$5.00 or less, with NP at aud$10 now]
If an offtaker pays $60M by October then no CR needed, by then the JORC for GS will be defined and ST high grade block locations uncovered.
If its DSO ore then no milling then no need to use the mill, just truck the DSO ore 25km to the BHP smelter and instant $120Mpa ebitda.
This cashflow will then fund the mill, BS open pit, W LJ and double or triple that production
If the production increases using this FCF then POS PER will have to go to 13.0 higher than WSA PAN as the earnings prospects increase from 0 now.

With this news and future near term earnings in 12 months of ebitda $120Mpa, POS SP should start moving soon.
Market has not priced in any GS ST resources, the DD capex nor any offtake deal of $1 let alone $60M.

POS dont need 2-3 years & $800M+ debt/CR to start these mines up like SIR ANL FMG PAN did.
Its all done, 6 produceable mines now sitting there with 3.7MTpa milling capacity in "remarkably good condition" with robust economics and "high margins". Market still doesnt believe it...

Golden Swan Development
o Golden Swan Drill Drive extended 50 metres to improve drill angles for Golden Swan
Resource Drilling program. Drill drive completed subsequent to quarter end
o Golden Swan resource drilling plan completed, program commenced end of April 2021 and
is estimated to take three months to complete
o Dialogue with potential offtake parties for Direct Shipping Ore commenced
 Southern Terrace Exploration
o First hole drilled in the Southern Terrace exploration program targeting 120 metres below first
high-grade intersection at Golden Swan
 Windarra Gold Tailings Project
o Definitive Feasibility Study well progressed, expected completion over the next quarter
o Termination of Windarra State Agreement progressing and on track to be completed late next
quarter
 Corporate/Finance
o Poseidon added to the All Ordinaries Index following March 2021 rebalance
o Support from Managing Director Peter Harold with 500,000 on-market share purchase
o Cash position of $15.4 million on 31 March 2020, down from $20.1 million at the end of the
December 2020 quarter

Managing Director and CEO, Peter Harold, commented: “Over the quarter the Company made significant
progress toward exploitation of the Golden Swan mineralisation with development of the drill drive largely
completed over the quarter. The drill drive was completed post quarter end providing optimal positioning for
Golden Swan Resource drilling which commenced this week. WestAuz completed the drill drive to a high quality
and most importantly with no safety incidents.Despite challenging ground conditions, we progressed the Southern Terrace exploration program with drilling continuing from a position just off the Silver Swan decline. The ground conditions encountered further support
our decision to develop the drill drive. The Company will undertake future Southern Terrace exploration from the
drill platform at the end of the new drill drive. There is a lot going on at Poseidon with the focus over the June
quarter on made progressing the Golden Swan Resource drilling program,further drilling to test the potential of
the Southern Terrace, completion of the Windarra Gold Tailings Definitive Feasibility study and progressing the
Lake Johnston strategic review. Shareholders can expect a significant increase in news flow compared to the
March quarter.”