Ann: Quarterly Reports - December 2020, page-3

Poseidon Nickel (ASX: POS, “the Company”) is pleased to report on its activities for the December quarter
2020.
Managing Director and CEO, Peter Harold, commented: “The December quarter saw the Company achieve a
number of significant milestones including the commencement of the Golden Swan drill drive, which once
completed, will allow resource drilling and a well-supported $10 million placement to fast-track exploration.
The successful installation of the underground electromagnetic fixed loop provided high quality DHEM results
on the existing Golden Swan EM conductors and further EM surveys identified new EM anomalies, extending
the footprint of Golden Swan DHEM plates. In addition, two EM anomalies were identified in the footwall of the
Southern Terrace, indicating potential for mineralisation to be hosted outside the existing Golden Swan zone.
A third intersection, 50m up plunge from the previous two intersections confirmed high-grade nickel sulphides in
the newly identified upper extension of the Golden Swan mineralised zone. The three intersections to date
demonstrate the significance of the Golden Swan discovery. Furthermore, preliminary metallurgical testwork
indicates Golden Swan could produce a high-grade nickel concentrate with low impurities which would be very
attractive to nickel smelters globally.
On the back of the successful Golden Swan discovery, the strong nickel price and buoyant equity markets, the
Company raised $10 million via a placement through Morgans Corporate Limited, increasing our cash position
to $20 million at 31 December. The placement has provided the Company with the necessary funds to accelerate
our exploration activities at Black Swan and aggressively explore the Southern Terrace, which hosts the highgrade Golden Swan discovery. Funds from the placement have been allocated to completing the Golden Swan
drill drive, the Golden Swan resource drilling program, further exploratory drilling and EM surveys within the
Southern Terrace and Resource to Reserve conversion drilling of the Silver Swan Resource. All these activities
are aimed at building a sufficient high-grade inventory at Black Swan to allow mining to recommence after a 10-
year hiatus.
Our aim is to have a maiden resource reported for Golden Swan during Q3 2021 and then move straight into
mining studies and processing options which include Direct Shipping Ore (DSO) or restarting the Black Swan
Concentrator. We hope to have all these studies completed by the end of calendar year 2021.”