Highlights

• Mt Windarra Indicated and Inferred Mineral Resource:

• 4.358 million tonnes @ 1.64% Ni for 71,500 tonnes contained nickel

MT WINDARRA MINERAL RESOURCE ESTIMATION

Poseidon retained Optiro Pty Ltd (Optiro) to revise the Mt Windarra Mineral Resource to JORC 2012 compliance standards as Optiro has completed the majority of the prior resource estimates at the Windarra Nickel Project.

The Mineral Resource at the Mt Windarra underground deposit has been estimated to be 4.358mt @ 1.64% Ni for 71.5kt of contained nickel metal (using a 0.9% nickel cut-off grade).

The Mineral Resource was classified in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012).

The Mt Windarra Mineral Resource has been reported at a 0.90% nickel cut-off grade by shoot and resource category to best reflect the potentia lly economic mineralisation within the Mineral Resource. All mineralisation that has no prospect of eventual economic extraction has been removed from the Mineral Resource statement in accordance with the JORC 2012 guidelines.

MT WINDARRA RESOURCE ASSUMPTIONS AND METHODOLOGY (Extracted from Optiro report)

The Mt Windarra Mineral Resource estimate is shown in Table 1 and has been classified and reported in accordance with the JORC 2012 guidelines. The Mineral Resource has been estimated using Ordinary Kriging, taking into account the following criteria:

• The drillhole database was supplied in Microsoft Access format which included collar, survey, assay and geology tables, as of 25 February 2014. The database was reviewed by Optiro to ensure validity and was deemed adequate to support the resource estimate which was carried out in Surpac. A total of 166 holes were used in the estimate.

• Mineralisation envelopes were supplied as Surpac wireframe models. These were constructed by Poseidon using a cut-off grade of 0.75% nickel for shoots A, B, C, F, G and H and a cut-off grade of 0.45% for shoot D. Optiro ensured that all the mineralisation wireframes were snapped to the drillholes and that all of the mineralisation was captured.

• All other development, mining, stope and geology wireframes used in the coding of the block model were supplied.