Cannon Resources : Exploration Update for Fisher East Project

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ASX ANNOUNCEMENT | ASX: CNR

24 March 2022

Exploration update for Fisher East Project

Highlights

• AC drilling results from Cannon's late 2021 program define strong PGE anomalies along ore the hosting basal contact at Fisher East
• RC drill rig currently at Fisher East and drilling program underway at priority PGE anomalies
• Diamond drill rig mobilising to site today - drilling at Musket & Sabre later this week

Cannon Resources Limited (ASX: CNR) ("Cannon" or "the Company") is pleased to announce that assay results from the Company's 2021 aircore ("AC") program have been received and define strong palladium and platinum (Pd & Pt) anomalies above and up-plunge of basement mineralisation at the Musket and Sabre prospects as well as other regional targets along the same ore-hosting basal contact. Peak Pd + Pt assays in upper in-situ regolith include 4m @ 142 ppb Pd + Pt over Musket; 4m @ 685 ppb Pd + Pt over Sabre; and 4m @ 505 ppb Pd + Pt over Horatio.

Cannon is also pleased to announce that drilling has commenced at Fisher East with an RC rig currently on site and drill testing targets at the Horatio and Sabre prospects. A diamond rig is mobilising to site today and is expected to commence our extensive drilling campaign by week's end, initially starting at Musket and Sabre. Over 8,000 metres of drilling is planned with the majority being diamond.

Cannon CEO, Steve Lynn commented:

"We are extremely pleased and excited to commence our drilling program at Fisher East. The RC rig is currently drill testing selected PGE anomalies along the ore-position contact south of Musket and we will also use it to drill some pre-collar holes for our upcoming diamond program, which I expect will be underway this week."

"Our AC drilling program from last year was designed to test a 13 km section of the basal ore-position contact from Musket down to Horatio. This contact hosts all the known orebodies at Fisher East and is our primary focus for continued exploration. Strong PGE anomalies have been detected at Musket and Sabre and represent the up-plunge expression of the mineralisation. This bodes well for using these geochemical exploration methods to delineate the most prospective zones for further intensive drilling and I look forward to updating the investment community and Cannon followers as we progress our exploration program."

ASX Code: CNR | ACN: 646 149 902 | www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005

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Cannon AC exploration results

All mineralised bodies discovered to date at Fisher East lie on an unconformable contact between a basal komatiite flow (i.e. the first initial submarine lava flow) and the underlying seafloor mudstone/sandstone sediments. Mineralisation is almost exclusively hosted in the basal portion of the komatiite and can be up to 15 metres thick. After regional folding and tectonism in the Archaean, the ore-position contact is now subvertical and overturned, dipping between 55° and 70° to the east. The sediments and komatiite strata, as well as the nickel mineralisation are well preserved and either outcrop or sub-outcrop. They are readily amenable to modern exploration techniques.

Cannon's AC program from 2021 comprised a total of 127 AC holes which targeted a 13 km section of the basal ore position contact from Musket down to the Horatio Prospect. This zone was considered highly prospective with known anomalous nickel occurrences at prospects such as Cutlass, Sabre, Tomahawk and Horatio. The contact is known to be present for a further 6 km beyond Horatio and potentially for a further 20 km beyond that. The contact is located on 100% Cannon tenure and these extensions generally remain untested by drilling and will be a focus for future exploration by Cannon.

As part of the AC program, orientation AC drilling at 80 metre lateral spacing was completed over the top of the Musket orebody to gage the elemental response in the upper weathered portion of the profile. No drilling existed that had previously targeted this upper zone over the Musket mineralisation.

Drilling at Musket returned an anomalous palladium and platinum response in strata confined to the immediately up-plunge extension of the ore zone, whilst Ni values tended to be depleted for the same mineralised interval. A maximum value of 4m @ 142 ppb Pd + Pt from 36m in hole FEAC484 was returned from the central up-plunge sector of the mineralisation envelope. Background values were generally below 20 ppb Pd + Pt away from the mineralisation.

Further along the basal contact, the AC program returned strong PGE anomalism over mineralisation at Sabre and at the Horatio prospect. Moderate anomalism was returned from the Cutlass and Tomahawk prospects. PGE anomalism at Sabre has an extensive strike of over 600 metres with peak values up to 4m @ 685 ppb Pd + Pt from 24m in hole FEAC519.

Significant Ni depletion was observed from the same PGE anomalous intervals indicating that exclusive base metal assays may not be appropriate for AC drilling at this location. Follow-up exploration at the anomalous sites is scheduled for the current drilling campaign now underway.

ASX Code: CNR | ACN: 646 149 902 | www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005

| P: [phone] |

E: [e-mail]

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Figure 1. Basal ore-position contact (exploration target) at Camelwood through to

Horatio prospect overlain on magnetic image (TMI)

ASX Code: CNR | ACN: 646 149 902 | www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005

| P: [phone] |

E: [e-mail]

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Figure 2. Detail of composite PGE (Pd + Pt) response in upper regolith AC drilling -

Musket through to Sabre

ASX Code: CNR | ACN: 646 149 902 | www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005

| P: [phone] |

E: [e-mail]

For personal use only

Figure 3. Detail of composite PGE (Pd + Pt) response in upper regolith AC drilling -

Sabre through to Horatio

ASX Code: CNR | ACN: 646 149 902 | www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005

| P: [phone] |

E: [e-mail]