Cannon Resources : Fisher East Resource Increased to 116.3 Kt Contained Nickel

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ASX ANNOUNCEMENT | ASX: CNR

05 April 2022

Maiden Nickel Resource at Sabre Delivers Increase in Total Fisher East Resources to 116.3 Kt Contained Nickel

Highlights

• • Cannon delivers a maiden JORC 2012 Mineral Resource for the Sabre deposit at Fisher East of 1.8 Mt @ 1.4% Ni for 24.5 Kt contained nickel

• • Fisher East Project now contains 116,300 t of nickel in 4 separate deposits - Musket, Camelwood, Cannonball, and Sabre

• • Sabre is 6 km south of Musket and is a separate channelised Kambalda style deposit on the same geological contact as Musket, Camelwood and Cannonball

• • Sabre resource has been drilled over a strike length of 600 metres and to a maximum depth of just 300 metres and remains open laterally, internally and down plunge

• • Diamond drilling currently underway at Sabre testing higher grade extensions to the resource at targets above 300 metres

Cannon Resources Limited (ASX: CNR)("Cannon" or "the Company") is pleased to announce that a maiden Mineral Resource has been completed for the Sabre prospect at the Company's Fisher East Nickel Project.

The Sabre Mineral Resource is 1.8 Mt @ 1.4% Ni for 24.5 Kt of contained nickel at a cut-off grade of 0.9% Ni (JORC 2012).

The Fisher East Project now has a total of 116,300 tonnes of contained nickel in 4 high grade Class 1 JORC 2012 resources at Musket, Camelwood, Cannonball and Sabre.

Sabre is a channelised komatiite hosted nickel deposit sharing the same genesis, mineralisation style and host stratigraphy as Cannon's 3 other Fisher East nickel deposits of Musket, Camelwood, and Cannonball. Sabre is 6 km south of Musket and the 4 deposits are all located on an 8 km section of the basal komatiite/sediment contact on 100% Cannon tenure.

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: Sabre Mineral Resource in long section.

Section shows 2022 Inferred Resource, all drilling pierce points, selected significant intercepts plus all Cannon drilling

Figure 2: Sabre - Musket - Cannonball - Camelwood deposits in long section

All deposits are located on same ore-position contact, all subcrop at the surface and all remain open at depth and laterally along strike

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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Cannon CEO, Steve Lynn commented:

"Cannon is pleased to achieve another milestone with the release of the maiden resource for Sabre. At 24.5 kt of contained nickel the resource is already of a substantial size with plenty of growth upside.

The Sabre channel is very extensive and looks to be at least 700 metres wide and remains undrilled on the margins and only partly drilled to a maximum depth of 300 metres. Given the style and scale of the mineralisation intersected to date, we remain confident that the mineralisation will also extend down plunge.

Additionally, we have interpreted a series of higher grade zones inside the resource that we will immediately target with extensional drilling using the current on-site drill rig. We see outstanding potential for resource growth in the sub-300m zone as well as down plunge extension and look forward to updating the market as the drilling results are received.

Looking at the total nickel inventory so far identified at Fisher East, it is shaping up to be a substantial and significant high grade Class 1 nickel field with 4 resources identified to date, all with mineralisation near surface, all expandable and all open at depth."

Table 1: Sabre Mineral Resource April 2022

Grade	Contained Metal
Ni Cut-off Grade (%)	Material	Quantity (Mt)	Ni (%)	Bulk Density (t/m3)	Nickel Metal (kt)
Inferred Mineral Resource
0.9	Oxide	0.03	1.1	3.1	0.3
Transitional	0.12	1.2	3.2	1.4
Fresh	1.6	1.4	3.2	22.8
Total Inferred	1.8	1.4	3.2	24.5
Total	1.8	1.4	3.2	24.5

Notes:

• 1. Totals may differ due to rounding, Mineral Resources reported on a dry in-situ basis.

• 2. All Mineral Resources figures reported in the table above represent estimates as of 5th April 2022. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.

• 3. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code - JORC 2012 Edition).

• 4. A reporting cut-off grade of 0.9% Ni was used to report the Mineral Resource. This was based on parameters from a previous scoping study in 2015 by CSA Global and updating of the parameters as appropriate by Cannon. Key parameters were a nickel price of AUD 21,500 per tonne, processing costs of AUD 42.51, mining costs of AUD 65.40, dilution of 10% and payability of 70%.

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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Table 2: Total Fisher East Mineral Resource

Fisher East
Deposit	Category	Tonnes (Mt)	Grade Ni %	Contained Ni Metal
Indicated	1.7	2.0	34.0
Inferred	0.3	1.5	5.0
Camelwood
Total	2.0	2.0	39.0
Cannonball	Indicated	0.24	2.9	7.0
Inferred	0.02	1.9	0.3
Total	0.26	2.8	7.3
Indicated	0.9	2.1	19.0
Inferred	1.5	1.8	26.4
Musket
Total	2.4	1.9	45.5
Sabre	Inferred	1.8	1.4	24.5
Total	1.8	1.4	24.5
Total	Indicated	2.8	2.1	60.0
Inferred	3.6	1.6	56.2
Total	6.4	1.8	116.3

Note: Cut-off grades: Camelwood, Cannonball 1.0% Ni; Musket, Sabre 0.9% Ni. Values may not sum due to rounding.

Sabre Mineral Resource Discussion:

1. Geology and Geological Interpretation

The geological setting is Archaean channelised basal komatiite hosted mineralisation, bounded by hangingwall basaltic rocks and footwall felsic metasediments. Mineralisation consists of massive to semi-massive and disseminated nickel sulphide accumulations within host komatiite mostly situated at the (eastern) basal ultramafic - felsic contact. This is interpreted to be equivalent to Type 1 basal komatiite ores at Kambalda.

The entire stratigraphic sequence including the mineralisation has been subject to an Archaean regional folding event so that it is now overturned and dipping to the east at approximately 56°. The Sabre channel with contained mineralisation is interpreted to be plunging to the north down the dip of the strata at approximately 56°. The ultramafic sequences are strongly talc-carbonate altered and metamorphism is mid-upper Greenschist.

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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Mineralisation is characterised by a tabular strata-bound accumulation consisting of interleaved semi-massive sulphide layers over 1-2 metres within the basal komatiite zone, overlain by matrix and disseminated sulphides up to 10-12 metres thick and also within komatiite (but typically 3-5 metres thick). Sulphide minerals are generally fine grained crystals and blebs disseminated throughout the host komatiite. Sulphide species consist of (pyrrhotite + pentlandite ± violarite ± pyrite) in semi-massive and disseminated ore.

The Sabre channel is interpreted to be over 700 metres wide, with nickel mineralisation accumulating over most of that width. It is a separate channel to those that host the Musket, Cannonball and Camelwood deposits, but is interpreted to be a section of a multi-channelised komatiite lava sheet. The mineralisation envelope remains open at the channel margins as well as down plunge. Additionally, there are several interpreted higher grade and thicker trends within the mineralisation, with the most prominent in the central part of the channel. The mineralisation is interpreted to extend down plunge and to date is only limited by the extent of drilling.

Drill spacing is approximately 80 metres within and proximal to the limits of the mineralisation, and therefore there is a high degree of confidence in the geological models of the deposit, based on consistent stratigraphy in drill holes and highly correlatable lithologies and mineralisation boundaries.

2. Drilling techniques

Diamond (DD) and Reverse Circulation (RC) drilling rigs were used. The RC hole diameter was 140mm with a face sampling hammer used. Hole depths ranged from 121m to 256m. Diamond holes were drilled with predominantly NQ2 diameter (although also some PQ and HQ size pre-collars and upper hole portions) with all core recovered. Hole depths ranged from 204.1m to 475m. Pre-collars for diamond holes were drilled using a roller bit and reamed to HW casing size. Where possible, the core was oriented using Camtech and Reflex Act III orientation tools.

3. Sampling and sub-sampling techniques

Diamond core was reconstructed into continuous sample runs on an angle iron used for orientation marking. Depths were measured and checked against marked depths on the core blocks. Diamond drill core recoveries were logged and recorded in the database. Overall recoveries were >95%, and there were no significant core loss or recovery problems.

RC samples were visually checked for recovery, moisture and contamination and notes made in the logs. RC drill recoveries were very good; almost all samples were dry.

Samples used for the Mineral Resource estimate came from both RC and DD drilling, both of which had high recoveries. There is no observable relationship between recovery and grade, and therefore no sample bias.

DD core was subsampled over lengths ranging from 0.1m to 1.2m Core was sawn longitudinally using a diamond core saw and half-core taken. All subsamples were collected from the same side of the core and core has been sampled to geological boundaries.

RC samples were collected on the drill rig using a cone splitter on a 1 metre per sample basis. Most samples were collected dry with very few of the mineralised samples were collected wet, and these were noted in the drill logs and database.

4. Sample analysis

Sample preparation of DD core and RC samples occurred at Intertek in Kalgoorlie and Perth and involved oven drying (4-6 hrs at 95C), coarse crushing in a jaw-crusher to 100% passing 10 mm, then pulverisation of the entire crushed sample in LM5 grinding mills to a particle size distribution of 85% passing 75 microns and collection of a 200 gram sub-sample.

Laboratory assaying techniques were fire assay for Au, Pt & Pd; and 4 acid digest followed by ICP/OES or ICP/MS analysis for remaining multi-elements. The four acid digest involved hydrofluoric, nitric, perchloric and hydrochloric acids. Both techniques are considered a total digest.

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]