Lunnon Metals has budgeted for and intends to test the Exploration Target. The programme of activity will include: re-logging, cutting and re-assaying of available historical WMC core; based on the experience gained at the Baker Shoot, analysis of multi-element assay results to determine if vectors to possible higher-grade nickel mineralisation are evident; surface diamond drilling of high priority targets generated above, at an approximate 80m x 80m or 40m x 40m spacing where possible or warranted (i.e. potentially halving the existing approximate 100m x 100m spacing); Down Hole Transient Electro-Magnetic surveying of selected new Company surface diamond holes to determine if any in-hole, or near-hole, high conductance plates are present that may represent nickel sulphide mineralisation; and ultimately If on-going exploration results and technical studies are successful, the estimation of a Mineral Resource compliant with the JORC Code (2012). The programme above has already commenced with any new drilling expected to take at least 6 to 12 months once that element of the process commences.

Lunnon Metals' proposed exploration budget is adequate to allow these activities to occur. Depending upon initial results, this may lead to further resource definition drilling. Geo-metallurgical characterisation work is also planned at an early stage to test for any potentially deleterious elements or characteristics of the various types of mineralisation known to be present which might govern future metallurgical performance.

The Company considers that the Exploration Target has been appropriately estimated and is representative of the exploration potential at SLHW prospect. The Exploration Target is based on and fairly represents, information and supporting documentation prepared by the Competent Person, Mr. Aaron Wehrle.