Pacific Nickel Mines : Kolosori Nickel Project - Drilling Update

ASX ANNOUNCEMENT

18 November 2021

Kolosori Nickel Project - Drilling Update

For personal use only

Pacific Nickel Mines Limited (ASX Code: PNM) ("Pacific Nickel" or "Company") is pleased to announce the assay results from 27 holes drilled by the Company at the Kolosori Nickel DSO (Direct Shipping Ore) project earlier this year. These assays are the first from the initial 83 hole program designed by Mining One and completed by the Company.

• Significant high-grade intervals >1.7% Ni returned from 27 holes from the initial 83 hole program include:
• • • HAK-MO76.0m @ 1.75% Ni from 3m
    • HAK-MO811.5m @ 2.10% Ni from 2.5m
    • HAK-MO910.5m @ 2.07% Ni from 1.5m
    • HAK-S1334.0m @ 1.94% Ni from 1m
    • HAK-S13210.0m @ 1.75% Ni from 1m
  • All holes intersected nickel mineralisation
  • Nickel results consistent with the historical drilling by a previous operator

The Company's Executive Director & CEO, Mr. Geoff Hiller said:

"These initial results are consistent with our expectations and we now look forward to the assays from the remainder of the drilling program that we commenced halfway through the year. The consistency of the results compared with historical drilling gives us confidence to continue fast tracking the Project."

KOLOSORI NICKEL DRILLING UPDATE:

The Company has received the assay results for 27 drill holes from the 83 drillhole program which commenced in May 2021 for the Kolosori Nickel Project. The results have been delayed due to the increased wait time for irradiation of the samples by Australian customs prior to release to ALS in Brisbane. and congestion at Australian assay laboratories. The Company is expecting the assays from the remaining holes in this initial program to be received soon.

The 83 holes initial program consisted of 11 holes for metallurgical test work. These holes were distributed across the proposed first mining area to ensure a representative sample. The other 72 holes drilled formed the first stage of infill holes designed to increase the confidence level of the current Mineral Resource in preparation for the development of the Project.

Included in this batch of samples were the assays from 6 of the holes drilled for the metallurgical test work.

As previously announced these 27 holes are part of a 83-hole drilling program developed by Mining One in their capacity as the Company's independent geological consultant.

Pacific Nickel Mines Limited ABN 86 075 613 268 Level 4, 283 George Street, Sydney NSW 2000, Australia PO Box R1295, Royal Exchange NSW 1225, Australia

Email: [e-mail]

www.pacificnickel.com

The holes drilled by Pacific Nickel Mines in this program are shown in Figure 1 below. These holes are plotted in relation to the historical drilling.

For personal use only

Figure 1 Kolosori - Drillhole Collar Location Plan compared to historical drilling

The results from the 6 metallurgical drill holes provide confidence to the thickness and nickel grades encountered in the historical drilling within the Kolosori deposit area.

The full list of results above 1.0% Ni from the 27 holes are summarised in Tables 1 and 2 below. The intervals are reported above a 1.0% Ni cut-off. Importantly, all holes intersected nickel mineralisation.

The second stage drill program of approximately 150 holes is expected to be completed by month end. Approximately 120 holes from this program have been drilled and samples from the first 72 holes are now with ALS in Brisbane waiting to be assayed.

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		TABLE 1 - KOLOSORI DRILLING NICKEL INTERCEPTS
						1.0% CUT-OFF
only		HOLE ID		FROM		TO		LENGTH		Ni%
	HAK-S204	1		3		3		1.15
		HAK-S120	2		4		2		1.34
		HAK-S132	3		13		10		1.75
		HAK-S133	1		5		4		1.95
		HAK-S201	1		8		7		1.04
		HAK-S202	3		11		8		1.24
		HAK-S203	1		6		5		1.43
use		HAK-S206	3		6		3		1.39
	HAK-S207	9		10		1		1.08
		HAK-S210	0		3		3		1.36
		HAK-S211	1		2		1		1.06
		HAK-M06	5.5		13.5		8		1.51
		HAK-M07	3		9		6		1.75
		HAK-M08	2.5		14		11.5		2.10
personalFor		HAK-M09	1.5		12		10.5		2.07
	HAK-M10	6.5		11.5		5		1.27
	HAK-M11	2		10		8		1.68

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For personal use only

TABLE 2 KOLOSORI DRILLING INFORMATION

HOLE ID	FROM	TO	DEPTH	DIP	EAST	NORTH	RL	Max Depth
HAK-M11	0	12.6	12.6	-90	580979.3	9065805	180.122	12.6
HAK-M10	0	13	13	-90	581078.1	9066125	207.671	13
HAK-M09	0	16	16	-90	580901.2	9065230	74.065	16
HAK-M08	0	16.9	16.9	-90	581151.5	9065550	135.485	16.9
HAK-M07	0	9	9	-90	580875.1	9066225	231.319	9
HAK-M06	0	17	17	-90	581003.6	9066154	214.655	17
HAK-M05	0	13	13	-90	581002.4	9066053	207.691	13
HAK-M04	0	17.65	17.65	-90	580953.8	9065507	139.394	17.65
HAK-M03	0	17	17	-90	581104	9065853	184.53	17
HAK-M02	0	14.5	14.5	-90	581075.9	9065706	171.348	14.5
HAK-M01	0	15.5	15.5	-90	580974.3	9065703	161.698	15.5
HAK-S120	0	6.5	6.5	-90	581330.9	9066117	152.947	6.5
HAK-S128	0	5	5	-90	581175.4	9065924	161.429	5
HAK-S132	0	15	15	-90	581227.8	9065775	151.375	15
HAK-S141	0	6.1	6.1	-90	581274.8	9065425	89.584	6.1
HAK-S142	0	7	7	-90	581226	9065424	108.986	7
HAK-S143	0	8	8	-90	581174.3	9065426	111.425	8
HAK-S144	0	7	7	-90	581125.8	9065424	111.714	7
HAK-S147	0	6	6	-90	581123.9	9065374	101.324	6
HAK-S148	0	7	7	-90	581174.4	9065375	96.742	7
HAK-S133	0	10.4	10.4	-90	581222.5	9065724	141.567	10.4
HAK-S201	0	15	15	-90	580979	9066378	189	15
HAK-S202	0	17.3	17.3	-90	581028	9066377	184	17.3
HAK-S203	0	12	12	-90	581073	9066379	179	12
HAK-S204	0	7.5	7.5	-90	581129	9066376	175	7.5
HAK-S205	0	9.3	9.3	-90	581173	9066372	168	9.3
HAK-S206	0	11.3	11.3	-90	581176	9066331	165	11.3
HAK-S207	0	12.7	12.7	-90	581069	9066297	192	12.7
HAK-S208	0	7.6	7.6	-90	581222	9066325	171	7.6
HAK-S209	0	7.3	7.3	-90	581281	9066325	153	7.3
HAK-S210	0	7.7	7.7	-90	581270	9066274	167	7.7

JORC COMPETENT PERSONS STATEMENT

The information in this report that relates to Exploration Results, Targets and Mineral Resources at the Kolosori project is based on, and fairly represents, information and supporting documentation prepared by Mr Stuart Hutchin a Member of the Australian Institute of Geoscientists. Mr Hutchin is a full-time employee of Mining One Consultants and has sufficient experience which is relevant to the style of mineralisation and type of deposit and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Hutchin consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Authorised by the Chief Executive Officer

For further information please contact:

Mr. Geoff Hiller	Mr. Andrew J. Cooke
Executive Director & CEO	Company Secretary Email: [e-mail]

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APPENDIX A: JORC 2012 Table 1 criteria assessment

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

CRITERIA

JORC CODE EXPLANATION		COMMENTARY

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Sampling techniques

Drilling techniques

Drill sample recovery

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representation and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Drilling was completed down to a 25m x 25m spacing in some areas of the Kolosori deposit.

The diamond core drilling was sampled using half core and then assayed via the pressed disc XRF method in the ALS laboratory in Brisbane, Australia.

Laboratory analysis was completed for Ni%, Co%, Mg%, Cr%, Fe%, Mn%, Al%, Si%, Ca% and K%.

Diamond drilling was completed using small portable drilling rigs.

The rigs drilled conventional NQ sized single tube core that was contained within a plastic sleeve within the core barrel to ensure any loosely consolidated material was contained within the sample interval. These types of drill rigs are commonly used for drilling of laterite hosted deposits within Indonesia and the South Pacific.

Holes were drilled vertically through the limonite and saprolite zones into underlying basement.

Sample recovery averaged greater than 95% given the containment of each sample run within a plastic sleeve within the core barrel.

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