Poseidon Nickel : Windarra Gold Rights Agreement Terminated

29th May 2017

WINDARRA GOLD RIGHTS AGREEMENT TERMINATED

Poseidon Nickel Limited (ASX: POS, the Company or Poseidon) advise that the Company and GTI Resources (GTI), (together the Parties), have agreed to terminate the Windarra Gold Rights Agreement (Deed).

On 24th January 2017, Poseidon Nickel Limited announced to the market the terms of an agreement reached with GTI for the sale of the gold rights on its Windarra tenements including the historic gold tailings. An ASX announcement on 16th March advised the Company had agreed to extend the due diligence period from 28th March to 28th May 2017 in return GTI agreed to pay a non-refundable extension fee of A$100,000 paid on 28th March 2017.

As GTI has not paid the first consideration amount of $975,000 due under the Deed by 28th May 2017, and the Parties have been unable to agree the terms for a further extension, the Company and GTI have agreed to terminate the Deed.

Poseidon will now consider whether to market the rights to others or exploit the opportunity itself.

CORPORATE DIRECTORY Principal & Registered Office

Unit 8, Churchill Court

Director / Senior Management 331-335 Hay Street

Chris Indermaur Non-Executive Chairman SUBIACO WA 6008

David Singleton Non-Executive Director P: 61 8 6167 6600

Geoff Brayshaw Non-Executive Director F: 61 8 6167 6649 Robert Dennis Non-Executive Director

Gareth Jones Company Secretary Media Enquiries

P: 61 8 6167 6600

Corporate Enquiries F: 61 8 6167 6649

E: [e-mail]

P: 61 8 6167 6600

F: 61 8 6167 6649

E: [e-mail]

Home Exchange

The Company's shares are listed

on the Australian Securities Exchange

Shareholder Enquiries and the home exchange is Perth

Enquiries concerning shareholdings should be addressed to: ASX code: POS

Computershare Investor Services GPO Box D182, Perth WA 6840 P: 61 8 9323 2000

POSEI DON NI C KEL LI M I TED  Unit 8  Churchill Court  331-335 Hay Street  Subiaco  WA 6008

PO Box 190  West Perth WA 6872  T [phone]  F [phone]  www.poseidon-nickel.com.au  ABN 60 060 525 206