Poseidon Nickel : and Empire enter into MOU

7th September 2017

POSEIDON & EMPIRE ENTER INTO MOU

Poseidon Nickel Limited (ASX: POS, the Company or Poseidon) is pleased to advise it has entered into a memorandum of understanding (MOU) with Empire Resources Limited (Empire) to evaluate the option of processing Penny's Find gold ore through the Black Swan Operations gold processing facility.

Empire holds a 60% direct interest in the Penny's Find gold project situated on granted Mining Lease 27/156. The remaining 40% interest is held by unlisted Brimstone Resources Limited. Via road Penny's Find is located 48 kilometres south-east of the Black Swan facility. Empire is currently open pit mining at Penny's Find and toll treating the ore via the Burbanks mill, 9 kilometres south of Coolgardie.

Poseidon Chief Operating Officer Michael Rodriguez stated "Since announcing the Company's plans to establish the Black Swan Operations as a central gold processing facility a number of third party gold explorers and miners have expressed an interest in securing capacity at the facility. Poseidon welcomes the opportunity to engage with third parties to ensure the facility is operated at optimum throughput."

Poseidon and Empire plan to progress due diligence and once complete a further announcement will be made to the market.

As the nickel market continues to improve Poseidon is progressing discussions on possible funding solutions to restart Silver Swan likely to be a combination of debt and equity.

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

Eryn Kestel 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

P OS E I DON NI C KE L LIM ITE D  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