POS: Aphrodite and Poseidon MOU Update

4th September 2017

APHRODITE & POSEIDON MOU UPDATE

Poseidon Nickel Limited (ASX: POS, the Company or Poseidon) is pleased to advise it has had recent discussions with both Aphrodite Gold Limited (Aphrodite) and Spitfire Materials Limited (Spitfire) on the existing non-binding memorandum of understanding (MOU) between Aphrodite and Poseidon and can confirm that all Parties wish to progress due diligence.

On 14th August 2017 Aphrodite and Spitfire announced that they had entered into a binding term sheet to merge the two ASX-listed companies to create a significant new diversified Australian gold company with a highly prospective exploration portfolio and growth potential.

Poseidon Chairman Chris Indermaur stated "Following discussions with all Parties the Company is of the opinion that the merger between Aphrodite and Spitfire is a positive outcome as it not only complements the existing MOU but enhances it. The synergies and fundamental drivers that underpinned the original MOU are improved and represent a compelling business opportunity for all Parties and as such due diligence between the Parties will be progressed."

Poseidon and Aphrodite therefore plan to extend their due diligence period further until both parties conclude detailed assessment. Once completed, a further announcement will be made to the market.

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

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