Overview

The Kolosori Nickel Project (PNM 80%) is an advanced stage direct shipping ore nickel laterite project with excellent potential for development located on Isabel Island in the Solomon Islands. The project has several positive aspects including its close proximity to the coast, no processing requirements, low capital route to direct shipping ore production and local landowner support.

The traditional landowners of the area own the remaining 20% of Kolosori Nickel (SI) Limited (“KNL”), the holding company of PL 05/19.

PL 05/19, which holds the main part of the Kolosori Nickel Project is located at the southern end of Isabel Island.

Current Work Program & Development Pathway

Pacific Nickel’s consultants, Mining One Pty Ltd (Mining One), have designed an initial drill program of 224 holes for the Kolosori Nickel Project. These holes are part of the planned 2021 pre-development activities. Core samples taken from the program are expected to provide metallurgical information need in marketing of the DSO product.

The infill program was designed by Mining One with the objective of increasing confidence in the existing JORC resource and to test for potential extensions. The program is also designed to increase the existing measured and indicated resource estimates.

Resindo Resources and Energy Group (“Resindo”) has been appointed to lead the feasibility study work and has advanced engineering studies on the Kolosori Nickel Project.  Resindo will undertake an assessment of all project delivery components, general infrastructure and project logistics. The scope of Resindo’s studies will also include DSO materials handling, construction requirements and project implementation.

A port site has been identified and an initial marine survey has completed by a local marine survey group.  Resindo has confirmed that the results of the marine survey validate that the proposed location is suitable as a loading point for trans-shipping barges to carry DSO product to a nearby Ship mooring location for export.  Resindo will now undertaking port design and throughput studies to be included in the Mining Lease application process.

Pacific Nickel has also commenced work with Mining One on preliminary mine planning to establish the most suitable locations for mining at Kolosori.

The scope of the work currently being undertaken by Resindo and Mining One will form the basis of the overall project layout and will assist Pacific Nickel with key technical components needed to develop the Kolosori Nickel Project as expeditiously as possible.

The Company has already commenced the Environmental Impact Study and as part of that study has engaged a local environmental assessment group to carry out water monitoring, ecology and a cultural heritage survey for the project.

Drilling on site at the Kolosori Nickel Project

Marine Survey undertaken by local contractors

Kolosori JORC (2012) Resource Estimate

KOLOSORI JORC MINERAL RESOURCES > 1.0 % Ni

LITHOLOGY	RESOURCE CATEGORY	Kt (‘000)	Ni %	Co %
TRANSITIONAL	MEASURED	107	1.77	0.08
	INDICATED	631	1.57	0.05
	INFERRED	1,504	1.49	0.06
	SUB TOTAL	2,242	1.53	0.06
SAPROLITE	MEASURED	575	1.69	0.03
	INDICATED	1,399	1.46	0.02
	INFERRED	3,061	1.37	0.02
	SUB TOTAL	5,035	1.43	0.02
TOTAL (M+I+I)		7,277	1.46	0.03

KOLOSORI JORC MINERAL RESOURCES > 1.2 % Ni

LITHOLOGY	RESOURCE CATEGORY	Kt (‘000)	Ni %	Co %
TRANSITIONAL	MEASURED	104	1.79	0.08
	INDICATED	559	1.63	0.05
	INFERRED	1,178	1.60	0.05
	SUB TOTAL	1,842	1.62	0.05
SAPROLITE	MEASURED	549	1.72	0.03
	INDICATED	1,136	1.54	0.02
	INFERRED	2,359	1.46	0.02
	SUB TOTAL	4,045	1.52	0.02
TOTAL (M+I+I)		5,887	1.55	0.03

Kolosori Resource Extensional Targets

Numerous resource extensional targets have been defined that are located adjacent to the currently defined Mineral Resource area. The targets are defined where historical drilling has encountered significant nickel grades at the extent of drilling that coincide with topographic highs. This Target range reflects a potential quantity and grade for Kolosori and is conceptual in nature only. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

Kolosori significant historical drill intercepts include:

• 12.5m @ 2.28% Ni from 8.3m (ISD14-003)
• 7.7m @ 2.67% Ni from 8.3m (ISD14-004)
• 8m @ 2.2% Ni from 2m (KO-SP1295)