Preliminary December 2019 Quarter Statistics

Key Points

• Safety – sustained improvement in performance, no LTIs recorded
• Development – Savannah North orebody reached on 18 November 2019; 60m of ore development along strike completed by end of quarter; transition of mining to Savannah North expected to drive strong ramp-up in contained metal production through CY2020
• Total Development Progress – 1,097m, a 4% increase on previous quarter
• Mine Operating Strategy – tender process commenced for contract underground mining to replace current owner-operator mining
• Ore Milled – 129,184t at 0.97% Ni, 0.57% Cu and 0.05% Co; tonnes up 7%, Ni grade down 26%, Cu grade down 25% on previous quarter; as previously flagged, lower grades were a function of stope sequencing on the Savannah remnant ore reserves and localised elevated dilution
• Metallurgical Recoveries – 83.0% Ni, 93.9% Cu and 87.2% Co; broadly in line with target recoveries despite lower feed grades
• Metal Production – 1,042t Ni, 695t Cu and 55t Co in concentrate; Ni down 22%, Cu down 19% on previous quarter
• Concentrate Shipped – 14,866dmt, down 6% on the previous quarter; next shipment departing on 11 January 2020 with approx. 5,100dmt
• Raise Bore – advanced 210m (60% completed); now paused - recent ground conditions have prompted an evaluation of options to complete the raise safely and reliably
• Equity Raising – conditionally underwritten 1-for-6 accelerated pro-rata nonrenounceable rights issue announced, raising up to approximately $31M (after costs); retail component closes on 10 January 2020
• Zeta Bridging Loan – $10.5M bridging loan received from major shareholder, Zeta, in early December; repayment to be via set off from Zeta’s participation in the pro-rata offer
• Third Party Discussions – continuing to provide due diligence access to third parties and remain in discussions around the potential for a transaction proposal to be put to Panoramic
• Group Cash – $14.9M in available and restricted ($180K) cash