Quarterly Report to 31 March 2019

SIGNIFICANT POINTS
NICKEL
Savannah

• Safety – Lost Time Injury Frequency Rate of 10.9 at the end of the quarter, three Lost Time Injuries reported
• Concentrate shipments – two concentrate shipments from Wyndham port, aggregate provisional invoice value of $15.8 million
• Mining – production rates improved markedly in March after a poor February. Significant changes made to improve performance.
• Personnel – Chief Operating Officer, Boyd Timler, an experienced mining operator appointed. Securing skilled, experienced personnel remains a challenge.
• Equipment availability – some improvement seen in mobile equipment availability. Two new loaders delivered and a new 60t truck. Unfortunately, the new loaders have experienced commissioning problems which impacted production and development.
• Processing – most commissioning issues resolved and metal recoveries steadily improving. Average nickel recovery during April of 84% compared to target of 85%.
• Metal production – 926t Ni, 625t Cu and 48t Co contained in concentrate for the quarter  
• Savannah North decline access development – has been slower than forecast. As a result, a contractor has been mobilised to improve advance rates.
• Savannah North ventilation rise – reaming rates slow so decision made to reduce cutting head diameter from 5.0m to 4.5m to imprpve advancement rates. Raise bore now schedule to be completed late in December 2019 quarter.
• Project finance – $40 million loan fully-drawn, the facility amended to facilitate the slower than forecast ramp up. The first loan repayment was pushed out three months to June 2020, limited additional Ni hedging undertaken and additional equity raised

• Zinc - good intersections of zinc mineralisation encountered at Altair and further exploration planned on this exciting new discovery.
• Gold - exploration and evaluation studies ongoing
• Corporate - project and corporate management being provided by Panoramic staff on a cost recovery basis

• Metallurgical studies into the viability of producing a PGM concentrate and a chromite by-product stream ongoing

• Discussions on future plans for the Project ongoing with Rio

• Group Cash - $20.7 million in available and restricted cash
• New Equity - Initial Placement and Pro-Rata Renounceable Rights Issue completed, total of $19.84M raised before costs
• Additional Equity - $2.6M Conditional Placement, subject to shareholder approval.