Cannon Resources : High Grade Massive Sulphide within New Zone at Sabre

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ASX ANNOUNCEMENT | ASX: CNR

26 April 2022

High Grade Massive Sulphide Intersected within New

Zone at Sabre

Highlights

• • First diamond hole in an extensional target at Sabre intersects high grade nickel rich massive sulphide:

  • o Massive sulphide zone of 1.10m @ 7.63% nickel and 1.61 g/t (Pd + Pt) from 194.33m

  • o Included in total interval of 5.70m @ 2.62% nickel from 192.76m in hole MFED103

• • Hole MFED103 is outside the current Sabre resource and extends mineralisation laterally to the north by approximately 80 metres

• • Infill and extensional drilling is underway and the new high grade zone remains open in all directions

Cannon Resources Limited (ASX: CNR)("Cannon" or "the Company") is pleased to announce that assay results from the first hole of the current diamond drilling campaign at the Company's flagship Fisher East Nickel Project has intersected high grade nickel in massive and disseminated sulphide over a 5.7 metre width at Sabre.

Diamond drill hole MFED103 intersected 5.70m @ 2.62% Ni and 0.58 g/t (Pd + Pt) from 192.76m. Multiple zones of nickel rich massive sulphide were interspersed within this interval with the thickest zone being 1.10m @ 7.63% nickel and 1.61 g/t (Pd + Pt) from 194.33m.

Hole MFED103 was the first hole drilled into an interpreted high-grade target adjacent to but outside, the northern margin of the current Sabre resource. The results confirm that substantial nickel mineralisation exists on the northern margin of the Sabre deposit and the mineralisation strike extent is now over 700 metres.

Importantly the Sabre resource, currently at 24.5 kt Ni (ASX: 5 April 2022), is still only drilled to a maximum depth of 300 metres and remains open down plunge and laterally to both the north and south.

ASX Code: CNR | ACN: 646 149 902 |www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005 | P: +61 8 6383 9911 | E:admin@cannonres.com.au

Figure 1: High grade nickel rich massive sulphide from hole MFED103 assaying 1.10m @ 7.63% nickel and 1.61 g/t (Pd+Pt) from 194.33m as part of a total mineralised intercept of 5.70m @ 2.62% Ni

Table 1: Diamond Drilling Assay Results

ASX Code: CNR | ACN: 646 149 902 |www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005 | P: +61 8 6383 9911 | E:admin@cannonres.com.au

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Cannon CEO, Steve Lynn commented:

"These results are an exciting development to the Sabre story. We always felt that the Sabre prospect had a lot more to offer and the nickel rich massive sulphide intercepts in hole MFED103 indicate that substantial mineralisation is present in an undrilled area adjacent and to the north of the current Mineral Resource. The massive sulphide intercept in hole MFED103 is the most substantial for any hole drilled to date at Sabre and adds an exciting new dimension to our ongoing exploration campaign there.

Following-on from our 2021 exploration program, we developed a high-grade nickel target running along the northern margin of Sabre outside the currently defined resource boundary and considered this the most prospective area with which to begin the March 2022 drill campaign. Now with the first hole into this zone we have come-up with an outstanding result.

We will continue with our extensional drill program at Sabre and will now expand it to define the extent of mineralisation laterally and both up and down plunge of MFED103. I look forward to keeping shareholders and the market up to date with the drill results as they come to hand."

Nickel mineralisation in hole MFED103 consists of massive and semi-massive sulphide with lesser disseminated sulphide hosted in talc-carbonate altered komatiite. The sulphide assemblage is predominantly pyrite - pyrrhotite - violarite - pentlandite. The komatiite unit is the basal sequence on the sediment footwall unconformity and is the lateral equivalent to that hosting the Sabre mineralisation.

Cannon's 2021 AC drilling campaign returned strong PGE anomalies in the regolith (up to 4m @ 685 ppb Pd + Pt) above the Sabre mineralisation which we postulated to be the upper expression of potential high-grade nickel (plus PGE) plunging trends within the Sabre mineralisation envelope.

Cannon commenced the current drill program at Fisher East on 25th March 2022. Hole MFED103 is part of an initial sequence of 8 holes targeting high grade nickel extensions to the Sabre orebody. The extension zones on the northern and southern margins of the Sabre resource, as well as potential high-grade nickel trends, are designed to test the interpreted extent of the primary channel and corresponding nickel mineralisation boundaries (Figure 2 below).

The current round of drilling at Sabre is testing an over-all resource expansion in the sub-300 metre zone adjacent to, and in addition to, the current Sabre resource of 24.5 kt (ASX: 5 April 2022) of nickel.

ASX Code: CNR | ACN: 646 149 902 |www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005 | P: +61 8 6383 9911 | E:admin@cannonres.com.au

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Figure 2: Sabre long section showing mineralised intercepts of latest drilling

Table 2: Collar Details for Recent Drilling

ASX Code: CNR | ACN: 646 149 902 |www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005 | P: +61 8 6383 9911 | E:admin@cannonres.com.au

For personal use only

Figure 3: Drill core from hole MFED103 with mineralised interval 5.70m @ 2.62% nickel from 192.76m

ASX Code: CNR | ACN: 646 149 902 |www.cannonres.com.au

A: Level 2, 87 Colin Street, West Perth WA 6005 | P: +61 8 6383 9911 | E:admin@cannonres.com.au

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