Cannon Resources Limited announced that a Mineral Resource update has been completed for the Sabre prospect at the Company's Fisher East Nickel Project. The Sabre Mineral Resource now stands at 2.9 Mt @ 1.5% Ni & 0.4 g/t (Pd + Pt) for 42.3 Kt of contained nickel and 32,800 oz (Pd+Pt) at a cut­off grade of 0.9% Ni (JORC 2012). The resource has been audited by RPMGlobal. The Fisher East Project now has a total of 134,100 tonnes of contained nickel at an average grade of 1.8% Ni in 4 high-grade sulphide JORC 2012 resources at Musket, Camelwood, Cannonball and Sabre. The updated Sabre resource incorporates all recent diamond drill holes completed by Cannon in the period March to June 2022 and importantly includes the newly discovered high-grade massive sulphide zone along the northern channel margin as drilled in holes MFED103, MFED105, MFED117 and MFED118. The updated resource extends over a strike length of 670 metres and to a vertical depth of approximately 300 metres. The resource remains open along strike and down plunge. The resource update has included an estimate of the PGE content for the first time at 0.4 g/t combined palladium and platinum (Pd+Pt) for a total of 32,800 oz. This is of a similar tenor to the grade at Musket at 0.5 g/t (Pd+Pt). Cannon's drilling is now beginning to reveal the large scale and nickel endowment of the Sabre channel. The Sabre mineralised channel is interpreted to dip to the east at about 56° and plunge on that dip to the north at a similar 56°. The nickel mineralisation has a strike length of approximately 700 metres, almost all of which is contained within the resource, and has a depth extent well beyond the current resource outline. Cannon recently drilled deep hole MFED122, which is some 520 metres below the base of the current Sabre resource and indicates that the channel mineralisation is still present at depth. The most recent round of drilling has defined a high-grade zone, with up to 3.7m of massive sulphide mineralisation grading 6.0% Ni (hole MFED117), along the northern channel margin that is now incorporated in the updated resource. This high-grade zone remains open down plunge. The top 80 metres from the surface (oxide zone) is excluded from the resource and the maximum depth is limited to approximately 300 metres. The resource remains open at depth and is only limited by the current drilling. Sabre Mineral Resource Discussion: Geology and Geological Interpretation: The geological setting is Archaean channelised basal komatiite hosted mineralisation, bounded by hangingwall basaltic rocks and footwall felsic metasediments. Mineralisation consists of massive to semi-massive and disseminated nickel sulphide accumulations within host komatiite mostly situated at the (eastern) basal ultramafic - felsic contact. This is interpreted to be equivalent to Type 1 basal komatiite ores at Kambalda. The entire stratigraphic sequence including the mineralisation has been subject to an Archaean regional folding event so that it is now overturned and dipping to the east at approximately 56°. The Sabre channel with contained mineralisation is interpreted to be plunging to the north down the dip of the strata at approximately 56°. The ultramafic sequences are strongly talc-carbonate altered and metamorphism is mid-upper Greenschist. Mineralisation is characterised by a tabular strata-bound accumulation consisting of interleaved semi-massive sulphide layers over 1-2 metres within the basal komatiite zone, overlain by matrix and disseminated sulphides up to 10-12 metres thick and also within komatiite (but typically 3-5 metres thick). Sulphide minerals are generally fine-grained crystals and blebs disseminated throughout the host komatiite. Sulphide species consist of (pyrrhotite + pentlandite ± violarite ± pyrite) in semi-massive and disseminated ore. The Sabre channel is interpreted to be over 700 metres wide, with nickel mineralisation accumulating over most of that width. It is a separate channel to those that host the Musket, Cannonball and Camelwood deposits, but is interpreted to be a section of a multi-channelised komatiite lava sheet. The mineralisation envelope remains open at the channel margins as well as down plunge. Additionally, there are several interpreted higher grade and thicker trends within the mineralisation, with the most prominent in the central part and another along the northern margin of the channel. The mineralisation is interpreted to extend down plunge and to date is only limited by the extent of drilling. Drill spacing is approximately 80 metres within and proximal to the limits of the mineralisation, and therefore there is a high degree of confidence in the geological models of the deposit, based on consistent stratigraphy in drill holes and highly correlatable lithologies and mineralisation boundaries. Drilling techniques: Diamond (DD) and Reverse Circulation (RC) drilling rigs were used. The RC hole diameter was 140mm
with a face sampling hammer used. Hole depths ranged from 121m to 256m. Diamond holes were drilled with predominantly NQ2 diameter (although also some PQ and HQ size pre-collars and upper hole portions) with >99% core recovered. Hole depths ranged from 160m to 370m. Pre-collars for diamond holes were drilled using a roller bit and reamed to HW casing size. Where possible, the core was oriented using Camtech and Reflex Act III orientation tools. Sampling and sub-sampling techniques: Diamond core was reconstructed into continuous sample runs on an angle iron used for orientation marking. Depths were measured and checked against marked depths on the core blocks. Diamond drill core recoveries were logged and recorded in the database. Overall recoveries were >95%, and there were no significant core loss or recovery problems. RC samples were visually checked for recovery, moisture and contamination and notes made in the logs. RC drill recoveries were very good; almost all samples were dry. Samples used for the Mineral Resource estimate came from both RC and DD drilling, both of which had high recoveries. There is no observable relationship between recovery and grade, and therefore no sample bias. DD core was subsampled over lengths ranging from 0.1m to 1.2m Core was sawn longitudinally using a diamond core saw and half-core taken. All subsamples were collected from the same side of the core and core has been sampled to geological boundaries. RC samples were collected on the drill rig using a cone splitter on a 1 metre per sample basis. Most
samples were collected dry with very few of the mineralised samples were collected wet, and these were noted in the drill logs and database.