PACIFIC NICKEL MINES LIMITED (PNM)

The Kolosori Nickel Project in the Solomon Islands in which the Company holds an 80% interest in each project, the operation has been affected by a combination of factors in the last few weeks, which, together, impacted the mining schedule at the operation. The Company in consultation with its Kolosori project financier Glencore International AG have agreed that the best course of action in the short term is to reset the project by only carrying out minimal works until such time that the machine availability issue can be addressed to ensure that the mining rates can be sustained. The Company is continuing discussions with Glencore in relation to the ongoing funding of the Project. The Company is working closely with the mining and local contractors during this reset to achieve the required operating parameters for both costs and availability. During this period, the Company will also be focusing on integrating the Company's 80% interest in the Jejevo nickel project (subject to achieving a mining lease) into its Solomon Islands nickel operations

At this time, the Company is not able to provide an update on the status of the discussions and the ongoing funding of the Project. The Company anticipates providing an update to the market on the status and outcome of those discussions by Monday, 29 July 2024. The Company requests that the voluntary suspension remain in place until the earlier of an announcement by the Company regarding the above and the commencement of normal trading on 29 July 2024

The securities of Pacific Nickel Mines Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of PNM, pending the release of an announcement in relation to the operations and funding of PNM's Kolosori Nickel Project.

The suspension of trading in the securities of Pacific Nickel Mines Limited will be lifted immediately, following the release by PNM of an announcement regarding an update to PL 05/19 tenement of the Kolosori Nickel Project in the Solomon Islands.

As announced on 10 March 2021 the Minister of Mines, Energy and Rural Electrification of the Solomon Island Government has provided a Consent Order reinstating PL 05/19 on the terms and conditions of the prospecting licence as originally granted. The outcome has been achieved in a timely manner. The company has now resolved the matter to its satisfaction. As for the placement, Bridge Street, the lead manager to the placement, confirms that the participants to this placement remain committed to completing the second tranche on the original terms. Also, the shareholder meeting will be cconvened at 2.00pm on 9 April 2021. ASX confirmed that trading in the company's shares will resume upon the commencement of trading on 19 March 2021. The company expects to lodge a mining lease application for the Kolosori project in the next three months. For the Jejevo nickel project, to date, a total of 16 holes have been completed with the first batch of samplse from the first six holes now with DHL en route to the ALS laboratory in Brisbane, Australia.

The company provides its Financial Report for the Half Year ended 31 December 2020.

Following the recent reinstatement of the Kolosori Prospecting License, the company is preparing to commence drilling at the Kolosori nickel DSO project and progressing the key development approvals including the environmental license and mining license applications needed for exporting DSO. The company has placed 5 man-portable drilling rigs as well as drilling consumables and supplies in the local centre of Havihua nearby to the Kolosori prospect.

Drilling the Jejovo nickel DSO project is progressing well despite extreme weather conditions experienced in the Solomon Islands over the last few months. To date, a total of 10 holes have been completed with the first batch of samples from the first six holes now held in Honiara awaiting airfreight to the ALS laboratory in Brisbane, Australia.

The Minister of Mines, Energy and Rural Electrification of the Solomon Island Government has provided written confirmation to Kolosori Nickel reinstating PL 05/19, which comprises the Kolosori Nickel Project located on Santa Isabel Island in the Solomon Islands. In light of the circumstances regarding the cancellation and reinstatement of the Kolosori PL, the Company is in the process of clarifying the second Tranche capital raising and the timing of the General Meeting.

Th meeting of the Minerals Board in the Solomon Islands has been postponed to a later date yet to be confirmed.

Pacific Nickel has been notified of a material change in KNL's rights to the Kolosori Nickel Project which impacts Pacific Nickel's acquisition from KNL of an 80% interest in the Kolosori Nickel Project. The company has requested the suspension of trading whilst it obtains a complete undersetanding of this matter. The company has been advised by KNL that the Minister of Mines, Energy and Rural Electrification of the Solomon Island Government has cancelled PL 05/19.

The securities of Pacific Nickel Mines Limited will be suspended from quotation immediately under Listing Rule 17.2, at the request of PNM, pending the release of an announcement regarding the cancellation of PL 05/19 relating to the Kolosori Nickel Project in the Solomon Islands.

name changed from Malachite Resources Limited