Sample analysis: Sample preparation of DD core and RC samples occurred at Intertek in Kalgoorlie and Perth and involved oven drying (4-6 hrs at 95C), coarse crushing in a jaw-crusher to 100% passing 10 mm, then pulverisation of the entire crushed sample in LM5 grinding mills to a particle size distribution of 85% passing 75 microns and collection of a 200 gram sub-sample. Laboratory assaying techniques were fire assay for Au, Pt & Pd; and 4 acid digest followed by ICP/OES or ICP/MS analysis for remaining multi-elements. The four acid digest involved hydrofluoric, nitric, perchloric and hydrochloric acids.

Both techniques are considered a total digest. Criteria for Resource Classification: Mineral Resources where sample spacing was 50m up to 120m were classified as Inferred Resources.All other material was not classified. No Indicated Resources were classified due to large sample spacings and low numbers of samples with which to determine variography and bulk density regressions.

A reporting cut-off grade of 0.9% Ni was used to report the Mineral Resource. This was based on parameters from a previous scoping study in 2015 by CSA Global and updating of the parameters as appropriate by Cannon, including use of a nickel price of AUD 21,500 per tonne, processing costs of AUD 42.51, mining costs of AUD 65.40, dilution of 10% and payability of 70%. Estimation Method: A total of-five mineralised zones were modelled using Seequent Leapfrog software; three zones for massive/semi-massive mineralisation and two zones for disseminated mineralisation.

The mineralisation at Sabre extends over a 700 m strike length, starting at about 80 m below ground surface and has been drilled to over 300 m depth. The interpretation of the mineralised zones was based predominantly on lithological logging with assay results used to confirm the intersections. Samples were composited to 1m lengths and top cuts were applied to remove high grade outliers which was necessary for As, Co, Cr, Cu, S and bulk density.

Top cuts were not applied to other elements. Variography was modelled for all elements for the large disseminated mineralisation object (object 4) and applied to individual objects. Maximum ranges in the direction of great continuity were modelled between 104m and 156m with nugget values ranging from 0.108 to 0.356.

Grades were estimated into a Surpac block model (rotated -45 degrees around the Z axis) of size Y 10m by X 10m by Z 5m sub-blocked to Y 1.25m, X 0.625m and Z 0.3125m. All elements were estimated using the Ordinary Kriging ("OK") algorithm with three estimation passes. For most elements, a minimum of 6 samples and maximum of 24, with a maximum of 3 samples per hole was used for the first pass with a search radius of 120m.

For the second pass, a minimum of 4 samples, maximum of 24 and maximum per hole of 2 samples was used with a search radius of 40m. For the third pass, a minimum of 2 samples, a maximum of 24 and maximum per hole of 2 samples was used with a search radius of 500m. The grade validation indicated OK grades were similar to IDW grades but mostly slightly lower than sample composite grades.

A relationship between Ni grade and density was determined from existing drill samples and regression equations were determined for all massive and disseminated mineralisation as used to assign density to the mineralised blocks. Mining and Metallurgical Methods:The assumed mining method would be underground with open sub-level stoping with no back-filling, level intervals of 20m and access by a twin decline from the box cut. Metallurgical recovery assumes production of a Ni concentrate by conventional flotation circuit.

The Sabre mineralisation appears to be of a similar style, tenor and alteration to that at the Musket Camelwood group deposits. Previous comminution and flotation test work of samples from the Musket ­ Camelwood group deposit resulted in the development of a processing flowsheet consisting of three-stage crushing, grinding, flotation, concentrate handling and tailings disposal. Metallurgical recoveries from the test work included 97 to 100% recovery into 12% Ni concentrate from massive sulphide material and 74 to 81% recovery into 12% Ni concentrate from disseminated sulphide.