Nico Resources Initiates Infill Drilling at Wingellina Nickel-Cobalt Project and Partners with Pure Battery Technologies for Refining Expansion

Wingellina Project Underpins Robust Long-Term Production Outlook

Nico Resources’ flagship Wingellina project is a major asset in the global nickel market, featuring a world-class oxide-type nickel and cobalt deposit in Western Australia. The project aims to produce approximately 40,000 tonnes of nickel and 3,000 tonnes of cobalt annually as Mixed Hydroxide Precipitate, supported by reserves sufficient for at least 42 years of operation. A detailed pre-feasibility study completed in December 2022 affirmed the project’s Tier 1 status globally, highlighting its extended mine life, low operating costs, and strong operating margins.

The 2024 mineral resource estimate, based on drilling data and a 0.4% nickel cut-off, totals 187.3 million tonnes at 0.91% nickel and 0.06% cobalt, containing 1.7 million tonnes of nickel metal. This includes 164.1 million tonnes classified as Indicated at 0.93% nickel and 0.06% cobalt, and 23.3 million tonnes as Inferred at 0.72% nickel and 0.03% cobalt. This substantial resource positions Wingellina as a key supplier of battery-grade nickel and cobalt amid accelerating global demand.

Infill Drilling Program to Begin After Securing Community and Regulatory Approvals

Nico has finalized all planning and preparatory activities for its RC infill drilling program, scheduled to start in the September 2026 quarter. Regulatory approvals were obtained during the June quarter, including the Native Vegetation Clearing Permit in March 2026 and completion of community consultations with Traditional Owners at the Irrunytju community in May 2026. The company also engaged an RC drilling contractor and completed drill site clearing, enabling immediate transition to operations.

The infill drilling aims to fulfill several technical goals supporting project development. It will supply additional samples for bench-scale variability testing of underrepresented material types and validate properties of previously tested materials. The campaign will improve understanding of local variability, especially in high-grade zones, facilitating conversion of Indicated resources to Measured status. Enhanced data density from this program will solidify the basis for resource upgrading, a vital step toward advancing feasibility and reserve definition.

Developing Geometallurgical Model to Maximize Processing Efficiency and Project Value

Nico is partnering with environmental and engineering consultancy ERM to create a detailed geometallurgical model for Wingellina. This model will define processing characteristics of all material types within the mineral resource, integrating historical bench-scale test data and results from the upcoming infill drilling. The geometallurgical model is essential for optimizing mine planning and scheduling under various macroeconomic conditions.

Currently in Phase 3 of metallurgical development, Nico focuses on refining the geometallurgical model using parameters derived from past and forthcoming testwork. Wingellina’s mineralisation spans three main regolith zones: Limonite (142.6 million tonnes at 0.96% nickel and 0.06% cobalt), Transitional Limonite (18.6 million tonnes at 0.77% nickel and 0.04% cobalt), and Saprolite (26.1 million tonnes at 0.68% nickel and 0.02% cobalt). Understanding processing traits across these zones will enable maximized value extraction and tailored processing strategies to enhance recovery and product quality.

Comprehensive Metallurgical Review Advances Following Extensive Bench-Scale Testing at ALS

Nico is conducting an in-depth review and analysis of metallurgical data from extensive bench-scale testing performed at ALS Metallurgical laboratories. This ongoing assessment aims to optimize the processing flowsheet and identify value-enhancing opportunities. The testing program has provided detailed insights into how different ore types and regolith zones respond to various processing methods, critical for validating technical feasibility and cost assumptions in project studies.

Flowsheet optimization supports the geometallurgical model’s development by informing processing parameters incorporated into zone-specific mine planning. By integrating test results with drilling data, Nico is building a robust technical foundation to advance detailed feasibility studies and support development decisions.

Strategic Partnership with Pure Battery Technologies Targets Downstream Refining Opportunities

During the June 2026 quarter, Nico signed a Memorandum of Understanding with Pure Battery Technologies Ltd to jointly assess establishing a regional nickel and cobalt refining platform in Australia, the US, and Europe. This strategic alliance aims to combine Pure Battery Technologies’ patented refining processes with Nico’s anticipated nickel and cobalt output from Wingellina. The partnership aligns with industry trends toward vertical integration and capturing downstream value by upstream producers.

The proposed refining platform would enable Nico to convert part of its nickel and cobalt production into higher-value refined products instead of solely supplying raw Mixed Hydroxide Precipitate to downstream customers. Developing processing capabilities across multiple regions would offer geographic diversification and flexibility to serve battery manufacturers and refiners in key global production hubs. This collaborative approach allows Nico to pursue value-added opportunities without shouldering the full capital and operational costs of refining infrastructure independently.

Nickel Market Volatility Driven by Indonesian Ore Supply Quotas

Nickel prices experienced notable fluctuations during the quarterly period, rising above US$19,000 per tonne in May 2026 before declining to over US$16,000 per tonne by quarter-end, near the lowest levels since December 2025. The price surge from mid-December 2025 to May 2026 was influenced by the Indonesian government’s announcement to reduce nickel ore supply in 2026 via mining quota cuts (RKAB schedules) to approximately 260 million tonnes. However, recent reports indicate Indonesia may increase the 2026 quota to around 360 million tonnes, potentially reversing earlier production cut expectations.

This possible policy shift has reignited concerns over nickel supply surpluses, pressuring prices downward. Indonesian mining quotas significantly impact global nickel supply and pricing, given Indonesia’s status as a major nickel laterite ore producer. Nico’s project timeline and economics are sensitive to commodity price trends, making close monitoring of Indonesian policies and their market effects critical for project planning. Cobalt prices remained relatively stable throughout the quarter, trading near US$56,000 per tonne.

Strong Market Capitalisation and Financial Health Support Ongoing Development

As of 30 June 2026, Nico Resources held a market capitalisation of A$15.73 million and an enterprise value of A$10.87 million, reflecting investor confidence in the company’s development-stage project and technical progress. The company has issued capital comprising 136.79 million shares, 4.525 million unlisted options, and 2.50 million performance shares. Cash reserves stood at A$4.861 million, providing sufficient funding to support the planned infill drilling and metallurgical studies during the current financial year.

This financial position ensures liquidity to advance near-term technical programs, including the RC drilling campaign and metallurgical optimization. As Wingellina progresses toward detailed feasibility, capital management and funding strategies will become increasingly important to sustain development and facilitate investment decisions.

Engagement with Traditional Owners and Heritage Clearances Foster Strong Community Relations

Nico conducted extensive engagement with Traditional Owners regarding the infill drilling program, including a community meeting in May 2026 at the Irrunytju community near Wingellina. Discussions covered the proposed works and included a site visit to drill locations. This consultation fulfilled requirements under the Wingellina Project Agreement and followed submission of the work proposal to the Ngaanyatjarra Council, demonstrating the company’s commitment to transparent communication with Traditional Owners.

Before drilling commenced, heritage clearances were secured through ethnographic and archaeological surveys approved by the Ngaanyatjarra Council in consultation with senior Traditional Owners. These surveys, completed after thorough consultation, were prerequisites for the Wingellina Project Agreement. Previous drilling campaigns in 2019 and 2022 further illustrate Nico’s successful management of exploration activities within the project area.

Experienced Board and Robust Corporate Governance Framework

Nico Resources is overseen by a five-member board with expertise spanning mining development, corporate finance, and project management. Peter Cook serves as Non-Executive Chairman, with Jonathan Shellabear as Managing Director and CEO. The board also includes Non-Executive Directors Rod Corps, Stewart Findlay, and Brett Smith, providing independent oversight on strategy, financial management, and compliance. This governance structure ensures balanced oversight while focusing on advancing development activities.

The company’s registered office is located at Level 6, 190 St Georges Terrace, Perth, Western Australia, situating it within Australia’s primary mining finance and professional services hub. Investor inquiries can be directed via telephone (+61 (08) 9481 0389) or email ([email protected]), while further corporate and technical information is accessible at nicoresources.com.au.