On August 4, 2022, Nickel 28 released its second quarter (Q2) report, which announced the operating results of the Ramu Nickel-Cobalt Mine (“Ramu”) business for the quarter ended June 30, 2022. The integrated business of Ramu nickel-cobalt mine is the company's largest asset and is located in Papua New Guinea. Nickel 28 currently holds an 8.56% joint venture interest in the Ramu business, which is operated by China Metallurgical Group (“MCC”).

Ramu Business Highlights in Q2 2022:

· Ramu 22 Q2 produced 8,128 tonnes of nickel-containing MHP.

Ramu 22 Q2 produced 695 tonnes of cobalt-containing MHP.

· Ramu 22 Q2 sold 6,624 tonnes of nickel-containing MHP.

·22 Q2, the average LME nickel price was US$13.13/lb, a year-on-year increase of 67%; 22 H1 LME average nickel price was US$12.50/lb, and 21 H1 nickel price was US$7.92/lb.

·22 Q2, Fast Markets average cobalt price was US$38.19/lb, an increase of 81% year-on-year; 22 H1 cobalt price was US$36.93/lb, and 21 H1 cobalt price was US$21.38/lb.

·22 Q2 nickel-containing MHP cash cost, deducting by-product income of US$3.03/lb, increased by 7% year-on-year; 22 H1 nickel-containing MHP cash cost, deducting by-product income of US$2.22/lb, remained flat year-on-year.

Anthony Milewski, chairman of Nickel 28, said that the continuation of the Russian-Ukrainian conflict and the suspension of nickel trading on the London Metal Exchange (LME) have led to major fluctuations in the nickel market. Coupled with the large fluctuations in commodity imports, Ramu has successfully weathered the uncontrollable Factor in the second quarter of 2022 and stable production should not be underestimated. Sales in the second quarter initially improved from the first, due to increased demand for lithium-ion batteries, and demand dwindled again due to the ongoing impact of the pandemic. A sharp rise in sulphur prices impacted cash costs, but this was offset by stronger cobalt prices and higher by-product earnings. The balance is expected to stabilize in 2022 as demand and commodity prices return to 2021 levels. Sulfur prices have also fallen back below $100/tonne from a peak of $600/tonne in the second quarter. As China's battery industry continues to grow despite the global epidemic, MHP demand is strong.

The specific production and sales are shown in the table below: