Contracts Signed, Mining Commences at Lady Herial

• Contracts signed with Hampton Mining & Civil Services and Goldfields Technical Services
• Clearing and site establishment has commenced, mining of first benches imminent
• Lady Herial will be the first new mine, gold or nickel, on the Foster belt for over 30 years

Lunnon Metals Limited (ASX: LM8) has announced that following approval of the Company's Board in respect to a Final Investment Decision, the key mining contracts with Hampton Mining & Civil Services (for mining) and Goldfields Technical Services of Kalgoorlie (for statutory positions, operational blast design, dig plans, mine geology, surveying and general site/Run of Mine pad management) have now been signed. Both firms have mobilised to the Foster area at St Ives and site establishment and clearing activities have commenced. Mining of first gold ore is scheduled for later this month. The start of mining at Lady Herial coincides with the Australian gold price sitting at record high levels. Based on the recent Feasibility Study, the mining of approximately 268,000 tonnes at 1.89g/t Au for 16,270oz has the potential to yield approximately $45 million in pre-tax cash flow for Lunnon Metals at the current A$ gold price (~$7,000/oz gold). Together with its major shareholder and partner in the Ore Purchasing Agreement, St Ives Gold Mining Co. Pty Ltd, the Company looks forward to executing its plan at Lady Herial safely, efficiently and profitably, for the benefit of all key stakeholders.

Based on the recent Feasibility Study, the mining of approximately 268,000 tonnes at 1.89g/t Au for 16,270oz has the potential to yield approximately $45 million in pre-tax cash flow for Lunnon Metals at the current A$ gold price (~$7,000/oz gold).