As previously announced, the mining operations have now recommenced. A new pump installation will be complete in May 2011 enabling dewatering to progress beyond the current level of 168 metres.

Complete infill drilling to an 80m x 80m pattern, bringing the deposit closer to surface and defining mineralisation limits. Infill drilling to 40m x 40m will be completed in the higher grade zones and a scoping study will be initiated in order to commence defining Reserves. The detailed drilling will be defined to 450m below surface during the initial Reserve/Mine Planning phase.  Should this be economic, infill drilling of the deeper high grade mineralisation below 450m depth will commence which is currently defined down to 720m below surface and is still open.

An optimised concentrator design is currently being developed by Arccon Pty Ltd in conjunction with NFC for the Proposed Windarra 350,000t per annum concentrator.

Poseidon will publish a resource upgrade after completion of the drilling programme.

As previously announced this is the company's target completion date of the mine refurbishment which will enable the commencement of mining.

Poseidon's approval process requires submission of the Mining & Environmental documents through the Department of State Development (DSD) of the West Australian Government. This is an enhanced approval process dictated by the fact that Poseidon's tenements are covered by West Australian "State Act" licences. Poseidon intends to submit all proposals in 3 parts for the Mt Windarra proposal, Cerberus proposal and Tailings disposal and co-product proposal. Each of these proposals will be in two parts. DSD will endeavour to clear proposals within 60 days of the final submission date in January 2012.

Poseidon is completing its Bankable Feasibility Study (BFS) for the Windarra Nickel Project. The Windarra Nickel Project includes the reopening of the existing Mt Windarra underground mine, the development of the new Cerberus underground mine, a new concentrator plant with the associated infrastructure and a tailings disposal facility. The concentrator plant for nickel will have a 700,000 tonne per annum throughput capacity and produce a nickel sulphide concentrate. The BFS will be the key document to be used to raise the appropriate funds to build the project.

Poseidon is targeting Government approvals in April 2012. These will be the final major approvals required before making a commitment to build the infrastructure.