ADAVALE RESOURCES LIMITED — Capital/Financing Update 2011

Mar 31, 2011

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A.B.N . 91 008 719 015
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1 April 2011

The Manager Companies Announcement Office ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000

SALE OF UNMARKETABLE PARCELS OF SHARES

The Board of Adavale Resources Limited ( Adavale or Company ) ( ASX: ADD ) is pleased to announce that, as part of a capital management program, it has established a sale facility for unmarketable parcels of Adavale Shares ( Unmarketable Parcel Facility ).

An unmarketable parcel is a parcel of Shares valued at less than $500 as at the close of trade on 31 March 2011 ( Record Date ).

The Company currently has 4,930 shareholders of which 4,107 hold less than a marketable parcel. Those holdings, which total 3,295,270 Shares, represent approximately 1% of the Company’s total issued Shares. Those shareholders which hold an unmarketable parcel of Shares will be sent a notice advising them of this fact ( Notice ).

Unless those shareholders who receive a Notice advise the Company’s share registry by 5:00pm (Perth time) on 25 May 2011 that they want to retain their Shares, their Shares will be sold and they will be sent the sale proceeds.

The Shares will be sold at a price not less than the average closing price of Shares on ASX over the 10 trading days prior the date on which the offer for your Shares is received by the Company in respect of the relevant Shares.

The Unmarketable Parcel Facility is being established in accordance with the Company’s Constitution and the ASX Listing Rules.

If you receive a Notice and want to sell your Shares under the Unmarketable Parcel Facility – you do not need to do anything.

Under the Unmarketable Parcel Facility, unless you elect to retain your shares, Adavale will sell your Shares on your behalf. You will not need to appoint a broker or pay the brokerage and handling costs associated with the sale of Shares under the Unmarketable Parcel Facility. Any tax consequences from the sale of your Shares will be your responsibility.

If you receive a Notice and you wish to retain your Shares - you must return the Notice of Retention Form which will be enclosed with the Notice. The Notice of Retention Form must be returned so that it is received by 5:00pm (Perth time) on 25 May 2011. The Unmarketable Parcel Facility will be open until this date.

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A.B.N . 91 008 719 015

Further information as to the progress of the Unmarketable Parcel Facility will be released in the coming weeks.

Yours faithfully Adavale Resources Limited Ms Sylvie Dimarco Company Secretary

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