ADAVALE RESOURCES LIMITED — Capital/Financing Update 2021

Oct 4, 2021

4 October 2021

Adavale Raises $2M to Advance Its Kabanga Jirani Nickel and Uranium Projects

Highlights

• Commitments received for a placement raising $2.09m

• Placement managed by Euroz Hartleys

• Placement ensures Adavale is well funded to advance its Kabanga Jirani Nickel Project in Tanzania and its Uranium prospects in South Australia

• Shareholders offered to participate in a Share Purchase Plan to raise up to $1m

Adavale Resources Limited (ASX: ADD) (“ Adavale ” or “ the Company ”), is pleased to advise the Company has received firm commitments to raise $2.09m (before costs) via a share placement to sophisticated and professional investors through the issue 38,000,000 new fully paid ordinary shares at 5.5 cents per share (“ Placement ”).

Existing shareholders will have the opportunity to participate in a Share Purchase Plan (“ SPP ”) to raise up to a further $1 million.

Funds raised will be used to accelerate the exploration program on the Kabanga Jirani Nickel Project, initiate exploration on the Company’s South Australian uranium tenements and for general working capital.

Euroz Hartleys Limited acted as Lead Manager to the Placement.

Commenting on the success of the Placement, Adavale’s Chairman Grant Pierce stated:

“The Company is delighted with the overwhelming support received in the placement, which we believe is a solid endorsement for the exploration potential of our 100% owned Tanzanian sulphide Nickel project and our 100% owned Uranium prospects in South Australia. Work on both projects can now be accelerated.

“We look forward to welcoming our new shareholders to the Company and as part of the funding program, provide our existing shareholders the opportunity to participate at the same placement price, via a Share Purchase Plan.

“We expect busy months ahead as we strive to unlock the value from our nickel and uranium projects through exploration success.”

Sydney NSW 2000 1 Twitt Link +61 2 800 ~~3 6733~~

investor@adavaleresources.com er edIn

ASX ANNOUNCEMENT – 4 OCTOBER 2021

Details of the Placement

Pursuant to the terms of the Placement, Adavale will issue 38,000,000 Shares at an issue price of 5.5 cents to raise $2.09 million before costs.

The new Shares will be issued to sophisticated and professional investors, none of whom will be related parties, within the Company’s existing ASX Listing R7.1 and 7.1A placement capacity.

Completion of the Placement is expected to occur on Friday, 8 October 2021. Each new Share issued under the Placement will rank pari passu with existing shares on issue.

Details of the Share Purchase Plan (SPP)

Existing eligible shareholders, being those shareholders that are residents of Australia or New Zealand that held Adavale shares as at 7.00pm (AEST) on Friday 1 October 2021 (“ Record Date ”), will be invited to participate in the SPP at the same issue price as the Placement (5.5 cents per share).

The SPP will provide eligible shareholders the opportunity to increase their holding by up to $30,000 without incurring any brokerage or transaction costs. The issue price of 5.5 cents represents a 20.5% discount to the five (5) day volume weighted average price leading up to the Record Date.

The SPP will be capped at $1m and is not underwritten. The Company may decrease the size of the SPP or scale back applications at its discretion. Any scale-back will be applied to the extent and in the manner the Directors see fit.

Further information regarding the SPP (including terms and conditions of the SPP) will be provided to eligible shareholders in the SPP offer booklet, which will be made available shortly with the indicative timetable. Eligible shareholders wishing to participate in the SPP will need to apply in accordance with the instructions in the SPP offer booklet. Participation in the SPP is optional.

Indicative Timetable

Event	Date
Record Date	7.00 pm (AEST), Friday, 1 October 2021
Dispatch/Lodgement of and Distribution of SPP Letter/Booklet (containing terms and conditions of the SPP)	On or about Monday, 11 October 2021
SPP offer opens	10.00 am, Monday, 11 October 2021
SPP offer closes	5.00 pm, Friday 29 October 2021
SPP results announcement	Tuesday, 2 November 2021
Issue and allotment of New Securities	Friday, 5 November 2021
Expected quotation of and trading date of new Shares on ASX	Monday, 8 November 2021

The above timetable is indicative only and subject to change. All times are in Australian Eastern Daylight Savings Time (AEDT) except for the Record Date as indicated.

This announcement has been authorised for release by the Board of Adavale Resources Limited.

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ASX ANNOUNCEMENT – 4 OCTOBER 2021

For further information please contact investor@adavaleresources.com or visit www.adavaleresources.com

About Adavale

Adavale Resources Limited (ASX: ADD) is a nickel sulphide exploration company that holds 100% of the Kabanga Jirani Nickel Project, a portfolio of seven highly prospective granted licences, covering over 1,145km[2] surrounding and proximal to the world class Kabanga Nickel Deposit (58Mt @ 2.62% Ni) and located along the Karagwe-Ankolean belt in Tanzania. Adavale’s licences were selected based on their strong geochemical and geophysical signatures from previous exploration undertaken by BHP Billiton.

Adavale also holds three exploration licences within part of the highly prospective sedimentary uranium province within the northern part of the Lake Frome Embayment in South Australia.

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