ADAVALE RESOURCES LIMITED — Interim / Quarterly Report 2021

Aug 26, 2021

27 August 2021

QUARTERLY ACTIVITIES REPORT ADDENDUM

Adavale Resources Limited (“Adavale” and or “Company”) (ASX: ADD) provides its shareholders with an addendum to the recent Quarterly Activities Report dated 28 July 2021.

During the quarter, the exploration results reported in the Quarterly Activities Report referred primarily to the ASX announcement from 26 July 2021, “Maiden Drillhole Intercepts Ni and Cu Bearing Sulphide Veins”, where the positive results of the pXRF readings of the first drill hole as logged were described.

The Quarterly Actvities Report paragraphs which refererred or expanded the above was summarising previously disclosed information, as is conventional for Quarterly Activity Reports. As required by LR 5.3 details of exploration in the quarter were highlighted as in the bullet points described below:

• Drilling had commenced ahead of schedule[1]

• 1st hole revealed elevated pXRF readings up to 0.86% Ni and 4.84%, Cu detected within a package of sulphide veins extending over 195m at Target 1 (Kabanga N)[2 ]

• The discovery of outcropping ultramafic intrusion with disseminated sulphides at Kabanga NE (Target 16)[3]

• 17,836 In-fill soil samples taken during the quarter.[4]

• 1,299 samples from Kabanga N and Kabanga NE submitted to ALS Laboratory.[5]

• Geophysical surveys including 85.65km TDEM, 75.23km NSAMT and 423.96km ground magnetics were completed and 3D modelling of data was nearing completion[6] .

• 7 additional high priority targets identified (taking total to 22).[7]

• That the Ruiza North East licence was granted, bringing Adavale’s Kabanga Jirani Nickel project in Tanzania to 7 100% held licenses.[8]

• It was noted the post-quarterly Board appointments of Mr John Hicks and Mr David Riekie[9] .

Listing Rule 5.3

To expand and comply with Listing Rule 5.3.2, of the $413k spent in that quarter, with the majority spent directly on exploration being $338k spent on the following activies:

• continuing contractors and additional teams involved in the surveys and fieldwork, including accommodation, flights vehicle hire and running costs and transport.

• finishing off the extensive 17,836 geochemical surveys of which 1,299 samples were submitted to ALS, an accredited laboratory in South Africa

ASX: ADD

DIRECTORS

GRANT PIERCE CHAIRMAN

ALLAN RITCHIE CHIEF EXECUTIVE OFFICER

DAVID RIEKIE DIRECTOR

JOHN HICKS DIRECTOR

ROD CHITTENDEN DIRECTOR

GEOFF BRAYSHAW CHIEF FINANCIAL OFFICER

JULIAN ROCKETT LEGAL & COMPANY SECRETARY

ISSUED CAPITAL

Shares: 287.96 million Unlisted options: 17.5 million

ABOUT ADAVALE

Adavale Resources is an ASX-listed exploration company targeting projects in the 'battery materials‘ space. The company is currently focussed on its 100% owned Kabanga Jirani Nickel Project adjacent and along strike from the world’s largest undeveloped nickel sulphide resource.

• NSAMT/TDEM and ground magnetic surveys contractors and related costs.

• mobilization of the drilling rigs and initial drilling costs and consumables.

MORE INFORMATION adavaleresources.com

CONTACT

1 ASX published - 22 June 2021

2 ASX published - 26 July 2021

3 ASX published - 20 April 2021

4 ASX published - 22 June 2021

5 ASX published - 26 July 2021

6 ASX published - 26 July 2021

7 ASX published - 26 July 2021

Adavale Resources Limited Level 7, 6 Underwood Street Sydney NSW 2000 +61 2 8003 6733 investor@adavaleresources.com

8 ASX published - 1 June 2021

9 ASX published - 27 July 2021 for David Riekie and 8 July 2021 for John Hicks.

ASX ANNOUNCEMENT – 27 AUGUST 2021

• extensive data logging and analyses carried out by MSA and other contract supervisors out of South Africa and Tanzania.

• Analysis work continued to be carried out by contractors on the historic BHP and UNDP geochemical and geophysical data acquired during previous quarters; and

• Site preparation for the drilling program which was commenced in the June 2021 Quarter.

The related parties payments were described in the prior Quarterly Report under the (misnamed) Listing Rule 4.7, but were otherwise were accurate.

Listing Rule 5.23.1 & 5.23.2

The above issues discussed in the recent Quarterly Activities Report have been cross-referenced entirely through footnotes, in sourcing each issue raised, rather than limited to the ASX releases that describe geological results and having the requisite competent person consents as required (though omitted originally) under Listing Rule 5.23.1.

The Company confirms in the subsequent public report that then and since is not aware of any new information or data that materially affects the information included in recent Quarterly Activity Report and the material assumptions and technical parameters that underpinned any estimates provided then continue to apply and have not materially changed.

This announcement has been authorised for release by The Board of Adavale Resources

For further information please contact investor@adavaleresources.com

Competent Persons Statement

The information in this release that relates to “exploration results” for the Project is based on information compiled or reviewed by Mr David Dodd of MSA, South Africa. Mr Dodd is a consultant for Adavale Resources Limited and is a member of the SAMREC. Mr Dodd has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person under the ASX Listing Rules. Mr Dodd consents to this release in the form and context in which it appears.

Forward looking statements

This document contains forward looking statements concerning Adavale. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Adavale’s beliefs, opinions and estimates of Adavale as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of nickel, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward- looking statements in this presentation will actually occur.

About Adavale Resources’ Kabanga Jirani Nickel Project

Adavale Resources Limited (ASX:ADD) is a nickel sulphide exploration company and holds 100% of the Kabanga Jirani Nickel Project a portfolio of seven (7) highly prospective 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.

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