ADAVALE RESOURCES LIMITED — Investor Presentation 2021

Aug 31, 2021

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• THE ADAVALE EQUATION: NICKEL+EXPLORATION+TANZANIA= POTENTIAL

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AFRICA DOWN UNDER CONFERENCE 1 SEPTEMBER 2021 David Riekie – Director ASX: ADD WWW.ADAVALERESOURCES.COM

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IMPORTANT NOTICE & DISCLAIMER

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This presentation is approved for release by the Board of Adavale Resources L imi t e d (ASX: ADD).This presentation contains background information about ADDcurrent at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in ADD or its assets.

Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Recipients of this presentation who decide to invest in ADD do so at their own risk.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This presentation is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. Afailure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/ or financial advice when deciding if an investment is appropriate.

Tothe fullest extent permitted by law, ADD and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability, take no responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation.

This presentation 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 presentation 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.. Competent Person 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 SACNASP. Mr Dodd has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being 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.

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RIGHT TIME & METAL, RIGHT PLACE, RIGHT STRATEGY & TEAM

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– Diamond Drilling (DD) program progressing steadily third DD hole underway of an initial 8 hole (~3,000m DD program) Outlook for nickel prices strong as demand is predicted to increase

$20,000

– 600 Drilling (DD) program progressing steadily underway of an initial 8 hole (~3,000m DD program) Nickel Price and Inventories Outlook for nickel prices strong as demand is predicted to increase 500 400 Positioned to capitalise on the Battery Metal boom 300 Tenements proximal to one of the world’s largest and richest “development ready” nickel sulphide resource, Kabanga Nickel Deposit (58 MT @ 2.62% Ni) 200 Tanzania open for business under new leadership; pro foreign investments, mining and economic development 100 Strategic and methodical approach enabled fast track to drilling Progress attracting talent pool with deep Nickel, exploration and 0 development experience SHFE (kt) LME (kt) Nickel Price (US$/t)

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$15,000

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$10,000

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$5,000

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ATTRACTING THE RIGHT PROFESSIONALS – AT BOARD LEVEL

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Grant Pierce – Chairman

• Mining engineer with 30yrs experience in Australia and Africa.

• Member of the team that built Tanzania’s first modern gold mine, (ASX: RSG) Golden Pride Project

• Operations Manager of the mine for its first 6 years.

• Other senior roles include Executive General Manager (Tanzania) Barrick Gold (NYSE: GOLD) & Exec-Director of ASX: EGR leading to the Company receiving the Epanko Graphite Projects’ Environmental Certificate and Mining Licence.

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Allan Ritchie – Chief Executive Officer

• A career spanning 30+ years as an investment banker

• Leadership roles in the energy & resources sectors for private and publicly listed companies (ASX: ADD), (ASX: HCD), (00689.HK).

• Held senior banking roles at Westpac, ANZ, HSBC and BNP Paribas in Australia, London, New York and Asia Pacific.

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David Riekie – Non-Executive Director

• Accomplished director, both Executive and Non-Executive roles of ASX listed energy & resources companies

• Recently served on the board of ASX: ZEN energy solutions, ASX: PDN uranium and ASX; including interim CEO role at Poseidon Nickel ASX: POS

• Career has spanned multiple continents. Within Africa notably Namibia, Tanzania, Eritrea, South Africa, DRC and Mozambique

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John Hicks – Non-Executive Director

• Accomplished Nickel Sulphide Geologist with 40+ years of experience both in senior exploration and development roles.

• Worked 15+ years GM Exploration ASX: PAN instrumental in sulphide Nickel discoveries of Deacon & Lower-Schmitz at Lanfranchi and Savannah North orebodies

• • Previously held key roles in Nickel exploration with WMC Limited on Mt Keith and Mining Project Investors on Silver Swan

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Rod Chittenden – Non-Executive Director

• Metallurgist with 40+ years of experience across Africa, Australia and South America, both in executive and project development roles.

• Worked 9+ years in Tanzania and recently led the team on the Nachu Graphite Project for (ASX: MNS) from discovery through to BFS and Environmental permits.

• Previously held key roles in (ASX:PDN) Langer Heinrich and Kayelekera projects, (ASX: NCM) & (NYSE: GOLD).

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ATTRACTING THE RIGHT PROFESSIONALS – KEY CONSULTANTS

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Dave Dodd – Competent Person, Consultant Geologist

• 22+ years experience primarily in nickel sulphide exploration within Africa and is considered a leader in his field.

In-country team - Headed by Accomplished General Manager Gerald Mturi in Tanzania.

• Worked at Falconbridge, African Nickel as Executive Geologist and as MD of a junior focussed on nickel projects.

Office team and in the field 2 x Senior Geologists and geo-techs.

• Involved in over 30 Ni-PGE sulphide projects across Africa.

Adavale also employ numerous locals in the field and work closely with the community's best interests.

Stephen Burke – Consultant Geologist

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• 20+ years experience primarily in gold, nickel sulphide and other base metal exploration, resource evaluation and mining.

• • Worked for Centaur Mining & Exploration Ltd, Goldfields Ltd, Aurion Gold Ltd. prior to founding his own independent consulting firm.

• Technical expertise - magmatic nickel sulphide and Archaean mesothermal gold deposit exploration and resource evaluation.

Bamboo Rock Drilling Group

10-year experienced pan-African drilling contractor with a proven track record.

• Consulted to numerous nickel, gold & base metal explorers, developers and producers in Australia, China, Tunisia and Tanzania.

Bamboo’s clients include Barrick Gold and Shanta Gold.

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Gavin Selfe – Consultant Geophysicist

• 25+ years experience, all over Africa and consulted to the following: BHP-Billiton, Anglo American, De Beers, Southern Era, Gem Diamonds, Mano River Resources, Platmin, African Nickel, Taung Gold, and several others.

Bamboo offers ethical and sustainable service excellence, with a 95% local Tanzanian staff complement.

• Specialties: Detailed geological and structural interpretation of all types of airborne and ground geophysical datasets. Geotechnical surveys for the engineering industry. Interpretation and reporting on all aspects.

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CORPORATE 41% 6% BOARD AND KMP
6% Grant Pierce Allan Ritchie
Chairman Chief Executive Officer
ASX Code ADD
David Riekie Geoff Brayshaw
Non-Executive Director Chief Financial Officer
Shares on Issue (FPO’s) 288m John Hicks Julian Rockett
In-house Counsel and
Non-Executive Director
Institutions Company Secretary
47%
Options (@ $0.06, Exp Dec 2022 Management
17.5m
Rod Chittenden
(trigger on 5 day VWAP of FPO’s12cents) Sophisticated Investors
Non-Executive Director
Other
$0.011 -
Ni + Cu bearing
52 Week Range
$0.105 sulphide veins
Drill rig
50 intersected $0.10
on site
Share Price Four additional Disseminated
EL granted
$0.055
(31 Aug 2021) Start of field exploration sulphides
40 identified $0.08
program
Conversion
New of debt
Market Capitalisation ~$17m
Board
CEO appointment
to focus
30 Ni US$19,000/t $0.06
on Ni
BHP data
Cash (AUD) assets
$1.42 m
(30 June 2021)
20 Ni US$17,000/t $0.04
Debt Nil
10 Ni US$15,000/t $0.02
Top 20 Shareholders 35%
0 $0.00
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
ADD Trading Volume (LHS, millions) ADD Share Price (RHS) US$ Nickel Price
Share Price (A$/share)
Trading Volume (millions)
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LEVERAGING OFF GIANTS IN OUR NEIGHBOURHOOD

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▼ Located proximal to the world class Kabanga Nickel Deposit (58Mt @ 2.62% Ni)

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Undeveloped Nickel Sulphide Deposits

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• Kabanga Nickel Agreement with the Tanzania Government to develop project which will provide an estimated US$664 million of expected infrastructure

• Adavale has secured a number of tenements, next to the most significant undeveloped high-grade nickel sulphide resource globally

▼ ADD acquisition of BHP and UNDP data

• Geochemical data, geophysical mag. and EM data

• Assisted in the selection of high priority targets across licences

• 7 Licences selectively identified that cover 1,145 km2

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Kabanga Nickel Deposit
1.0
0.1
1 10 100 1,000 10,000
Mineral Resources (million tonnes) - Log Scale
Nickel Grade (% Ni) - Log Scale
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Source: Company announcements, S&P Global, Terra Studio

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ADAVALE’S KIBANGA JIRANI NICKEL LICENCES

• Prospecting Licences were specifically targeted based on the rich details contained in the acquired BHP Data

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• Focus has been on the NNE-trending Karagwe-Ankole Orogenic Belt of North-West Tanzania known for Ni, Cu, Co, Cr & PGE’s

• Meso-Proterozoic circum-cratonic tectonic setting similar to Thomson Belt, Raglan and Voisey’s Bay NiS deposits Canada and IGO’s Nova in the AlbanyFraser Belt in Western Australia.

• Targeting mafic-ultramafic layered intrusions emplaced into a sulphur bearing sediments including pelites, iron sulphides, the sulphur source required for the formation of magmatic nickel sulphide deposits.

• All 7 Licences secured, cover 1,145 km[2 ] are within the highly prospective Kibaran Kabanga-Musongati mafic-ultra mafic alignment of Tanzania

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Ministry ID	Area	Project Location
PL 11406/2020	298 km2	Kabanga North East, Tanzania
PL 11405/2020	114 km2	Kabanga North, Tanzania
PL 11538/2021	64 km2	Burigi, Tanzania
PL 11537/2021	194 km2	Burigi North, Tanzania
PL 11591/2021	182 km2	Kabanga East, Tanzania
PL 11590/2021	273 km2	Kabanga West, Tanzania
PL 11592/2021	19 km2	Ruiza North East, Tanzania

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THE RIGHT GEOLOGICAL SETTING AND EXPLORATION METHODOLOGY

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• Right geological setting: within the Karagwe Ankolean belt which hosts the 58Mt @ 2.62% Ni Kabanga Nickel deposit

▼ Kabanga characterised by the following:

• Hosted in ultramafic intrusions/elevated Ni and Cu values in soils

• Mineralised massive sulphides are conductive

▼ Exploration Techniques Applicable:

• § Ultramafics reflect as magnetic lows per BHP magnetic data, and detected from soil data by using Cr, V, Fe, Ni and Cu (mafic indices) and signatures

• § Soil geochemistry implemented to identify Ni and Cu anomalies (detection of mineralisation)

• § AMT (“Audio-frequency MagnetoTelluric” survey) & TDEM (“Time Domain Electromagnetic”) conducted across targets to identify zones of conductivity

• § Ground Magnetics to detect intrusions conducted and then continuous re-ranking based on their level of conductivity via AMT & TDEM, quality of Ni and Cu anomalies, location relative to magnetic lows and extent of coincidence between these 4 vectors

• § Drill testing now underway on Target 3

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• COMPREHENSIVE INITIAL EXPLORATION PROGRAM (inc 3,000m DD 8 Hole program)

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HISTORICAL DATA ACQUIRED BY ADD

ADD ACTIVITIES

DEC JAN 21

FEB

MAR

APR

MAY JUN JUL AUG

UNDP DATA FROM 1970

Geological mapping

Geochemical surveys

BHP DATA UNTIL 1997

Geological lithological mapping

Geochemical surveys

Fixed wing airborne 400m spacing

Regional Geochem (1,000m lines/500m station) Infill Geochem (400m lines/50m station) NSAMT ~75km (quickly identify conductivity ahead of TDEM) TDEM ~86km ((identify EM plates – mineralisation) Ground Magnetics ~424km (detect intrusions) 3D Modelling of all Vectors ( to rank drill-holes) 3000m Diamond Program (approx. 8 holes)

• GEOTEM

• Aero Magnetic

VTEM at 200m spacing

NEXT STEPS

Log and Sample Cores, continue Maiden Drill Program ~8 holes, ~3,000m

Replicate Exploration Activities at Ruiza and the 2 x Burigi licences

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KABANGA NORTH: SUCCESSFUL REGIONAL SOIL SAMPLING MARKERS

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Regional Geochemistry Used to Identify Targets to Follow Up
Line Spacing 1000m and station spacing of 500m
Kabanga North
Kabanga North
Cu kriging
Ni kriging
Ni symbols
Ni symbols
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• KABANGA NORTH: CORRELATION OF ANOMALIES IDENTIFIED INFILL

• SOIL SAMPLING

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Target 1 at Kabanga N showed coincident elevated Ni and Cu from soil geochemistry as well as coincidence with a magnetic low (indicative of an underlying ultramafic intrusion) so was followed up with ground geophysics (Mag, TDEM and NSAMT)

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Kabanga North
Ni kriging
Ni symbols
Insert mag image
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• KABANGA NORTH: AMT CONDUCTORS COINCIDENT WITH TARGET LOCATIONS

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Darker red portion of AMT models denotes low ohm.m = high conductivity shell

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KABANGA NORTH: GEOPHYSICS – AMT SLICES PLUS EM PLATES

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KABANGA NORTH: GEOPHYSICS, AMT SLICES, EM PLATES & MAG DATA

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KABANGA NORTH: DRILLHOLE INTERCEPTS AND INTERPRETATIONS

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Drillhole Trace Magnetic Shells

Gridded NSAMT Anomaly

Drillhole testing: TDEM/AMT anomaly, Underlying Ni and Cu anomaly Coincidental with Magnetic shells (indicative of an intrusion which is a necessity to host a Ni-sulphide deposit)

EM Plates

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KABANGA NORTH:

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KN01-01-01 INTERCEPT 195m Sulphide veins - Ni 0.86%, Cu 4.84% and Co 0.44%*

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▼ Initial drilling program is validating the zones of conductivity identified through the NSAMT and the TDEM which is ascribed to the numerous sulphide veins intercepted between 260 and 455m. This coincidence of veins and modelled conductivity

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Cross-section showing zone of sulphides relative to geophysical conductors

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*Source: Company announcement 27 July 2021

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TANZANIA’S INCREASING FAVOURABILITY

In a bid to improve the climate for investment with a view to attracting investors, the recently appointed Tanzanian President, H.E. Hassan is preparing the national investment development strategy and a new investment law with already a number of changes being flagged to investors including:

Signed framework Removing Reducing agreement barriers to delays in the US$664M with foreign issuing of Kabanga Nickel the investment permits and to develop the licenses Kabanga nickel project

Increased Improving government bureaucratic investment processes in growth areas

Improving taxation processes

: International mining and exploration companies increasing activities and investment in Tanzania

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INVESTMENT HIGHLIGHTS

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• Right Metal

▼ Right Time initial drilling program underway

• Highly prospective location for very high-grade nickel sulphide deposits, based

• on

• § Geological setting

• § Historical exploration data

• § Proximity of the world richest undeveloped nickel sulphide deposit – 58Mt @ 2.62% Ni

• Tanzanian Government open to mining business

• ▼ Strong Board and management, extensive in country experience, receiving remuneration in shares to conserve cash for exploration. Attract best of breed consultants geology, geophysics and drilling

• Right Strategy – BHP/UNDP data, methodical fieldwork, maximise drilling result potential

• Company already supported by several financial institutions

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▼ New board & team installed from Sep 2020

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Level 7, 6 Underwood Street Sydney NSW 2000 +61 2 8003 6733

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www.adavaleresources.com investor@adavaleresources.com Adavale Resources Limited @AdavaleL

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