ADAVALE RESOURCES LIMITED — Investor Presentation 2021

May 16, 2021

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POSITIONED FOR A NICKEL SULPHIDE DISCOVERY DRILLING IN JUNE 2021

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CORPORATE PRESENTATION 17 MAY 2021 ALLAN RITCHIE - CEO ASX: ADD WWW.ADAVALERESOURCES.COM

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IMPORTANT NOTICE & DISCLAIMER

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This presentation has been prepared by Adavale Resources Ltd (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 aprospective investor may require in evaluating apossible investment in ADDor 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.

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 aviolation 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.

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.

To the 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, RIGHT METAL, RIGHT PLACE, RIGHT TEAM

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$30,000

900 $30,000 Drilling on schedule for June 2021 Outlook for nickel prices strong as demand is 800 predicted to increase Nickel Price and Inventories 700 Exposure to the global transition to electric vehicles 600 $20,000 and the solid Battery Metals thematic particularly 500 energy storage through nickel sulphide 400 Tenements located next door to one of the world’s and richest nickel largest undeveloped sulphide 300 $10,000 resource, Kabanga Nickel Deposit 200 Significantly improved political environment in Tanzania new with a focus on through leadership 100 foreign investment and mining 0 $0 2015 2017 2019 2021 A team of experts with a proven track record of mine development in Tanzania and Africa SHFE (kt) LME (kt) Nickel Price (US$/t)

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CORPORATE
ASX Code ADD
Shares on Issue 286,813,995
Options
17,500,000
(@ $0.06, Exp Dec 2022)
52 Week Range $0.011 - $0.087
Share Price
$0.065
(14 [th] May 2021)
Market Capitalisation $18.7m
Cash
$1.84m
(31 [st] Mar 2021)
Debt Nil
Top 20 Shareholders 35%
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41% 6% BOARD AND MANAGEMENT
6%
Grant Pierce
Chairman Chief Executive Officer
Rod Chittenden
Non-Executive Director Chief Financial Officer
Institutions Steven Georgiadis
47%
Non-Executive Director
Management
Sophisticated Investors
Other
45 $0.09
Four
40 additional Disseminated $0.08
New Board EL granted
Start of field Sulphides
to focus
exploration program Identified
on Ni assets
35 $0.07
30 Ni US$19,000/t $0.06
Conversion
CEO
of debt
appointment
25 $0.05
BHP data
20 Ni US$17,000/t $0.04
15 Ni US$16,000/t $0.03
10 Ni US$15,000/t $0.02
5 Ni US$14,000/t $0.01
0 $0.00
Aug Sep Oct Nov Dec Jan Feb Mar Apr
ADD Trading Volume (LHS, millions) ADD Share Price (RHS) US$ Nickel Price
Trading Volume (millions)
Share Price (A$/share)
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BOARD AND MANAGEMENT

Grant Pierce Allan Ritchie Chairman Chief Executive Officer Rod Chittenden Geoff Brayshaw Non-Executive Director Chief Financial Officer Julian Rockett Steven Georgiadis In-house Counsel and Non-Executive Director Company Secretary

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3 DECADES OF TANZANIAN MINE BUILDERS + BEST OF BREED CONSULTANTS

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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 and was 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.

Rod Chittenden – Non-Executive Director

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• Metallurgist with 40+ years of experience across Africa, Australia and Sth 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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Dave Dodd – Competent Person, Consultant Geologist

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

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

• • Involved in over 30 Ni-PGE sulphide projects across Africa, having in multiple jurisdictions.

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

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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.

• 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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In-country team - Headed by General Manager with 20 years in Tanzania,

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

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

Bamboo Rock Drilling Group 10-year experienced pan-African drilling

contractor with a proven track record.

Bamboo’s clients include Barrick Gold and Shanta Gold.

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

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NICKEL EXPLORER WITH TORQUE

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• ADD looks to replicate similar successes at the Kabanga Jirani Project with a high-grade nickel sulphide discovery from its own portfolio of licences

• Recent ASX listed exploration discoveries:

• AOU – Nepean (extension), WA

• • AZS – Andover, WA

• • BSX – King Cobra Zone, Vietnam

• CTM – Jaguar, Brazil

• • POS – Golden Swan, WA

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Market Capitalisation of ASX-Listed Nickel Sulphide
Exploration and Development Companies $2,621
$500
$400
$300
$200
$100
$0
CZN MOH ADD ESS ARN CPN GAL SGQ ESR DRE AOU DEV AZS BSX POS CTM PAN LEG MCR CHN
Source: S&P Global, Terra Studio, market data as at 11 [th] May 2021
Market Capitalisation (A$ millions)
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LEVERAGING OFF GIANTS

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

• 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

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

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ELECTRIFICATION AND NICKEL

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• Nickel in battery demand surging from a low base, to become highly significant and disruptive from mid-2020s

• Current nickel market size is 2,300 kt Ni

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Source: Bloomberg
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KIBANGA JIRANI PROJECT NICKEL LICENCES

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• Prospecting Licences targeted using acquired BHP Data

• Focus on the NNE-trending Mesoproterozoic-age, meta-sedimentary, Karagwe-Ankole Orogenic Belt of North-West Tanzania

• All Licences and Applications cover 1,145 km[2 ] are within the highly prospective Kabanga-Musongati/Kibaran mafic-ultra mafic belt of Tanzania

• Right geological setting within the Karagwe Ankolean belt which hosts the 58Mt @ 2.62% Ni, Kabanga Nickel deposit and is characterised by the following:

• § Hosted in ultramafic intrusions

• § Has elevated Ni and Cu values in overlying soil

• § Mineralised massive sulphides are conductive

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 16522/2020	182 km2	Kabanga East, Tanzania
PL 16521/2020	273 km2	Kabanga West, Tanzania
Under Application	19 km2	Ruiza North East, Tanzania

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RIGHT EXPLORATION METHODOLOGY

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• Initial Exploration Focus is Adavale’s 4 licences closest to the Kabanga Nickel Deposit

▼ 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)

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

• § AMT conducted across targets to identify zones of conductivity

• § Prioritise targets to follow up with ground EM by ranking them based on their level of conductivity, quality of Ni and Cu anomalies, location relative to magnetic lows and extent of coincidence between these three factors

• § Begin initial drilling at prioritised targets by June 2021

• Work to date has been completed primarily on Kabanga N and Kabanga NE so the remaining slides will address these two licences

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KABANGA N EM CONDUCTORS BROADLY COINCIDENT WITH NICKEL ANOMALIES

Ni Anomalies exceeding the 90[th] Percentile

Airborne EM Conductors

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KABANGA N - Ni & Cu ANOMALIES COINCIDENT

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AMT CONDUCTORS COINCIDENT WITH TARGETS

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

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KABANGA NE - COINCIDENT Ni & Cu ANOMALIES

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Cu

Ni

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Disseminated sulphides hosted in ultramafic

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GEOLOGY CONCLUDING REMARKS

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• Located adjacent to, and along strike, from the Kabanga Nickel Deposit within the prospective Karagwe Ankolean Belt along the lineament of ultramafics intrusions

• Geochemical surveys have identified 4 coincident Ni & Cu anomalies at Kabanga N and 2 broad anomalies within Kabanga NE

• Further we have identified ultramafic outcropping and disseminated sulphides

• Follow up AMT has identified anomalies at all Kabanga N sites surveyed

• Currently surveying Kabanga NE with AMT

• Where AMT conductors have been identified these will be followed up with EM surveys

• EM conductors will be drill tested

• Drilling to start in June

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EXPLORATION PROGRAMS

Geological mapping, Identify Review of soil and outcrop Prospective previous sampling, followed Ground and exploration by trenching and Acquire data pitting of key targets Licences

Conduct soil sampling and XRF analyses

Conduct analyses and laboratory Design and checks as part of implement QA/QC detailed infill soil and identify sampling anomalies for program follow up

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Continue the Infill Prepare for
Implementing Prioritise drilling
M
Geochem &
soil and outcrop targeted AMT targets/EM
A sampling across and will follow conductors and Geophysics on
Adavale’s Kabanga up with ground commencement Burigi, Burigi N
Y
and Ruiza to
licences EM of drilling in June
2021 define targets
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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 Improving government bureaucratic taxation investment in growth processes processes areas

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

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INVESTMENT HIGHLIGHTS

▼ Right Metal

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• Right Time as we begin initial drilling program in June 2021

• 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 ▼ Share price increase of >400% since new board reconstituted on 26[th] August 2020

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

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www.adavaleresources.com

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investor@adavaleresources.com Adavale Resources Limited @AdavaleL

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