ADAVALE RESOURCES LIMITED — Investor Presentation 2021

Jan 26, 2021

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LEVERAGED TO EXPLORATION SUCCESS IN THE BATTERY METALS/NICKEL SECTOR CORPORATE PRESENTATION 27 JANUARY 2021 ASX: ADD WWW.ADAVALERESOURCES.COM

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IMPORTANT NOTICE & DISCLAIMER

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This presentation has been prepared byAdavale Resources Ltd (ASX:ADD).

This document 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 inADDor 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 document 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 may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on ADD’s current expectations, estimates and assumptions about the industry in which ADD operates, and beliefs and assumptions regarding ADD’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of ADD. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law, ADD does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person Statement

The information in this report that relates to Exploration Results (granting of prospecting permits) has been compiled under the supervision of Mr David Dodd, a Competent Person who is registered with the South African Council for Natural Scientific Professionals, a ‘Recognised Professional Organisation (RPO). Mr David Dodd is a full-time employee of The MSA Group in the role of HOD Geology. Mr David Dodd has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr David Dodd consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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CORPORATE OVERVIEW
ASX Code ADD
Shares on Issue 285,532,677
Options (@ $0.06, Expiry Dec 2022) 17,500,000
52 Week Range $0.012 - $0.087
Share Price (25 [th] Jan 2021) $0.076
Market Capitalisation $21.7m
Cash (31 [st] Dec 2020) $2.3m
Debt Reduced to Nil
Top 20 Shareholders 40%
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Rank	Name	Shares	%
1	Mr Matthew John Boysen	12,019,650	4.21
2	Mr William McArthur	10,590,000	3.71
3	Mr Peter Andrew Proksa	8,500,000	2.98
4	Stone Investments & Holdings Pty Ltd	7,981,939	2.80
5	LKC Technology Pty Ltd	7,750,000	2.71
6	RAAR Capital Group Pty Ltd	7,363,849	2.58
7	Mr Frank Poullas	6,400,000	2.24
8	HSBC Custody Nominees (Australia) Ltd – A/C 2	5,600,001	1.96
9	Mr Louis Alfred Clinton	5,333,333	1.87
10	Distington Holdings Pty Ltd	5,333,333	1.87
11	J P Morgan Nominees Australia Pty Ltd	5,207,132	1.82
12	AM 49 Pty Ltd	4,986,626	1.75
13	Markets-Alert Pty Ltd	4,320,402	1.51
14	The Gas Super Fund Pty Ltd	4,250,000	1.49
15	Peter Tsegas	3,916,667	1.37
16	Mr Adrian Dunphy	3,883,333	1.36
17	Mr Haryono Eddyarto	3,207,728	1.12
18	M & K Korkidas Pty Ltd	2,873,656	1.01
19	Mr Tony Athas and Mrs Angela Athas	2,850,000	1.00
20	RAAR Capital Group Pty Ptd	2,838,562	0.99
Top 20 holders of ORDINARY FULL PAID SHARES (Total)		115,206,211	40.35
Total Remaining Holders Balance		170,326,466	59.65

ADD Shareholder Distribution

(as published on the ASX 8 Jan 2021)

6% 5% 42% 47% Institutions Management Sophisticated Investors Other Investors

3

Three decades of Tanzanian/African mine building experience

BOARD AND MANAGEMENT

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Grant Pierce – Chairman

Is a qualified mining engineer with 30 years of operating experience in both Australia and includes 21 years in Africa. He was in the team that built Tanzania’s first modern gold mine, Resolute’s Golden Pride Project (ASX:RSG) and was Operations Manager of the mine for its first 6 years. Other senior roles include Executive General Manager (Tanzania) for Barrick Gold Corporation (NYSE:GOLD) and Executive Director of ASX:EGR leading to the Company receiving the Epanko Graphite Projects’ Environmental Certificate and Mining Licence. Grant has been publicly recognised for his philanthropic work with remote communities in developing nations.

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Allan Ritchie – Chief Executive Officer

A career spanning more than 30 years as an investment banker and in leadership roles in the energy and resources sectors for private and publicly listed companies. He currently serves as Non-Executive Director of Hydrocarbon Dynamics Limited (HCD:ASX) and has previously served as Director & Deputy CEO of energy group EPI Holdings Limited (0689.HKEX). Senior banking roles were at Westpac, ANZ, HSBC and BNP Paribas in Australia, London, New York and Asia Pacific.

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– Rod Chittenden Non-Executive Director

Is a Metallurgist with over 40 years of experience across Africa, Australia and South America, both in executive and project development roles. He has worked over 9 years in Tanzania and recently led the team on the Nachu Graphite Project for Magnis Energy Technologies (ASX:MNS) from discovery through to BFS and Environmental permits. Prior to that he had a key role in (ASX:PDN) Langer Heinrich and Kayelekera projects and worked for (ASX:NCM) and (NYSE:GOLD).

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Steven Georgiadis – Non-Executive Director

Is a lawyer with over 20 years of experience encompassing private equity transactions, corporate finance and corporate governance. Steven is a highly respected advisor to private and public companies both within Australia and internationally for technology companies in the field of energy storage, battery chemistry, LFP and NMC battery technologies, including battery management systems and hardware. Steven’s demonstrated experience covers both listed and unlisted companies with operations in Tanzania, South-East Africa, Asia and North America.

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Geoff Brayshaw – Chief Financial Officer

A Chartered Accountant for 35 years with expertise in audit and corporate finance. Geoff was former managing partner BDO Perth and was National President of the ICA in 2002 and awarded a Member of the Order of Australia in 2007. He was a former Director and Chair of the Audit Committee of both ASX:FMG and ASX:POS (chairman of ASX:POS in 2018 & 2019). He was a member of the Companies Auditors and Liquidators Disciplinary Board and chaired the trustee aboriginal corporation Gumala Investments Pty Ltd.

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Julian Rockett – In-house Counsel and Company Secretary

He brings a wealth of experience of equity raising, M&A and other corporate transactions specialising in the small-cap ASX listed space. He acted as the company secretary and/or in-house counsel to more than fifteen (15) ASX listed companies. He has also provided governance, equity, and transactional support to numerous public and private companies including well-known Australian brands, and other ASX listed companies, NSX listed companies, and in New Zealand and Malaysia.

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POSITIONED FOR GROWTH IN THE “BATTERY METALS” SPACE

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• ADD has acquired the extensive 1970’s to 2008 BHP and UNDP geological data including:

• Geochemical data rock chip, soil and stream sediment sample results, high-level results of geophysical programs, geological maps and reports, previous drilling results logs and relevant geological interpretation and reports

• $2.3m in cash and a further $1m potential from ITM options @6¢ and NO debt, Adavale is now well positioned to pursue its Tanzanian exploration opportunity

• In-country team includes very experienced local geologists and world renowned nickel expert Dave Dodd as Competent Person

• Key asset: 100% of Kabanga Jirani Nickel Project with 7 highly

• prospective nickel tenements, 6 granted, 1 in application. An area of 1,145 km[2] surrounding or proximal to the world class Kabanga Nickel Deposit (58Mt @ 2.62% Ni)

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45 $0.09
40 $0.08
Start of field Four additional
exploration EL granted
program
35 $0.07
Conversion
of debt
30 $0.06
New Board
CEO
to focus
appointment
on Ni assets
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 $0.00
Jul Aug Sep Oct Nov Dec Jan
ADD Trading Volume (LHS, millions) ADD Share Price (RHS) US$ Nickel Price
Share Price (A$/share)
Trading Volume (millions)
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Source: ASX, Chi-X, Terra Studio

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INVESTMENT CASE SUMMARY

• Start of a Commodities Super-Cycle

• Battery metals sector is a solid thematic performer that should continue for at least the next decade, in particular the demand for nickel sulphide

• Nickel price has increased by over 160% from its lows in March 2020 and forecasters suggest this growth will continue (Tim Treadgold, Forbes Jan 14[th] , 2021)

• ADD is focused on high grade nickel sulphide exploration in Tanzania

• ADD is a value play in the battery metals thematic, highly leveraged to exploration success

• Tanzania Open for Business – President Magufuli won second 5- year term and is delivering on foreign investment in mining

• Additional blue sky - with an improving uranium sector via historic asset - Lake Surprise - 3 contiguous tenements located in the uraniferous Lake Frome South Australia-11/13/c_139514401.htm

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600 $20,000
500
400 $15,000
300
200 $10,000
100
0 $5,000
SHFE (kt) LME (kt) Nickel Price (US$/t)
Jan-2015 Jul-2015 Jan-2016 Jul-2016 Jan-2017 Jul-2017 Jan-2018 Jul-2018 Jan-2019 Jul-2019 Jan-2020 Jul-2020 Jan-2021
Nickel Price (US$/t
Inventories (thousand tonnes)
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THE EV SECTOR IS BOOMING

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• Despite COVID-19, Electric Vehicle (EV) sales are booming in Europe and growing strongly globally

• Europe has replaced China as the driving force in EV market growth

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200,000
2015
2016: +15% Electric Vehicle Sales in Europe (BEV + PHEV)
2017: +38%
150,000
2018: +26%
2019: +46%
2020: +125% YTD
100,000
50,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015
450,000
Global Plug-In Electric Vehicle Sales (BEV + PHEV)
2016: +41%
400,000
2017: +58%
350,000 2018: +68%
2019: +9%
300,000
2020: +32% YTD
250,000
200,000
150,000
100,000
50,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Inside EV, Terra Studio
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HIGH GRADE NICKEL SULPHIDE EXPLORATION

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Undeveloped Nickel Sulphide Deposits
Kabanga Nickel Deposit
58 Mt @ 2.62% NI
▼ Adavale has
secured a number of
tenements, next to
the most significant 1.0
undeveloped high-
grade nickel
sulphide resource
globally
0.1
1 10 100 1,000 10,000
Mineral Resources (million tonnes) - Log Scale
Source: Company announcements, S&P Global, Terra Studio
Nickel Grade (% Ni) - Log Scale
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LEVERAGED TO EXPLORATION SUCCESS

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• ADD offers excellent leverage to exploration success

• Some recent ASX listed exploration discoveries:

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•
AZS – Andover, WA
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•
BSX – King Cobra Zone, Vietnam
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•
CTM – Jaguar, Brasil
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• ESR – Carr Boyd, WA

• POS – Golden Swan, WA

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

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Market Capitalisation of ASX-Listed Nickel Sulphide
Exploration and Development Companies
$400
$300
$200
$100
$0
Source: S&P Global, Terra Studio, market data as at 22 [nd] Jan 2021
FINMOH CZN ARN ADD ESS CPN DRE GAL SGQAOU ESR BSX AZS POS CTM PAN LEG
Market Capitalisation (A$ millions)
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KIBANGA JIRANI PROJECT NICKEL LICENCES

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• Key assets are now prospective Tanzanian nickel Prospecting Licences in well known nickel province in Tanzania

• Highly prospective nickel licences adjacent to the world class Kabanga Nickel deposit in Tanzania. “Jirani” is Swahili for “neighbour”

• Prospecting Licences and Applications cover 1,145 km[2 ] .targeted using acquired BHP Data

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

• All Licences within the highly prospective Kabanga-Musongati mafic-ultra mafic belt of Tanzania

Ministry ID	Area (km2)	Project Location
PL 11406/2020	298.02 km2	Kabanga North East, Tanzania
PL 11405/2020	113.84 km2	Kabanga North, Tanzania
PL 16307/2020	64.08 km2	Burigi, Tanzania
PL 16469/2020	194 km2	Burigi North, Tanzania
PL 16522/2020	181.74 km2	Kabanga East, Tanzania
PL 16521/2020	273.27 km2	Kabanga West, Tanzania
Under Application	19.4 km2	Ruiza North East, Tanzania

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KABANGA JIRANI PROJECT NICKEL LICENCES

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• Adavale has acquired a very significant historical geological database (which significantly de-risks both protracted cost and timeline of typical early exploration initiatives) and includes:

• Airborne EM and aeromagnetic survey

• • baseline geology mapping

• Geochemical assays and drilling data over much of the region

• Adavale’s licences were targeted within this prospective belt utilizing historical BHP and UNDP data through identifying a combination of stream/soil anomalies and magnetic lows (indicating underlying mafic/ultramafic intrusions)

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HIGHLY PROSPECTIVE GEOLOGICAL SETTING

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Licences are
adjacent to, and
along strike
from the
Kabanga Nickel Deposit
7 licences totaling
1,145 km [2]
6 granted, 1 application
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Stippled lines show
interpreted outline of
mafic/ultramafic alignment
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GEOPHYSICAL SIGNATURES

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Similar EM signature
to Kabanga
Nickel Deposit
Similar magnetic
signature to Kabanga
Nickel Deposit
Kabanga Nickel
Deposit
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BURIGI TENEMENT

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Distinctive magnetic low possibly indicating underlying mafic/ultramafic intrusion Discrete well defined soil anomaly EM Anomaly coincident with mag low and soil anomaly

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RUIZA NE AND BURIGI NORTH TENEMENTS

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Mag Low

EM Anomaly

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ADAVALE’S EXPLORATION PROGRAMS

Step Identify Prospective Ground and Acquire Licences Review of previous exploration data Geological mapping, soil and outcrop sampling, followed by trenchin and ittin of ke tar ets g p g y g Conduct soil sampling and XRF analyses Conduct analyses and laboratory checks as part of QA/QC and identif anomalies for follow u y p Design and implement detailed follow up soil sampling program Design and implement targeted ground EM Prioritise drilling targets/EM conductors and start drilling

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Timing Completed Completed In progress Completed for 4 out 6 PL Underway Q1/Q2 2021 Q2/Q3 2021 Q2/Q3 2021

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TANZANIA’S INCREASING FAVOURABILITY

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TANZANIA
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• President Magufuli won second 5-year term with new Cabinet appointed, pledges to remove investment hurdles, and invite foreign investment in mining9514401.htm

• Government now viewed ashighly supportive of the mining sector, in particular to juniors as well as large scale foreign investment from miners and other industries

• Barrick’s recent progress affirms pro-mining climate: - Twiga Minerals paying dividend of US$250M; and - expeditious granting of 10 exploration licences

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• Kabanga Nickel signs recent Framework Agreement with

• government which:

• secures foreign investment of US$664M; and includes

• the granting of a Special Mining Licence,

• associated infrastructure; and

• the commitment of a Class 1 Nickel refinery

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INVESTMENT HIGHLIGHTS

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• Right metal at the right time

• 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

• ▼ Strong Board and management, extensive in country experience, receiving remuneration in shares to conserve

• cash for exploration

• Company already supported by several financial institutions

• Tanzanian government open to mining business

• Share price increase of > 400% since new board reconstituted on 26 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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APPENDIX

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LAKE SURPRISE PROJECT, SOUTH AUSTRALIA

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▼The 100% owned Project is in South Australia situated 550 Km north of Adelaide, covering 396 km[2] on the northern flank of the Flinders Ranges. Rocks of the Flinders Ranges and surrounding areas are highly uraniferous and it is amongst one of the world’s most prolific uranium provinces.

• ▼Known uranium orebodies on the eastern side of the Flinders Ranges include Beverley, Honeymoon, Goulds Dam and Yarramba and the Mt Gee project lies in the northern Flinders Ranges about 60 Km from the Lake Surprise Project area.

• ▼The targets are surficial uranium ore bodies in a number of suitable host rocks and roll front style orebodies developed in both Tertiary and Mesozoic host rocks.

Ministry ID	Area (km2)	Project Location
EL 5892	92km2	Lake Arthur East, South Australia
EL 5893	167km2	Lake Arthur, South Australia
EL 5644	137km2	Canegrass Swamp, South Australia

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THE JUBILEE PROSPECT

The Jubilee Prospect lies in the northern part of EL5893 and contains zones of strong uranium enrichment that lie within a northtrending paleochannel system. The main features of the paleochannel system are as follows:

• ▼It is a continuous geochemical anomaly of 1900m length x 50m width at approximately 200ppm eU3O8. This is predominantly based on gamma logging with limited geochemical analysis from handheld equipment.

• ▼The system contains an equivalent U3O8 concentration downhole up to 611 ppm (0.06%) calculated by calibration of gamma logs against Handheld XRF analysis of diamond drill core

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THE MOOKAWARINNA AND CANE GRASS PROSPECTS

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The Mookawarinna Prospect is in the south-central part of EL 5893 and has widely spaced drill-holes defining a broad anomalous zone of uranium enrichment. Downhole gamma is recorded in five drillholes within a zone about 9km in strike length

The Cane Grass Swamp prospect was identified as a potential host for uranium that is underlying recently transported sediments to the south of the Jubilee and Mookwarinna Prospects.

• Shallow down-warped fold system is present acting as a potential host for the recent transport of uranium in groundwater or uranium transported from the primary source in the Flinders Ranges when the quartz sands forming the Jubilee Deposit and Mookwarinna Deposit were emplaced

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