ARDEA RESOURCES LIMITED — Capital/Financing Update 2020

Nov 18, 2020

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19 November 2020

Farm-in Joint Venture Agreement expands Red 5 footprint in close proximity to Darlot Gold Mine

The two projects, Darlot East and Mt Zephyr, provide exciting opportunities for the delineation of additional gold resources as part of the Darlot Mining Hub strategy – further expanding Red 5’s exploration footprint in WA’s world-class Eastern Goldfields to over 1,919km[2]

• Farm-in Joint Venture Agreement signed with Ardea Resources Ltd (ASX: ARL) for Red 5 to earn up to an 80% interest in the Mt Zephyr and Darlot East Gold Projects, both located in close proximity to the Darlot Gold Mine.

• The Mt Zephyr Project includes five granted Exploration Licences with several gold and base metal targets, including granitoid-hosted gold mineralisation at the Gale Prospect.

• The Darlot East Project includes two granted Exploration Licences located immediately adjacent to the east of Red 5’s existing Darlot Project tenements, and hosts previously-unmapped greenstones that have seen almost no historical exploration.

• Red 5 to spend $1.5M over two years to earn an initial 60% interest, with the option to earn an additional 20% interest by spending a further $800k within three years from commencement, for a total 80% interest in the two projects.

Red 5 Limited (ASX: RED) is pleased to announce that it has executed a Farm-in Joint Venture Agreement with ASXlisted explorer, Ardea Resources Ltd (ASX: ARL), to earn up to an 80% interest in two prospective gold exploration projects located in close proximity to the Darlot Gold Mine in the Eastern Goldfields region of Western Australia.

The Farm-in Joint Venture Agreement supports Red 5’s multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to comprehensive exploration being undertaken as part of the Darlot Mining Hub Strategy.

The Mt Zephyr Project covers an area of 900km[2 ] and represents an excellent gold discovery opportunity, located within 100km trucking distance from the Darlot Mill. Mt Zephyr hosts several areas of known mineralisation, including the Dunn’s Find Prospect (gold associated with Banded Iron Formation) and the Gale Prospect (gold associated with granodiorite intrusion), which shows early-stage similarities to Red 5’s 4.1Moz King of the Hills (KOTH) gold deposit.

Mineralisation within the Mt Zephyr area is associated with the major gold-fertile Celia Lineament structure, extending over a strike length of ~50km of the Mt Zephyr greenstone belt and the northern end of the Mt Morgan greenstone belt.

The Darlot East Project comprises two Exploration Licences in an under-explored area located 8km to the east of the Darlot Mine. Although predominantly underlain by granite batholiths, there is evidence of greenstone in areas previously mapped as granite. The structurally-significant Celia Lineament passes through the tenements, providing an opportunity for mineralising fluids to pass through to form deposits.

Red 5 Limited ABN 73 068 647 610 ASX: RED Shares on issue: 1,971M Level 2, 35 Ventnor Avenue West Perth 6005 Western Australia Tel: (+61) 8 9322 4455 Fax: (+61) 8 9481 5950 Web: www.red5limited.com Investor enquiries: info@red5limited.com

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Figure 1: Red 5 Ltd’s group tenement holdings (brown) and the JV Farm in tenements (blue shading).

Red 5’s Managing Director, Mark Williams, said:

“Following the recent delivery of the Final Feasibility Study for the development of a bulk mining and processing operation at King of the Hills (KOTH), Red 5’s growth vision is based on the establishment of two separate production hubs at KOTH and Darlot.

“This Joint Venture Farm-in Agreement with Ardea Resources provides an exciting opportunity for the discovery of gold resources within economic haulage distance of the Darlot processing plant, which is currently operating at 1Mtpa throughput.

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“Ardea’s grassroots exploration programs have delineated a series of highly-prospective targets, including the highpriority Gale Prospect which shows interesting early-stage analogies to our 4.1Moz KOTH deposit.

“Red 5 now has a combined granted tenement footprint of 1,919 km[2] in Western Australia’s Eastern Goldfields (including 423km[2] under application), giving us a commanding position in this world-class gold district and an exceptionally strong growth pipeline of exploration projects.

“We are looking forward to getting on the ground to commence drilling and exploration programs at both the Mt Zephyr and East Darlot projects.”

Joint Venture Farm-in Agreement

Red 5, through its 100%-owned subsidiary Darlot Mining Company Pty Ltd (Darlot), has executed a Farm-in Joint Venture Agreement (Agreement) with Ardea Exploration Pty Ltd, a wholly-owned subsidiary of Ardea Resources Ltd (ASX: ARL) (collectively ‘Ardea’), over the Mt Zephyr and Darlot East Gold Projects in Western Australia (refer to Figures 1 and 2).

Under the terms of the Agreement, Darlot is required to spend $1.5 million within a 2-year period to earn an initial 60% interest in the tenements, after which Darlot may elect to spend an additional $800,000 to earn an additional 20% interest, for a total 80% earned interest in the tenements. Ardea is free-carried by Darlot up to a ‘Decision to Mine’, after which it may elect to contribute pro-rata or dilute. If Ardea’s diluted interest falls below 10%, it will convert to a 1.5% Net Smelter Royalty (NSR).

The list of tenements included within the Agreement is detailed in Table 1.

Table 1. Mt Zephry and Darlot East Project Tenements

Project Name	Tenement	Grant Date	Area(blocks)
Mt Zephyr	E 37/1271	06/02/2017	24
	E 37/1274	13/09/2017	64
	E 39/1706	24/09/2013	12
	E 39/1854	11/07/2017	48
	E 39/1985	13/09/2017	32
Darlot East	E 37/1272	06/02/2017	62
	E 37/1273	13/09/2017	60

The descriptions of historical exploration results described in this report were published in the following announcements to the ASX:

1. ASX:ARL Ardea Resources Ltd’s Prospectus lodged 9 November 2016.

2. ASX:ARL announcement dated 29 November 2018 “WA Gold Exploration – Update”.

3. ASX:ARL announcement dated 11 April 2019 “First pass drilling at Gale identifies large scale gold system”.

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Figure 2: Regional Geology and Location Plan – Mount Zephyr and Darlot East tenements, showing location of tenements relative to Darlot Mine and other significant mining centres, and proximity to the regionally significant Celia Shear Zone.

Mt Zephyr Project – Gold

The Mt Zephyr group of tenements contains both primary gold and nickel mineralisation and encapsulates more than two-thirds of an underexplored greenstone belt traversed by the regionally-significant Celia Lineament (Figure

• 2). The area east of the Celia Lineament is considered highly-prospective for the following reasons:

• The world-class Jupiter and Wallaby granitoid-hosted gold deposits, as well as numerous historical gold workings, are located east of the Celia Lineament;

• It is located along-structure from the Mt Morgans and Lake Roe gold deposits;

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• First-pass drilling programs completed in the area have confirmed gold mineralisation at the Gale, Dunn’s North and Dunn’s Line Prospects; and

• First-pass, wide-spaced (160mx160m) drilling has confirmed the presence of granitoid-hosted gold mineralisation at the Gale Prospect.

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• Figure 3: Mount Zephyr Project tenements – various prospect areas underlain by airmag image. Paul’s Find prospect is located within an excluded Special Prospecting Licence held by a third party.

Gale Prospect

The Gale Prospect is considered to have the highest potential for the early definition of a gold Mineral Resource, with the previous exploration conducted by Ardea indicating[1, 2] :

• The presence of granitoid-hosted gold mineralisation which has been intersected by limited drilling from surface;

• Its location proximal to the Celia Shear Zone, along strike from geologically similar Jupiter and Wallaby gold mines;

• An exceptional 900m x 300m outcrop-limited soil geochemistry anomaly (>0.1g/t Au, up to 1.49g/t Au);

• Sericite, pyrite, hematite alteration noted in RC drill chips;

• Gold, arsenic, copper and barium anomalism in soil geochemistry;

• First-pass, wide-spaced (160x160m) drilling delivered promising results;

• The mineralised zone remains open in all directions;

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• Numerous targets have been defined;

• Near 100m intercepts are a rarity from a first-pass exploration program and are interpreted as the distal, outlying halo of a significant gold mineralising system;

• Strong parallels with Dacian’s Jupiter mine and Gold Fields’ Wallaby mine.

Drilling by Ardea in 2019 successfully defined broad intercepts of strong gold anomalism within a granitoid host (Figure 4). Wide-spaced RC drilling on a 160 x 160-metre pattern, across the sub-cropping part of the prospect included best results of:

• AMZR0006: 96m @ 0.28g/t Au from 2m, including 22m @ 0.48g/t Au from 10m;

• AMZR0021: 24m @ 0.24g/t Au from 4m;

• AMZR0002: 22m @ 0.25g/t Au from 6m, including 4m @ 0.79 g/t Au from 6m; and

• AMZR0018: 20m @ 0.20 g/t Au from 44m.

Results suggest that late-stage NE-striking structures that crosscut the Gale granitoid are spatially related to the gold mineralisation.

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Figure 4: Mount Zephyr Project – Gale Prospect geology plan showing Ardea and pre-Ardea drilling with composited downhole assays.

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Dunn’s Line Prospect

Dunn’s Line is a line of historical workings situated along banded-iron formation (BIF) outcrops to the east of the Celia Shear Zone. The localised workings are distributed over a distance of 4-5kms of exposed BIF, with the host BIF sequence extending up to 18km undercover through various offsets and breaks. Small-scale mining commenced in 1899, with grades between 5 and 90g/t Au reportedly mined from the Mount Zephyr mine.

Ardea carried out a program of shallow air-core drilling (to blade refusal) along the exposed and covered strike extent of the northern parts of Dunn’s Line. This drilling encountered anomalous mineralisation, indicating that gold is associated with pyritic (and sericitic) porphyry intrusives. The results of this program warrant follow-up drilling.

Darlot East (Yandal Belt and Celia Shear Zone)

The Darlot East Project is situated immediately to the east of Red 5’s Darlot Gold Project tenements. It incorporates the Celia Shear Zone towards the east, as well as the eastern margin of the Yandal Greenstone Belt.

Between the Celia Shear Zone and the Yandal Greenstone Belt, multiple generations of granite plutons are evident, as are fragments of greenstones. Several magnetic lows are evident, some of which are coincident with lineament intersections and greenstone fragments.

Prior to Ardea’s reinterpretation of the Darlot East area, greenstones were assumed to be limited, volumetrically insignificant rafts within granitoids. However, the acquisition, integration and interpretation of geophysical data by Ardea indicated that up to 20% of Ardea’s Darlot East tenements is interpreted to be greenstone. On the western margin of the tenement group, the easternmost extent of the Yandal Greenstone Belt comprises a strongly magnetic feature that is possibly a relatively flat-lying mafic layered intrusion.

While no significant soil anomalism was identified in broad (1km x 1km) spaced soil sampling over the area, it should be noted that the areas of early interest, namely the greenstone fragments between the granite plutons, are almost entirely overlain by transported material, thus potentially inhibiting effective testing. Further work is warranted.

Mt Zephyr Project – Nickel and Base Metals

Nickel Sulphide & VMS targets

The Mt Zephyr Project also includes several nickel and base metal targets in the Mount Zephyr project area that have undergone limited historical exploration, with encouraging results:

1. Jones Area A – outcropping, highly oxidised and silicified manganiferous gossans, anomalous in Ni and Cu, with limited historical drilling. Ardea completed 12 air-core drill-holes with best intercepts of 2m at 0.83% Ni from 2m (hole AMZA0022) and 12m at 0.35% Ni from surface (hole AMZA0023).

2. Zephyr North prospect – bulls-eye aeromagnetic feature. Limited historical drilling with best individual assay results of up to 0.31% Ni, 0.075% Cu, and 0.11% Zn.

3. Two Bills Well prospect – shallow historical drilling anomalous in nickel, along strike of a magnetic high.

4. Mt Zephyr VMS-base metal anomalism is evident over a strike length of ~2km, with the mineralised contact evident in magnetics for up to 6km.

ENDS

Authorised for release by the Board.

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For more information:

Investors/Shareholders: Media: Patrick Duffy, Chief Corporate Development Officer Nicholas Read / Kate Bell Mark Williams, Managing Director Read Corporate Red 5 Limited Telephone: +61 8 9322 4455 Telephone: +61 8 9388 1474

Exploration Results

Mr Byron Dumpleton confirms that he is the joint Competent Person for Exploration Results summarised in this report and Mr Dumpleton has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Mr Dumpleton is a Competent Person as defined by the JORC Code, 2012 Edition, having five years’ experience that is relevant to the style of mineralisation and type of deposit described in this report and to the activity for which he is accepting responsibility. Mr Dumpleton is a Member of the Australian Institute of Geoscientists, No. 1598. Mr Dumpleton is a full time employee of Red 5. Mr Dumpleton has reviewed this report and consents to the inclusion of the matters based on his supporting information in the form and context in which it appears.

The information in this report that relates to Exploration Targets, and Exploration Results is based on information compiled by Dr Matthew Painter, a Competent Person who is a Member of the Australian Institute of Geoscientists. Dr Painter is a fulltime employee of Ardea Resources Limited and 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. Dr Painter consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC 2012 Mineral Resource and Ore Reserves

Red 5 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the mineral resource and ore reserve estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

Forward-Looking Statements

Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Red 5’s Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Although Red 5 believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of Red 5, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. Red 5 undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly, you should not place undue reliance on any forward looking statement.

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APPENDIX A

JORC CODE, 2012 EDITION, TABLE 1 REPORT – GALE RC DRILLING

SECTION 1 SAMPLING TECHNIQUES AND DATA

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels, random chips, or	• All holes were sampled “in-principle” on a 2 metre down hole interval
techniques	specific specialised industry standard measurement tools appropriate	basis, with exceptions being made due to visual
	to the minerals under investigation, such as down hole gamma	geological/mineralogical breaks, and end of hole final-lengths. All
	sondes, or handheld XRF instruments, etc). These examples should	sampling lengths were recorded in ARL’s standard sampling record
	not be taken as limiting the broad meaning of sampling.	spreadsheets. Sample condition, sample recovery and sample size
	• Include reference to measures taken to ensure sample representivity	were recorded for all drill-core samples collected by ARL.
	and the appropriate calibration of any measurement tools or systems	• The drill spacing was broad at a nominal 160mN x 160mE and was
	used.	designed to achieve maximum coverage. The drilling will also
	• Aspects of the determination of mineralisation that are Material to	contribute to provide material for the purpose of metallurgical
	the Public Report.	sampling should the need arise.
	• In cases where ‘industry standard’ work has been done this would be	• Industry-standard practice was used in the processing of samples
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	for assay, with 2m intervals of RC chips collected in green plastic
	m samples from which 3 kg was pulverised to produce a 30 g charge	bags. A definitive interpretation of the mineralisation awaits further
	for fire assay’). In other cases, more explanation may be required,	drilling.
	such as where there is coarse gold that has inherent sampling	• Assay of samples utilised standard laboratory techniques with
	problems. Unusual commodities or mineralisation types (eg	standard ICP-AES undertaken on 50-gram samples for Au, Pt and
	submarine nodules) may warrant disclosure of detailed information.	Pd, and lithium borate fused-bead XRF analysis used for the
		remaining multi-element suite. Further details of lab processing
		techniques are found in the quality of assay data and laboratory
		tests below.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air	• Ardea drilled the Gale prospect with 21 reverse circulation (RC) drill
techniques	blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter,	holes on a varying MGA94 z51 northing grid-spacing of 160m at
	triple or standard tube, depth of diamond tails, face-sampling bit or	several localities (see Figure 1). Holes were vertical (-90 degree dip).
	other type, whether core is oriented and if so, by what method, etc).	RC drilling was performed with a face-sampling hammer (bit
		diameter between 4½ and 5¼ inches) and samples were collected
		by either a cone (majority) or riffle splitter using 2-metre
		composites. Sample condition,sample recoveryand sample size

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Criteria	JORC Code explanation	Commentary
		were recorded for all drill samples collected byARL.
Drill sample	• Method of recording and assessing core and chip sample recoveries	• RC chip sample recovery was recorded by visual estimation of the
recovery	and results assessed.	reject sample, expressed as a percentage recovery. Overall
	• Measures taken to maximise sample recovery and ensure	estimated recovery was high. RC Chip sample condition recorded
	representative nature of the samples.	using a three code system, D=Dry, M=Moist, W=Wet. A small
	• Whether a relationship exists between sample recovery and grade	proportion of samples were moist or wet (11.5%), with the majority
	and whether sample bias may have occurred due to preferential	of these being associated with soft goethite clays, where water
	loss/gain of fine/coarse material.	injection has been used to improve drill recovery.
		• Measures taken to ensure maximum RC sample recoveries included
		maintaining a clean cyclone and drilling equipment, using water
		injection at times of reduced air circulation, as well as regular
		communication with the drillers and slowing drill advance rates
		when variable topoorground conditions are encountered
Logging	• Whether core and chip samples have been geologically and	• Drilling was undertaken for first pass exploration purposes. The level
	geotechnically logged to a level of detail to support appropriate	of logging detail utilised supports future potential resource
	Mineral Resource estimation, mining studies and metallurgical	estimation and was as follows: Visual geological logging was
	studies.	completed for all drilling both at the time of drilling (using standard
	• Whether logging is qualitative or quantitative in nature. Core (or	Ardea logging codes), and later over relevant met-sample intervals
	costean, channel, etc.) photography.	with a metallurgical-logging perspective. Geochemistry from historic
	• The total length and percentage of the relevant intersections logged.	data was used together with logging data to validate logged
		geological horizons.
		• Visual geological logging was completed for all RC drilling on 1-metre
		intervals. Logging was performed at the time of drilling, and planned
		drill hole target lengths adjusted by the geologist during drilling. The
		geologist also oversaw all sampling and drilling practices. A mixture
		of ARL employees and contract geologists supervised all drilling. A
		small selection of representative chips were also collected for every
		1-metre interval and stored in chip-trays for future reference.
		• In total, 1,310 m were drilled during the program, with the chips
		generated duringthe entireprogram logged in detail.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	• 2-metre composite samples were recovered using a 15:1 rig
techniques	taken.	mounted cone splitter or trailer mounted riffle splitter during drilling
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc. and	into a calico sample bag. Sample target weight was between 2 and
preparation	whether sampled wet or dry.	3kg. In the case of wet clay samples, grab samples taken from sample
	• For all sample types, the nature, quality and appropriateness of the	return pile, initially into a calico sample bag. Wet samples were

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Criteria	JORC Code explanation	Commentary
	sample preparation technique.	stored separately from other samples in plastic bags and riffle split
	• Quality control procedures adopted for all sub-sampling stages to	once dry.
	maximise representivity of samples.	• QAQC was employed. A standard, blank or duplicate sample was
	• Measures taken to ensure that the sampling is representative of the	inserted into the sample stream 10 metres on a rotating basis.
	in situ material collected, including for instance results for field	Standards were quantified industry standards. Every 30th sample a
	duplicate/second-half sampling.	duplicate sample was taken using the same sample sub-sample
	• Whether sample sizes are appropriate to the grain size of the	technique as the original sub-sample. Sample sizes are appropriate
	material being sampled.	for the nature of mineralisation.
Quality of	• The nature, quality and appropriateness of the assaying and	• All Ardea samples were submitted to Kalgoorlie Bureau Veritas (BV)
assay data	laboratory procedures used and whether the technique is considered	laboratories and transported to BV Perth, where they were
and	partial or total.	pulverised.
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc.,	• The samples were sorted, wet weighed, dried, then weighed again.
tests	the parameters used in determining the analysis including instrument	Primary preparation has been by crushing and splitting the sample
	make and model, reading times, calibrations factors applied and	with a riffle splitter were necessary to obtain a sub-fraction which has
	their derivation, etc.	then been pulverised in a vibrating pulveriser. All coarse residues
	• Nature of quality control procedures adopted (e.g. standards, blanks,	have been retained.
	duplicates, external laboratory checks) and whether acceptable levels	• The samples have been cast using a 66:34 flux with 4% lithium nitrate
	of accuracy (i.e. lack of bias) and precision have been established.	added to form a glass bead. Al, As, Ba, Ca, Cl, Co, Cr, Cu, Fe, Ga, K, Mg,
		Mn, Na, Ni, P, Pb, S, Sc, Si, Sr, Ti, V, Zn, Zr have been determined by
		X-Ray Fluorescence (XRF) Spectrometry on oven-dry (105˚C) sample
		unless otherwise stated.
		• A fused bead for Laser Ablation MS was created to define Ag_LA,
		Be_LA, Bi_LA, Cd_LA, Ce_LA, Co_LA, Cs_LA, Dy_LA, Er_LA, Eu_LA,
		Gd_LA, Ge_LA, Hf_LA, Ho_LA, In_LA, La_LA, Lu_LA, Mo_LA, Nb_LA,
		Nd_LA, Ni_LA, Pr_LA, Rb_LA, Re_LA, Sb_LA, Sc_LA, Se_LA, Sm_LA,
		Sn_LA, Ta_LA, Tb_LA, Te_LA, Th_LA, Tl_LA, Tm_LA, U_LA, V_LA,
		W_LA, Y_LA, Yb_LA, which have been determined by Laser Ablation
		Inductively Coupled Plasma Mass Spectrometry (LAICP-MS).
		• The samples have been analysed by Firing a 40 g (approx) portion of
		the sample. Lower sample weights may be employed for samples
		with very high sulphide and metal contents. This is the classical fire
		assay process and will give total separation of Gold, Platinum and
		Palladium in the sample. Au1, Pd, Pt have been determined by
		Inductively Coupled Plasma (ICP) Optical Emission Spectrometry.
		• Loss on Ignition results have been determined usinga robotic TGA

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Criteria	JORC Code explanation	Commentary
		system. Furnaces in the system were set to 110 and 1000 degrees
		Celsius. LOI1000 have been determined by Robotic TGA.
		• Dry weight and wet weight have been determined gravimetrically.
		• BV routinely inserts analytical blanks, standards and duplicates into
		the client sample batches for laboratory QAQC performance
		monitoring.
		• Ardea also inserted QAQC samples into the sample stream at a 1 in
		10 frequency, alternating between blanks (industrial sands) and
		standard reference materials. Additionally, a review was conducted
		for geochemical consistency between historically expected data,
		recent data, and geochemical values that would be expected in a
		nickel laterite profile.
		• All of the QAQC data has been statistically assessed. There were
		rare but explainable inconsistencies in the returning results from
		standards submitted, and it has been determined that levels of
		accuracyandprecision relatingto the samples are acceptable.
Verification	• The verification of significant intersections by either independent or	• BV routinely inserts analytical blanks, standards and duplicates into
of sampling	alternative company personnel.	the client sample batches for laboratory QAQC performance
and assaying	• The use of twinned holes.	monitoring.
	• Documentation of primary data, data entry procedures, data	• Ardea also inserted QAQC samples into the sample stream at a 1 in
	verification, data storage (physical and electronic) protocols.	20 frequency, alternating between duplicates splits, blanks
	• Discuss any adjustment to assay data.	(industrial sands) and standard reference materials.
		• All of the QAQC data has been statistically assessed. Ardea has
		undertaken its own further in-house review of QAQC results of the
		BV routine standards, 100% of which returned within acceptable
		QAQC limits. This fact, combined with the fact that the data is
		demonstrably consistent, has meant that the results are considered
		to be acceptable and suitable for reporting.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	• All drill holes are to be surveyed using an RTK DGPS system with
data points	down-hole surveys), trenches, mine workings and other locations	either a 3 or 7 digit accuracy. The coordinates are stored in the
	used in Mineral Resource estimation.	exploration database referenced to the MGA Zone 51 Datum GDA94.
	• Specification of the grid system used.	• All holes drilled as part of the Gale program were vertical. No holes
	• Quality and adequacy of topographic control.	were down-hole surveyed except at EOH.
		• The grid system for all models is GDA94. Where historic data or mine
		grid data has been used it has been transformed into GDA94 from its

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Criteria	JORC Code explanation	Commentary
		original source grid via the appropriate transformation. Both original
		and transformed data is stored in the digital database.
		• A DGPS pickup up of drill collar locations is considered sufficiently
		accurate for reporting of resources, but is not suitable for mine
		planningand reserves.
Data spacing	• Data spacing for reporting of Exploration Results.	• The drill spacing was designed to provide first-pass exploration
and	• Whether the data spacing and distribution is sufficient to establish	results at a density of 160mE x 160mN.
distribution	the degree of geological and grade continuity appropriate for the	• The spacing is not considered sufficient for the definition of Mineral
	Mineral Resource and Ore Reserve estimation procedure(s) and	Resources. Further exploratory drilling will be required before the
	classifications applied.	calculation of such resources could be considered.
	• Whether sample compositing has been applied.	• Sample compositing has not been applied to the newly collected
		data.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	• All drill holes in this program were vertical.
data in	possible structures and the extent to which this is known, considering	• True orientations of gold controlling structures are not currently
relation to	the deposit type.	known at Gale. Both flat-lying and steep structures are expected, but
geological	• If the relationship between the drilling orientation and the	neither has been measured. As such, no comment can yet be made
structure	orientation of key mineralised structures is considered to have	regarding the representativity of calculated intercepts. It is expected
	introduced a sampling bias, this should be assessed and reported if	that the orientations of structures and therefore their optimal
	material.	samplingorientations will be revealed through further drilling.
Sample	• The measures taken to ensure sample security.	• All samples were collected and accounted for by ARL
security		employees/consultants during drilling. All samples were bagged into
		calico plastic bags and closed with cable ties. Samples were
		transported to Kalgoorlie from logging site by ARL employees/
		consultants and submitted directly to BV Kalgoorlie.
		• The appropriate manifest of sample numbers and a sample
		submission form containing laboratory instructions were submitted
		to the laboratory. Any discrepancies between sample submissions
		and samples received were routinely followed up and accounted
		for.
Audits or	• The results of any audits or reviews of sampling techniques and data.	• No audit or review beyond normal operating procedures has yet
reviews		been undertaken on the Gale dataset. ARL has periodically
		conducted internal reviews of sampling techniques relating to
		resultant exploration datasets, and larger-scale reviews capturing
		the data from multiple drilling programs.
		• Internal reviews of the exploration data included the following:

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Criteria	JORC Code explanation	Commentary
		• Unsurveyed drill hole collars (less than 1% of collars).
		• Drill Holes with overlapping intervals (0%).
		• Drill Holes with no logging data (less than 2% of holes).
		• Sample logging intervals beyond end of hole depths (0%).
		• Samples with no assay data (from 0 to <5% for any given project,
		usually related to issues with sample recovery from difficult ground
		conditions, mechanical issues with drill rig, damage to sample in
		transport or sample preparation).
		• Assay grade ranges.
		• Collar coordinate ranges
		• Valid hole orientation data.
		• The BV Laboratory was visited by ARL staff in 2017, and the
		laboratory processes and procedures were reviewed at this time
		and determined to be robust.

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SECTION 2 REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	• The tenement on which the Gale drilling was undertaken is
tenement and	agreements or material issues with third parties such as joint	E39/1854. ARL, through its subsidiary companies, is the sole holder
land tenure	ventures, partnerships, overriding royalties, native title interests,	of the tenement.
status	historical sites, wilderness or national park and environmental	• Heritage surveys were carried out by Kado Muir, Heritage
	settings.	Consultant (Masters CHS – Anthropology/Archaeology) prior to
	• The security of the tenure held at the time of reporting along with	application for the Program of Works to undertake the program.
	any known impediments to obtaining a licence to operate in the area.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	• The Gale prospect has been subject to limited historic exploration,
done by other		mostly as drilling.
parties		• BHP (late 1980s) identified anomalism at surface and drilled 19
		shallow RAB holes immediately southwest of the currently
		defined mineralisation. These early holes were generally less
		than 20m deep in an area of alluvial cover, and are not
		considered to have effectively tested for mineralisation.
		• Aurora Gold (early 1990s) identified sheared and sericite-biotite
		altered granite that was interpreted to be the source of the soil
		anomalism. RAB drill programs yielded results including MZR4 (0
		to 18 m at 0.51 g/t Au), MZR19 (0 to 18 m at 0.48 g/t Au), and
		MZR49 (0 to 6 m at 1.26 g/t Au). As per the prevailing ideas of
		the day, Aurora assumed vertically-oriented gold lodes, but
		could not make these hold together.
		• Around 2000, shallow RAB drilling by Regal Resources returned
		anomalous geochemical results including 2 m at 3.12 g/t Au from
		8 m in MZR020 and 2 m at 1.64 g/t Au from 2 m in MZR024.
		• Newcrest drilled 12 RC drillholes, most to 150 m depth, in two
		lines coinciding with known mineralisation, confirming earlier
		gold results and achieving results such as NGRC004 (0 to 48 m at
		0.19gt Au)and NGRC011(62 to 64 m at 0.71g/t Au).
Geology	• Deposit type, geological setting and style of mineralisation.	• Mineralisation at Gale appears to be granitoid hosted orogenic
		gold. Strong parallels are drawn with Dacian’s Jupiter deposit
		around 50 km to the SE. Granitoid plugs are intruded into the
		hangingwall of the Celia Lineament. Contrastingrheological

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Criteria	JORC Code explanation	Commentary
		characteristics likely result in fracturing contemporaneous with
		deformation and regionalgold mineralisingevents.
Drill hole	• A summary of all information material to the understanding of the	• All holes drilled in this most recent program are listed in “Appendix
Information	exploration results, including a tabulation of the following	1 – Collar location data”.
	information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o downhole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should clearly
	explain why this is the case.
Data	• In reporting Exploration Results, weighting averaging techniques,	• All assay data relating to the metals of interest at Gale, namely gold
aggregation	maximum and/or minimum grade truncations (e.g. cutting of high	and associated trace finder elements arsenic, antimony, and
methods	grades) and cut-off grades are usually Material and should be stated.	sulphur, are listed in “Appendix 2 – Assay results from Gale”. Other
	• Where aggregate intercepts incorporate short lengths of high-grade	elements were assayed but have not been reported here. They are
	results and longer lengths of low-grade results, the procedure used	of use and of interest from a scientific and metallurgical
	for such aggregation should be stated and some typical examples of	perspective, but are not considered material and their exclusion
	such aggregations should be shown in detail.	does not detract from the understanding of this report.
	• The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship	• These relationships are particularly important in the reporting of	• Most drill hole samples have been collected over 2 m downhole
between	Exploration Results.	intervals.
mineralisatio	• If the geometry of the mineralisation with respect to the drill hole	• Gold intercepts at Gale are defined using a 0.1 g/t cut-off on a
n widths and	angle is known, its nature should be reported.	minimum intercept of 1 m and a maximum internal waste of 2 m.
intercept	• If it is not known and only the downhole lengths are reported, there	Secondary intercepts (i.e. the “including” intercepts) are defined
lengths	should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	using a 0.5 g/t cut-off and the same intercept and internal waste characteristics.
		• Assay compositing techniques were not used in this assessment.
		• No metal equivalent calculations have been used in this
		assessment.

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Criteria	JORC Code explanation	Commentary
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	• All drill holes in this program were vertical.
	intercepts should be included for any significant discovery being	• True orientations of gold controlling structures are not currently
	reported These should include, but not be limited to a plan view of	known at Gale. Both flat-lying and steep structures are expected but
	drill hole collar locations and appropriate sectional views.	neither has been measured. As such, no comment can yet be made
		regarding the representativity of calculated intercepts. It is
		expected that the orientations of structures and therefore their
		optimal sampling orientations will be revealed through further
		drilling.
Balanced	• Where comprehensive reporting of all Exploration Results is not	• A map of the gold mineralisation is shown within the report. Cross-
reporting	practicable, representative reporting of both low and high grades	sections are not shown as gold as the Company is still developing
	and/or widths should be practiced to avoid misleading reporting of	its understanding of the prospect.
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be	• Not applicable to this report. All results are reported either in the
substantive	reported including (but not limited to): geological observations;	text or in the associated appendices. Examples of high-grade
exploration	geophysical survey results; geochemical survey results; bulk samples	mineralisation are labelled as such.
data	– size and method of treatment; metallurgical test results; bulk
	density, groundwater, geotechnical and rock characteristics;
	potential deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (e.g. tests for lateral	• No other data are, at this stage, known to be either beneficial or
	extensions or depth extensions or large-scale step-out drilling).	deleterious to the recovery of the metals reported.
	• Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling
	areas, provided this information is not commercially sensitive.

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