ARDEA RESOURCES LIMITED — Capital/Financing Update 2020

Sep 17, 2020

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Successful A$3.5M Capital Raising to support Gold Work Programs, SPP to follow

ASX & Media Release

18 September 2020

ASX Symbol

ARL

Highlights

• Commitments received from existing and new institutional and sophisticated investors for a A$3.5 million Placement, at A$0.47 per share

Ardea Resources Limited

Suite 2 / 45 Ord St West Perth WA 6005

• Raising was upsized in response to very strong market demand

PO Box 1433 West Perth WA 6872

• Funds raised will be used to support Ardea’s exciting gold exploration and appraisal work programs, including further drilling, metallurgical test work, geological studies and working capital

Telephone

• Ardea will also conduct a Share Purchase Plan ( SPP ) to raise up to A$2.5 million at the same A$0.47 price as the Placement

+61 8 6244 5136

Email

ardea@ardearesources.com.au

Ardea Resources Limited ( Ardea or the Company ) is pleased to announce that it has received binding commitments for a share placement to institutional, sophisticated and professional investors to raise A$3.5 million before costs. The placement was very well supported and Ardea received bids exceeding A$3.5 million.

Website

www.ardearesources.com.au

amicaa and MST Financial acted as Joint Lead Managers to the placement.

Directors

Mat Longworth Non-Executive Chair

Use of Funds

The raising puts Ardea in a strong position to continue to execute on its highly successful gold exploration and appraisal plans.

Andrew Penkethman Managing Director & CEO

Ian Buchhorn Technical Executive Director

The Company will have more than A$12 million cash upon settlement of the Placement, with the new funds raised under the Placement and SPP to be used to progress gold exploration, project appraisal and working capital.

Executive Management

As announced on 9 September 2020, drilling has resumed at Ardea’s Bardoc Tectonic Zone (BTZ) gold targets, most of which are located on granted Goongarrie Nickel Cobalt Project (GNCP) mining leases. Two rigs will target a total of five different gold targets during September and October, including the Aphrodite North area and Lady Charlotte in the Grafter area. The Company looks forward to sharing results from these exciting targets as exploration work progresses.

Sam Middlemas Company Secretary & CFO

Matt Painter General Manager Exploration

Issued Capital

Placement Structure and Pricing

Fully Paid Ordinary Shares 117,300,435

Due to the strong demand for the Placement, the Company elected to accept bids of A$500,000 over the initial target of A$3.0 million.

Directors/Employee Performance Rights 3,711,000

The new shares will be issued at a price of A$0.47 per share, being a 9.3% discount to the 5-day VWAP.

ABN 30 614 289 342

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Under the placement, the Company will issue an estimated 7,446,808 new fully paid ordinary shares to institutional, sophisticated and professional investors using its existing placement capacity under ASX Listing Rule 7.1. It is anticipated settlement will occur on or about 23 September 2020. The new shares will rank equally in all respects with existing ordinary shares in the Company.

Share Purchase Plan

Ardea is pleased to announce that Shareholders will be able to participate in a Share Purchase Plan at the same A$0.47 per share price as the Placement. The Board intends to raise up to A$2.5 million under the SPP. Ardea will separately release an announcement in relation to the SPP. The final terms of the SPP Offer Document will be settled by the Ardea Board for its dispatch to Eligible Shareholders on the indicative date of 23 September 2020.

Ardea thanks all shareholders for their strong and continued support, and welcomes the new institutional and sophisticated investors to its register.

Company Update

Ardea has received several indicative offers from third parties seeking to acquire or farm into non-core projects. At this stage, the offers are non-binding and early stage and there is no guarantee that such offers will result in binding agreements.

Comments from Managing Director Andrew Penkethman

“Ardea is pleased with the strong support shown in the placement and welcomes new sophisticated and professional investors to the Company. The proceeds of the placement ensure Ardea is well funded to maintain momentum on drilling out its emerging gold discoveries on the Bardoc Tectonic Zone.

We have an RC rig currently drilling on our emerging gold discovery in the Aphrodite North area and a second RC rig booked to arrive on site in late September. The second rig will test another four gold targets, starting with follow up on the promising start to exploration at Lady Charlotte.

Work flows also continue apace on completing the Goongarrie and Highway nickel-cobalt resource updates, along with nickel sulphide exploration at Emu Lake, where a number of outstanding targets have been defined.

I look forward to keeping all stake holders informed as Ardea progresses multiple work streams on its strategic Eastern Goldfields of Western Australia project portfolio.”

An Appendix 3B for the proposed issue of securities will follow this announcement.

Authorised for lodgement by the Board of Ardea Resources Limited.

For further information regarding Ardea, please visit https://ardearesources.com.au/ or contact:

Andrew Penkethman Managing Director and Chief Executive Officer Tel +61 8 6244 5136

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About Ardea Resources

Ardea Resources (ASX:ARL) is an ASX-listed resources company, with a large portfolio of 100% controlled West Australian-based projects, focussed on:

• Development of the Goongarrie Nickel Cobalt Project, which is part of the Kalgoorlie Nickel Project, a globally significant series of nickel-cobalt deposits which host the largest nickel-cobalt resource in the developed world, coincidentally located as a cover sequence overlying fertile orogenic gold targets; and

• Advanced-stage exploration within its WA nickel sulphide and gold exploration tenure located on crustalscale Tectonic Zone structures in lake settings within the Eastern Goldfields world-class nickel-gold province.

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Multiple targets defined and being
systematically explored
Ardea controls a large,
strategic land holding in
Western Australia
Target review current
Australia’s premier nickel-cobalt
project
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Follow Ardea on social media

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on expectations, estimates and projections as of the date of this news release.

This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management’s expectations with respect to, among other things, the timing and amount of funding required to execute the Company’s exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company’s properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company’s ability to raise funding privately or on a public market in the future, the Company’s future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may” and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time.

Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, the ability to create and spin-out a gold focussed Company, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forwardlooking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

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