ARDEA RESOURCES LIMITED — Capital/Financing Update 2020

Sep 8, 2020

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Drilling resumes at BTZ Gold targets

ASX & Media Release

• 6,000m RC drilling program has commenced within Ardea’s BTZ Gold tenements

9 September 2020

ASX Symbol

• The first of two RC rigs booked for September has commenced drilling the Aphrodite North line to follow-up on initial assay results such as[1] :

ARL

• AANR0001: 6m at 3.60g/t Au from 44m;

Ardea Resources Limited

• AANR0001: 8m at 4.94g/t Au from 172m to end of hole ; and

Suite 2 / 45 Ord St West Perth WA 6005

• AANR0002: 10m at 1.52g/t Au from 76m.

PO Box 1433 West Perth WA 6872

• A second rig is expected in late September and will resume drilling at Lady Charlotte to follow-up on near surface supergene mineralisation in[2] :

• ABFR0286: 8m at 6.57g/t Au from 24m

Telephone

+61 8 6244 5136

• Five different gold target areas will be drill tested during September and October continuing the systematic drill assessment of the BTZ Gold model

Email

ardea@ardearesources.com.au

Ardea Resources Limited (Ardea or the Company) is pleased to report that a large capacity reverse circulation (RC) drill rig arrived on site on 8 September 2020 and has commenced drilling the Aphrodite North gold target, an emerging Ardea gold discovery, concealed by lake sediments.

Website

www.ardearesources.com.au

The Aphrodite North gold target area is the first of five Bardoc Tectonic Zone (BTZ) gold target areas to be drilled on Ardea’s tenements in a 6,000 metre RC drilling program to be completed over September and October 2020. Four of these gold target areas – Aphrodite North, Grafter (including Lady Charlotte), Zeus and Elsie North – are located approximately 70km north of the City of Kalgoorlie-Boulder, within Ardea’s Goongarrie Nickel Cobalt Project (GNCP). The fifth target area, Windanya, is located 50km north of the City of Kalgoorlie-Boulder. A second RC rig is booked to resume drilling at Grafter in late September.

Directors

Mat Longworth Non-Executive Chair

Andrew Penkethman Managing Director & CEO

Ian Buchhorn Technical Executive Director

Ardea’s Managing Director, Andrew Penkethman, said:

Executive Management

“The Ardea Team are pleased to resume drilling on our BTZ Gold targets, to followup on the promising start to gold exploration at Aphrodite North and Grafter and to test other compelling targets. Results from this 6,000 metre RC program will be important in continuing to unlock the potential of an emerging gold camp buried by transported cover, only 70km north of Kalgoorlie.

Sam Middlemas Company Secretary & CFO

Matt Painter General Manager Exploration

With Ardea one of a select few ASX listed companies that maintains an Operations Office in the City of Kalgoorlie-Boulder, we have been able to leverage off our local presence and strong relationships with service providers to help ensure access to essential services such as quality drilling contractors and assay services. These relationships will help ensure exploration programs are completed as efficiently as possible, to enable regular exploration news flow.”

Issued Capital

Fully Paid Ordinary Shares 117,300,435

Directors/Employee Performance Rights 3,711,000

ABN 30 614 289 342

1 ASX Release, Significant gold in first RC drilling at Aphrodite North, 13 August 2020

2 ASX Release, Ardea BTZ gold exploration success at Lady Charlotte, 24 August 2020

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Planned BTZ Drilling

The majority of Ardea’s GNCP tenements contain basement rocks prospective for hosting gold mineralisation but concealed by transported and laterite cover. As such, targets have been interpreted from a combination of field work and desktop studies using all available geological, geochemical and geophysical data. Using this approach, over 100 gold exploration targets have been defined and ranked. These are being systematically explored, with a current focus on the top five BTZ Gold targets (see Figure 1) within and proximal to Ardea’s GNCP. As the majority of these targets are located on granted mining leases, significant discoveries can be fast-tracked towards production.

A 6,000m RC drilling program has been planned to follow-up high grade drill intercepts in July-August on a series of compelling gold exploration targets (Figure 1). At each target area, drilling aims to delineate the orientation and nature of gold mineralisation. Targets are:

• Geochemical anomalies including Elsie North, Zeus No.1, Target C at Grafter.

• Structural targets including recently identified mineralisation at Aphrodite North, Target B at Grafter.

• Historic surface workings , Lady Charlotte at Grafter

• A historic underground mine , Half Mile Reef at Windanya

The first of two RC rigs arrived on site as scheduled on 8 September and resumed drilling at the top priority Aphrodite North line (Figure 2). A second RC drill rig has been booked to arrive in late September to commence drilling at Lady Charlotte.

Ardea look forward to reporting exploration results on these exciting targets as exploration progresses.

Figure 1 – GNCP tenement location plan highlighting known gold occurrences, Ardea defined gold exploration targets and priority targets to be tested with RC drilling during September and October 2020.

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Figure 2 – RC drilling and logging in progress at Aphrodite North, 3km east of the GNCP nickel-cobalt resource.

Authorised for lodgement by the Board of Ardea Resources Limited.

For further information regarding Ardea, please visit www.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.

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves 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 full-time 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.

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