ARDEA RESOURCES LIMITED — Capital/Financing Update 2025

Jan 16, 2025

==> picture [532 x 46] intentionally omitted <==

ASX & Media Release

17 January 2025

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

ASX Symbol

ARL

Ardea Resources Limited Suite 2 / 45 Ord St West Perth WA 6005

PO Box 1433 West Perth WA 6872

Telephone

Highlights

• Four drill rigs on site completing resource definition, geotechnical and hydrogeology drilling

• DFS Owners Team Recruitment nearly complete

• Multiple contracts and work packages continue to be approved and awarded as DFS activities progress

+61 8 6244 5136

Email

ardea@ardearesources.com.au

Website www.ardearesources.com.au

Directors

Mat Longworth Non-Executive Chair

Maree Arnason Non-Executive Director

Andrew Penkethman Managing Director & CEO

Ian Buchhorn Executive Director

Michael Rodriguez Executive Director

Executive Management

Sam Middlemas Company Secretary

Rebecca Moylan Chief Financial Officer

Alex Mukherji General Manager Land Access

Issued Capital

Fully Paid Ordinary Shares 199,682,915

Performance Rights 3,513,400

Options 3,000,000

ABN 30 614 289 342

Ardea Resources Limited ( Ardea or the Company ) is pleased to provide an update on the progress being made on the Kalgoorlie Nickel Project ( KNP ) – Goongarrie Hub Definitive Feasibility Study ( DFS ).

The DFS is being managed by Ardea subsidiary, Kalgoorlie Nickel Pty Ltd ( KNPL ) and funded by Sumitomo Metal Mining Co., Ltd ( SMM ) and Mitsubishi Corporation ( MC ) (the Consortium) with a budget of $98.5M[1] .

Ardea, and the Consortium are working collaboratively with the KNPL team to complete the DFS to support development of the KNP - Goongarrie Hub, as a multi decade, low operating cost, nickel-cobalt producer[2] .

Recruitment of key roles within the KNPL team is nearly complete with 40 personnel now contributing to the DFS, along with multiple specialist service providers. Teams from Ardea, SMM and MC are also contributing to the study.

Up to five drill rigs have been operating on site. One Reverse Circulation ( RC ) rig completing resource definition drilling. Two core rigs completing resource definition and geotechnical drilling. Two hydrogeology drill rigs undertaking a combination of drilling for ground water assessment and production bores. Currently four rigs are operating with a fifth returning to site in February 2025.

Multiple contracts and work packages continue to be approved and awarded, including several Metallurgical Testwork packages; Water Assessment works and pipeline layout; Mining/Tailings Package Contracts; Hydrogeology Technical Supervision, Data Analysis and Reporting; Production Bore Drilling; Early Contractor Involvement ( ECI ) – Autoclave Agitator; and ECI – Autoclave and Flash Vessels.

Managing Director and CEO Andrew Penkethman noted:

“Ardea are pleased to see the strong progress being made on the DFS to advance the KNP – Goongarrie Hub toward production, as Australia’s next major nickelcobalt producer[2 ] that meets the high ESG standards expected from modern society.

With the KNPL Owners Team now in place, working collaboratively with Ardea, Sumitomo Metal Mining and Mitsubishi Corporation, DFS deliverables are set to accelerate and we look forward to keeping stakeholders informed on progress.”

1 Ardea ASX announcement 30 August 2024.

2 Ardea Pre-feasibility Study ASX announcement 5 July 2023.

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

==> picture [134 x 35] intentionally omitted <==

Drilling Progress

RC drilling is being completed on a 40m x 40m drill hole spacing to define Measured Mineral Resource that will be available for conversion to Proven Ore Reserve, as part of the DFS.

Some diamond drilling is also being undertaken, including twinning RC holes (Figure 1), as part of the Quality Assurance and Quality Control assessment, completed as part of the Mineral Resource Estimate update that will be a DFS deliverable in H2, 2025.

Drilling has been progressing to align with the DFS completion schedule of H2, 2025. To date, 622 resource definition drill holes have been completed, totalling 37,842 meters. The majority of assay results are yet to be received with dedicated drilling updates to be provided over the coming months.

==> picture [519 x 390] intentionally omitted <==

Figure 1: Diamond drill rig completing an RC twin hole for Quality Assurance and Quality Control assessment, as part of the Mineral Resource

Estimate update that will be a key DFS deliverable.

2

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

==> picture [134 x 35] intentionally omitted <==

DFS Deliverables and Upcoming Updates

The DFS is on schedule to be completed in late H2, 2025.

Additional DFS updates will be provided as activities continue to progress and various workstreams are completed. Upcoming updates are expected to include the following:

• Process Plant and Process Plant Utilities:

• Potential viability of increasing the HPAL annual throughput from 3.0 million to 3.5 million tonnes per annum, based on reducing the autoclave residence time from 70 minutes to 60 minutes.

• Atmospheric Leach circuit treating 0.5 million tonnes per annum.

• Flowsheet update from Mixed Hydroxide Precipitate to Mixed Sulphide Precipitate as the final product.

• Non-Process Infrastructure.

• Approvals.

• Geology:

• Drilling results.

• Mineral Resource Estimate.

• Mining.

• Hydrogeology.

This announcement is authorised for release 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

3

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

==> picture [134 x 35] intentionally omitted <==

About Ardea Resources

Ardea Resources (ASX:ARL) is an ASX-listed nickel development company in joint venture with Sumitomo Metal Mining and Mitsubishi Corporation to build, commission and operate a plus 30,000tpa multi-decade nickel operation[1] :

• Development of the Kalgoorlie Nickel Project ( KNP ) and its sub-set the Goongarrie Hub, a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in Australia and one of the largest in the developed World at 854Mt at 0.71% nickel and 0.045% cobalt for 6.1Mt of contained nickel and 386kt of contained cobalt . The Goongarrie Hub has 584Mt for 4.0Mt of contained nickel (Consortium right to earn 50%) and Kalpini Hub has 270Mt for 2.1Mt of contained nickel (Ardea 100% unencumbered interest) (Ardea ASX release 30 June 2023), located in a jurisdiction with exemplary Environmental Social and Governance ( ESG ) credentials.

• Scoping Study initial programs being planned for the Kalpini Hub nickel-cobalt resources.

• Advanced-stage exploration at compelling nickel sulphide targets, such as Kalpini, and Critical Minerals targets including scandium and Rare Earth Elements throughout the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets complementing the KNP nickel development strategy.

==> picture [520 x 282] intentionally omitted <==

==> picture [79 x 64] intentionally omitted <==

==> picture [83 x 47] intentionally omitted <==

==> picture [164 x 43] intentionally omitted <==

Follow Ardea on social media

==> picture [25 x 21] intentionally omitted <==

==> picture [22 x 21] intentionally omitted <==

4

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

==> picture [134 x 35] intentionally omitted <==

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 forward-looking 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 Persons statement

The Resource Estimation, exploration and industry benchmarking summaries are based on information reviewed or compiled by Mr. Ian Buchhorn, and Mr Andrew Penkethman. Mr Buchhorn is a Member of the Australasian Institute of Mining and Metallurgy and Mr Penkethman is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Both Mr Buchhorn and Mr Penkethman are full-time employees of Ardea Resources Limited and have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking 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 Buchhorn and Mr Penkethman have reviewed this press release and consent to the inclusion in this report of the information in the form and context in which it appears. Mr Buchhorn and Mr Penkethman own Ardea shares.

Ardea wishes to clarify that its current Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines is:

	Resource Size Ni Co Contained Metal
Camp Prospect
	Category (Mt) (%) (%) Ni(kt) Co(kt)
KNP TOTAL	Measured 22 0.94 0.079 207 17
	Indicated 361 0.73 0.047 2,622 169
	Inferred 471 0.70 0.043 3,272 200
GRAND TOTAL	Combined 854 0.71 0.045 6,101 386

Note: 0.5% nickel cutoff grade used to report resources. Minor discrepancies may occur due to rounding of appropriate significant figures.

The Mineral Resource Estimate information shown in this ASX announcement has been previously released on the ASX platform by Ardea in ASX release 30 June 2023, in accordance with Listing Rule 5.8.

The Ore Reserve information shown in this ASX announcement has been previously released on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with Listing Rule 5.9.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate and Ore Reserve in the previous 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.

5

Kalgoorlie Nickel Project – Goongarrie Hub DFS Progress Update

==> picture [134 x 35] intentionally omitted <==

Updated KNP nickel and cobalt Mineral Resource Estimate based on a greater than 0.5% Ni cut-off grade, as at 30 June 2023.

		Resource Size Ni Co Contained Metal Estimation Details
Camp	Prospect
		Category (Mt) (%) (%) Ni(kt) Co(kt) Method Source Year
Goongarrie	Goongarrie South	Measured 18 0.94 0.085 171 15 LUC Ardea 2021 Indicated 82 0.71 0.049 584 40 LUC Ardea 2021 Inferred 10 0.64 0.033 61 3 LUC Ardea 2021
	Highway	Indicated 71 0.69 0.038 487 27 LUC Ardea 2023 Inferred 21 0.67 0.040 141 8 LUC Ardea 2023
	Ghost Rocks	Inferred 47 0.66 0.042 312 20 OK Snowden 2004
	Goongarrie Hill	Indicated 40 0.65 0.037 259 15 LUC Ardea 2021 Inferred 29 0.60 0.025 176 7 LUC Ardea 2021
	Big Four	Indicated 49 0.71 0.047 346 23 LUC Ardea 2021 Inferred 14 0.68 0.043 96 6 LUC Ardea 2021
	Scotia Dam	Indicated 12 0.71 0.065 82 7 LUC Ardea 2021 Inferred 5 0.72 0.043 37 2 LUC Ardea 2021
	Goongarrie Subtotal	Measured 18 0.94 0.085 171 15 Indicated 253 0.69 0.044 1,758 112 Inferred 127 0.65 0.037 823 47 Combined 398 0.69 0.044 2,753 175
Siberia	Siberia South	Inferred 81 0.65 0.033 525 27 OK Snowden 2004
	Siberia North	Indicated 14 0.72 0.042 102 6 Ni(UC) Co(OK) Snowden 2009 Inferred 72 0.74 0.034 534 25 Ni(UC)Co(OK)Snowden 2009
	Black Range	Indicated 9 0.67 0.090 62 8 OK HGMC 2017 Inferred 10 0.69 0.100 68 10 OK HGMC 2017
	Siberia Subtotal	Indicated 24 0.70 0.061 165 14 Inferred 163 0.69 0.038 1,127 61 Combined 186 0.69 0.040 1,292 75 Measured 18 0.94 0.085 171 15 Indicated 277 0.70 0.046 1,923 127 Inferred 289 0.67 0.037 1,951 108 Combined 584 0.69 0.043 4,044 250
KNP Goongarrie	TOTAL
Hub
Bulong	Taurus	Inferred 14 0.84 0.051 119 7 OK Snowden 2007 Indicated 16 1.06 0.055 169 9 OK Snowden 2004 Inferred 24 0.79 0.053 190 13 OK Snowden 2004
	Bulong East
	Bulong Subtotal	Indicated 16 1.06 0.055 169 9 Inferred 38 0.81 0.052 309 20 Combined 54 0.88 0.053 477 29
Hampton	Kalpini	Inferred 75 0.73 0.044 550 33 OK Snowden 2004
	Hampton Subtotal	Inferred 75 0.73 0.044 550 33 Indicated 16 1.06 0.055 169 9 Inferred 114 0.76 0.047 859 53 Combined 130 0.79 0.048 1,028 62
KNP Kalpini Hub	TOTAL
Kalpini Yerilla	Jump Up Dam	Measured 4 0.94 0.048 36 2 OK Snowden 2008 Indicated 42 0.78 0.043 324 18 OK Snowden 2008 Inferred 18 0.63 0.034 116 6 OK Snowden 2008
	Boyce Creek	Indicated 27 0.77 0.058 206 16 OK Snowden 2009
	Aubils	Inferred 49 0.70 0.066 346 33 OK Heron 2008
Kalpini Yerilla Hub TOTAL		Measured 4 0.94 0.048 36 2 Indicated 68 0.78 0.049 531 33 Inferred 68 0.68 0.057 462 39 Combined 140 0.73 0.053 1,028 74
KNP
KNP TOTAL		Measured 22 0.94 0.079 207 17 Indicated 361 0.73 0.047 2,622 169 Inferred 471 0.70 0.043 3,272 200 Combined 854 0.71 0.045 6,101 386
GRAND TOTAL

Legend: LUC – Local Uniform Conditioning; UC – Uniform Conditioning; OK – Ordinary Kriging.

6