ARDIDEN LTD — Interim / Quarterly Report 2016

Mar 13, 2017

ARDIDEN LIMITED

ABN 82 110 884 252

HALF-YEAR FINANCIAL REPORT

31 DECEMBER 2016

ARDIDEN LIMITED CORPORATE DIRECTORY FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

DIRECTORS

Neil Hackett (Non-Executive Chairman) Piers Lewis (Non-Executive Director) Brad Boyle (Executive Director) Dr Michelle Li (Non-Executive Technical Director)

JOINT COMPANY SECRETARIES

Arron Canicais Neil Hackett

REGISTERED AND PRINCIPAL OFFICE

Suite 6, 295 Rokeby Road Subiaco WA 6008

Telephone: (08) 6555 2950 Facsimile: (08) 9382 1222

Website: www.ardiden.com.au

SHARE REGISTRY

Computershare Investor Services Pty Limited Level 2, 45 St Georges Terrace Perth WA 6000, Australia

Telephone: (08) 9415 4000 Facsimile: (08) 9473 2500

AUDITORS

PKF Mack 4[th] Floor 35 Havelock Street West Perth WA 6005

SOLICITORS

Steinepreis Paganin The Read Buildings Level 4, 16 Milligan Street Perth WA 6000

AUSTRALIAN SECURITIES EXCHANGE

Ardiden Limited shares (ADV) are listed on the Australian Securities Exchange.

1

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Your Directors present their report for Ardiden Limited (‘the Company’) and controlled entities (‘Consolidated Entity’ or ‘Group’) for the half-year ended 31 December 2016.

1. DIRECTORS

The names of the Directors of the Company in office during the period and up to the date of this report are as follows:

Neil Hackett (Non-Executive Chairman) - Appointed 5 June 2012 Piers Lewis (Non-Executive Director) - Appointed 27 March 2012 Brad Boyle (Executive Director) - Appointed 17 February 2016 Dr Michelle Li (Non-Executive Director) - Appointed 7 July 2016

Directors were in office from the beginning of the period until the date of this report unless otherwise stated.

2. CORPORATE STRUCTURE

Ardiden Limited is a limited liability company that is incorporated and domiciled in Australia. Ardiden Limited has prepared a consolidated financial report incorporating the entities that it controlled during the period as follows:

Ardiden Limited - Parent entity Billiton Island Pte Ltd - 100% owned controlled entity

3. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal continuing activities during the period within the Consolidated Entity were exploration for and evaluation of mineral resources.

4. OPERATING AND FINANCIAL REVIEW

Project Review

SEYMOUR LAKE LITHIUM PROJECT

During this period, Ardiden significantly increased the Seymour Lake Lithium Project footprint and exploration potential Ontario, Canada with the staking and approval of additional claim areas totalling 7,019 Ha. During a highly successful mapping and sampling campaign Ardiden discovered numerous new pegmatite exposures over a strike length of approximately 5kms.

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Figure 1. Seymour Lake project overview showing new pegmatite exposures, faults and dykes and the newly staked claim areas.

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Subsequent to the end of the period, Ardiden announced on 8 February 2017 as a result of the exploration success Ardiden then completed the first phase of maiden resource delineation drilling program which was focused on the North Aubry prospect of the project.

A total of 27 diamond drill holes of various lengths up to 105m were completed during this Phase 1 program with lithium grades up to 6.01% Li2O obtained. The drilling assay results confirmed the presence of high grade lithium mineralisation at or close to surface and the identification of a second pegmatite sill, also containing high-grade lithium mineralisation, located beneath and parallel to the North Aubry prospect.

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Figure 2. Drill core obtained from hole SL-16-68 showing a portion of the 16m intersection of high quality spodumene-bearing pegmatite.

Ardiden confirms that 27 diamond drill holes were completed during this Phase 1 of the drilling program, which was initially focused on defining lithium mineralisation at the North Aubry prospect.

A total of 388 drill core samples (excluding blanks, standards and duplicates) were tested during this program and significant Li2O grades reported with 30% (116 drill core samples) returning assays of greater than 1.5% Li2O, with a robust average grade of 2.57% Li2O. An impressive 53% of all samples (205 drill core samples) returned assays greater than 0.5% Li2O at an average grade of 1.86% Li2O.

The global average grade from all 388 drill core samples from the 27 diamond drill hole program, including those assay results which were below the 0.5% cut-off grade, was 1.1% Li2O.

These strong results confirm the visual geological logging of the drill core and the potential to establish a maiden JORC 2012 Mineral Resource estimate for the Seymour Lake Project.

These latest results validate the previous historical drill results, which show a number of substantial and continuous zones of high grade lithium mineralisation, which lie at or close to surface and now also confirmed at depth with the second pegmatite sill.

The main pegmatite at the North Aubry prospect is hosted as a part of a vertically stacked series of gently dipping pegmatite sills, which has so far been confirmed as being at least 250m wide and 300m long, and remains open to the north, west, east and at depth. The final two diamond drill holes in the Phase 1 program, SL-16-72 and SL-16-73, confirmed extensions of the known mineralisation both to the east and west at North Aubry.

These extensions are yet to be fully evaluated and remain open. As the mineralisation zones at the North Aubry prospect have yet to be fully defined, Ardiden is eager to undertake further drilling in order to obtain a better understanding of the of the pegmatite structure and with the view of substantially expanding the known high quality lithium mineralisation zones at the prospect.

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

The proximity of the pegmatites to surface at North Aubry prospect is also considered to be a strategic advantage, potentially allowing easier access to very high-quality mineralisation in a future mining scenario, reducing the required pre-strip and resulting in a lower extraction cost and improved project economics.

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Figure 3. Overview showing the pegmatite exposures at North Aubry prospects and interpreted extensions.

Ardiden confirms metallurgical and mineralogical investigations of the drill core samples are now underway. These investigations will allow the Company to focus on the next step of establishing the most appropriate lithium extraction methods in order to optimise the overall lithium recovery and final lithium concentrate grades.

Phase 2 Drilling

Subsequent to the end of the period, Ardiden announced on 8 February 2017 the successful completion of Phase 1 drill program confirmed the presence of very high grade lithium mineralisation at surface and at depth at the North Aubry prospect. Although Ardiden was only able to complete two diamond drill holes, the assay results have also confirmed the high quality of the spodumene mineralisation present at the Central Aubry prospect.

As previously announced, Ardiden will seek to expand the initial maiden lithium resource potential at North Aubry prospect to ensure there will be sufficient resources to be economically viable for any potential future mining operations.

The expansion of any resources will be completed in accordance with JORC (2012) guidelines and is likely to be completed in a number of stages, once the other prospects along the first 1km of the overall 5km strike length are progressively drill tested this year. These prospects include Central Aubry, South Aubry and Pye.

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

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Figure 4. Plan view showing the North Aubry and Central Aubry prospects and the potential feeder zone along the western edge of the prospects.

The Phase 1 drilling is showing that the North Aubry prospect appears to be plunging to the north-west, which could be indicating a possible deep pegmatite feeder zone coming in from the west.

Final preparations are now underway to commence Phase 2 of the diamond drilling program at Seymour Lake, to further drill test the extensions of the lithium mineralisation zones on the west and north aspects of the North Aubry prospect and to drill test the possible pegmatite feeder zone on the western edge.

Further, Ardiden wants to explore and drill test the idea of possible dilation along the feeder zone, which may strike south towards Central Aubry prospect and could explain some of the similarities between the two prospect areas. If this interpretation of the geology is found to be accurate then there will be a strong potential to dramatically expand the size of the lithium mineralisation zones and as such increase the size of the potential lithium deposit.

Central Aubry Prospect

As previously announced by Ardiden the Central Aubry prospect is located approximately 500m south of the North Aubry prospect and about 200m north of the South Aubry prospect and is comprised of two main exposures. Mapping of the Central Aubry prospect shows strong presence of spodumene mineralisation over the majority of the exposures surface.

Initial drilling at the Central Aubry prospect has successfully intersected substantial multiple near-surface layers of pegmatite mineralisation of various widths, as seen in drill hole SL-16-68, which intersected a total of 16.48 metres of spodumenebearing sills over a total down-hole width of 52m. Additionally, and drill hole SL-16-69, which intersected a total of 10.70 metres of spodumene-bearing sills over a total down-hole width of 52m.

Further, the proximity of the pegmatites to surface at the Central Aubry prospect is considered to be a strategic advantage, potentially allowing easier access to high-quality mineralisation in a future mining scenario, reducing the required pre-strip and resulting in a lower extraction cost and improved project economics.

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ARDIDEN LIMITED

DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Unfortunately, due to the limited access into the Central Aubry prospect and the onset of the Winter season, Ardiden was only able to complete two diamond drill holes, during this phase of the drilling program. Ardiden will aim to drill test these newly identified mineralisation zones during the next round of drilling at Central Aubry.

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Figure 5. Overview showing the interpreted mineralisation zones and pegmatite exposures at North Aubry, Central Aubry and South Aubry prospects.

Potential Shallow Open Pit Mining

Ardiden confirms the near-surface location of the high-grade pegmatites at the North Aubry prospect is considered to be a strategic advantage, potentially allowing easier access to high-quality mineralisation in a future mining scenario, reducing the required pre-strip and resulting in a lower extraction cost and improved project economics.

Depending on future exploration and drilling results, the mineralisation at North Aubry may be amenable to extraction via a series of high grade-low strip boutique open pits along the strike length.

The identification of these previously unrecognised extensions is an important development which increases the Company’s confidence in the potential of the Seymour Lake Project to host a significant lithium deposit. The extensions will be further evaluated during the next round of drilling.

The later drilling intersected multiple and substantial secondary layers of pegmatite mineralisation (beneath and parallel to known exposures) up to 20 metres thick at North Aubry, as seen in drill holes SL-16-62, SL-16-63 and SL-16-71. The deeper drill holes have confirmed the presence of multiple pegmatite mineralisation zones between 44m to 104m down-hole.

Potential To Produce High-Grade Lithium

Subsequent to the end of the period, Ardiden announced on 9 February 2017 that it had received highly encouraging preliminary testwork results from Independent Metallurgical Operations (IMO), based in Perth, Western Australia for ore samples from the majority-owned Seymour Lake Lithium Project in Ontario.

The HLS testwork results from the spodumene samples provided to IMO indicate that the spodumene particles are well liberated at relatively course size. Lab HLS tests produced 7.73% Li2O concentrate. In theory, pure spodumene is considered to be 8.03% Li2O, so Ardiden’s lithium concentrate is very close to the pure form.

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

The production of the lithium concentrate at such a high grade is well over the industry standard of 6% Li2O, as required by most lithium end-users.

These preliminary testwork results are very encouraging and once again confirm the high quality of the Seymour Lake spodumene. So far, the results indicate that there appears to be minimal gangue minerals in the concentrate, with Fe2O3 and TiO2 of 1.03% and 0.03% respectively. Ardiden confirms that as these are only the preliminary tests and further work is now underway to see if these results can be replicated and to obtained a better understanding of the recovery rates and to define the process flowsheet to produce the final lithium concentrate.

MANITOUWADGE GRAPHITE PROJECT

During the period Ardiden commenced the resource delineation diamond drilling program at its 100%-owned Manitouwadge Graphite Project in Ontario is continuing to make excellent progress, with several graphitic mineralisation zones being completed and logged.

Subsequent to the end of the period, Ardiden advised on 1 February 2017 that visual results from the first 11 drill holes in the 22-hole diamond drilling program have been very encouraging, with the holes intersecting multiple layers of flake graphitic mineralisation of various widths.

Visual logging and inspections of the diamond drill core by Ardiden’s geological team have identified numerous domains or layers of thick graphitic mineralisation zones up to 61 metres in true width, as seen in diamond drill hole MW-16-01. Diamond drill hole MW-16-11 also contained thick layers of mineralisation with a total down-hole width of approximately of 74 metres of graphite mineralisation.

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Figure 6. Drill core (MW-16-11) showing visible graphite flakes

The mineralisation intersected in the diamond drilling program verified the interpreted eastern extension of the graphite mineralisation zones, for a strike extension of over 600m, as highlighted in the drill plan below (Figure 7).

The graphite mineralisation remains open along strike to the west, east, and at depth, as seen in drill-hole MW-16-06 where drilling ended in mineralisation at 120m down-hole.

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ARDIDEN LIMITED DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

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Figure 7 . Overview of the drill hole locations at Manitouwadge graphite project.

Ardiden confirms the drill core was logged, cut and prepared, and the drill samples were sent to Activation Laboratories in Thunder Bay for assay and metallurgical testing. Ardiden expects to receive the initial assay results by March 2017.

As previously advised, the diamond drilling program is designed to target the immediate project area around the Silver Star North prospect, where drilling had previously intersected a number of high grade graphite mineralisation zones in 2015. The first phase of the current diamond drilling program has been undertaken to confirm the grade and continuity of these graphite zones and to estimate a Mineral Resource, which is targeted for completion in Q2 2017.

WISA LAKE LITHIUM PROJECT

On 19 December 2016, the Company announced it had entered into an option agreement with Alset Energy Corporation to acquire 100% of the advanced Wisa Lake Lithium Project.

The option gives Ardiden an outstanding opportunity to acquire another high-quality lithium project with known spodumene mineralisation, historical drilling and the potential to establish additional resources in accordance with JORC (2012) guidelines relatively quickly, being easily accessible and close to existing good infrastructure and the US border; with great access to the growing energy storage and Electric Vehicle (EV) markets and EV manufactures in Detroit (General Motors, Ford Motor Company and Fiat Chrysler Automobiles US) and California (Tesla).

The proposed acquisition of the Wisa Lake Lithium Project is consistent with the Company’s strategy of acquiring and developing a portfolio of industrial commodity projects (lithium and graphite) which are highly leveraged to the forecast growth in the lithium-ion battery sector. Lithium is anticipated to remain in tight supply as the demand for lithium-ion batteries for use in home, industrial, utility and electric vehicle power storage undergoes transformational growth over the next decade.

The Wisa Lake Lithium Project is located 80km east of Fort Frances, in Ontario, Canada and only 8km north of the Minnesota/US border. The property is connected to Highway 11 (Trans-Canada), which is located 65km north via an allweather road that crosses the centre of the project. The project is less than 3 hours’ drive from Thunder Bay, a leading regional mining jurisdiction in Ontario with key local infrastructure including a skilled mining workforce and excellent local logistics and infrastructure. It has strong potential to provide high quality product to supply growing North American demand and export markets.

The Wisa Lake Lithium Project consists of five claims (1,200 hectares) and covers the historical Wisa Lake lithium deposit which has a historical (non-JORC compliant) lithium resource of 330,000 tonnes grading 1.15% Li2O (Lexindin Gold Mines Ltd., Manager’s Report, 1958; Ontario Geological Survey, Open File Report 6285, Report of Activities 2012).

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

In 1956, Lexindin Gold Mines Ltd. completed a total of 20 drill holes (backpack and AQ-sized core) over a strike length of 335m and to a depth of approximately 65m to define the Wisa Lake lithium deposit. The most easterly hole intersected a true width of 6.4m containing an estimated 20% of the lithium-bearing mineral spodumene suggesting the mineralization is open at depth and to the east.

It should be noted that the historical resource estimate for the deposit was calculated prior to CIM National Instrument 43101 or JORC (2012) guidelines and, as such, should only be considered from a historical point of view and not relied upon. A qualified person has not completed sufficient work to classify the historical estimates as current Mineral Resources. Further exploration and drill testing programs are required to report in accordance with JORC (2012) guidelines.

In early 2016, Alset Energy Corporation staked the project and completed a limited exploration, mapping and sampling program at the two mineralisation zones at the Wisa Lake lithium project. The grab samples collected from the North Zone pegmatite returned grades of up to 1.4% Li20, which are comparable to the grade of the non-JORC compliant historical resource of 330,000 tonnes grading 1.15% Li2O. Grab samples were collected in the South Zone pegmatite, located 900m south and parallel to the North Zone pegmatite, which returned grades of up to a very impressive 6.38% Li2O.

Both the North and South Zone pegmatites were drilled in the 1950s but very little work has been completed since then. Alset Energy Corporation has collected and submitted approximately 60 grab samples for assay from various pegmatites occurring on the property.

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Figure 8. Overview map of historical exploration at the Wisa Lake Lithium Project as reported by Alset Energy in April 2016.

Ardiden confirms that Alset Energy Corporation has received the required permit from the Ministry of Northern Development and Mines (MNDM) to drill and trench on the project, which will allow Ardiden to undertake a limited exploration, mapping and due diligence drilling program in order to obtain a better understanding the project’s potential.

The due diligence program which is currently underway was designed to verify the historical and current drilling and sample results and to obtained a better understanding of the known pegmatites and the influence of the surrounding structures at the Wisa Lake lithium project.

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ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

ROOT LAKE LITHIUM PROJECT

On 11 July 2016, Ardiden confirmed that it had formally exercised its option to acquire 100% of the advanced Root Lake Lithium Project in Ontario, Canada following the completion of a due diligence review of the project, including a highly successful maiden drilling program at the McCombe prospect.

During this period the Ardiden’s geological team completed the exploration, mapping and sampling program at the Root Lake lithium project. This program was undertaken in conjunction with a further in-depth analysis of the current and historical drill and sampling data from the project.

The results helped Ardiden to validate historical drilling and sampling results and to confirm the orientation of the pegmatite structures. All data collected will be included in any future resource models.

ROOT BAY LITHIUM PROJECT

On 13 July 2016, Ardiden advised that it has further expanded its lithium portfolio in Canada after staking and securing the grant of the Root Bay Lithium Project.

During this period Ardiden completed an initial reconnaissance exploration and sampling program at the greenfields Root Bay Lithium Project. The objective was to verify the potential of the project, given that very limited exploration had been conducted in the area. The exposed Root Bay spodumene-bearing pegmatite structure was accidently discovered by a representative of the MNDM in 2011.

The program, which included channel sampling of the known pegmatite at the Root Bay Project, returned impressive lithium grades – confirming the potential of the project.

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Figure 9. Map showing the location of the Root Bay Pegmatite. Also included are McCombe and Root Lake pegmatites on the Root Lake lithium project. The outcropping pegmatites structures and trenches are all highlighted.

Logging and analysis from the maiden sampling program has confirmed the strong presence of spodumene with lithium mineralisation identified in all of the channel samples and outstanding grades of up 2.54% Li2O returned.

Ardiden considers these initial exploration results to be very encouraging, particularly the presence of a continuous 13m long lithium mineralisation zone across the surface of the primary pegmatite exposure, averaging 1.77% Li2O (Table 2 below).

This initial limited mapping and sampling program provided information about the geological and structural formations and confirmed the orientation of the pegmatite exposure as North-South striking. The next phase of exploration will target the strike and dip continuity of the primary pegmatite structure and allow additional local pegmatite exposures to be mapped and sampled.

After reviewing assay results, the geological team will then endeavour to delineate further drill-ready targets, with all data collected to be included in any future resource models.

10

ARDIDEN LIMITED

DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

5. FINANCIAL POSITION & OPERATING RESULTS

The financial results of the Group for the half-year ended 31 December 2016 are:

	31-Dec-16	30-Jun-16	% Change
Cash and cash equivalents ($) Net assets($)	2,343,051	4,032,414	(42%)
	5,354,609	5,188,051	3%
	31-Dec-16	31-Dec-15	% Change
Revenue ($) Net loss after tax ($) Lossper share(cents)	31,390	1,627	1829%
	(290,159)	(347,048)	(16%)
	(0.04)	(0.07)	(48%)

6. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the directors, there were no other significant changes in the state of affairs of the Consolidated Entity that occurred during the financial year under review not otherwise disclosed in this report or in the financial report.

7. EVENTS SUBSEQUENT TO REPORTING DATE

On 23 January 2017 the Company resumed drilling at Manitouwadge Graphite Project, Canada, with initial holes intersecting a number of visible high quality graphitic mineralisation zones.

On 1 February 2017 the Company advised that numerous flake graphite zones up to 61m wide were intersected at Manitouwadge Graphite Project in Ontario. Visual results from the first 11 drill holes in the 22-hole diamond drilling program were very encouraging, with the holes intersecting multiple layers of flake graphitic mineralisation of various widths.

On 8 February 2017 the Company advised that grades of up to 5.23% lithium oxide are reported from the final 13 diamond drill holes in the Phase 1 program at the Seymour Lake Lithium Project, Ontario with a total of 229 drill core samples obtained from the recently complete diamond drilling Program.

On 9 February 2017 the Company advised that it is expanding the resource delineation drilling program at Manitouwadge Graphite Project due to the successful intersection of multiple thick zones of graphite mineralisation. The Phase 2 drilling program will include an additional eight drill holes to the east of the current program, targeting the possible extensions of the thick and higher grade graphite mineralisation zones.

On 9 February 2017 the Company advised that initial heavy liquid separation testwork on Seymour Lake spodumene returned excellent results, producing high grade lithium concentrate up to 7.73% Li2O.

On 9 March 2017 the Company completed drilling at Manitouwadge Graphite Project, with first assay results imminent. Preparation is also well advanced for a maiden due diligence program at the recently optioned Wisa Lake Lithium Project and a Phase 2 drilling program at the Seymour Lake Lithium Project.

There are no other matters or circumstances that have arisen since 31 December 2016 that have or may significantly affect the operations, results, or state of affairs of the Consolidated Entity in future financial years.

8. AUDITOR INDEPENDENCE

We have received the independence declaration from the auditor of Ardiden Limited, PKF Mack, a copy of which is attached to the Directors Report on page 12 of the financial report.

This report is made in accordance with a resolution of the Directors.

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Neil Hackett Non-Executive Chairman

Perth, Western Australia Dated: 14 March 2017

11

AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF ARDIDEN LIMITED

In relation to our review of the financial report of Ardiden Limited for the half year ended 31 December 2016, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

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PKF MACK

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SHANE CROSS PARTNER

14 MARCH 2017 WEST PERTH,

WESTERN AUSTRALIA

12

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Notes Interest revenue Expenses Administration, consulting and other expenses Directors fees Foreign exchange (loss) / gain Provision for impairment expense Share based payments 4 Loss before income tax expense Income tax expense Net loss for the period Other comprehensive income, net of tax Total other comprehensive loss for the period	31-Dec-16 31-Dec-15	31-Dec-16 31-Dec-15	31-Dec-16 31-Dec-15
		$ 31,390 (202,787) (63,000) (10,308) - (45,454)	$ 1,627 (120,245) (45,000) 2,577 (91,336) (94,671)
		(290,159) -	(347,048) -
		(290,159)	(347,048)
		-	-
		(290,159)	(347,048)
Basic and diluted loss per share from continuing operations Loss per share attributable to the ordinary equity holders of the Company:		Cents (0.04)	Cents (0.07)

The accompanying condensed notes form part of these financial statements.

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ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016

Notes ASSETS Current Assets Cash and cash equivalents Trade and other receivables Financial assets Total Current Assets Non-Current Assets Exploration and evaluation expenditure 2 Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Provisions Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 3 Reserves 4 Accumulated losses TOTAL EQUITY	31-Dec-16 30-Jun-16
	$ $
	2,343,051 4,032,414 85,972 140 - 131
	2,429,023 4,032,685
	3,122,320 1,422,758
	3,122,320 1,422,758
	5,551,343 5,455,443
	190,910 264,819 5,824 2,573
	196,734 267,392
	196,734 267,392
	5,354,609 5,188,051
	36,198,431 35,787,168 45,454 - (30,889,276) (30,599,117)
	5,354,609 5,188,051

The accompanying condensed notes form part of these financial statements.

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ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

At 1 July 2015 Comprehensive income: Loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owners: Securities issued during the period Capital raising costs Vesting of options Total equity transactions At 31 December 2015 At 1 July 2016 Comprehensive income: Loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owners: Securities issued during the period Capital raising costs Total equity transactions At 31 December 2016	Issued Capital Options Reserves Accumulated Losses Total Equity
	$ $ $ $ 30,591,592 1,633,350 (31,634,109) 590,833
	- - (347,048) (347,048)
	- - (347,048) (347,048) 1,043,305 36,323 - 1,079,628 (29,680) - - (29,680) - 58,348 - 58,348
	1,013,625 94,671 - 1,108,296
	31,605,217 1,728,021 (31,981,157) 1,352,081
	Issued Capital Options Reserves Accumulated Losses Total Equity
	$ $ $ $ 35,787,168 - (30,599,117) 5,188,051
	- - (290,159) (290,159)
	- - (290,159) (290,159) 415,842 45,454 - 461,296 (4,579) - - (4,579)
	411,263 45,454 - 456,717
	36,198,431 45,454 (30,889,276) 5,354,609

The accompanying condensed notes form part of these financial statements.

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ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Notes Cash flows used in operating activities Payments to suppliers and employees Payments for exploration expenditure Interest received Net cash flows used in operating activities Cash flows used in investing activities Tenement acquisiton costs Proceeds from research and development rebate Net cash flows used in investing activities Cash flows from financing activities Proceeds from issue of securities and securities subscriptions Payment of share issue costs Net cash flows (used in) / from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	31-Dec-16 31-Dec-15
	$ $ (428,932) (247,618) (996,527) (433,846) 27,868 1,627
	(1,397,591) (679,837)
	(287,193) - - 17,380
	(287,193) 17,380
	- 1,025,305 (4,579) (18,228)
	(4,579) 1,007,077
	(1,689,363) 344,620 4,032,414 190,152
	2,343,051 534,772

The accompanying condensed notes form part of these financial statements.

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ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards AASB 134 ‘Interim Financial Reporting’, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS34 ‘Interim Financial Reporting’. The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report, and any public announcements made by the Company during the half-year period in accordance with the continuous disclosure requirements of the Corporation Act 2001.

Basis of Preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2016 annual financial report. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the Company.

2. EXPLORATION AND EVALUATION EXPENDITURE

Expenditure brought forward Expenditure incurred Research and development refund Provision for impairment expense Expenditure carried forward	31-Dec-16 30-Jun-16
	$ $
	1,422,758 579,503 1,699,562 1,095,473 - (156,099) - (96,119)
	3,122,320 1,422,758

The ultimate recoupment of the mining tenements, exploration and evaluation expenditure carried forward is dependent upon the successful development and commercial exploitation and/or sale of the relevant areas of interest, at amounts at least equal to book value.

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ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

3. ISSUED CAPITAL

(a) Fully paid ordinary shares (b) Movement in ordinary shares	31-Dec-16 30-Jun-16
	$ No. $ No.
	36,198,431 818,995,965 35,787,168 788,845,615
	$ No. Issueprice
Balance at 30 June 2016	35,787,168 788,845,615
Issue of shares to acquire Root Lake Project (i) Issue of shares to consultants in lieu of services (ii) Issue of shares to acquire Seymour Lake Project (iii) Capital raisingcosts	26/07/2016 151,925 7,596,238 0.020 26/07/2016 12,500 500,000 0.025 22/08/2016 251,417 22,054,112 0.0114 (4,579) --
Balance at 31 December 2016	36,198,431 818,995,965

• (i) On 26 July 2016, the Company issued 7,596,238 shares to acquire the Root Lake Lithium Project, the issue price per share was a 20 day VWAP calculated before the option was announced which was $0.02 per share.

• (ii) On 26 July 2016, the Company issued 500,000 shares at $0.025 per share to consultants in lieu of services rendered in relation to the acquisition of the Root Lake Lithium Project.

• (iii) On 22 August 2016, the Company issued 22,054,112 shares to acquire the Seymour Lake Lithium Project, the issue price per share was a 20 day VWAP calculated before the option was announced which was $0.0114 per share.

Share Options

At the end of the period, the following options over unissued shares were outstanding:

• 10,000,000 unlisted options expiring 31 December 2017 at an exercise price of $0.02.

• 11,000,000 unlisted options expiring 1 July 2019 at an exercise price of $0.04.

• 5,000,000 unlisted options expiring 1 July 2019 at an exercise price of $0.04.

4. RESERVES

4. RESERVES
(a) Option reserve (b) Movement in Reserve	30-Jun-16 31-Dec-16
	$ No. $ No.
	45,454 26,000,000 - -
	$ No. Weighted average exercise price(cents)
Balance at 30 June 2016	- -
Unlisted conditonal Performance options (i) Unlisted conditonal Performance options (ii) Unlisted conditonal Performance options(iii)	1/07/2016 33,333 10,000,000 0.02 1/07/2016 10,083 11,000,000 0.04 18/11/2016 2,038 5,000,000 0.04
Balance at 31 December 2016	45,454 26,000,000
Exercisable	26,000,000

• (i) On 1 July 2016, the Company issued 10,000,000 unlisted conditional performance options. These options have an expiry date of 31 December 2017 which are subject to the following performance hurdles that must be satisfied prior to being exercised:

Tranche 1 (5,000,000 unlisted options):

• The Company exercises one or more of the Seymour Lake Lithium Project and/or Root Lake Lithium Project options referred to in the ASX announcements dated 6 January 2016 and 10 February 2016; and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 4 cents.

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ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

Tranche 2 (5,000,000 unlisted options):

• The successful execution of an off-take agreement on terms acceptable to the Board of a minimum of 5,000tpa of contained lithium and / or 10,000tpa of contained graphite, and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 4 cents.

These options have been valued using the single share price barrier option-pricing model. The table below gives the assumptions made in determining the fair value of options on grant date.

• (ii) On 18 November 2016, the Company issued 11,000,000 unlisted conditional performance options. These options have an expiry date of 1 July 2019 which are subject to the following performance hurdles that must be satisfied prior to being exercised:

Tranche 1 (5,500,000 unlisted options):

• The Company exercises one or more of the Seymour Lake Lithium Project and/or Root Lake Lithium Project options referred to in the ASX announcements dated 6 January 2016 and 10 February 2016; and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 8 cents.

Tranche 2 (5,500,000 unlisted options):

• The Company reaches a total JORC compliant resource of all projects of 5 MT, and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 10 cents.

These options have been valued using the single share price barrier option-pricing model. The table below gives the assumptions made in determining the fair value of options on grant date.

• (iii) On 1 July 2016, the Company issued 5,000,000 unlisted conditional performance options. These options have an expiry date of 1 July 2019 which are subject to the following performance hurdles that must be satisfied prior to being exercised:

Tranche 1 (2,500,000 unlisted options):

• The Company reaches a total JORC compliant resource of all projects of 5 MT, and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 5 cents.

Tranche 2 (2,500,000 unlisted options):

• The Company reaches a total JORC compliant resource of all projects of 5 MT, and

• The volume weighted average price of shares traded on the ASX over 20 consecutive trading days after the date of grant of the conditional performance options is not less than 8 cents.

These options have been valued using the single share price barrier option-pricing model. The table below gives the assumptions made in determining the fair value of options on grant date.

CONDITIONAL PERFORMANCE OPTIONS	CONDITIONAL PERFORMANCE OPTIONS
	(i)	(i)	(ii)	(ii)	(iii)	(iii)
Grant date	1 July2016	1 July2016	1 July2016	1 July2016	18 Nov 2016	18 Nov 2016
Number of options	5,000,000	5,000,000	5,500,000	5,500,000	2,500,000	2,500,000
Expirydate	31 Dec 2017	31 Dec 2017	1 Jul 2019	1 Jul 2019	1 Jul 2019	1 Jul 2019
Estimated volatility	55%	55%	55%	55%	50%	50%
Risk-free interest rate	1.52%	1.52%	1.52%	1.52%	1.86%	1.86%
Exerciseprice	$0.02	$0.02	$0.04	$0.04	$0.04	$0.04
Price of shares ongrant date	$0.027	$0.027	$0.027	$0.027	$0.026	$0.026
Valueper option	$0.010	$0.010	$0.006	$0.005	$0.005	$0.004
Total Value	$50,000	$50,000	$33,000	$27,500	$12,500	$10,000
Value recognised in currentperiod	$16,666	$16,667	$5,500	$4,583	$1,132	$906
Value recognised in futureperiods	$33,333	$33,334	$27,500	$22,917	$11,368	$9,094

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ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

5. FINANCIAL REPORTING BY SEGMENTS

The Group has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

Operating segments are identified by Management based on the mineral resource and exploration activities in Australia and Canada. Discrete financial information about each project is reported to the chief operating decision maker on a regular basis.

The reportable segments are based on aggregated operating segments determined by the similarity of the economic characteristics, the nature of the activities and the regulatory environment in which those segments operate.

The Group has four reportable segments based on the geographical areas of the mineral resource and exploration activities in Australia and Canada. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

(i) SEGMENT PERFORMANCE

(i) SEGMENT PERFORMANCE	ANCE	ANCE
Australia Total Year ended 31 Dec 2016 $ $ $ $ $ $ $ Revenue Interest revenue - - - - - 31,390 31,390 Total segment revenue - - - - - 31,390 31,390 - Provision for impairment - - - - - - - Unallocated items (202,787) (63,000) - Foreign exchange loss (10,308) - Share based payments (45,454) (290,159) Canada Root Lake Canada Root Bay Canada Wisa Lake Amounts not included in segment result but reviewed by the Board - Director fees and benefit expense Canada Manitouwadge Canada Seymour Lake Reconciliation of segment result to net loss before tax Net loss before tax from continuing operations - Administration, consulting and other expenses	Australia Total Canada Root Lake Canada Root Bay Canada Wisa Lake Canada Manitouwadge Canada Seymour Lake
	$ $ $ $ $ $ - - - - - 31,390	$ 31,390
	- - - - - 31,390	31,390
		- (202,787) (63,000) (10,308) (45,454)
		(290,159)

Year ended 31 Dec 2015 Revenue Interest revenue Total segment revenue Unallocated items - Foreign exchange gain - Share based payments Reconciliation of segment result to net loss before tax - Director fees and benefit expense - Provision for impairment expense Amounts not included in segment result but reviewed by the Board - Administration, consulting and other expenses Net loss before tax from continuing operations	Australia Total Canada Manitouwadge Canada Hinton North	Australia Total Canada Manitouwadge Canada Hinton North
	$ $ $ - - 1,627	$ 1,627
	- - 1,627	1,627
	- (91,336) -	(91,336) (120,245) (45,000) 2,577 (94,671)
		(347,048)

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ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

(ii) SEGMENT ASSETS	Canada	Canada	Canada	Canada	Canada
	Manitouwadge	Seymour Lake	Root Lake	Root Bay	Wisa Lake	Australia	Total
	$	$	$	$	$	$	$
As at 31 Dec 2016
Segment assets at 1 July 2016	908,069	310,037	204,652		- -	-	1,422,758
Segment asset increases/(decreases)
- Exploration and evaluation	154,698	1,021,161	492,102	497 31,104		-	1,699,562
	1,062,767	1,331,198	696,754	497 31,104		-	3,122,320

Reconciliation of segment assets to total assets:

Other assets Total assets from continuing operations	2,429,023
	5,551,343

As at 30 June 2016 Other assets Reconciliation of segment assets to total assets: Segment assets at 1 July 2015 Segment asset increases/(decreases) - Research and development refund - Exploration and evaluation - Provision for impairment expense Total assets from continuing operations	Australia Total Canada Root Lake Canada Hinton North Canada Seymour Lake Canada Manitouwadge	Australia Total Canada Root Lake Canada Hinton North Canada Seymour Lake Canada Manitouwadge
	$ $ $ $ $ 488,167 91,336 - - - - (96,119) - - - 576,001 4,783 310,037 204,652 - (156,099) - - -	$ 579,503 (96,119) 1,095,473 (156,099)
	908,069 - 310,037 204,652 -	1,422,758
		4,032,685
		5,455,443

(iii) SEGMENT As at 31 Dec 2016 Segment liabilities at 1 July Segment liability increases/(decreases)	Australia Total Canada Root Bay Canada Wisa Lake Canada Seymour Lake Canada Root Lake Canada Manitouwadge
	$ $ $ $ $ $ $ 13,510 1,033 12,500 - - 240,349267,392 (9,891) 30,549(11,676) - -(79,640) (70,658)
	3,619 31,582 824 - - 160,709 196,734

Reconciliation of segment liabilities to total liabilities: Other liabilities - Total liabilities from continuing operations 196,734

As at 30 June 2016 Segment liability increases/(decreases) Segment liabilities as at 1 July 2016	Australia Total Canada Hinton North Canada Seymour Lake Canada Root Lake Canada Manitouwadge
	$ $ $ $ $ $ 83,649 - - - 126,463210,112 (70,139) - 1,033 12,500 113,88657,280
	13,510 - 1,033 12,500 240,349 267,392

Reconciliation of segment liabilities to total liabilities: Other liabilities - 267,392

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ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

6. COMMITMENTS & CONTINGENT LIABILITIES

There has been no significant change in commitments and contingent liabilities since the last annual reporting period.

7. DIVIDENDS

There were no dividends paid or declared during the half year.

8. EVENTS SUBSEQUENT TO REPORTING DATE

On 23 January 2017 the Company resumed drilling at Manitouwadge Graphite Project, Canada, with initial holes intersecting a number of visible high quality graphitic mineralisation zones.

On 1 February 2017 the Company advised that numerous flake graphite zones up to 61m wide were intersected at Manitouwadge Graphite Project in Ontario. Visual results from the first 11 drill holes in the 22-hole diamond drilling program were very encouraging, with the holes intersecting multiple layers of flake graphitic mineralisation of various widths.

On 8 February 2017 the Company advised that grades of up to 5.23% lithium oxide are reported from the final 13 diamond drill holes in the Phase 1 program at the Seymour Lake Lithium Project, Ontario with a total of 229 drill core samples obtained from the recently complete diamond drilling Program.

On 9 February 2017 the Company advised that it is expanding the resource delineation drilling program at Manitouwadge Graphite Project due to the successful intersection of multiple thick zones of graphite mineralisation. The Phase 2 drilling program will include an additional eight drill holes to the east of the current program, targeting the possible extensions of the thick and higher grade graphite mineralisation zones.

On 9 February 2017 the Company advised that initial heavy liquid separation testwork on Seymour Lake spodumene returned excellent results, producing high grade lithium concentrate up to 7.73% Li2O.

On 9 March 2017 the Company completed drilling at Manitouwadge Graphite Project, with first assay results imminent. Preparation is also well advanced for a maiden due diligence program at the recently optioned Wisa Lake Lithium Project and a Phase 2 drilling program at the Seymour Lake Lithium Project.

There are no other matters or circumstances that have arisen since 31 December 2016 that have or may significantly affect the operations, results, or state of affairs of the Consolidated Entity in future financial years.

22

ARDIDEN LIMITED DIRECTORS’ DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

The Directors of the company declare that:

• 1) The financial statements and notes, as set out on pages 13-22

• a. Comply with Accounting Standard AASB 134: Interim Financial Reporting, Corporations Act 2001 and the Corporations Regulations 2001; and

• b. Give a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half year ended on that date.

• 2) In the Directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

The declaration is made in accordance with resolution of the board.

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Neil Hackett Non-Executive Chairman

Perth, Western Australia Dated: 14 March 2017

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF

ARDIDEN LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Ardiden Limited (the Company) and the controlled entities (the consolidated entity) which comprises the condensed consolidated statement of financial position as at 31 December 2016, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the half-year ended on that date, condensed notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at 31 December 2016, or during the half year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine is necessary to enable the preparation of the halfyear financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and its performance for the half year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporation Regulations 2001. As the auditor of Ardiden Limited and the entities it controlled during the half year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. In accordance with the Corporations Act 2001, we have given the directors’ of the company a written Auditor’s Independence Declaration.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Ardiden Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

==> picture [155 x 40] intentionally omitted <==

PKF MACK

==> picture [187 x 59] intentionally omitted <==

SHANE CROSS PARTNER

14 MARCH 2017 WEST PERTH, WESTERN AUSTRALIA

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