ARDIDEN LTD — Interim / Quarterly Report 2016

Jan 22, 2017

ASX ANNOUNCEMENT

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23 January 2017

DECEMBER 2016 QUARTERLY ACTIVITIES REPORT Maiden resource drilling programs commence at key Canadian lithium and graphite projects

Highlights:

SEYMOUR LAKE LITHIUM PROJECT, Ontario (majority-owned)

• 27-hole resource drilling program at Seymour Lake now completed with assays received for the first 14 diamond drill holes.

• More shallow spodumene-bearing pegmatites identified in diamond drill core, with collective mineralised zones up to 18m wide encountered.

• Pegmatite zones extended both west and east at the North Aubry prospect – with the mineralisation remaining open to the east, west and at depth.

• Multiple substantial secondary sills of mineralisation identified beneath and parallel to the known pegmatite exposures at North Aubry.

• Multiple spodumene-bearing pegmatites intersected at the Central Aubry prospect, remaining open to the north, east and at depth.

• Outstanding assay grades of up to 6.01% lithium oxide (Li2O) reported, with:

• 38% (60 of 159 drill core samples) returning assays of greater than 1.5% Li2O grades at an average 2.65% Li2O;

• 50% (80 of 159 drill core samples) returning assays of greater than 1.0% Li2O grades at an average 2.29% Li2O; and

• 65% (103 of 159 drill core samples) returning assays of greater than 0.5% Li2O grades at an average 1.94% Li2O.

• Assay results to underpin a Maiden JORC 2012 Mineral Resource targeted for Q2 2017.

MANITOUWADGE GRAPHITE PROJECT, Ontario (100%-owned)

• 1,800m resource drilling program at Manitouwadge now underway.

• Maiden JORC 2012 Mineral Resource targeted for Q2 2017.

WISA LAKE LITHIUM PROJECT, Ontario (Option to own 100%)

• Ardiden enters option agreement to acquire 100% of the Wisa Lake Lithium Project in Ontario, Canada, located ~80km east of Fort Frances and 8km north of the Minnesota/US border.

• The Wisa Lake Project has multiple spodumene exposures which were originally discovered in the 1950s.

• Wisa Lake has ~1,700m of historical diamond drilling which has confirmed the potential for extensive high-quality spodumene mineralisation zones along a 335m strike length.

• A recent mapping and sampling field program by Alset Energy Corporation obtained spodumene samples from various pegmatites exposures with grades up to 6.38% Li2O reported.

• The Wisa Lake Lithium Project has several spodumene-bearing pegmatite dykes, and the main pegmatite has recently been traced at surface for a strike length of 1.5km with widths up to 20m:

• In 1958 Lexindin Gold Mines Ltd reported a historical resource of 330,000t of Li2O grading 1.15% (not JORC or NI 43-101 compliant). This resource was established over less than 5% of the Wisa Lake area.

• Historical data review, field mapping and exploration program to commence in early 2017, potentially followed by a drilling program.

Ardiden Limited

Suite 6, 295 Rokeby Road Tel: +61 (0) 8 6555 2950 ASX Code: ADV Subiaco WA 6008 Fax: +61 (0) 8 9382 1222 Shares on Issue: 819.0M www.ardiden.com.au

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Figure 1. Location of Ardiden Projects (Wisa Lake Lithium, Seymour Lake Lithium, Root Lake Lithium, Root Bay Lithium and Manitouwadge Graphite) in Ontario, Canada. All projects are able to be serviced from Thunder Bay .

SEYMOUR LAKE LITHIUM PROJECT

During the quarter, Ardiden completed the first phase of maiden resource delineation drilling program at the North Aubry prospect, at its flagship Seymour Lake Lithium Project in Ontario, Canada.

Ardiden completed the initial 27-hole drill program, which comprised a total of 1,728m of drilling. Logging of the drill core once again verified the presence of numerous significant high-grade lithium mineralisation zones which are located either at or close to surface at the North Aubry prospect.

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Figure 2. Drill core obtained from hole SL-16-60 showing a portion of the 23.5m intersection of high quality spodumene-bearing pegmatite.

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As at the date of this Quarterly Report, 159 assay results of the 388 drill core samples from the program have now been received from Actlabs laboratory in Thunder Bay. The assay results, from the first 14 drill holes (SL-16-47 to SL-16-60), have confirmed the presence of substantial lithium mineralisation at various grades in all 159 samples, with remarkable and significant assay grades of up to 6.01% Li2O (drill hole SL-16-58) identified.

The Company notes that 38% of this initial batch of assays (60 of 159 drill core samples) returned results greater than 1.5% Li2O, at an average grade of 2.65% Li2O. Whilst, 50% (80 of 159 drill core samples) returned results greater than 1.0% Li2O at an average grade of 2.29% Li2O.

Ardiden confirms that 65% of the initial assay results graded above 0.5% Li2O (for the previously reported 14 drill holes (SL-16-49 to SL-16-52, SL-16-54 and SL-16-56 to SL-16-60), which consisted of 103 drill core samples, had an impressive overall average grade of 1.94% Li2O . The remaining 56 drill core samples fell below the cut-off grade and were not reported.

Even after including those samples below the 0.5% cut-off grade, the first 14 drill holes comprising 159 drill core samples still had an impressive overall average grade of 1.33% Li2O .

Table 1 below presents the significant intersections which contain lithium mineralisation that reported above the cut-off grade of 0.5% Li2O and is expressed as the average grade for each significant intersection.

Table 1. Average Grade results for drill holes SL-16-49 to SL-16-52, SL-16-54 and SL-16-56 to SL-16-60 at Seymour Lake Lithium Project, using a cut-off grade of 0.5% Li2O.

Hole ID	East	North	Total Depth (m)	Dip	From (m)	To (m)	Interval (m)	Li2O% (0.5% cut off)
SL-16-49	396998	5585113	50	-60	33.74	34.85	1.11	3.12
SL-16-49	396998	5585113	50	-60	35.90	37.65	1.75	2.58
SL-16-49				includes	36.90	37.65	0.75	3.23
SL-16-49	396998	5585113	50	-60	38.12	41.98	3.86	1.44
SL-16-50	396970	5585114	50	-60	16.85	19.85	3.0	2.58
SL-16-50				includes	17.85	18.85	1	3.04
SL-16-50					18.85	19.85	1	3.23
SL-16-50	396970	5585114	50	-60	21.40	22.10	0.7	1.51
SL-16-50	396970	5585114	50	-60	23.13	29.58	6.45	2.07
SL-16-50				includes	23.13	24.00	0.87	3.40
SL-16-50					28.89	29.58	0.69	3.64
SL-16-50	396970	5585114	50	-60	30.41	34.68	4.27	1.71
SL-16-50				includes	31.41	32.41	1.00	2.58
SL-16-51	397011.61	5585091.61	50	-60	32.00	34.55	2.55	1.01

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SL-16-52	397025	5585112	48	-60	36.03	39.67	3.64	2.66
SL-16-52				includes	38.03	39.03	1.00	3.75
SL-16-52	397025	5585112	48	-60	40.67	43.06	2.39	0.71
SL-16-54	396961	5585051	51	-60	2.48	20.0	17.52	2.33
SL-16-54				includes	5.0	16.0	11	3.15
SL-16-54				Includes	9.0	11.00	2	4.40
SL-16-56	396939.20	5585102.04	51	-60	5.90	12.10	6.20	1.87
				includes	7.0	11.00	4.0	2.21
SL-16-56	396939.20	5585102.04	51	-60	13.10	14.05	0.95	0.54
SL-16-57	396912.07	5585111.39	50	-60	1.0	7.77	6.77	2.16
				includes	1.0	2.0	1	4.63
SL-16-57	396912.07	5585111.39	50	-60	4.0	7.0	3	1.93
SL-16-58	396937.26	5585114.82	51	-60	2.83	12.0	9.17	2.53
				includes	2.83	7.0	4.17	3.91
				Includes	4.0	5.0	1	6.01
SL-16-58	396937.26	5585114.82	51	-60	13.00	14.07	1.07	0.88
SL-16-59	396914.90	5585095.10	49	-60	4.0	12.03	8.03	2.08
				includes	4.0	10.0	6.0	2.59
				includes	6.0	8.0	2.0	3.05
SL-16-60	396941.13	5585143.98	50	-60	3.0	12.0	9.0	1.81
				includes	3.0	5.0	2.0	3.54
				includes	6.0	7.0	1.0	2.8
SL-16-60	396941.13	5585143.98	50	-60	13.0	15.0	2.0	1.67
SL-16-60	396941.13	5585143.98	50	-60	16.0	23.0	7.0	1.06
				includes	22.0	23.0	1.0	2.58

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These assay results have again emphasized the significant potential of the Seymour Lake Project to host high quality lithium deposits, as highlighted by drill-hole SL-16-54, which intersected an impressive 18.22 continuous metres of spodumene mineralisation close to surface with an average lithium grade of 2.23% Li2O .

Drill-hole SL-16-50 intersected a 20.22 continuous metres of spodumene mineralisation with an average grade of 1.51% Li2O and drill-hole SL-16-58, which intersected an impressive 12.24 continuous metres of spodumene mineralisation close to surface with an average lithium grade of 1.99% Li2O (refer to Table 2 below).

Ardiden considers the strong assays results to be very encouraging, as these 14 drill holes were only completed to a maximum drill depth of 51m and were not deep enough to intersect the numerous substantial secondary layers of pegmatite mineralisation (beneath and parallel to known exposures).

Table 2. Drill collar information and lithium mineralisation zones for drill holes SL-16-49 to SL-16-52 and SL-16-54, at Seymour Lake Lithium Project.

Hole ID	East	North	Total Depth (m)	Dip	From (m)	To (m)	Interval (m)	Li2O%
SL-16-49	396998	5585113	50	-60	32.74	44.28	11.54	1.1
SL-16-50	396970	5585114	50	-60	15.85	36.08	20.22	1.51
SL-16-51	397011.61	5585091.61	50	-60	31.00	37.30	6.30	0.54
SL-16-52	397025	5585112	48	-60	35.03	43.06	8.03	1.28
SL-16-54	396961	5585051	51	-60	2.48	20.70	18.22	2.23
SL-16-56	396939.20	5585102.04	51	-60	5.90	17.5	11.6	1.24
SL-16-57	396912.07	5585111.39	50	-60	0.45	10.15	9.7	1.72
SL-16-58	396937.26	5585114.82	51	-60	2.83	15.07	12.24	1.99
SL-16-59	396914.90	5585095.10	49	-60	4.0	12.03	8.03	2.08
SL-16-60	396941.13	5585143.98	50	-60	3.0	26.47	23.47	1.23

These strong assay results confirm the visual logging of the drill core and the potential to establish a maiden JORC 2012 Mineral Resource estimate for the Seymour Lake Project, which is expected in Q2 2017.

The assay results from drill-holes SL-16-47 to SL-16-60, have given further validation to the previous historical drill results, which show a number of substantial and continuous zones of high grade lithium mineralisation lying at or close to surface.

Ardiden will seek to expand the initial maiden lithium resource in accordance with JORC (2012) guidelines at North Aubry in a number of stages once the other prospects along the first 1km of the overall 5km strike length are progressively drill tested during this year. These prospects include Central Aubry, South Aubry and Pye.

Due to the limited amount of drilling completed to date and the general complexity of the pegmatite mineralisation, it is still unknown how the pegmatites at these prospects relate to each other and what impact this will have on the delineation of the future lithium resources.

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

The cross-section (Figure 3 below) highlights the large outcropping zone of the pegmatite structure at the North Aubry prospect. The main pegmatite at the North Aubry prospect is hosted as a part of a vertically stacked series of gently dipping pegmatite sills, has so far been confirmed as being at least 250m wide and 300m long, and remains open.

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Figure 4. Representative cross-section of North Aubry at 5585110mN showing the upper sill

Potential Shallow Open Pit Mining

The proximity of the pegmatites to surface at 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.

Ardiden expects to receive additional assay results shortly and will also undertake more detailed metallurgical and mineralogical investigations of the drill core samples. 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.

Visual logging of the final two diamond drill holes, 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.

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 also continued to intersect multiple and substantial secondary layers of pegmatite mineralisation (beneath and parallel to known exposures) up to 15 metres thick at North Aubry, as seen in drill holes SL-16-71, SL16-72 and SL-16-73 (Table 3). The deeper drill holes have confirmed the presence of multiple pegmatite mineralisation zones between 44m to 97m down-hole.

While these additional layers are deeper than other zones intersected they are still considered to be of potential significant value to the Company, the real advantage for Ardiden is potential for shallow open pit mining at the North Aubry prospect as it is located on the crest and side of a hill.

Table 3. Drilling Logs for holes SL-16-64 to SL-16-73 at Seymour Lake Lithium Project.

Hole ID	East	North	Total Depth (m)	Dip	From (m)	To (m)	Interval (m)	Description
SL-16-64	396998.45	5585237.94	102	-60	0.00	1.80	1.80	Overburden
SL-16-64	396998.45	5585237.94	102	-60	1.80	8.23	6.43	Mafic Volcanic
SL-16-64	396998.45	5585237.94	102	-60	8.23	8.55	0.32	Nb/Ta Pegmatite
SL-16-64	396998.45	5585237.94	102	-60	8.55	72.95	64.40	Mafic Volcanic
SL-16-64	396998.45	5585237.94	102	-60	72.95	83.93	10.98	Spodumene Nb/Ta Pegmatite
SL-16-64	396998.45	5585237.94	102	-60	83.93	102.0	18.07	Mafic Volcanic
						TOTAL	11.30
SL-16-68	396539	5584627	52	-60	0.00	4.36	4.36	Overburden
SL-16-68	396539	5584627	52	-60	4.36	6.84	2.48	Mafic Volcanic

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SL-16-68	396539	5584627	52	-60	6.84	13.90	7.06	Spodumene Nb/Ta Pegmatite
SL-16-68	396539	5584627	52	-60	13.90	17.66	3.76	Mafic Volcanic
SL-16-68	396539	5584627	52	-60	17.66	26.71	9.05	Spodumene Pegmatite
SL-16-68	396539	5584627	52	-60	26.71	27.83	1.12	Mafic Volcanic
SL-16-68	396539	5584627	52	-60	27.83	28.20	0.37	Spodumene Nb/Ta Pegmatite
SL-16-68	396539	5584627	52	-60	28.20	52.0	23.80	Mafic Volcanic
						TOTAL	16.48
SL-16-69	396527	5584573	52	-60	0.00	5.00	5.0	Overburden
SL-16-69	396527	5584573	52	-60	5.00	15.70	10.70	Spodumene Nb/Ta Pegmatite
SL-16-69	396527	5584573	52	-60	15.70	52.0	36.30	Mafic Volcanic
						TOTAL	10.70
SL-16-71	397027.75	5585168.64	102	-60	0.00	1.37	1.37	Overburden
SL-16-71	397027.75	5585168.64	102	-60	1.37	43.75	42.38	Mafic Volcanic
SL-16-71	397027.75	5585168.64	102	-60	43.75	51.89	8.14	Spodumene Nb/Ta Pegmatite
SL-16-71	397027.75	5585168.64	102	-60	51.89	55.75	3.86	Mafic Volcanic
SL-16-71	397027.75	5585168.64	102	-60	55.75	56.40	0.65	Pegmatite
SL-16-71	397027.75	5585168.64	102	-60	56.40	86.95	30.55	Mafic Volcanic
SL-16-71	397027.75	5585168.64	102	-60	86.95	91.15	4.2	Spodumene Pegmatite
SL-16-71	397027.75	5585168.64	102	-60	91.15	92.21	1.06	Mafic Volcanic
SL-16-71	397027.75	5585168.64	102	-60	92.21	97.53	5.32	Spodumene Pegmatite
SL-16-71	397027.75	5585168.64	102	-60	97.21	102.0	4.79	Mafic Volcanic
						TOTAL	18.31
SL-16-72	396858.39	5585154.36	101	-80	0.00	1.20	1.20	Overburden
SL-16-72	396858.39	5585154.36	101	-80	1.20	4.06	2.86	Mafic Volcanic
SL-16-72	396858.39	5585154.36	101	-80	4.06	6.77	2.71	Nb/Ta Pegmatite
SL-16-72	396858.39	5585154.36	101	-80	6.77	49.70	42.93	Mafic Volcanic
SL-16-72	396858.39	5585154.36	101	-80	49.70	63.30	13.6	Spodumene Nb/Ta Pegmatite
SL-16-72	396858.39	5585154.36	101	-80	63.30	88.55	25.25	Mafic Volcanic

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SL-16-72	396858.39	5585154.36	101	-80	88.55	89.20	0.65	Nb/Ta Pegmatite
SL-16-72	396858.39	5585154.36	101	-80	89.20	101.00	11.80	Mafic Volcanic
						TOTAL	16.96
SL-16-73	397109.64	5585130.17	102	-60	0.00	6.00	6.00	Overburden
SL-16-73	397109.64	5585130.17	102		6.00	62.10	56.10	Mafic Volcanic
SL-16-73	397109.64	5585130.17	102		62.10	77.23	15.13	Spodumene Nb/Ta Pegmatite
SL-16-73	397109.64	5585130.17	102		77.23	102.00	24.77	Mafic Volcanic
						TOTAL	15.13

Ardiden considers these initial assay results to be very encouraging and looks forward to providing further updates on the project as the rest of the results are received.

Central Aubry Prospect

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 spodumene-bearing 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.

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.

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.

The assay results provide the Company with further evidence that the Seymour Lake Project could host multiple, sizeable and good quality lithium deposits. The Central Aubry pegmatites structures are yet to be fully drill tested and remain open to the north, east and at depth.

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.

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Figure 6. Image of large spodumene crystals in the pegmatite exposures at the Central Aubry prospect.

Ardiden considers these logging and initial assay results to be very encouraging and looks forward providing further updates on the project as the rest of the assay results are received.

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MANITOUWADGE GRAPHITE PROJECT

During the Quarter, Ardiden finalised preparations and commenced its maiden resource delineation diamond drilling program at the Silver Star North prospect on its 100%-owned Manitouwadge Graphite Project in Ontario.

Ardiden confirms that the site conditions were favourable and the diamond drill was mobilised to site and drilling commenced just prior to the 2016 Christmas break.

Subject to results, this initial drilling program may comprise up to 1,800m of diamond drilling. Once the drill core has been logged, cut and prepared, the drill samples will be sent to Activation Laboratories in Thunder Bay for assay and metallurgical testing.

As previously advised, the diamond drilling program is designed to target the immediate project area around the Silver Star North prospect, which had previously intersected a number of high grade graphite mineralisation zones in 2015.

The historical drilling and field work has confirmed that the graphite mineralisation is located at or near to surface, providing relatively accessible targets for resource delineation. The first phase of the diamond drilling program should allow confirmation of the grade and continuity of these graphite zones and to estimate a Mineral Resource, which is targeted for completion in Q2 2017.

Ardiden looks forward to providing further updates as they come to hand.

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 , opening up a fourth front for lithium exploration alongside the majority owned Seymour Lake Lithium Project and 100%-owned Root Lake and Root Bay Lithium Projects, as well as the Company’s Manitouwadge Graphite Project, where a maiden resource delineation diamond drilling program is currently underway.

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. “ By 2040, about a third of all light vehicles sold will be electric, equivalent to 41 million cars and about 90 times the amount in 2015” (Source: Bloomberg New Energy Finance, October 2016).

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Figure 7. Estimate growth in sales of Electric Vehicles by 2040. (Source: Bloomberg New Energy Finance, October 2016)

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 all-weather 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).

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 43-101 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 nonJORC 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.

North Zone Pegmatite

The North Zone pegmatite which was traced through surface exposures by Alset personnel for nearly 1.5km of strike length, which contains the non-JORC compliant resource of 330,000 tonnes grading 1.15% Li2O and was defined by historical drilling over a strike length of 335m. The historical drill logs show that the deposit is open to the east and at depth and future drilling could substantially expand the historical resource.

South Zone Pegmatite

The South Zone pegmatite was also drilled in the 1950s, but not to the extent of the North Zone. This area of interest appears to have the highest spodumene content discovered on the property, with 6.38% Li2O reported from a grab sample, and will be a key focus of the company's exploration and due diligence review.

New Pegmatite Dykes

Additionally, Alset Energy Corporation discovered further spodumene-bearing dykes during their April 2016 exploration program. One dyke was located 100m south of the South Zone pegmatite and a further pegmatite exposure was mapped approximately 3kms to the West of the historic deposit in the North Zone pegmatite (refer Figure 3 above).

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Figure 9. Examples of white and green Spodumene crystals from the North zone (left) in the South zone (right) pegmatites.

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 move quickly in early 2017 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 will be 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.

Acquisition Rationale

The proposed acquisition is consistent with Ardiden’s strategy of acquiring commodity projects located in Tier-1 jurisdictions with exposure to structural and transformational change and outstanding market fundamentals (such as those required to supply the rapidly growing lithium-ion battery sector). Together with its existing majority owned Seymour Lake Lithium Project and 100%-owned Root Lake and Root Bay Lithium Projects and the Manitouwadge Graphite project, this acquisition further supports Ardiden as a potential supplier of both of the key ingredients in the manufacture of lithium-ion batteries.

Deal Terms

Key deal terms for the option agreement (in CAD) to acquire 100% of the Wisa Lake Lithium Project include:

1. An exclusivity/holding deposit of C$30,000 to be paid on signing of the agreement, to commence an option and due diligence period which expires on 30 June 2017;

2. Subject to successful completion of due diligence and should Ardiden exercise the option, Ardiden will pay the Vendor a further:

3. a. C$50,000 in cash; and

4. b. C$220,000 in Ardiden shares (issued at the 10-day VWAP, upon the exercise and completion of the option).

The total consideration for 100% of the Wisa Lake Lithium Project is C$300,000 in cash and Ardiden shares.

1. Ardiden reserves both the right to accelerate all payments or withdraw from the option agreement at any time. The vendor will retain 100% of the Wisa Lake rights should Ardiden fail to complete any requirements of the option agreement; and

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1. Should Ardiden exercise the option, the vendor will retain a 2% net smelter royalty (NSR). Ardiden will retain the option to purchase or buy back a 1.0% NSR for payment of C$500,000.

Ardiden looks forward to providing further updates as they come to hand.

END

For further information:

Investors: Media: Brad Boyle Nicholas Read Ardiden Ltd Read Corporate Tel: +61 (0) 8 6555 2950 Mobile: 0419 929 046

About Ardiden Ltd

Ardiden Limited (ASX: ADV) is an emerging international strategic metals company which is focused on the exploration, evaluation and development of two 100 per cent owned projects located in the established mining jurisdiction of Ontario, Canada.

The Seymour Lake Lithium Project comprises 7,019Ha of mining claims and has over 4,500m of historic drilling. Mineralisation is hosted in extensive outcropping spodumene-bearing pegmatite structures with widths up to 26.13m and grades of up to 2.386% Li2O. These high-grade pegmatite structures have been defined over a 5km strike length. Drilling to establish a maiden JORC resource is scheduled to commence in October 2016.

The 100%-owned Root Lake Lithium Project is located in Ontario, Canada. The project comprises 1,013 Ha of mining claims and has over 10,000m of historic drilling. Mineralisation is hosted in extensive outcropping spodumenebearing pegmatite structures with widths up to 19m and grades of up to 5.10% Li2O. In addition, tantalum grades of up to 380 ppm were intersected.

The 100%-owned Root Bay lithium project is strategically located approximately 5km to the east of the recently acquired Root Lake Lithium Project and consists of three claim areas, totalling 720 hectares. The project was staked by Ardiden as part of its regional exploration focus in and around the Root Bay spodumene-bearing pegmatite. Initial observations of the exposed pegmatite is characterized by coarse white albite, grey quartz and pale greygreen spodumene crystals up to 10cm long.

The 100%-owned Manitouwadge Jumbo Flake Graphite Project covers an area 5,300 Ha and has a 20km strike length of EM anomalies with graphite prospectivity. Following systematic field exploration programs, Ardiden is planning to commence its maiden resource drilling program in November 2016 to underpin economic development studies.

Metallurgical testwork has indicated that up to 80% of the graphite at Manitouwadge is high value jumbo or large flake graphite. Testwork has also indicated that simple, gravity and flotation beneficiation can produce graphite purity levels of up to 96.8% for jumbo flake and 96.8% for large flake. With the proven caustic bake process ultrahigh purity (>99.95%) graphite can be produced. The graphite can also be processed into high value expandable graphite, high quality graphene and graphene oxide.

All projects located in an established mining province, with good access to infrastructure (road, rail, power, phone and port facilitates) and local contractors and suppliers

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Competent Person’s Statement

The information in this report that relates to exploration results on the Seymour Lake project is extracted from the reports entitled ASX Release “Thick Spodumene-Bearing Zones Intersected at Seymour Lake Lithium Project, Canada” created 14 November 2016, ASX Release “Drilling Continues to Expand Spodumene-Bearing Zones

At Seymour Lake Lithium Project, Canada” created 23 November 2016, ASX Release “More Strong SpodumeneBearing Pegmatite Intercepts at Seymour Lake Lithium Project, Canada” created 8 December 2016, ASX Release “Impressive Grades Of Up To 4.69% Lithium Oxide Confirms Potential of Seymour Lake Lithium Project, Canada”, created 12 December 2016, ASX Release “Remarkable 6.0% Lithium Oxide Intersection at Seymour Lake Lithium Project, Canada” created 20 December 2016 and is available to view on www.ardiden.com.au The reports were issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to exploration results on the Manitouwadge project is extracted from the reports entitled ASX Release ASX Release “Drilling Program to Commence at Manitouwadge Graphite Project, Canada” 13 December 2016, and is available to view on www.ardiden.com.au. The reports were issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

The information in this report that relates to exploration results on the Wisa Lake project is extracted from the reports entitled ASX Release “Ardiden Expands Canadian Lithium Portfolio” created 19 December 2016 and is available to view on www.ardiden.com.au. The reports were issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Forward Looking Statement

This announcement may contain some references to forecasts, estimates, assumptions and other forward-looking statements. Although the company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. All references to dollars ($) and cents in this presentation are to Australian currency, unless otherwise stated. Investors should make and rely upon their own enquires and assessments before deciding to acquire or deal in the Company’s securities.

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TENEMENT SCHEDULE

Seymour Lake Lithium Project:

Seymour Lake Lithium Project:
CRESCENT LAKE AREA	1245661	Option exercised to acquire 100%
CRESCENT LAKE AREA	1245646	Option exercised to acquire 100%
CRESCENT LAKE AREA	1245648	Option exercised to acquire 100%
CRESCENT LAKE AREA	1245662	Option exercised to acquire 100%
CRESCENT LAKE AREA	1245664	Option exercised to acquire 100%
CRESCENT LAKE AREA	4270593	100%
CRESCENT LAKE AREA	4270594	100%
CRESCENT LAKE AREA	4270595	100%
CRESCENT LAKE AREA	4270596	100%
CRESCENT LAKE AREA	4270597	100%
CRESCENT LAKE AREA	4270598	100%
CRESCENT LAKE AREA	4279875	100%
CRESCENT LAKE AREA	4279876	100%
CRESCENT LAKE AREA	4279877	100%
CRESCENT LAKE AREA	4279878	100%
CRESCENT LAKE AREA	4279879	100%
CRESCENT LAKE AREA	4279880	100%
CRESCENT LAKE AREA	4279881	100%
CRESCENT LAKE AREA	4279882	100%
CRESCENT LAKE AREA	4279883	100%
CRESCENT LAKE AREA	4279884	100%
CRESCENT LAKE AREA	4279885	100%
CRESCENT LAKE AREA	4279886	100%
CRESCENT LAKE AREA	4279887	100%
CRESCENT LAKE AREA	4279888	100%
CRESCENT LAKE AREA	4279889	100%
CRESCENT LAKE AREA	4279890	100%
CRESCENT LAKE AREA	4279891	100%
FERLAND STATION AREA	4279869	100%

17

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FERLAND STATION AREA	4279870	100%
FERLAND STATION AREA	4279871	100%
FERLAND STATION AREA	4279872	100%
FERLAND STATION AREA	4279873	100%
FERLAND STATION AREA	4279874	100%

Manitouwadge Graphite Project:

Manitouwadge Graphite Project:
OLIE LAKE AREA	4268952	100%
OLIE LAKE AREA	4268953	100%
RAMSAY LAKE AREA	4268977	100%
THOMAS LAKE AREA	4268978	100%
THOMAS LAKE AREA	4268979	100%
OLIE LAKE AREA	4268932	100%
OLIE LAKE AREA	4268933	100%
OLIE LAKE AREA	4268935	100%
THOMAS LAKE AREA	4268934	100%
FLANDERS LAKE AREA	4279125	100%
OLIE LAKE AREA	4279101	100%
OLIE LAKE AREA	4279121	100%
OLIE LAKE AREA	4279124	100%
EVEREST LAKE AREA	4274285	100%
EVEREST LAKE AREA	4274286	100%
EVEREST LAKE AREA	4274287	100%
FLANDERS LAKE AREA	4271613	100%
FLANDERS LAKE AREA	4271624	100%
FLANDERS LAKE AREA	4279611	100%
OLIE LAKE AREA	4274282	100%
OLIE LAKE AREA	4274283	100%
OLIE LAKE AREA	4274284	100%
OLIE LAKE AREA	4275721	100%
EVEREST LAKE AREA	4274288	100%
FLANDERS LAKE AREA	4274289	100%
OLIE LAKE AREA	4268975	100%
OLIE LAKE AREA	4268976	100%
FLANDERS	4279892	100%

Root Lake Lithium Project:

Root Lake Lithium Project:
ROOT LAKE AREA(RL)	4283915	100%
ROOT LAKE AREA(RL)	4283916	100%
ROOT LAKE AREA (RL)	4283917	100%
ROOT LAKE	36778	100%
ROOT LAKE	36779	100%
ROOT LAKE	36780	100%
ROOT LAKE	36781	100%
ROOT LAKE	36782	100%
ROOT LAKE	36783	100%
ROOT LAKE	36784	100%
ROOT LAKE	36785	100%

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ROOT LAKE	36786	100%
ROOT LAKE	36787	100%
ROOT LAKE	36788	100%
ROOT LAKE	36789	100%
ROOT LAKE	37145	100%
ROOT LAKE	37146	100%
ROOT LAKE	37147	100%
ROOT LAKE	37148	100%
ROOT LAKE	37149	100%
ROOT LAKE	37150	100%
ROOT LAKE	37151	100%
ROOT LAKE	37152	100%
ROOT LAKE	37153	100%
ROOT LAKE	37154	100%
ROOT LAKE	37155	100%
ROOT LAKE	37156	100%
ROOT LAKE	37157	100%
ROOT LAKE	37158	100%
ROOT LAKE	37159	100%
ROOT LAKE	37160	100%
ROOT LAKE	38095	100%
ROOT LAKE	38096	100%
ROOT LAKE	38097	100%
ROOT LAKE	38098	100%
ROOT LAKE	38099	100%

Root Bay Lithium Project:

Root Bay Lithium Project:
ROOT LAKE AREA(PAT) (G-2189)	4282603	100%
ROOT LAKE AREA(PAT) (G-2189)	4282604	100%
ROOT LAKE AREA(PAT) (G-2189)	4282605	100%

Wisa Lake Lithium Project:

Wisa Lake Lithium Project:
Wolsely Lake area	4279506	Due Diligence Review
Wolsely Lake area	4279507	Due Diligence Review
Redhorse Lake area	4279508	Due Diligence Review
Wolsely Lake area	4279509	Due Diligence Review
Wolsely Lake area	4279511	Due Diligence Review

19