ARDIDEN LTD - Interim / Quarterly Report 2017

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ARDIDEN LIMITED

ABN 82 110 884 252

HALF-YEAR FINANCIAL REPORT

31 DECEMBER 2017

ARDIDEN LIMITED CORPORATE DIRECTORY FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

DIRECTORS

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

JOINT COMPANY SECRETARIES

Neil Hackett Jessamyn Lyons

REGISTERED AND PRINCIPAL OFFICE

Suite 12, Level 1 11 Ventnor Avenue, WEST PERTH WA 6005

POSTAL ADDRESS PO Box 1240 West Perth WA 6872

Telephone: (08) 6245 2050 Facsimile: (08) 6245 2050

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 5[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.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Your Directors present their report for Ardiden Limited (the ‘Company’) and controlled entity (‘Consolidated Entity’ or ‘Group’) for the half-year ended 31 December 2017.

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 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 entity 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. REVIEW OF OPERATIONS

SEYMOUR LAKE LITHIUM PROJECT (ADV: 100%)

During the period, Ardiden completed the Phase 2 resource definition drilling program at Seymour Lake, with the results underpinning the completion of a maiden JORC 2012 compliant Indicated and Inferred Mineral Resource estimate for the North Aubry deposit of 1.23Mt at 1.43% Li2O for 8,200 tonnes of contained lithium (“ Stage 1 Seymour Mineral Resource Estimate”).

The establishment of the Stage 1 Seymour Mineral Resource Estimate was designed to satisfy the key condition precedent of the binding term sheet with Ardiden’s strategic development partner, Yantai Jinyuan Mining Machinery Co. Ltd (“Yantai”);

As a result of the binding term sheet signed with Yantai, the Company has vigorously pursued the genuine opportunity to fast-track the development of a low-CAPEX lithium mining and processing operation at Seymour Lake.

Accordingly, various Feasibility Study activities commenced during the period including bulk sample metallurgical test work, aerial fly-overs, environmental baseline studies, and the Company is liaising with a number of specialised mining consultants in Ontario in order to advance the feasibility work at North Aubry.

NORTH AUBRY MAIDEN RESOURCE

During the period, Ardiden announced a Phase 1 JORC 2012 Mineral Resource estimate for the North Aubry lithium deposit. This maiden Mineral Resource estimate was based on data from resource drilling programs up until the end of July, with this arbitrary cut-off applied to allow an initial Stage 1 resource to be completed for the purposes outlined above (“ Stage 1 Seymour Mineral Resource Estimate”).

The Q3 2017 drilling program is therefore not included in the resource estimation.

Estimating a Mineral Resource has proved essential to provide baseline technical information on the project, facilitate discussions with key stakeholders and underpin an expedited development strategy. The Stage 1 Indicated and Inferred Mineral Resource, which comprises 1.23 million tonnes at an average grade of 1.43% Lithium Oxide (Li2O) for 8,200 tonnes of contained lithium oxide , is set out in full in Table 1 below:

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Table 1. North Aubry, October 2017 Mineral Resource Estimate Table.

Resource Category	Tonnes (Mt)	Grade Li2O%	Contained Tonnes of Lithium(000’s)
Indicated	0.44	1.52	3.1
Inferred	0.79	1.38	5.1
TOTAL	1.23	1.43	8.2

(Note that some of the numbers may not equate fully due to the effects of rounding.)

Competent Person’s Statement:

The information in this report that relates to Mineral Resource Estimate at the North Aubry deposit on Seymour Lake Lithium project is based on, and fairly represents, information and supporting documentation prepared by Mr James Ridley, who is a Member of the Australasian Institute of Mining & Metallurgy. Mr Ridley is not a full-time employee of the Company Mr Ridley is employed as a Consultant from Jorvik Resources Pty Ltd. Mr Ridley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’. Mr Ridley consents to the inclusion in this report the exploration results and the supporting information in the form and context as it appears.

The Company has identified a significant near-term opportunity to rapidly expand the Stage 1 Resource, which has been defined within the first 1km of the broader 5km mineralised strike zone at Seymour Lake. This broader strike zone has not been fully drill-tested and remains open at depth and in all directions.

The Company intends to update the Mineral Resource once the remaining North Aubry drill assays results are received and analysed in the coming months. These results are expected to in-fill and confirm the northern and southern extents of the model.

In addition, further substantial upside is available through satellite deposits that Ardiden considers have the potential to deliver additional and substantial high-grade lithium resources. These include the Central and South Aubry prospects, for which Ardiden has completed an initial Exploration Target (see below). Full details of the Stage 1 North Aubry Mineral Resource estimate are provided in the Company’s ASX Announcement dated 4 October 2017.

Central and South Aubry Exploration Target

Ardiden has estimated a combined initial Exploration Target range for the Central and South Aubry deposits of approximately 3Mt to 5Mt at 1.2% Li2O to 1.6% Li2O , as well as extensions to North Aubry. The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource.

The Exploration Target has been reported in accordance with the JORC Code, 2012 Edition on a qualitative basis taking into consideration numerous factors including regional and local context, data support, surface mapping and sampling and historical data. All factors that have been considered are outlined in the Company’s ASX Announcement dated 4 October 2017. The Exploration Target is conceptual in nature and should not be construed as a Mineral Resource that may or may not be defined as a result of further drilling and sampling.

Competent Person’s Statement:

The information in this report that relates to Data and Exploration Target at the North, Central and South Aubry on Seymour Lake Lithium project is based on, and fairly represents, information and supporting documentation prepared by Ms Karen Lloyd, who is a Fellow of the Australasian Institute of Mining & Metallurgy. Ms Lloyd is not a full-time employee of the Company Ms Lloyd is employed as a Consultant from Jorvik Resources Pty Ltd. Ms Lloyd has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’. Ms Lloyd consents to the inclusion in this report the exploration results and the supporting information in the form and context as it appears.

The 2018 expansion drilling program is currently underway at the Central and South Aubry prospects, and drilling and other exploration activities will be undertaken over the next 12 months to expand the estimated Exploration Targets and issue an expanded Stage 2 Mineral Resource Estimate. It is anticipated that this drilling and other activities will provide the necessary data to estimate a Mineral Resource for parts of these three prospects during 2018.

COMMUNITY ENGAGEMENT AND SITE VISITS

During the period Ardiden completed a further community consultation and strategy meetings with both the Whitesand First Nation and Ardiden’s Chinese strategic partner Yantai in Thunder Bay and Armstrong, all parties have reaffirmed their continued full support for the rapid development of the North Aubry lithium deposit.

Also present at the meetings were representatives from DST Engineering Consultants, who are currently conducting the Baseline Environmental Studies for the Seymour Lake Lithium Project.

The meetings provided Ardiden with the opportunity to update the all parties on the progress of the project and to outline the future work programs planned to support its fast-track development strategy.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

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Figure 2. Image of representatives from Whitesand First Nation, Yantai Jinyuan Mining Machinery Co., Ltd, Ardiden and DST Engineering Consultants at the Development and Strategy Meeting held in Armstrong, Ontario, Canada in November 2017.

At this meeting, the Whitesand First Nation confirmed their commitment to move the project forward with Ardiden. The parties commenced preliminary discussions regarding the execution of an Impact and Benefit Agreement (IBA), the next step in community consultation beyond the existing Memorandum of Understanding.

The IBA will outline any negative impacts that may occur as a result of the proposed operation, and the steps to be taken by both parties to ensure that those impacts are mitigated. Moreover, it will help to formalise how the community will share in the benefits of the project. The IBA is seen as a pre-requisite agreement to be completed before the Ministry of Northern Development and Mines would approve the Mining Licence for the Seymour Lake Lithium Project.

NORTH AUBRY SITE VISIT

Following the Strategy and Development meeting in Armstrong, all parties undertook a site visit to the North Aubry lithium deposit, allowing them to obtain a better understanding of the North Aubry resource area, topography, logistics and the overland access to the local infrastructure network at Armstrong and Ferland.

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Figure 3. Image of representatives from Whitesand First Nation, Yantai Jinyuan Mining Machinery Co., Ltd, Ardiden and DST Engineering Consultants on site at North Aubry, November 2017.

As a result of the site visit and the development meetings, a preliminary development strategy was formulated between the Yantai and Ardiden. Subject to further detailed evaluation and consideration during the Feasibility Study, Ardiden will consider a number of development options, including the construction of the lithium processing facility on site at North Aubry and a loading facility at the Ferland train station.

Ardiden is currently investigating the feasibility of the site proposed by Yantai for the lithium processing facility. This site is on the western edge of the North Aubry lithium deposit, a location which would enable the Company to take advantage of the naturally steep topography and allow it to use a gravity feed system, resulting in a potential reduction in the project's capital and operating cost.

All development options at the Seymour Lake Lithium project are conditional on obtaining Whitesand First Nation support, environment impact assessments and regulatory approvals.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

METALLURGICAL TEST-WORK

A bulk sample of approximately two and half tonnes was obtained from the North Aubry deposit during the period and was transported to China for metallurgical testwork by Ardiden’s strategic partner Yantai Jinyuan Mining Machinery Co., Ltd (“Yantai”).

The bulk sample was received by Yantai in late September 2017 and the bulk sample was crushed and screened by a number of stages to minimise fines generation. This program has been overseen at Yantai’s laboratory by Ardiden’s Technical Director, Dr Michelle Li.

The bulk sample head grade was a solid 1.22% and was a reasonable representation of the material found within the North Aubry lithium deposit.

Preliminary results from tests by Yantai are extremely encouraging, verifying earlier results (refer to ASX Releases dated 9 February 2017 and 26 April 2017) and producing a lithium concentrate grading over 6% Li2O. The testwork program to be completed by Yantai will support the feasibility study of the Seymour Lake Lithium Project.

Encouraging metallurgical testwork results were also received during the period from Independent Metallurgical Operations (IMO), based in Perth, Western Australia, for a composite bulk sample obtained from the North Aubry deposit. A single flotation test conducted on a spodumene sample completed at the grind size (P80 = 150 µm), produced a high-grade concentrate of 6.16% Li2O at a relatively high recovery rate 75.7%.

The flotation tests were conducted on the composite sample of drill cores obtained from diamond drill holes SL-09-33, SL09-27A and SL-09-45 (refer to ASX release dated 31 August 2017).

During the period (15 November 2017) Ardiden confirmed the Yantai metallurgical test results have provided further confirmation the spodumene crystals from the North Aubry Lithium deposit, liberate extremely well at a very coarse particle size of up to 6.0mm , confirming the previous testwork results. The bulk sample had a solid an average head grade of 1.29% Li2O .

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Spodumene Crystals
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Figure 4. Bulk sample of Spodumene bearing pegmatite obtained from the North Aubry prospect.

The purpose of the comprehensive test-work on the bulk sample is to develop a suitable process flowsheet for the Seymour Lake lithium processing facility.

COURSE SPODUMENE PARTICLE SIZES

The bulk sample was collected from the North Aubry deposit using a large rock breaker and excavator. The sample location was identified by project geologist to represent the deposit and average resources grade. The bulk sample did not have a natural particle size distribution (PSD) resulting from the typical drill and blast and crushing process that would normally occur on site.

Ardiden confirms the large rocks were hand broken and homogenised, then using a number of high controlled staged crushing and sample preparation procedures, Yantai artificially generated a typical feed for processing units. 500kg sample and the top size of 6mm was selected for the first stage of testwork. 6mm is the topical size limit for lithium chemical plant. The crushed head sample size distribution and grades are shown in Table 1 below, with 86.46% of the particle sizes ranging from

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

0.5mm to 6.0mm and having an average head grade of 1.37% Li2O . There was only 13.54% of the particles that were below the 0.5mm produced with an average head grade of 0.84% Li2O.

The aim of these metallurgical tests is to create the commercial process flow design which will increase the quantity of coarse material produced during the crushing phase, without the need to use a roller crusher, which in turn reduces the quantity of fine material generated and potentially assisting Ardiden with reduced crushing and processing times, which in turn are likely to reduce the costs of producing a lithium concentrate.

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Figure 5. Images of a concentrate producedin 0.5mm to 6mm range (Left), Ardiden Director, Dr. Michelle Li inspecting the sample and discussing the testwork with Prof Gao (Right).

HEAVY LIQUID SEPARATION (HLS) TESTWORK

The HLS float and sink test results continued to provide further evidence of the high-quality nature of the spodumene material from Seymour Lake.

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Figure 6. Images of Ardiden Director, Dr. Michelle Li inspecting Spiral separation testwork.

The HLS tests on the North Aubry spodumene material shows that, with the heavy liquid density of 2.95g/ml, a very impressive spodumene concentrate of up to 7.04% Li 2 O , with a recovery of 91.63% is produced .

DENSE MEDIA CYCLONE SEPARATION TEST WORK

The Dense Media Cyclone mineral separation tests were conducted on 0.5mm to 6mm size fractions, under a number of different operating conditions.

The testwork results indicate that with recovery rate of 85.58%, a lithium concentrate grade of 6.05% Li2O can be achieved . Ardiden notes as shown in Table 3, that the lithium concentrate grades can be improved with changing of operating conditions, but the recovery rate is likely to be decreased.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Different medium densities were also tested, as shown in Table 4. A lithium concentrate grade of 6.92% Li2O with a strong recovery rate of 81.74% was achieved. The most encouraging results occurred when using:

Feeding density of 2400kg/m;
Ore feeding pressure 0.045Mpa;
Ratio of ore and medium at 1:6; and
Feed size of 0.5mm to 6.0mm.

The metallurgical test results support that gravity separation is viable method to produce commercial grade lithium concentrate from the Seymour Lake spodumene. Testwork on bulk sample is continuing.

COMMERICAL PRODUCTION POTENTIAL

These metallurgical testwork results obtained from Yantai confirm that the North Aubry spodumene quality is world-class and appears to contain only traces amounts of deleterious minerals (announced 12 April 2017). High grade lithium concentrates with excellent recovery also can be achieved.

The Company anticipates the development of a robust commercial process flowsheet from the bulk sample test work program.

FEASIBILITY STUDY

With the successful definition of the Stage 1 Seymour Mineral Resource Estimate at the North Aubry deposit, Ardiden is well positioned and dedicated to the rapid development of the North Aubry deposit towards production.

Once the feasibility work is complete, Ardiden will seek mining approvals at Seymour Lake and continue to advance offtake discussions with various parties from Europe, Asia and North America.

The Company has already commenced various Feasibility Study activities including bulk sample metallurgical testwork, aerial fly-over and environmental baseline study. Ardiden continues to liaise with a number of specialised mining consultants in order to advance the feasibility work at North Aubry.

2017 EXPANSION DRILLING RESULTS

NORTH AUBRY

During the period Ardiden advised (1 November 2017) the assay results from diamond drill holes SL-17-59 to SL-17-77, which were not including in the JORC Resource estimate, have continued to demonstrate extensions and solid continuity of the thick high-grade lithium mineralisation expanding northeast from the North Aubry Lithium deposit.

Ardiden notes mineralisation remains open in all directions from the North Aubry Lithium deposit and further drilling will allow the company to determine the grade and continuity of mineralisation in the identified pegmatite units.

The pegmatites extensions at North Aubry host mineralisation which has been identified as having downhole widths in excess of 25m, for drill holes SL-17-61 and SL-17-67, and 27m and 21m respectively, in drill holes SL-17-71 and SL-17-77. All drill holes were drilled at a 60-degree dip, which is an approximate angle to show the normal mineralised unit.

ASSAY RESULTS

The Company received assay results from diamond drill holes SL-17-59 to SL-17-77, which were not included in the Maiden JORC Resource Estimate.

Lithium grades up to 4.38 Li2O (SL-17-66), 4.18% Li2O (SL-17-61), 4.03 Li2O (SL-17-70) and 3.83% Li2O (SL-17-77) were reported, demonstrating a consistency of the high-grade lithium mineralisation at North Aubry.

Ardiden considers these latest assay results to once again to be very encouraging and another step closer for the potential development of the Seymour Lake Lithium project with strategic partner Yantai Jinyuan Mining Machinery Co.,Ltd.

SOUTH AUBRY ASSAY RESULTS

During the period (15 December 2017) Ardiden advised that the assay results from diamond drill holes at South Aubry, SA17-05, SA-17-07, SA-17-08, SA-17-11, SA-17-15 and SA-17-16, have confirmed the potential at the prospect, intersecting thick zones of lithium mineralisation at or close to surface.

As this is a preliminary exploration drilling program, Ardiden considers these assay results to be very encouraging, representing a strong start to its broader exploration campaign aimed at growing the resources at Seymour Lake. Further exploration and drill testing is planned across the Aubry prospect areas.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Ardiden believes that these drilling results are the precursor to the identification of a number of larger mineralisation zones contained within the Aubry prospects and notes that the mineralisation remains open in all directions at the South Aubry prospect. Further exploration and drilling will allow the Company to develop a better understanding of the underlying geological structures and further establish the grade and continuity of mineralisation identified within the South Aubry pegmatite units.

The pegmatites at South Aubry host mineralisation which has been identified as having a down-hole thickness of up to 24m, as demonstrated in the assay results for drill hole SA-17-15. This hole was drilled at a 60-degree dip, which is approximately normal to mineralised unit

The Company received assay results from diamond drill holes SA-17-05, SA-17-07, SA-17-08, SA-17-11, SA-17-15 and SA-17-16 for the South Aubry prospect, located approximately 1.1km south of the North Aubry lithium deposit.

Lithium grades up to 3.10 Li2O (SA-17-08) are reported in the latest batch of assay results, confirming the presence of broad mineralisation zones including a number of high-grade lithium lodes within these broader zones.

Ardiden considers the results to be very encouraging and another positive step forward for the overall potential development of the Seymour Lake Lithium project with strategic partner Yantai Jinyuan Mining Machinery Co., Ltd.

ADDITIONAL STRATEGIC CLAIMS

During the period Ardiden advised (19 December 2017) it had applied for (staked) a further two claim areas (totally 448Ha) on the southern edge of the Seymour Lake Project and the Company is delighted to confirm these new claims have now been approved by the by the Ontario Ministry of Northern Development and Mines (“MNDM”).

These latest claim areas expand the land-holding to the south and more importantly create a transport corridor creating an unencumbered and direct access from the North Aubry Lithium deposit to the Ferland Train Station. The boundary of new claims is located approximately 700m north of the Ferland Train Station.

Further, this additional land also provides Ardiden further exploration potential to extend the known 5km strike pegmatite structure zone. This will allow the Ardiden geological team to continue the mapping and exploration program along the mineralisation strike zone.

2018 EXPANSION DRILLING PROGRAM

Subsequent to the end of the period, Ardiden advised (30 January 2018) that its 2018 exploration drilling program commenced, at its 100%-owned Seymour Lake Lithium Project in Ontario, Canada.

The drilling program is well underway at the South Aubry prospect and Ardiden’s geological team has now completed a thorough review, analysis and interpretation of current geological model, incorporating all of the 2017 drilling results. This has been combined with updated regional geological and topographic data, with the review defining numerous high priority drilling targets, with phase 1 of the program focusing on the mineralisation extensions at and around the Central and South Aubry prospects.

This program has been designed to drill test and evaluate the numerous potential extensions of the pegmatite structures that bear the high quality spodumene mineralisation. The aim of the program is to define substantially more lithium mineralisation to complement the current lithium resource already defined at the North Aubry prospect. With the assistance of our strategic Chinese partners Yantai, Ardiden seeks to fast track the development of the Seymour Lake Lithium Project into commercial production.

WISA LAKE LITHIUM PROJECT, Ontario (ADV: 100%)

No exploration activities were undertaken at the Wisa Lake Lithium Project during the period, with the majority of the Company’s focus being on the exploration work at the Seymour Lake Lithium Project and producing the Stage 1 Seymour Mineral Resource Estimate.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

MANITOUWADGE GRAPHITE PROJECT, Ontario (ADV: 100%)

No exploration activities were undertaken at the Manitouwadge Graphite Project during the period, with the majority of the Company’s focus being on the exploration work at the Seymour Lake Lithium Project and producing the Stage 1 Seymour Mineral Resource Estimate.

BOLD PROPERTIES COBALT-COPPER-NICKEL PROJECT, Ontario (ADV: 100%)

Subsequent to the end of the period (29 January 2018) Ardiden that it had completed the successful acquisition of 100% of the early stage Bold Property Cobalt-Copper Project in Ontario, Canada with a final payment of 100,000 Ardiden shares made to the vendor, Benton Resources Inc.

No exploration activities were undertaken at the Bold Park Properties during the period, with the majority of the Company’s focus being on the exploration work at the Seymour Lake Lithium Project and producing the Stage 1 Seymour Mineral Resource Estimate. Ardiden is planning to undertake a small exploration mapping program later in the 2018 field season.

ROOT LAKE AND ROOT BAY LITHIUM PROJECTS, Ontario (ADV: 100%)

No exploration activities were undertaken at the Root Lake and Root Bay Lithium Projects during the period, with the majority of the Company’s focus being on the exploration work at the Seymour Lake Lithium Project and producing the Stage 1 Seymour Mineral Resource Estimate. Ardiden is planning to undertake a small exploration mapping program later in the 2018 field season.

CORPORATE

Acquisition of 100% interest in Seymour Lake Lithium Project

During the period the Company completed the successful acquisition of 100% of the Seymour Lake Lithium Project, with the final instalment payments of cash and shares being made to Stockport Exploration Inc., as per the Option Agreement announced by Ardiden on 6 January 2016. These payments comprised a cash payment of CAD$250,000 and the issue of 22,054,112 fully paid Ardiden shares.

The consolidation of the Seymour Lake ownership positions the Company to advance the project towards development.

Acquisition of 100% interest in Wisa Lake Lithium Project

During the period Ardiden completed the successful acquisition of 100% of the Wisa Lake Lithium Project in Ontario, with a re-negotiated reduced final cash payment made to the vendor, Alset Minerals Corporation (formerly Alset Energy Inc.)

After negotiations with Alset Minerals Corp, the parties agreed to modify the original option agreement announced on 19 December 2016. As a consequence, Ardiden has been able to secure 100% of the Wisa Lake property for an additional cash payment of $50,000. Therefore, the total consideration paid by Ardiden to acquire full ownership of this highly prospective project was reduced from $300,000 to just $80,000. Under the new terms, Ardiden is no longer required to issue $220,000 worth of shares to Alset Minerals Corp or provide Alset with a 2% net smelter royalty (NSR).

Ardiden now has 100% ownership of all four projects in its Canadian lithium portfolio.

Pickle Lake Option Agreement

During the period Ardiden secured an Option Agreement over the advanced Pickle Lake Gold Properties during the Quarter, adding a close proximity exciting new gold exploration opportunity to the Company’s diverse project portfolio in Ontario, Canada .

The Option Agreement was signed with TSX-listed White Metal Resources Corporation (TSX-V:WHM – “White Metal Resources”) and provides Ardiden with a low-cost, low risk opportunity to assess a highly prospective project that offers advanced development targets, as well as early-stage exploration opportunities.

The Properties consists of four separate gold properties offering both advanced development opportunities and early stage exploration. Over 25,000m of historical diamond drilling completed across the Pickle Lake Gold Properties, confirming the potential for multiple extensive gold mineralised zones at both Dorothy-Dobie Lake and Kasagiminnis Lake, with gold mineralisation remaining open along strike and at depth.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

The Pickle Lake Gold Properties are located within the prolific gold-producing Meen-Dempster Greenstone Belt of the Uchi Geological Sub-province of the Canadian Shield, in close proximity to several of the Company’s existing projects and to the regional mining centre of Thunder Bay.

Ardiden believes there is significant potential to expand the existing gold mineralised zones within the Pickle Lake Gold Properties, with many areas remaining underexplored and the properties located along strike from substantial historical gold mining operations.

Under the terms of the Option Agreement, Ardiden has 12 months to complete a due diligence review of the Pickle Lake Gold Properties. The Company can acquire a 100% interest in the Project claims for total payments of CAD$140,000 and the issue of 5,592,949 ordinary Ardiden shares, payable in staged payments over the 12-month due diligence period to White Metal Resources Corp. (“White Metal Resources”) and meeting the ongoing obligations of the underlying Option Agreements with Murchison Minerals Ltd. (“Murchison Minerals” - formerly Manicouagan Minerals Inc.) and Ken Kukkee.

The due diligence program is currently underway and is designed to verify the historical and current drilling and sample results, and obtain a better understanding of the various known gold mineralisation zones and the influence of the surrounding structures at the Pickle Lake Gold Properties. Ardiden expects to commence drilling activities early next year when the weather conditions allow better access to site.

No exploration activities were undertaken at the Pickle Lake Gold Project during this period, with the majority of the Company’s focus being on the exploration work at the Seymour Lake Lithium Project and producing the Stage 1 Seymour Mineral Resource Estimate. Ardiden confirms planning is under to commence exploration and drilling activities during Q2 2018.

Ardiden Shareholder Forum

On 2 November 2017, held a small shareholder forum in Melbourne. The forum provided shareholders the opportunity to meet with management and to openly discuss and ask questions about the Company’s current exploration and development activities and plans.

Capital Raising

During the period the Share Purchase Plan (“SPP”) announced on 5 June 2017 closed on 7 July 2017, with total bids of just over $1,000,000 received. Together with the Share Placement announced on 5 June 2017, Ardiden raised a total of just under $1.8 million, which positioned Ardiden to continue to add value across the Company’s project portfolio.

Also, during the period Ardiden advised (20 November 2017) it had completed a A$1.25 million share placement to sophisticated and institutional investors in Australia and internationally to fund ongoing resource drilling and exploration programs at its flagship Seymour Lake Lithium Project in Ontario Canada.

Subsequent to the end of the period at the General Meeting of Shareholders (13 February 2018), Ardiden received shareholder approval for the entire Ardiden Board of Directors have participated in the Placement. Further, Ardiden’s Chinese strategic partner Yantai, also participated in the Placement, reflecting Yantai’s continuing support for the Company.

Funds raised assist Ardiden to continue the rapid development the Seymour Lake Lithium Project with further resource expansion drilling and exploration programs.

AGM

Ardiden’s Annual General Meeting of Shareholders was held in West Perth on 30 November 2017 and all resolutions where approved by shareholders.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

5. FINANCIAL POSITION & OPERATING RESULTS

The financial results of the Group for the half-year ended 31 December 2017 are:

	31-Dec-17	30-Jun-17	% Change
Cash and cash equivalents ($)	843,381	1,487,160	(43%)
Net assets($)	7,885,694	5,537,689	42%

	31-Dec-17	31-Dec-16	% Change
Revenue ($)	5,116	31,390	(84%)
Net loss after tax ($)	(412,890)	(290,159)	42%
Lossper share(cents)	(0.04)	(0.04)	19%

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 17 January 2018 the Company issued 6,250,000 fully paid ordinary shares at $0.016 per share to raise $100,000 via conversion of unlisted options to fund ongoing resource drilling and exploration programs at its Seymour Lake Project.

On 29 January 2018 the Company completed the successful acquisition of 100% of the early stage Bold Property CobaltCopper Project in Canada with a final payment of 100,000 Ardiden shares made to the vendor, Benton Resources Inc. Per the terms of the Option to acquire the Bold Properties (Atikokan Project), the issue price per share was a 10-day VWAP calculated before the option was announced which was $0.024 per share.

On 30 January 2018 the Company announced strong assay results received from the last 7 diamond drill holes completed in the 2017 resource expansion drilling program, adding expansion potential to the Phase 1 Mineral Resource Estimate for the North Aubrey Lithium Deposit at its Seymour Lake Project.

On 9 February 2018 the Company issued 125,000,000 fully paid ordinary shares at $0.018 per share to raise $2,250,000 via a placement to sophisticated investors to fund ongoing resource drilling and exploration programs at its Seymour Lake Lithium Project and working capital requirements.

On 9 February 2018 the Company issued 927,500 fully paid ordinary shares at $0.016 per share to raise $14,840 via conversion of unlisted options to fund ongoing resource drilling and exploration programs at its Seymour Lake Lithium Project and working capital requirements.

On 12 February 2018 the Company produced battery-grade lithium carbonate from preliminary metallurgical test work using concentrate sourced from its Seymour Lake Lithium Project. The test-work showed that battery grade lithium carbonate of 99.5% Li2CO3 could be made from the Dense Media Separation (DMS) Lithium concentrate that was produced by strategic development partner, Yantai Jinyuan Mining Machinery Co. Ltd, and sourced from Seymour Lake’s North Aubrey deposit.

On 13 February 2018 the company held a General Meeting and the following resolutions passed on a show of hands:

Resolution 1 – Participation in placement – Brad Boyle;
Resolution 2 – Participation in placement – Neil Hackett;
Resolution 3 – Participation in placement – Dr Michelle Li;
Resolution 4 – Ratification of prior issue of shares; and
Resolution 5 – Ratification of prior issue of options.

On 14 February 2018 the Company issued 1,937,500 fully paid ordinary shares at $0.016 per share to raise $31,000 via a placement to related parties to fund ongoing resource drilling and exploration programs at its Seymour Lake Lithium Project and working capital requirements.

On 14 February 2018 the Company issued 387,500 unlisted options which were attached to the placement of shares to related parties. The unlisted options have an exercise price of $0.016 cents and an expiry of 29 November 2018.

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

On 14 February 2018 the Company issued 325,000 fully paid ordinary shares at $0.016 per share to raise $5,200 via conversion of unlisted options to fund ongoing resource drilling and exploration programs at its Seymour Lake Project.

On 14 February 2018 the Company appointed Ms Jessamyn Lyons as Company Secretary, following the resignation of Mr Arron Canicais.

On 15 February 2018 the Company commenced a 2,000m diamond drilling program at Seymour Lake Lithium Project. The drilling program will focus on a number of highly-prospective, high priority drill targets defined at Central and South Aubrey prospects.

On 19 February 2018 the Company entered into a binding agreement with Long State Investments Limited (LSI) to provide the Company a fully flexible funding facility for up to A$15 million, over the next two years. Ardiden has full discretion to access the LSI Facility as well as set the share price, determine the amount of funds raised through placement tranches and when the placement of shares will occur. The company has full discretion to use as much or as little of the facility at such time the Company chooses.

On 27 February 2018 the Company issued and allotted 4,000,000 ordinary shares at $0.019 per share to Long State Investments Limited to satisfy the Implementation Fee for the Long State Investments Funding agreement.

On 1 March 2018 the Company issued and allotted 1,000,000 ordinary shares at $0.017 per share to the vendor of the Pickle Lake Gold Project, being White Metal Resources Corp. as part consideration, under the option agreement, announced by the Company on 2 August 2017, to acquire 100% of the Pickle Lake Gold Project.

There are no other matters or circumstances that have arisen since 31 December 2017 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 13 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: 15 March 2018

AUDITOR’S INDEPENDENCE DECLARATION

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TO THE DIRECTORS OF ARDIDEN LIMITED

In relation to our review of the financial report of Ardiden Limited for the period ended 31 December 2017, 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.

PKF MACK

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SHANE CROSS PARTNER

15 MARCH 2018 WEST PERTH, WESTERN AUSTRALIA

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ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Notes 31-Dec-17 31-Dec-16	Notes 31-Dec-17 31-Dec-16	Notes 31-Dec-17 31-Dec-16
	$	$

Interest revenue	5,116	31,390

Expenses
Administration, consulting and other expenses	(285,961)	(202,787)
Directors fees	(42,000)	(63,000)
Foreign exchange loss	(18,870)	(10,308)
Share basedpayments 5	(71,175)	(45,454)
Loss before income tax expense	(412,890)	(290,159)
Income tax expense	-	-
Net loss for theperiod	(412,890)	(290,159)

Other comprehensive income,net of tax	-	-
Total other comprehensive loss for theperiod	(412,890)	(290,159)


	Cents	Cents
Loss per share attributable to the ordinary equity holders of the Company:
Basic and diluted loss per share from continuing operations	(0.04)	(0.04)

The accompanying condensed notes form part of these financial statements.

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Exploration and evaluation expenditure Plant and equipment Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Provisions Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Notes	31-Dec-17 30-Jun-17
		$ $

		843,381 1,487,160 362,096 175,091


		1,205,477 1,662,251
		6,883,322 4,475,113 1,628 883

	3

		6,884,950 4,475,996
		8,090,427 6,138,247
		204,733 590,575 - 9,983




		204,733 600,558
		204,733 600,558
		7,885,694 5,537,689
		39,434,151 36,744,431 165,003 93,828 (31,713,460) (31,300,570)

	4
	5

		7,885,694 5,537,689

The accompanying condensed notes form part of these financial statements.

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

At 1 July 2016 Comprehensive income: Loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owne Securities issued during the period Capital raising costs Total equity transactions At 31 December 2016 At 1 July 2017 Comprehensive income: Loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owne Securities issued during the period Capital raising costs Total equity transactions At 31 December 2017	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) rs: 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
	Issued Capital Options Reserves Accumulated Losses Total Equity
	$ $ $ $ 36,744,431 93,828 (31,300,570) 5,537,689

	- - (412,890) (412,890)
	- - (412,890) (412,890)

	rs:
	2,746,832 71,175 - 2,818,007
	(57,112) - - (57,112)
	2,689,720 71,175 - 2,760,895

	39,434,151 165,003 (31,713,460) 7,885,694

The accompanying condensed notes form part of these financial statements.

ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Notes	31-Dec-17 31-Dec-16 $ $ (491,043) (428,932) (2,183,759) (996,527) 6,743 27,868 (2,668,059) (1,397,591) (372,015) (287,193) (1,012) - (373,027) (287,193) 2,458,750 - (61,443) (4,579) 2,397,307 (4,579) (643,779) (1,689,363) 1,487,160 4,032,414 843,381 2,343,051

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
Tenemant acquisition costs
Payments forplant and equipment
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 from /(used in) financing activities

Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginningof theperiod
Cash and cash equivalents at the end of the period

The accompanying condensed notes form part of these financial statements.

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

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 2017 annual financial report. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Going Concern

The half-financial report has been prepared on the basis of accounting principles applicable to a going concern, which assumes the commercial realisation of the future potential of the Company’s and Group’s assets and the discharge of their liabilities in the normal course of business.

As disclosed in the financial report, the Group recorded an operating loss of $412,890 (2016: $290,159) and a cash outflow from operating activities of $2,668,059 (2016: $1,397,591) for the half year ended 31 December 2017 and at reporting date had a working capital surplus of $1,000,744 (30 June 2017: $1,061,693).

The Board considers that the Company is a going concern and recognises that additional funding is required to ensure that the Company can continue to fund the Group’s operations for the 12-month period from the date of this financial report.

The Directors believe it is appropriate to prepare the financial report on a going concern basis because:

The Company has the ability to issue additional equity under the Corporation Act 2001 and ASX Listing Rule 7.1 or otherwise; and
The Company’s commitment to exploration expenditure is discretionary and expenditure requirements are minimal.

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. NON-CASH INVESTING AND FINANCING ACTIVITIES

Consideration of shares for exploration assets Issue of shares to acquire Root Lake Project Issue of shares to acquire Atikokan Project Issue of shares to acquire Pickle Lake Project (refer Note 4) Issue of shares to acquire Seymour Lake Project (refer Note 4)		31-Dec-17 30-Jun-17
		$ $
		- 151,925

		- 2,400
		25,487 -
		262,595 251,417
		288,082 405,742

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

3. EXPLORATION AND EVALUATION EXPENDITURE

Expenditure brought forward Expenditure incurred Expenditure carried forward		31-Dec-17 30-Jun-17
		$ $
		4,475,113 1,422,758 2,408,209 3,052,355


		6,883,322 4,475,113

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.

4. ISSUED CAPITAL

4. ISSUED CAPITAL
(a) Fully paid ordinary shares (b) Movement in ordinary shares	31-Dec-17 30-Jun-17
	$ No. $ No.

	39,434,151 1,040,247,269 36,744,431 856,762,632
	$ No. Issue price
Balance at 30 June 2017	36,744,431 856,762,632
Issue of shares via the share purchase plan (i)	14/07/2017 1,005,000 67,000,076 0.015
Issue of shares via the share purchase plan (ii)	14/07/2017 199,750 13,316,667 0.015
Issue of shares to acquire Seymour Lake Project (iii)	24/07/2017 242,595 22,054,112 0.011
Issue of shares to acquire Pickle Lake Project (iv)	2/08/2017 25,487 1,592,949 0.016
Issue of shares via placement to directors (v)	9/08/2017 35,000 2,333,333 0.015
Issue of shares to acquire Seymour Lake Project (vi)	12/09/2017 20,000 1,000,000 0.020
Issue of shares to sophisticated investors (vii) Capital raisingcosts	28/11/2017 1,219,000 76,187,500 0.016 (57,112) - -
Balance at 31 December 2017	39,434,151 1,040,247,269

(i) On 14 July 2017, the Company completed its share purchase plan and raised $1,005,000 via the issue of 67,000,076 shares at $0.015 per share.
(ii) On 14 July 2017, the Company completed its underwritten portion of shares from the share purchase plan and raised $199,750 via the issue of 13,316,667 shares at $0.015 per share.
(iii) On 24 July 2017, the Company issued 22,054,112 shares at $0.011 per share 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. The shares will be held in escrow for 6 months from the date of issue.
(iv) On 2 August 2017, the Company issued 1,592,949 shares at $0.016 per share to acquire 100% of the Pickle Lake Gold Project.
(v) On 9 August 2017, the Company raised $35,000 via the issue of 2,333,333 shares at $0.015 per share via a placement to directors as approved by resolution 3 & 4 at the company’s General Meeting on 8 August 2017.
(vi) On 12 September 2017, the Company issued 1,000,000 shares at $0.02 per share to consultants for services rendered in relation to the acquisition of the Seymour Lake Lithium Project.
(vii) On 28 November 2017, the Company completed a private placement to sophisticated investors and raised $1,219,000 via the issue of 76,187,500 shares at $0.016 per share.

Share Options

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

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.
4,000,000 unlisted options expiring 31 December 2018 at an exercise price of $0.018.
10,000,000 unlisted options expiring 9 August 2019 at an exercise price of $0.02.
15,237,500 unlisted options expiring 29 November 2018 at an exercise price of $0.016.

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

5. RESERVES

(a) Option reserve (b) Movement in Reserve	31-Dec-17 30-Jun-17
	$ No. $ No.

	165,003 45,237,500 93,828 30,000,000

	$ No. Weighted average exercise price (cents)
Balance at 30 June 2017	93,828 30,000,000
Unlisted conditional Performance options (i) Unlisted free attaching options (ii) Options expired during the period Vesting portion ofprioryear options	8/08/2017 15,880 10,000,000 0.02 28/11/2017 - 15,237,500 0.016 31/12/2017 - (10,000,000) 0.02 31/12/2017 55,295 -
Balance at 31 December 2017	165,003 45,237,500
Exercisable	45,237,500

(i) On 8 August 2017, the Company issued 10,000,000 unlisted conditional performance options. These options have an expiry date of 8 August 2019 which are subject to the following performance hurdles that must be satisfied prior to being exercised:

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

Subject to defining at least one of the following:
(a) Five million tonnes of Li2O, or
(b) Five million tonnes of Graphite at 4% graphitic carbon, or
(c) 500,000 ounces of gold.

Across all current and potential future sourced Canadian projects; and

The volume weighted average price of shares traded on the ASX over 10 consecutive trading days after the date of grant of the conditional performance options is not less than 3 cents.

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

The successful execution of an off-take agreement for at least 5,000tpa of lithium concentrate or 5,000tpa of graphite concentrate or equivalent mineral concentrates as otherwise agreed, or the identification and securing of additional mineral projects that will give rise to suitable JORC compliant resources, and
The volume weighted average price of shares traded on the ASX over 10 consecutive trading days after the date of grant of the conditional performance options is not less than 5 cents.

These options have been valued using the single share price barrier option-pricing model. Refer table below.

CONDITIONAL PERFORMANCE OPTIONS
	(i)	(i)
Grant date	8 Aug2017	8 Aug2017
Number of options	5,000,000	5,000,000
Expirydate	8 Aug2019	8 Aug2019
Estimated volatility	110%	110%
Risk-free interest rate	1.78%	1.78%
Exerciseprice	$0.02	$0.02
Price of shares ongrant date	$0.016	$0.016
Shareprice barrier	$0.03	$0.05
Valueper option	$0.00826	$0.00773
Total Value	$41,300	$38,650
Value recognised in currentperiod	$8,203	$7,677
Value recognised in futureperiods	$33,097	$30,973

(ii) On 28 November 2017, the Company issued 15,237,500 unlisted options at $0.016 per share, expiring 29 November 2018. These options were free attaching options associated with the Company’s placement to sophisticated investors, participants in the placement received 1 option for every 5 shares purchased.

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

6. 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 eight 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

Canada Manitou- wadge	Canada Seymour Lake	Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan	Canada Pickle Lake

							Australia	Total
Year ended 31 Dec 2017 $	$	$	$	$	$	$	$	$
*Revenue*
Interest revenue -	-	-	-	-	-	-	5,116	5,116
Total segment revenue -	-	-	-	-	-	-	5,116	5,116
Reconciliation of segment result to net loss before tax
Unallocated items
- Administration, consulting and other expenses								(285,961)
- Director fees and benefit expense								(42,000)
- Foreign exchange loss								(18,870)
- Share basedpayments								(71,175)
Net loss before tax from continuing operations								(412,890)

		Canada Manitou- wadge	Canada Seymour Lake	Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan	Canada Pickle Lake

									Australia	Total
Year ended 31 Dec 2016		$	$	$	$	$	$	$	$	$
*Revenue*
Interest revenue		-	-	-	-	-	-	-	31,390	31,390
Total segment revenue		-	-	-	-	-	-	-	31,390	31,390
Reconciliation of segment	result to net loss before tax
Unallocated items
- Administration, consulting and other expenses										(202,787)
- Director fees and benefit expense										(63,000)
- Foreign exchange gain										(10,308)
- Share basedpayments										(45,454)
Net loss before tax from continuing operations										(290,159)

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

(ii) SEGMENT ASSETS Canada Manitou- wadge Canada Seymour Lake	Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan	Canada Pickle Lake

						Australia	Total
$ $	$	$	$	$	$	$	$
As at 31 Dec 2017
Segment assets at 1 July 2017 1,584,461 2,088,889	703,087	3,349	48,996	26,689	19,642	-	4,475,113
Increases / (decreases)
- Exploration and evaluation 18,565 2,084,735	3,148	3,147	190,153	3,147	105,314	-	2,408,209
1,603,026 4,173,624	706,235	6,496	239,149	29,836	124,956	-	6,883,322
Reconciliation of segment assets to total assets:
Other assets							1,205,477
Plant and equipment							1,628
Total assets from continuing operations							8,090,427

	Canada Manitou- wadge		Canada Seymour Lake	Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan		Canada Pickle Lake

										Australia	Total
	$		$	$	$	$	$		$	$	$
As at 30 June 2017
Segment assets at 1 July 2017	908,069		310,037	204,652	-	-	-		-	-	1,422,758
Increases / (decreases)
- Exploration and evaluation	676,392	1,778,852		498,435	3,349	48,996	26,689		19,642	-	3,052,355
	1,584,461	2,088,889		703,087	3,349	48,996	26,689		19,642	-	4,475,113
Reconciliation of segment assets to total assets:
Other assets											1,663,134
Total assets from continuing operations											6,138,247


(iii) SEGMENT LIABILITIES Canada Manitou- wadge Canada Seymour Lake				Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan		Canada Pickle Lake

										Australia	Total
$ $				$	$	$	$		$	$	$
As at 31 Dec 2017
Segment liabilities at 1 July 2017 3,896 329,568				-	-	1,183	12,675		15,095	238,141	600,558
Increases /(decreases) (3,896) (186,232)				-	-	(1,183)	(12,675)	(15,095)		(176,744)	(395,825)
- 143,336				-	-	-	-	-		61,397	204,733
Reconciliation of segment liabilities to total liabilities:
Other liabilities											-
Total liabilities from continuing operations											204,733

	Canada Manitou- wadge	Canada Seymour Lake		Canada Root Lake	Canada Root Bay	Canada Wisa Lake	Canada Atikokan	Canada Pickle Lake

									Australia	Total
	$	$		$	$	$	$	$	$	$
As at 30 June 2017
Segment liabilities at 1 July 2017	13,510	1,033		12,500	-	-	-	-	240,349	267,392
Increases /(decreases)	(9,614)	328,535	(12,500)		-	1,183	12,675	15,095	(2,208)	333,166
	3,896	329,568	-		-	1,183	12,675	15,095	238,141	600,558
Reconciliation of segment liabilities	to total liabilities:
Other liabilities										-
Total liabilities from continuing operations										600,558

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

7. EVENTS SUBSEQUENT TO REPORTING DATE

On 13 February 2018 the company held a General Meeting and the following resolutions passed on a show of hands:
Resolution 1 – Participation in placement – Brad Boyle;
Resolution 2 – Participation in placement – Neil Hackett;
Resolution 3 – Participation in placement – Dr Michelle Li;
Resolution 4 – Ratification of prior issue of shares; and
Resolution 5 – Ratification of prior issue of options.

On 14 February 2018 the Company appointed Ms Jessamyn Lyons as Company Secretary, following the resignation of Mr Arron Canicais.

ARDIDEN LIMITED CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

8. COMMITMENTS & CONTINGENT LIABILITIES

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

9. DIVIDENDS

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

ARDIDEN LIMITED DIRECTORS’ DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

The Directors of the company declare that:

1) The financial statements and notes, as set out on pages 14-24
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 2017 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: 15 March 2018

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF ARDIDEN LIMITED

Report on the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Ardiden Limited (the company) and controlled entity (consolidated entity), which comprises the consolidated statement of financial position as at 31 December 2017, and the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes, and the directors’ declaration of the consolidated entity comprising the company and the entity it controlled at 31 December 2017, or during the half year.

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 2017, and of its financial performance for the half-year ended on that date; and
(b) complying with the Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Emphasis of Matter

Without modifying our conclusion, we draw attention to Note 1 in the financial report, which confirmed that the consolidated entity incurred a net loss after tax of $412,890 (2016: $290,159) and an operating cash outflow of $2,668,059 (2016: $1,397,591) during the half year ended 31 December 2017. These conditions, along with other matters as set out in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

The financial report of the consolidated entity does not include any adjustments in relation to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the consolidated entity not continue as a going concern.

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.

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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 Regulations 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that 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 2017 and its performance for the half year ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Ardiden Limited and the entity 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.

PKF MACK

SHANE CROSS PARTNER

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15 MARCH 2018 WEST PERTH, WESTERN AUSTRALIA

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AI assistant

ARDIDEN LTD — Interim / Quarterly Report 2017

64307_rns_2018-03-14_abb3c4f4-cf93-42ba-9780-62b877cc1c9c.pdf

ARDIDEN LIMITED

HALF-YEAR FINANCIAL REPORT

DIRECTORS

JOINT COMPANY SECRETARIES

REGISTERED AND PRINCIPAL OFFICE

SHARE REGISTRY

AUDITORS

SOLICITORS

AUSTRALIAN SECURITIES EXCHANGE

1. DIRECTORS

2. CORPORATE STRUCTURE

3. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

4. REVIEW OF OPERATIONS

SEYMOUR LAKE LITHIUM PROJECT (ADV: 100%)

NORTH AUBRY MAIDEN RESOURCE

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Competent Person’s Statement:

Central and South Aubry Exploration Target

Competent Person’s Statement:

COMMUNITY ENGAGEMENT AND SITE VISITS

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

NORTH AUBRY SITE VISIT

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

METALLURGICAL TEST-WORK

COURSE SPODUMENE PARTICLE SIZES

HEAVY LIQUID SEPARATION (HLS) TESTWORK

DENSE MEDIA CYCLONE SEPARATION TEST WORK

COMMERICAL PRODUCTION POTENTIAL

FEASIBILITY STUDY

2017 EXPANSION DRILLING RESULTS

NORTH AUBRY

ASSAY RESULTS

SOUTH AUBRY ASSAY RESULTS

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

ADDITIONAL STRATEGIC CLAIMS

2018 EXPANSION DRILLING PROGRAM

WISA LAKE LITHIUM PROJECT, Ontario (ADV: 100%)

MANITOUWADGE GRAPHITE PROJECT, Ontario (ADV: 100%)

BOLD PROPERTIES COBALT-COPPER-NICKEL PROJECT, Ontario (ADV: 100%)

ROOT LAKE AND ROOT BAY LITHIUM PROJECTS, Ontario (ADV: 100%)

CORPORATE

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

Ardiden Shareholder Forum

Capital Raising

AGM

5. FINANCIAL POSITION & OPERATING RESULTS

6. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

7. EVENTS SUBSEQUENT TO REPORTING DATE

ARDIDEN LIMITED DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

8. AUDITOR INDEPENDENCE

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017

ARDIDEN LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

ARDIDEN LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

Basis of Preparation

Going Concern

Segment Reporting

2. NON-CASH INVESTING AND FINANCING ACTIVITIES

3. EXPLORATION AND EVALUATION EXPENDITURE

4. ISSUED CAPITAL

Share Options

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

5. RESERVES

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

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

6. FINANCIAL REPORTING BY SEGMENTS

(i) SEGMENT PERFORMANCE

ARDIDEN LIMITED

CONDENSED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2017

7. EVENTS SUBSEQUENT TO REPORTING DATE

8. COMMITMENTS & CONTINGENT LIABILITIES

ARDIDEN LTD Interim / Quarterly Report 2017