Ardea Resources Limited (Ardea or the Company) advises that diamond drill core drilling at the Goongarrie South nickel-cobalt deposit confirms high-grade near surface nickel-cobalt mineralisation.

The results validate mineralisation models used in generating the Goongarrie South Mineral Resource Estimate (MRE). Pits at Goongarrie South will be the key base load feed source for the proposed nickel-cobalt processing plant at the Kalgoorlie Nickel Project - Goongarrie Hub (KNP - GH)

The drilling program was designed to generate run-of-mine mineralisation for bench-scale metallurgical programs currently in train at the ALS Balcatta metallurgical laboratories, as an initial program for the planned KNP Definitive Feasibility Study (DFS). Additionally, selected drill holes were extended beneath the nickel laterite to test conceptual shear-hosted gold targets within bedrock.

The Goongarrie laterite has uniform gold anomalism, and is associated with a fertile gold structure being the Bardoc Tectonic Zone (BTZ). The deep drilling confirmed discrete zones with multiple episodes of intense bedrock shearing and alteration along with alkaline intrusions, accounting for the deep weathering with thick high-grade nickel mineralisation at Goongarrie South. Although there were multiple zones of strong gold pathfinder anomalism within laterite and bedrock shears, no significant gold intercepts were identified (peak AGSD0034, 4m at 0.57g/t gold, 0.2g/t silver, 12.6ppm antimony from 84m).

Ardea Managing Director, Andrew Penkethman: 'The Goongarrie South core drilling was a further field test of the KNP low-carbon flowsheet model. The program tested well below the depth of historic RC drilling. It was important for confirming the expectation that premium goethite nickel-cobalt mineralisation would be located in the deeply weathered 'V-shaped' structure at Goongarrie South. This structure hosts a premium High Pressure Acid Leach (HPAL) feed. Importantly, the high-magnesium mineralisation on the western contact of the 'deep V' is targeted as an Atmospheric Leach (AL) feed.

In terms of Mineralised Neutraliser, the neutraliser appears to be a sheet along the sides and below the AL feed. In a production situation, this material will be mined from the batters in pits extending to around 100m in vertical depth. With the unique Goongarrie geological model yet again confirmed, we continue to await the results of the ALS benchscale metallurgy from Highway, as a control for the waiting Goongarrie program. These results will feed into ongoing DFS work flows and continue to enhance the KNP Goongarrie Hub as a globally significant source of sustainable and ethical nickel-cobalt for the lithium ion battery sector.

METALLURGICAL DRILLING INTERCEPT SUMMARY

The drilling program was predicated on acquiring presentative 'Run-of-Mine' (ROM) Material Types for the current ALS Balcatta bench-scale metallurgical program. In particular, high-magnesium Atmospheric Leach and Neutraliser Material Types were targeted. These specific geometallurgical Material Types are integral to the KNP flowsheet, specifically the low-carbon objective. These Material Types are largely lacking in historic bench-scale metallurgy. The DD program has confirmed a consistent sheet geometry for the ROM mineralisation and is eminently suited to open pit bulk excavation. With the deeper testing of the core drilling program, zones of a distinctive cave-fill style of clay mineralisation within saprock was identified, sometimes with very high nickel (Ni) and cobalt (Co) grade. As cave-fill, such zones can be variable and not always correlate between adjoining holes. However, in selective mining, the high-grade goethite clay will be easily recovered through visual grade control

Contact:

Tel: +61 8 6244 5136

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

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