Adavale Resources : Gravity Surveys Generate Immediate Success at Luhuma

ASX ANNOUNCEMENT

19 April 2022

Gravity Surveys Generate Immediate Success at Luhuma

Highlights

• • Immediate success with gravity surveys at Luhuma confirms correlation with recent positive Target 7 drill results

• • Multiple discrete and strong gravity features identified along 12km swathe within the broader Luhuma corridor including:

  • o Very strong (+2mGal) Bullseye anomaly at Adavale's T7 target location

  • o New strong anomaly identified in the southwest sector of corridor

• • Results to date are extremely encouraging and at upper end of our technical advisers' expectations

• • Results show indications of several intrusions along strike and directly adjacent to historically drilled mineralisation (1.14% Ni over 8.4m)

• • Two additional ground-based gravity survey teams have been deployed to further ramp-up activities

• • Contractors now being sourced for follow-up electromagnetic surveys and drilling programs

Adavale Resources Limited (ASX: ADD) ("Adavale" or "the Company") is pleased to advise the positive survey results received from the gravity survey commenced last month. The survey results delivered by the initial survey team have been outstanding with numerous discrete strong gravity anomalies mapped along a 12km narrow swathe within the broader Luhuma corridor.

Results also show indications of several intrusions along strike and directly adjacent to historically drilled mineralization of 1.14% Ni over 8.4m. Included in this initial work was the extended (and infill) coverage over ADD's partially defined 2021 T7 gravity target. The T7 target was subsequently drill tested by the Company and confirmed to be sourced by a sulphide bearing mafic-ultramafic body at depth.

ASX: ADD

DIRECTORS & OFFICERS

GRANT PIERCE CHAIRMAN

DAVID RIEKIE EXECUTIVE DIRECTOR

JOHN HICKS

DIRECTOR

ALLAN RITCHIE

CHIEF EXECUTIVE OFFICER

LEONARD MATH

CFO & COMPANY SECRETARY

ISSUED CAPITAL

Shares: ~356 million Unlisted options: 26.5 million Performance rights: 17 million

ABOUT ADAVALE

Adavale Resources is an ASX-listed exploration company targeting projects in the 'battery materials' space. The company is currently focused on both its 100% owned Kabanga Jirani Nickel Project and 2 Farm-in 'Luhuma' licences adjacent and along strike from the world's largest undeveloped high grade NiS resource of 58Mt @ 2.62% Ni. Adavale is also progressing exploration on its 100% owned uranium tenements in South Australia

The extended gravity coverage over T7 now defines a very strong (+2 mGal) "Bullseye" gravity target, which with additional identified anomalies within the corridor, will be earmarked for follow-up exploration, including detail "deep penetrating" Electro Magnetic ("EM") surveys prior to scheduled drilling.

Two additional gravity survey teams are now on site to accelerate the planned regional gravity survey program over the 1,000 km2 project area.

The initial team commenced work mid-March and focused on extending two earlier surveys completed late last year along the Luhuma corridor. All three teams are now focusing on the broader line spaced regional programs radiating out from the Luhuma corridor.

The additional two gravity teams were mobilised to expedite the coverage of all the Company's southern and western licences (see Figure 1). Logistics have also been developed to accommodate the deployment of additional teams when required.

Commenting on the program, Adavale's Executive Director, David Riekie said:

"This exploration program has been an excellent start to the year for Adavale. The success of our initial gravity program with the generation of such discrete, strong amplitude gravity anomalies early in the program augurs well for the regional programs now underway and I thank our geological team and geophysical consultants for the quality of the work undertaken.

To have this measure of early success with the number of and resolution around the anomalies identified, including the Bullseye feature around target T7 is at the upper end of our technical advisors' expectations.

It also validates our belief in the prospectivity of the Luhuma corridor and the merits of including gravity surveying into our target selection process. The added benefit is not requiring large-scale stream and soil sampling programs over our extensive Licence package in order to identify potentially fertile but hidden mafic-ultramafic bodies and the associated cost saving.

The regional programs now underway are designed to cover a large area (+1,000 sq kms) which is timely coming out of the wet season and as such both cost effective and efficient. It was critically important to get it right and we have started very well.

With team two and three on the ground, we expect that April will see a significant ramp-up of activity and output. A fourth survey team is expected to join the program in the next two weeks to focus on infilling anomalous areas identified by the regional teams. As anomalies are identified they will be ranked for follow-up exploration, including detail EM coverage ahead of RC/DD drill testing."

Overview of Regional Prospectivity

In late 2021, Adavale introduced gravity surveying into its target selection armoury for the discovery of nickel sulphide mineralisation hosted by layered mafic-ultramafic intrusions within the Company's Kabanga Jirani Project area in Tanzania. The addition of gravity, coupled with magnetics and EM data significantly improved the Company's success in identifying mafic-ultramafic intrusions under cover and directly led to the identification of mafic-ultramafic intrusions at Targets 7, 16 and 21 in the later part of 2021 (See Figure 1).

The Company has now designed and implemented a large ground-based gravity survey program encompassing the entire southern Licence area of the Kabanga Jirani Nickel Project.

Figure 1: ADD's Project Licences showing planned gravity survey coverage

Details of Current Gravity Program

Surveying commenced with an initial crew on site in mid-March. The decision to focus the initial team on the Luhuma corridor was based on the results of two smaller gravity programs completed in 2021 and the fact it is a largely under explored area of known mineralised mafic-ultramafic intrusions.

The program encompasses the entire southern Licence area of the Kabanga Jirani Nickel Project and is being conducted on 400m spaced lines with readings taken every 100m. Approximately 24,000 gravity readings will be collected with approximately 5,400 in Kabanga East, 11,200 in Kabanga NE, 2,900 in Kabanga North and 4,400 in Kabanga West. More detail infill surveys have and will be undertaken around areas of significant interest.

Within this part of the Luhuma corridor is the historic drillhole LUH06 which returned an intersection of 1.14% Ni over 8.4m and Adavale's Target 7 drill hole RCDDKNE 13-07-02, which intersected finely disseminated sulphide hosted within a mafic intrusion over a broad interval of 248m until the

end of hole (refer to Company ASX announcement dated 16 December 2021 "Adavale Discovers Significant Mafic - Ultramafic Intrusion").

Figure 2: Luhuma Swathe - completed detail gravity surveys, with RC drillholes at T7

This initial phase of work, as depicted in Figure 2, has been completed with the team now focused on broader line spaced (400m) regional programs around the Luhuma corridor.

The survey results delivered by the initial survey team have been outstanding with numerous discrete strong gravity anomalies clearly mapped along a 12km, relatively narrow swathe of the Luhuma corridor. Included in this initial work was the extended coverage over ADD's partially defined 2021 T7 target, which the Company drill tested last year and confirmed the source of the anomaly to be due to a sulphide-bearing mafic-ultramafic body at depth. The extended gravity coverage over T7 now clearly defines a very strong (+2 mGal) "Bullseye" gravity target (Figure 2).

Pictures: Setup and calibration of gravity survey equipment by exploration team at Kabanga Jirani NE Licences.