Adavale Resources : Investor Presentation - Market and Exploration Update

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Ni

U

Market and Exploration Update

28 February 2022

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IMPORTANT NOTICE & DISCLAIMER

This presentation has been prepared by Adavale Resources Ltd (ASX:ADD).This presentation contains background information about ADD current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in ADD or its assets.

Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. Recipients of this presentation who decide to invest in ADD do so at their own risk.

This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This presentation is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. Afailure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/ or financial advice when deciding if an investment is appropriate.

To the fullest extent permitted by law, ADD and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability, take no responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation.

This presentation contains forward looking statements concerning Adavale. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this presentation are based on Adavale's beliefs, opinions and estimates of Adavale as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of nickel, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward- looking statements in this presentation will actually occur..

Competent Person Statement

The information in this release that relates to "exploration results" for the Nickel Project is based on information compiled or reviewed by Mr David Dodd of MSA, South Africa. Mr Dodd is a consultant for Adavale Resources Limited and is a member of the SACNASP. Mr Dodd has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaking to qualify as a Competent Person under the ASX Listing Rules. Mr Dodd consents to this release in the form and context in which it appears

.

The information in this release that relates to "exploration results" for the Uranium Project is based on information compiled or reviewed by Mr Patrick Harvey MAppSci, Australia. Mr Harvey is a consultant for Adavale Resources Limited and is a member of the AIG. Mr Harvey has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaking to qualify as a Competent Person under the ASX Listing Rules. Mr Harvey consents to this release in the form and context in which it appears.

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BOARD AND CAPITAL STRUCTURE

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Grant Pierce

Non-Executive Chairman

Mining engineer with ED, NED, GM experience

Strong and long-standing affinity with Tanzania

David Riekie

Executive Director

ASX Code	ADD	Share Price	3.6 cents
Shares on Issue (FPO's)	355m	Market Capitalisation	~$12.8m
Options1	26.5m	Cash (AUD) 31 Dec 21			~$2m
Performance Rights (m)1	17m	Debt			Nil
52 Week Trading Range	$0.035- $0.105	Top 20 Shareholders	~26%
70						$0.14
			Ni US$27,000/t

For personal

Corporate experience, ASX roles (NED,
MD, ED, CEO) including Nickel,		60					$0.12
Uranium/Energy, African experience
(millions)
John Hicks	50			U3O8 US$50/lb	Ni US$23,000/t	$0.10
Volume
Non-Executive Director							(A$/share)
Accomplished Nickel Sulphide	Trading	40	U3O8 US$40/lb				$0.08
Geologist/Explorer, 15yrs of GM level
Geo/Explorer for ASX listed		30	U3O8 US$30/lb	Ni US$19,000/t			$0.06	PriceShare
Allan Ritchie		20					$0.04
Chief Executive Officer
Experienced ASX/HKEx Energy &
Resources CEO/ED/MD, 30+yr Investment		10	Ni US$15,000/t				$0.02
Banking career
Leonard Math		0					$0.00
	Aug	Sep Oct Nov Dec Jan Feb Mar Apr	May Jun Jul	Aug Sep	Oct Nov Dec Jan	Feb
Chief Financial Officer/
Company Secretary			ADD Trading Volume (LHS, millions)	ADD Share Price (RHS)	US$ Nickel Price	US$ Uranium Price
Experienced Resources sector executive,	Note 1
ASX listed ED, CFO, Coy Sec	Unlisted Options 17.5m (expiry Dec 22; trigger to exercise 5day VWAP 12 cents)

Unlisted Options Directors/KMP 9m (expiry Dec 2025; exercise 15 cents)

Performance rights 17m (Directors/KMP 11.25m tranche Ni/U308 JORC resource (exp Dec 2023); 5.75m tranche 5day VWAP 15cents (Jun 23)

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NICKEL PORTFOLIO

KABANGA JIRANI & LUHUMA - TANZANIA

An enviable nickel licence portfolio. By applying a dedicated methodology and considered exploration program ensures the Company has the best chance of uncovering a large- scale Ni sulphide discovery.

Portfolio Overview

• 100% owned Licences (exception Luhuma Farm -In)
• All Licences cover 1,243 km2
• Located along the Kabanga - Musongati mafic-ultramafic alignment within the Meso-ProterozoicKaragwe-Ankole Belt

• 1. Prospective for Ni, Cu, Co, Cr & PGE's
• Notable setting similarity with:
• 1. Thomson Nickel Belt and Raglan deposits in Canada
  1. Voisey's Bay NiS deposits Canada

• 1. IGO's Nova in the Albany-Fraser Belt in Western Australia
• Targeting mafic-ultramafic layered intrusions emplaced within sulphur bearing sediments (sulphides)

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NICKEL EXPLORATION

ACTIVITIES AND OUTCOMES - CY 2021

	DD	RC	DD/RC	Soils	Gravity	Key
Prospecting Licence	holes	holes	holes	samples	(stations)	Targets
Kabanga North	1			2,227	120	T1
Kabanga West	4	5		5,726	869
Kabanga East	2			2,465	657	T21
Kabanga NE	1	4	1	7,418	727	T7, T16
Total	8	9	1	17,836	2,373

A Foundation year of activities

Outcomes achieved have enabled the refinement and reprioritisation of target selection criteria:

Inclusion of (target selection) gravity data is critical for the discovery and delineation of buried layered mafic-ultramafic intrusions at depth below extensive cover sequences

Confirmatory drilling important to establish source of the gravity anomalies (e.g. mafic- ultramafic intrusion) prior to determining what follow-up work streams should be undertaken to advance target

Deep penetrating electromagnetic survey coverage of the confirmed intrusions preferable, prior to systematic drill testing

Development of these 2021 outcomes culminated in discovery of Target 7 (Kabanga

NE) from known regional potential to prospect target identification

	Encouraging Target 7 result being the catalyst to secure Farm-in tenure and to
NiS	consolidate strike extension ground holdings over the Luhuma Corridor which is
	known to contain historical massive NiS intersections

DD and RC dill hole collar locations and key target areas in proximity to Luhuma corridor