Adavale Resources : Lake Surprise Uranium Geochemistry Results

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7 February 2022

Lake Surprise Uranium Geochemistry

Results

• Uranium Assay results received from ALS Laboratories
• Assay summary:

1. 11 of 28 rock chip samples returned values over 100ppm uranium, 7 of which are greater than 200ppm uranium

1. Maximum uranium value of 356ppm

1. Sample values are greater than 20 times the background values estimated from the spectrometer survey

• 1. Elevated values of uranium coincident with elevated gamma mapped from the spectrometer survey
• Planning of next phase of exploration underway

Adavale Resources Limited (ASX:ADD) ("Adavale" or "the Company") is pleased to announce geochemistry results from the work program in the final quarter of 2021 on its 100% owned Lake Surprise Uranium Project tenements in South Australia.

Adavale geologist Patrick Harvey commented:

"The uranium content in the rock samples is significantly above the spectrometer estimated background reading levels ~2 to 3ppm.

The elevated uranium in the rock samples is directly associated with the gamma mapped in the field program which is extremely encouraging.

The resulting database now being developed will form the foundation to advance the project with the ultimate objective of confirming the resource potential at Lake Surprise."

2022 CY EXPLORATION STRATEGY

The gamma survey undertaken by Adavale's geological team targeted the strongest known radioactive signatures at surface from the historic regional data.

This work along with surface rock chip sampling has shown a presence of highly anomalous uranium accompanying the elevated gamma. The exploration strategy moving forward will aim to:

• Identify targets that are a continuation of the surface anomaly with an appropriate method of exploration, most probably air core drilling.

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: 351 million

Unlisted options: 17.5 million

ABOUT ADAVALE

Adavale Resources is an ASX-listed exploration company targeting projects in the "battery materials" space. The company is currently focussed on its 100% owned Kabanga Jirani Nickel Project and a Farm-In Project 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

MORE INFORMATION

adavaleresources.com

CONTACT

Adavale Resources Limited Level 2, 49 Oxford Close West Leederville WA 6007 Tel: [phone] [e-mail]

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• Identify new targets for a longer-term exploration program on the Lake Surprise Project utilising spectral surveys, ground surveys and ultimately drilling.

With the above exploration objectives and broad goals in mind, Adavale will seek to expedite the exploration activities at the Lake Surprise Project, unlocking the resource potential of the tenement package.

SUMMARY OF EXPLORATION ACTIVITIES 2021

Initial on ground exploration commenced in early November 2021.

The field work undertaken comprised a Gamma survey to better target rock chip sampling of outcrops that demonstrated elevated gamma reading.

The data from this survey was processed in field and used on ground by geological staff to sample areas where gamma was elevated above background levels.

Geochemical Results

The results of the geochemistry show uranium levels greater than 100 ppm in 11 out of 28 samples from zones of elevated gamma. This is an important correlation that will be used for future field activities in 2022.

Summarised below are the key highlights from the assays of the rock chip sampling undertaken which should be read in conjunction with the full table of results for uranium presented in Appendix 1.

Key Highlights:

• Highest uranium content of 356ppm
• 11 of 28 samples with uranium content above 100ppm - of which 7 are above 200ppm
• Elevated gamma correlating with the uranium in samples

To provide context to the results achieved, the average background levels of uranium in geological units in the Lake Surprise Uranium Project is below 4ppm. This value is estimated from the gamma spectrometer data and is in line with the global average for shales and mudstones (between 0.9 and 3.7ppm), and which make up most of the stratigraphic units (rock types) within the tenement package.

The rock chip data collected shows that the uranium content of the silcrete is between 20 and 95 times the background levels and is coincidental with the zones of high gamma.

The location of rock chip samples is shown in Figure 1.

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Figure 1: Location of rock chip samples relative to elevated gamma results

The data reveals that the lower levels of the gamma readings have reduced uranium content in the surface samples, whereas the zones of elevated gamma have increased uranium values.

With the key geochemical results now in Adavale is planning the next phase of work on the tenements and the company intends to extend the targets defined by the spectrometer survey and rock chip sampling.

Adavale acknowledges the Dieri as Traditional Custodians of the land on which our current works are located. With respect to Elders past, present and emerging Adavale is committed to conducting its activities with utmost respect to the communities in which it operates.

This announcement has been authorised for release by the Board of Adavale Resources Limited.

For further information please contact [e-mail] or visit www.adavaleresources.com

About Adavale

Adavale Resources Limited (ASX:ADD) is a nickel sulphide exploration company that holds 100% of the Kabanga Jirani Nickel Project, a portfolio of 7 highly prospective granted licences covering ~ 1,145km2 along the Karagwe-Ankolean belt in Tanzania. The 4 southernmost licences are proximal to the world class Kabanga Nickel Deposit (58Mt @ 2.62% Ni). Adavale has Farmed-In 2 more highly prospective licences contiguous to our 4 southernmost licences, adding a further 99km2 to the portfolio. Adavale's licences were selected based on their strong geochemical and geophysical signatures from previous exploration undertaken by BHP Billiton.

Adavale also holds three exploration licences for their sedimentary uranium potential within the northern part of the highly prospective Lake Frome Embayment in South Australia.

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Competent Persons Statement

The information in this release that relates to "exploration results" for the 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.

Forward looking statements

This document 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 document 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.

Appendix 1: table of samples and hand-held spectrometer readings

SampleID	SampleType	Easting	Northing	RockType	CPS	U ppm
10004	In situ rock outcrop	245752	6758341	Silcrete	600	3.6
10005	In situ rock outcrop	279035	6732246	Silcrete	750	41.7
10006	In situ rock outcrop	279006	6732181	Silcrete	442	42.5
10007	In situ rock outcrop	278946	6732099	Silcrete	833	74.5
10008	In situ rock outcrop	279313	6732100	Sandstone	390	25.2
10009	In situ rock outcrop	279320	6732108	Sandstone	700	40.5
10010	In situ rock outcrop	279320	6732114	Sandstone	690	93.9
10011	In situ rock outcrop	279392	6731863	Sandstone	1045	180.5
10012	In situ rock outcrop	279393	6731861	Mudstone	549	10.8
10013	In situ rock outcrop	279489	6731864	Silcrete	600	54.5
10014	In situ rock outcrop	279603	6731389	Silcrete	1000	51.4
10016	In situ rock outcrop	279538	6731256	Sandstone	632	60.9
10017	In situ rock outcrop	279214	6730978	Silcrete	1600	193
10018	In situ rock outcrop	279237	6730993	Silcrete	1550	256
10019	In situ rock outcrop	279280	6731002	Silcrete	1360	209
10020	In situ rock outcrop	279280	6731002	Silcrete	1426	249
10021	In situ rock outcrop	279362	6730992	Sandstone	1530	203
10022	In situ rock outcrop	279372	6730983	Silcrete	2147	356
10023	In situ rock outcrop	279434	6730990	Silcrete	1100	24.8
10024	In situ rock outcrop	279543	6730825	Silcrete	1760	206

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10025	In situ rock outcrop	279545	6730827	Silcrete	2834	137
10026	In situ rock outcrop	279554	6730819	Silcrete	3100	136
10027	In situ rock outcrop	279559	6730815	Silcrete	1423	84.3
10028	In situ rock outcrop	279573	6730778	Silcrete	1800	207
10029	In situ rock outcrop	279590	6730775	Silcrete	625	42.4
10030	In situ rock outcrop	279720	6729897	Silcrete	886	64.2
10031	In situ rock outcrop	279723	6729886	Sandstone	1240	51.6
10032	In situ rock outcrop	279686	6729859	Silcrete	810	34.4

Table 1: List of samples collected and the counts per second recorded in photographs taken during

the Lake Surprise works program.

JORC Code Edition 2012: Table 1

Section 1: Sampling Techniques and Data

Criteria		JORC Code Explanation		Commentary
Sampling		• Nature and quality of sampling (eg cut channels,		Gamma survey equipment used is a
techniques		random chips, or specific specialised industry		Pico-Envirotech PGIS 2 litre gamma
		standard measurement tools appropriate to the		spectrometer (model GIS-S-128).
		minerals under investigation, such as down hole		Calibration was checked using the
		gamma sondes, or handheld XRF instruments,		internal check outlined in the user
		etc). These examples should not be taken as		manual on one of the Thorium
		limiting the broad meaning of sampling.		Channels with a value between 0.7
		• Include reference to measures taken to ensure		and 0.9. The spectrometer provides
			two values for uranium the first in
		sample representivity and the appropriate
			counts per second and the second is
		calibration of any measurement tools or systems
			the estimated ppm from the internal
		used.
			equation - this is outlined in the user
		• Aspects of the determination of mineralisation that		manual. Information	shown	is the
			estimated uranium content from the
		are Material to the Public Report. In cases where
			spectrometer equation.
		'industry standard' work has been done this would
		be relatively simple (eg 'reverse circulation drilling		Data from	this	survey	was
		was used to obtain 1 m samples from which 3 kg
			processed in SAGA GIS v 8.1 using
		was pulverised to produce a 30 g charge for fire
			simple	kriging	under	the geo-
		assay'). In other cases more explanation may be
			statistics	menu.	The	system
		required, such as where there is coarse gold that
			automatically calculates the number
		has inherent sampling problems. Unusual
			of pairs and range of influence in the
		commodities or mineralisation types (eg
			system	and	uses	an	automated
		submarine nodules) may warrant disclosure of
			slider controlled by the geologist to
		detailed information.
			fit the equation to the data.
				Hand held spectrometer is the RS
				Super	Spec	125	gamma
				spectrometer.		The	unit	self-
				stabilises. The unit was used in
				survey mode which outputs data as
				counts per second. No GPS was
				attached to the unit, however,
				sampling of rocks at sites where
				gamma was recorded took place.
				These are presented in the data
				table above. The use of this device
				is for the purpose of establishing the
				relationship		between	gamma
				readings and uranium content.

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