Ardea Resources Limited (Ardea or the Company) is pleased to provide an update on nickel sulphide exploration within its extensive Kalpini Project near Kalgoorlie, Western Australia (WA).

In particular, the recent Mise a la Masse (MALM) and downhole magnetometric resistivity (DHMMR) surveys at the Emu Lake project, 70km northeast of Kalgoorlie have highlighted a conductive zone that is modelled to extend up-dip from the nickel sulphide occurrence intersected in drillhole AELD0002, to within 150m of the surface. The ribbon-like nature of the geophysical response is similar to that modelled at the Silver Swan nickel sulphide mine (owned by Poseidon Nickel Ltd) located 35km to the west of Kalpini. Silver Swan has a strike length near surface of less than 50m, but a plunge extent over 1,000m.

Comments from Managing Director Andrew Penkethman: 'Nickel sulphide exploration is challenging, and discovery success historically is rare. With this context in mind, it is exciting to see new geophysical techniques being trialled by Ardea and successfully highlighting a potential nickel sulphide channel at Emu Lake which corresponds with the nickel sulphide intersected in drill hole, AELD0002. Using a Silver Swan exploration model, nickel sulphide targets tend to have a short strike length, but as we know from Silver Swan can extend down plunge for over 1,000 metres. The Mise al la Masse technique was trialled successfully at Silver Swan by the same consulting group who is undertaking this work for Ardea at Emu Lake. The Ardea team are confident that a significant nickel sulphide target has been defined with the completion of the recent geophysical surveys, which provides the Company with the opportunity to confirm a discovery has been made. Follow-up drilling is being planned to test this compelling target.'

Background and Company Strategy

Ardea's key focus continues to be the Kalgoorlie Nickel Project (KNP) accelerated feasibility study work streams (ASX release 31 May 2021), to ensure ethical and sustainable nickel-cobalt and scandium production for the rapidly expanding lithium-ion battery supply chain. However, Ardea's strategic tenure in the heart of the Eastern Goldfields of Western Australia is also highly prospective for both nickel sulphide and Critical Minerals with their active exploration complementing the development of the KNP. It is important to note that any nickel sulphide discovery, as well as processing as a conventional sulphide flotation concentrate, has the potential to be processed through the High Pressure Acid Leach (HPAL) autoclave planned for Ardea's Goongarrie Hub and has the added benefit of helping control autoclave oxidising potential and typically improving recoveries.

As such, the nickel sulphide exploration strategy complements Ardea's nickel laterite development plans.

Kalpini Project - Emu Lake Prospect

The Kalpini Project extends over 240km2, with the leading nickel sulphide target, Emu Lake, located 70km north-east of Kalgoorlie. This strategic tenement package contains 20km strike of prospective ultramafic stratigraphy held 100% by Ardea and mostly within granted mining leases. The project is 35km east of the Black Swan Nickel Project (Silver Swan), operated by Poseidon Nickel Ltd, within a parallel komatiite volcanic belt.

This represents one of the better nickel sulphide intercepts historically at Emu Lake and demonstrates the prospectivity of the Western Ultramafic position that has received little attention in the past. Most drilling has been concentrated on the Binti Main zone to the north and has intersected often remobilised stringers of nickel sulphide.

Mise a la Masse and Downhole Magnetometric Resistivity Geophysical Surveys

DHEM surveys on AELD0002 generated a strong off-hole response directly south and below the nickel sulphide intercept, however, it was unclear from the DHEM the up-dip extent of the sulphide horizon. Ardea's geophysical consultants, therefore, designed a Mise a la Masse (MALM) and downhole magnetometric resistivity (DHMMR) survey to better define the conductive horizon. The survey was undertaken in mid-June and results recently processed and interpreted. The MALM survey measured the surface potential generated from a downhole electrode over an area of 400m x 300m and produced a broad 550mV anomaly above and slightly south-west of the known nickel sulphide mineralisation.

The data are interpreted to indicate the sulphide body is steeply dipping to the east with a relatively short strike length (approximately 80m) and potentially comes to within 150m of surface. The strike of the body is northwest to southeast and is interpreted to extend to the southeast beyond AELD0001. The DHMMR data supported the MALM interpretation with currents flowing in a NW-SE direction along at least four different pathways creating a more complex situation to model reliably. However, the source has been interpreted as a north plunging and steeply dipping sulphide lens with a rectangular shape consistent with a lava channel morphology as distinct from a more extensive interflow sediment.

MLEM Surveys

Two anomalies associated with recent surface moving loop electromagnetic (MLEM) surveys are being followed up on the Eastern Ultramafic unit at Kalpini. These anomalies have been geophysically modelled as relatively short strike length conductive plates directly west of the nickel laterite drilling where little surface data exists.

The southern anomaly is associated with a strong copper anomaly in the nickel laterite drilling in this area with results up to 0.13% copper over 2m in two drillholes, 80m apart along strike. Surface geochemical soil programs have been completed over both areas with results pending. Surface reconnaissance indicates the anomalies are directly west or just on the contact with the ultramafic units and are not necessarily related to Kambalda style nickel sulphide occurrences. Follow-up exploration will continue.

Exploration Strategy

With Ardea's Kalgoorlie Nickel Project tenement package covering one of the largest areas of ultramafic stratigraphy in Australia, the Company is well positioned to make nickel sulphide and Critical Mineral discoveries. Ardea will continue to rank and prioritise fit-for-purpose exploration for nickel sulphides on its high-quality portfolio of Eastern Goldfields of Western Australia tenements. Any drilling as part of the nickel sulphide programs will also assess nickelcobalt laterite, Critical Minerals and gold mineralisation, but the over-riding priority continues to be nickel.

Contact:

Andrew Penkethman

Tel: +61 8 6244 5136

About Ardea Resources

Ardea Resources Limited (ASX:ARL) is an ASX-listed resources company, with a portfolio of 100% controlled West Australian-based projects, focussed on: Development of the Kalgoorlie Nickel Project (KNP) and its sub-set the Goongarrie Hub, a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in the developed world at 830Mt at 0.71% nickel and 0.046% cobalt for 5.9Mt of contained nickel and 380kt of contained cobalt (ARL ASX announcement 16 June 2021) located in a jurisdiction with exemplary ESG credentials.

Advanced-stage exploration at compelling nickel sulphide, Critical Minerals, and gold targets within the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets complementing the KNP nickel development strategy.

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