Ardea Resources Limited (Ardea or the Company) is pleased to report a strong chargeability anomaly has been returned from an Induced Polarisation (IP) survey recently completed at the Black Range Prospect.

The Black Range Prospect is located 65km north-west of Kalgoorlie within the broader Kalgoorlie Nickel Project (KNP) and contains a 5 kilometre section of the Ora Banda Sill layered mafic/ultramafic sill enriched in nickel (Ni), copper (Cu), cobalt (Co), scandium (Sc) and platinum group element (PGE) metals. The Ora Banda Sill is 2.5 kilometres wide in the prospect area and has a distinctive ultramafic base, grading into a pyroxenite zone (target horizon) before passing into a mafic gabbro at the top of the sill.

IP chargeability anomalies can relate to zones of disseminated sulphides which may represent the outer halo around massive sulphide occurrences. The IP anomaly at Black Range is potentially related to a lava feeder zone/pipe within the Ora Banda Sill that is enriched in Ni-Cu-PGE metals. A 280 metre reverse circulation (RC) drillhole is proposed to test the anomaly at depth.

Ardea's Managing Director, Andrew Penkethman, said: 'Ardea remains focussed on their Kalgoorlie Nickel Project nickel laterite and developing this project to provide sustainable and ethical nickel and Critical Mineral supply for the rapidly expanding lithium-ion battery supply chain. In tandem with this priority, compelling nickel sulphide and Critical Mineral exploration opportunities continue to be evaluated that can provide further upside.

The recently defined IP anomaly at Black Range occurring in association with a very strong Ni-Cu-PGE geochemical anomaly is highly significant. The Ni-Cu-PGE anomalism has been known about for some time, but a clear vector to test for the metal source in fresh rock had not previously been defined. With the results from Ardea's recent IP survey, the anomaly defined now provides a clear drill target and impetus to test this zone at depth with the goal of making a significant discovery.

Some of the most significant Ni-Cu-PGE discoveries including Nova (ASX: IGO) and Julimar (ASX: CHN) have been within Layered Mafic Complexes as they can have large scale potential. As such, the Black Range anomaly represents an exciting and compelling drill target. The Ardea team look forward to drill testing this feature once a suitable drill rig becomes available.'

Compelling sulphide target defined by new IP survey at Black Range

With oversight from the Company's geophysical consultants, Newexco, an induced polarisation (IP) geophysical survey has recently been completed on two north-south lines at Black Range. The IP survey was a dipoledipole survey with 100 metre spaced receiver stations along approximately one kilometre lines, providing a depth of investigation down to approximately 400 metres below surface.

The chargeability anomaly lies in the middle of the ultramafic zone just below the interpreted position of the orthopyroxenite unit. The target may represent a mineralised conduit or lava pipe 'feeder structure' within the sill and hence could be off-set from the orthopyroxenite unit. The IP data on the western line is essentially quiet with a possible chargeability response at the limit of the depth penetration for the survey, 400 metres below surface. This is poorly defined and may also be an artefact of the noise within the survey. No further work is proposed here at this stage, but it will be kept in mind that the anomalous zone may be plunging to the west.

A review by Newexco, of historic moving loop electromagnetic (MLEM) data (Heron Resources ASX release 31 December 2011) has also confirmed a clear mid-time, twin-peak inflection that is coincident with the IP anomaly. The combination of the strongly anomalous geochemical results and two independent geophysical surveys (MLEM and IP) has defined a compelling target.

To test the IP anomaly target, a 280 metre deep reverse circulation (RC) drill hole is proposed. This hole is designed to quickly and cost-effectively test the zone at depth. Once an RC rig has been secured, this compelling exploration target will be tested.

About the Black Range Prospect

The Black Range Prospect is located 65km north-west of Kalgoorlie and contains a 5 kilometre zone of the Ora Banda mafic/ultramafic sill enriched in nickel, cobalt, copper, scandium and PGE metals.

Ardea has defined a multifaceted laterite Mineral Resource1 at Black Range comprising: 19.20Mt at 0.68% nickel and 0.09% cobalt, for 130.7kt nickel and 17.8kt cobalt metal; 8.70Mt at 65.6g/t scandium for 570,000kg scandium metal and 6.55Mt at 0.33g/t Pt and 0.21g/t Pd for 70,300oz platinum and 44,000oz palladium metal.

The Ora Banda Sill is one of a number of differentiated mafic/ultramafic sills in the Archaean greenstone stratigraphy of the Kalgoorlie geological domain. It is the thickest of the sills in the area, reaching a maximum thickness of 2.8 kilometres.

It consists of a southerly facing sequence of basal ultramafic overlain by gabbro and topped with a thin coarsegrained granophyre. The ultramafic zone is made up of lower peridotite overlain by a distinctive orthopyroxenite unit with a sharp change to the upper gabbro zone. The ultramafic zones have a distinct magnetic-high signature contrasting with the magnetic-low of the gabbroic units. As with other layered intrusive systems the PGE mineralisation appears to be focussed within the orthopyroxenite unit.

A number of drilling campaigns have been completed over the Ora Banda Sill (most recent in 2017) which delineated a zoned distribution of nickel, cobalt, copper, scandium and PGE metals. High Ni-Cu-PGE zones include: 2

ABR0001/4-20m, 16m at 0.24% Ni, 0.11% Cu, 0.29g/t Pd, 0.38g/t Pt

ABR0016/2-18m, 16m at 0.45% Ni, 0.17% Cu, 0.15g/t Pd, 0.26g/t Pt

ABR0021/4-24m, 20m at 0.18% Ni, 0.09% Cu, 0.29g/t Pd, 0.36g/t Pt

This geochemical signature, particularly the high Cu and PGE values, is consistent with a sulphidic metal source and is quite different to the usual KNP nickel laterite geochemistry. The Black Range laterite geochemical signature, notably for copper, is comparable to the initial aircore drilling results at what became the Nova Ni-CuPGE sulphide discovery.

Comparable drilling results relating to the discovery of the Nova ore body included: SFRA0450, 7m at 0.49% Ni and 0.1% Cu from 72m and SFRA0457, 3m at 0.45% Ni and 0.1% Cu from 84m (refer Sirius Resources NL, ASX announcement, 10 May 2012, 26 July 2012).

Background and Company Strategy

Ardea's focus continues to be the development of the Kalgoorlie Nickel Project (KNP), commencing with the Goongarrie Nickel Cobalt Project (GNCP), to ensure sustainable and ethical nickel-cobalt and scandium production for the rapidly expanding lithium-ion battery supply chain.

Additionally, 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 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 GNCP and has the added benefit of helping control autoclave oxidising potential and improving recoveries. As such, the nickel sulphide exploration strategy complements Ardea's nickel laterite development plans.

Contact:

Andrew Penkethman

Tel: +61 8 6244 5136

About Ardea Resources

Ardea Resources Limited (ASX: ARL) is an ASX-listed resources company, with a large and strategic portfolio of 100% controlled West Australian-based projects, focussed on: Development of the Kalgoorlie Nickel Project (KNP) and its sub-set the Goongarrie Nickel Cobalt Project (GNCP), a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickelcobalt-scandium resource in the developed world and Advanced-stage exploration at compelling nickel sulphide and gold targets within the KNP Eastern Goldfields world-class nickel-gold province.

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