Ann: Ardea Loyalty Option Conversions Finalised, page-2

Wow. Locked and loaded. Big 12 mths ahead

Ardea Resources Limited (“Ardea” or the “Company”) advises that the Loyalty Options exercisable at 77 cents each expired on 31 May 2018. Over 90% of the total Options issued have being exercised, resulting in a total of 22,755,628 New Shares being issued and raised $17,521,834 in total.

The Company now holds a treasury in excess of $21 million which is being used by Ardea to transition to the next stage of development of the Goongarrie Nickel Cobalt Project, a component of the largest cobalt resource in the developed world being the Kalgoorlie Nickel Project.

The next stage of development will include continuation of Definitive Feasibility Study works including drilling for a resource upgrade and sourcing of feed material for various metallurgical programs. Importantly this programme incorporates large diameter drill core for metallurgical variability programs to quantify the efficient processing attributes of the Goongarrie ore bodies.

The pre-feasibility study base case (refer ASX release 28 March, 2018) for the Goongarrie Nickel Cobalt Project is a compelling investment basis but with optionality over much larger throughput due to the size of the Goongarrie resource has seen Ardea commence a process to identify a Strategic Partner to assist in the project’s development.

These discussions will include off take rights linked with future funding.

Chairperson Katina Law said: “The high conversion of Loyalty Options reflects the level of support for Ardea’s strategy. The company is now transitioning towards becoming a developer and the Goongarrie Nickel – Cobalt Project is significant on a world scale. Ardea remains focussed upon unlocking the true scale and value of this strategically located, multi-decade resource”.

Directors Katina Law and Ian Buchhorn exercised all of their available options (refer Appendices 3Y, separate announcement).