Ann: March 2017 Quarterly Activities and Cashflow Report, page-3

QUARTERLY OPERATIONS REPORT

28 April 2017

Ardea admitted to ASX on 9 February 2017

• To date best performed IPO of 2017, issue price $0.20, trading range $0.17-0.92, current market capitalization $45.5 million
  
  
• Free 1 for 3 Loyalty Options to be issued to all shareholders on the Record Date of 9 May 2017 – a Prospectus containing the offer of the Loyalty Options will be dispatched shortly after the Record Date
  
  KNP Cobalt Zone Feasibility Study
  
  • Resource estimation is currently underway for Goongarrie South and Big 4 using a 0.1% cobalt cut-off grade, very good continuity of high grade cobalt mineralisation, resource uplift expected
    
    
  • Initial 56 hole 3,467 m RC drilling completed at Kalpini and Black Range, results pending
    
    Lewis Ponds Feasibility Study
    

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Broad mineralised “Polymetallic Stringer” zones in drilling:

o ALD0001 51.37 m at 2.45 % Zn equiv1 or 1.48 g/t Au equiv2 (1.28 % Zn, 0.18 g/t Au, 22.0 g/t Ag, 0.51 % Pb, and 0.11 % Cu) from 41.60 m

o ALD0001 20.91 m at 2.74 % Zn equiv or 1.63 g/t Au equiv (1.39 % Zn, 0.17 g/t Au, 32.7 g/t Ag, 0.56 % Pb, and 0.10 % Cu) from 110.76 m

o ALD0002 16.40 m at 8.53 % Zn equiv or 5.07 g/t Au equiv (4.73 % Zn, 0.86 g/t Au, 75.9 g/t Ag, 1.44 % Pb, and 0.19 % Cu) from 43.60 m

Such intercepts are typical of the major deposits of the region, indicating the potential for a bulk-tonnage mining operation.