Ann: Spin-out of Ardeas Kalgoorlie-based gold assets into KAL, page-29

Here’s a reply to the questions about which tenements stay with ARL and which go to KAL.
Before that I’d like to say that I understand that we are still a small company and that us ( ARL ), developing all of the assets would either take too long or just not be practical.

I firmly believe the greatest benefit will come to us ( shareholders), by progressing each piece of ground we have closer to extraction/production.


So! To your questions- keeping in mind the fact that a full tenement breakdown will be provided in the KAL prospectus. I just made sure to ask specifically about those tenements you were concerned about.

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For a snap shot of the tenements being included in the KalGold spin-out, please refer to Figure 4 on page 3 of the ASX release (also copied below FYI). You will notice that none of the Goongarrie Hub tenements, which include Ardea’s flag-ship nickel-cobalt resources located on granted mining leases, have been included in KalGold. The Goongarrie tenements also contain the Bardoc Tectonic Zone gold controlling fault system which through preferential weathering, has also contributed to the Goongarrie nickel laterite deposits weathering so intensely to produce the premium goethite material type, which is the best in class HPAL feed, as it requires no screening or drying prior to processing. The goethite also shows industry leading low acid consumption and rheology to have as many tonnes as possible pass through the plant to maximise production capacity.

Back to your question, the gold deposit Big Four and gold prospects Lily Albany and Lady Charlotte are all located at Goongarrie, east of the Walter Williams Formation, which hosts the nickel-cobalt laterite deposits. These gold projects will all be retained 100% by Ardea and will not be part of the KalGold spin-out.

To assist you in comparing Ardea’s KNP tenement plan showing projects, with those planned for the KalGold spin-out. I’ve also copied a KNP plan below and circled the Goongarrie Hub tenements that will not be included in the KalGold spin-out. To put this in perspective, Ardea have >4,000km² of tenure with 1,077km² planned for inclusion in KalGold. A full tenement list for KalGold will be included in the upcoming prospectus.

KalGold have been set-up with a highly prospective tenement portfolio with targets ranging from green fields exploration through to quality walk up drill targets at Bulong, as shown in the 24 August 2021 ASX release, Figure 6 on page 8. The Bulong project in particular is an outstanding exploration opportunity with Ardea not drilling one of their best gold targets as it was too close to a tenement boundary. This issue was overcome with the Bulong tenure acquisition referred to in ASX release, Kalgoorlie Nickel Project – Additional Tenure Purchase, 7 June 2021. With this tenure acquisition consolidating infrastructure sites for Ardea’s future Bulong laterite development and a highly prospective gold field for KalGold.

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End email. We see that the tenements you were concerned about are indeed staying with ARL.