Christmas Message from ARL - M.D.

Dear Ardea Stakeholder,

2021 has been another busy and productive year for Ardea Resources Limited (Ardea or the Company).

Key milestones achieved by the Ardea team during the year include:

• Resource updates for the Goongarrie and Highway deposits defining a high grade resource for the Goongarrie Hub (Goongarrie) Feasibility Study (FS). Overall KNP resource is now 830Mt at 0.71% Ni and 0.046% Co, which is one of the largest undeveloped nickel-cobalt projects in the World with 5.9Mt of contained nickel and 384kt of contained cobalt (ASX release 16 June 2021).
• Increasing the project scale to 3.5Mtpa, as facilitated by the Goongarrie Hub high grade resource upgrade to 78Mt at 1.0% Ni (ASX release 15 November 2021).
• Settling a low carbon, high efficiency Goongarrie flow sheet that maximises resource utilisation using both High Pressure Acid Leach (x2 1.5Mtpa) and Atmospheric Leach (0.5Mtpa) processing. This is achieved by burning sulphur rather than fossil fuel to generate off-grid power for Goongarrie.
• Flow sheet validation underway with drill core composites submitted to the FS metallurgical laboratory for bench-scale test work.
• ESG credentials exemplary, including creating an education fund to support Indigenous students, the Eastern Goldfields Education Grant Program, along with support for a number of other worthy Eastern Goldfields of Western Australia causes. One-on-one engagement with key government agencies and environmental advocates.
• Base case production of Mixed Hydroxide Precipitate (MHP) and planned evaluation of Cathode Active Material (CAM) through Ardea’s FBICRC membership.
• Completing the divestment of all non-nickel assets with the Kalgoorlie Gold Mining Limited gold spin-out, with free in-specie share distribution to eligible Ardea Shareholders.
• Confirming a nickel sulphide discovery at Emu Lake.

All of these achievements would not be possible without the support of the communities within which we operate and the hard work and support from our employees, consultants and service providers.

I’d like to thank you for your support and wish you and your family a safe and happy Christmas and all the best for the New Year.

2022 is shaping up as a transformational year for Ardea with the Company solely focussed on development of the Kalgoorlie Nickel Project, commencing with Goongarrie. Ardea’s timing is considered optimum as demand for nickel and cobalt continues to escalate in response to growing demand from both traditional uses and the rapidly expanding energy transition utilising large scale batteries for energy storage and transport.

I look forward to staying in touch. As always, the Ardea team very much appreciate your support and feedback.

Sincerely,
Andrew Penkethman,
Managing Director and Chief Executive Officer