Slide 1: May 2019 Investor Presentation
kA A\rdea Resources Limited Ardea Resources is an Australia - focused developer and explorer DEVELOPING DIVESTING the Goongarrie our New South Wales Nickel Cobalt Project Gold and Base Metal Projects May 2019 Investor Presentation Presented by Andrew Penkethman Ardea Resources Limited Suite 2, 45 Or
Slide 2: Important notice
Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Company's prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 November 2016 and 6 January 2017), the Goongarrie
Slide 3: Nickel sulphate crystals, gold nuggets and 3D model of Mt Aubrey
Nickel Sulphate crystals from Gold nuggets recovered from 3D model of Mt Aubrey epithermal ARL pilot plant work ARL WA tenements gold system 3
Slide 4: Capital structure, top shareholders and management
Capital Structure Shares on Issue 106,145,424 Experienced management team with global experience in the resources Share Price (30 April 2019) $0.435 sector, from corporate fundraising, exploration, discovery, feasibility 52 week high / low $1.195 / $0.41 studies, development and operations. Ardea ha
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio Goongarrie Nickel Cobalt Project Australia’s premier nickel-cobalt project - DFS programs, Metallurgy and Approvals underway Nickel Sulphide Projects, WA Literature review complete, surface EM and soil geochemistry planned PERTH O Oo ESPERANCE Gold) Projects, WA\ First drilli
Slide 6: Goongarrie plant site looking northeast
6 Looking towards the plant site at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 7: Goongarrie part of broader Kalgoorlie Nickel Project
• The Goongarrie Nickel Cobalt Project (GNCP) is part of the broader Kalgoorlie Nickel Project (KNP) • KNP has a globally significant nickel and cobalt resource of 773Mt at 0.7% Ni and 0.05% Co* – 5.6 million tonnes contained Nickel – 405,000 tonnes contained Cobalt • Potential for multiple processi
Slide 8: GNCP part of the largest nickel cobalt resource in the developed world
The 100% owned GNCP is part of the largest Nickel Cobalt Resource in the developed world^ • Potential multi-decade producer of high-quality nickel and cobalt sulphate • 100% nickel and cobalt offtake available • 1.0Mtpa base case PFS – low CAPEX start-up with robust project economics* • 2.25Mtpa exp
Slide 9: Outstanding results from PFS and Expansion Studies
Outstanding results delivered from PFS* and ✓ PFS of 1Mtpa and 1.5Mtpa base case over a 25-year mine Expansion Studies completed in 2018: life completed 1.0Mtpa 1.5Mtpa 2.25Mtpa ✓ Expansion study of 2.25Mtpa with a 25-year mine life Status PFS PFS ES completed No. Trains 1 1 1 Pre Tax NPV8 US$ 1.13
Slide 10: Thick, high-grade, single ore type, low strip ratio
Thick, high-grade, single ore type, low strip rat £ g |_ Base of Lateritized Alluviu Co > 0.05% Envelope ULTRAMAFIC ULTRAMAFIG Ni > 0.5% Envelope Goongarrie Nickel Cobalt Project Pamela Jean Deeps Section 6669600mN 10 *Sc not assayed in -~ historical drillholes |< 323200mE 323100mE
Slide 11: Well understood mineralogy with consistent nickel and cobalt grades
Well understood mineralogy with consistent nickel and cobalt grades 11
Slide 12: Large scale, long-life open pit mining potential
Large scale, long-life open pit mining potential 12
Slide 13: High quality of Goongarrie ore is key to project success
• The high quality of Goongarrie ore is key to the project’s success: – uniform in composition – laterally continuous over kilometres – high levels of nickel, cobalt and scandium credit potential – overwhelmingly goethitic (unlike many other laterite deposits) – highly soluble in PAL acid, low acid
Slide 14: Geology, metallurgy and project studies progress
Geology ✓ Resource upgrade at Goongarrie ✓ Maiden reserve announced for Goongarrie ✓ 50,561m of drilling to date by Ardea since listing ✓ Comprehensive geomet studies completed and underway Metallurgy ✓ Variability and Rheology test work to date favourable ✓ Pilot Plant successfully produced nickel
Slide 15: Kalgoorlie offers world-class infrastructure
• Kalgoorlie, Western Australia offers world-class infrastructure in an established mining district – Over 125 years of mining in the region – Low sovereign risk – World-leading workplace practices enshrined in law – Goongarrie is 80 km north on the main Goldfields Highway – Railway lines, power lin
Slide 16: Drilling the Mount Zephyr project
16 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 17: Ardea's WA project portfolio
✓ 3,500km2 of 100% controlled tenure in one of Australia’s premier gold and nickel sulphide provinces ✓ Drilling recently completed at Bardoc Tectonic Zone (BTZ) ✓ Drilling confirms gold mineralisation at Gale and nickel sulphide gossan at Jones A, within the Mt Zephyr project ✓ Gold exploration pro
Slide 18: Bardoc Tectonic Zone gold potential at Goongarrie
✓ One of the major gold-bearing structures of the Eastern Goldfields runs through the GNCP ✓ 80 km long gold-producing regional shear / fault system ✓ Hosts Paddington gold mine, Goongarrie, Menzies, and Comet Vale historic gold mining centres ✓ Contiguous with Boulder-Lefroy Fault, hosts Kalgoorlie
Slide 19: Gold at Gale, Dunn's North, Dunn's Line and Paul's Find
✓ First pass drill programs completed ✓ Gold at Gale, Dunn’s North, Dunn’s Line and Paul’s Find ✓ Ni-Cu sulphides (+ gold) at Jones Area A ✓ First-pass, wide-spaced (160mx160m) drilling confirms granite hosted gold mineralisation, at Gale* Intercepts include: • AMZR0006: 96.00 m @ 0.28 g/t Au from 2
Slide 20: Historic silver mine workings at Lewis Ponds, NSW
20 Examining historic silver mine workings at Lewis Ponds, NSW
Slide 21: 2,000km2 of tenure within Lachlan Fold Belt, NSW
2,000km2 of 100% ARL controlled, highly- prospective tenure within Lachlan Fold Belt, NSW • Resource upgrade underway at Lewis Ponds (polymetallic Zn-Ag-Pb-Au-Cu VMS deposit) • Data review underway for all projects • First phase mapping and auger geochemical sampling undertaken with a focus on Mt Au
Slide 22: Mt Aubrey epithermal gold
1,350m length • Mt Aubrey epithermal gold, >1km strike length. • Mined by BHP Gold in 1990-91 Equivalent depth at Mt Aubrey Vera – 3 backfilled open pits – +10g/t Au ore left in pit floor 1000m RL • Comparable to upper levels of Vera-Nancy mine (Pajingo) Nancy North Nancy Vera North Vera South 6000m
Slide 23: Lewis Ponds resource and exploration target
Extensive mining history from 1850s through to early 1900s JORC Inferred Resource: 6.62Mt at 2.4% Zn, 1.4% Pb, 0.2% Cu, 1.5g/t Au and 69g/t Ag Exploration Target^:15–25 Mt at 2.2–3.7% ZnEq* or 1.2–2.0 g/t AuEq* The potential quantity and grade is conceptual in nature, there has been insufficient exp
Slide 24: Drill samples from Black Range
Drill samples from Black Range west of the Goongarrie Nickel Cobalt Project. Black Range contains high nickel, and cobalt, and accessory scandium, platinum and palladium.
Slide 25: Summary: advanced nickel cobalt project and strategic portfolio
✓ Advanced Australian Nickel Cobalt project at Goongarrie – Globally significant mineral resource in an infrastructure rich and stable jurisdiction – Project Studies completed: • 1Mtpa and 1.5Mtpa case studies offer significant economic opportunity* • Scoping Study completed on 2.25Mtpa case shows e
Slide 26: For further information visit www.ardearesources.com.au
For further information regarding Ardea, please visit www.ardearesources.com.au 26
Slide 27: Current activities enhancing the project
Current activities enhancing project and include: • Strategic Partner process • Goongarrie Resource Upgrade • High Grade Mine Schedule • On-site Mineralised Neutraliser study • Extensive Variability Program underway to extend the geo-metallurgy database to reflect the ore LOM • Water studies • Taili
Slide 28: Reserves optimised for mine life at Goongarrie
Insert picture of Goongarrie Reserves optimised for 25 year mine life only, less than 20% of Goongarrie resource utilised at this scale (40.1 Mt at 0.82% Nickel & 0.09% Cobalt*) 28 View over Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the deposit (blue-green = Co >0.05
Slide 29: Goongarrie Nickel Cobalt Project mineral resources
Study component of the Ardea PFS. Summary TableofError! total mineral No textresources within style of specified the Goongarrie in document.-1 – Summary Nickel Cobalt Project area, comprising of total resources at mineral resources within the Goongarrie Hill, Goongarrie Goongarrie South, Project Nic
Slide 30: Goongarrie Ore Reserves
Goongarrie Nickel Cobalt Project, Ore Reserves based on 25 year mine life at 1.5 Mtpa. Size Cobalt Nickel Deposits Class (Mt) (%) (%) Goongarrie South Proven 8.95 0.10% 0.96% Probable 17.26 0.09% 0.79% Total 26.22 0.10% 0.85% Big Four Proven — — — Probable 13.92 0.09% 0.77% Total 13.92 0.09% 0.77% T
Slide 31: KNP nickel-cobalt mineral resource
KNP nickel-cobalt mineral resource (JORC 2012), Ardea Annual Report 2017 Quantity Cobalt Nickel Contained Contained Resource Category (Mt) (%) (%) cobalt (t) nickel (t) Measured 9.6 0.10 1.02 9,700 98,800 Indicated 232.9 0.06 0.75 141,200 1,759,700 Inferred 530.5 0.05 0.68 254,400 3,600,000 KNP Tota
Slide 32: Refined cobalt vs cobalt sulphate pricing
US$/t SMM Refined Cobalt vs Cobalt Sulphate pricing (on contained cobalt) • Strong growth in sulphate pricing is expected with rapidly increasing demand for high- purity product from manufacturers globally. Increased battery production is required to power the Automotive Electrification Revolution •
Slide 33: Pressure acid leach and sulphate crystallisation process
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach Pressure Acid Leach, with Mixed Sulphide precipitation yields high purity product 33
Slide 34: Investment criteria and peer comparison of contained metal
Investment criteria Ardea Resources (KNP) Contained cobalt metal in resources Company resources Ardea: 405,000 t cobalt Over 700 million tonnes of AUZ: 57,157 t cobalt and nickel resources, WA Numerous deposits within 100km radius, CLQ: 114,000 t including Goongarrie, Black Range, Kalpini, Yerilla,