Slide 1: Ardea Resources Limited
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 30 July 2019 Sprott Natural Resource Symposium Presentation Presented by Andrew Penkethman Ardea Res
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 and gold nuggets
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 and management team
Capital Structure, as at 22 July 2019 Experienced management team with global experience in the resources Shares on Issue 106,145,424 sector, from corporate fundraising, exploration, discovery, feasibility Share Price (22 July 2019) $0.50 studies, development and operations. 52 week high / low $0.89
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio Goongarrie Nickel Cobalt Project Australia’s premier nickel-cobalt project - DFS programs, Metallurgy and Approvals underway Porphyry Epithermall Nickel Sulphide Projects, WA Copper-Gold Projects 8aVMs) Literature review complete, surface MetallProjects, NSW) 2 Osyoney EM and
Slide 6: Goongarrie plant site
6 Looking towards the plant site at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 7: Kalgoorlie Nickel Project globally significant nickel and cobalt resource
• Kalgoorlie Nickel Project (KNP) has a globally significant nickel and cobalt resource of 773Mt at 0.7% Ni and 0.05% Co* – 5.6 million tonnes contained Nickel – 405,000 tonnes contained Cobalt • The Goongarrie Nickel Cobalt Project (GNCP) is part of the broader KNP, with a resource of 216Mt at 0.71
Slide 8: Nickel equivalent resource comparison
Source: SNL database & Ardea Company data (KNP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq. %) = Ni(%) + 2.107xCo(%) + 0.459xCu(%). Recoveries were not considered for high-lev
Slide 9: Nickel equivalent resource comparison (KNP & GNCP)
Source: SNL database & Ardea Company data (KNP & GNCP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq. %) = Ni(%) + 2.107xCo(%) + 0.459xCu(%). Recoveries were not considered for h
Slide 10: 100% owned GNCP part of largest nickel cobalt resource in developed world
The 100% owned GNCP is part of the largest Nickel Cobalt Resource in the developed world^ • Potential multi-decade producer of high-quality nickel and cobalt sulphate • 100% nickel and cobalt offtake available • 1.0Mtpa base case PFS – low CAPEX start-up with robust project economics* • 2.25Mtpa exp
Slide 11: Outstanding results from PFS and Expansion Studies
Outstanding results delivered from PFS* and ✓ PFS of 1Mtpa and 1.5Mtpa base case over a 25-year mine Expansion Studies completed in 2018: life completed 1.0Mtpa 1.5Mtpa 2.25Mtpa ✓ Expansion study of 2.25Mtpa with a 25-year mine life Status PFS PFS ES completed No. Trains 1 1 1 Pre Tax NPV8 US$ 1.13
Slide 12: 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 12 *Sc not assayed in -~ historical drillholes |< 323200mE 323100mE
Slide 13: Well understood mineralogy with consistent nickel and cobalt grades
Well understood mineralogy with consistent nickel and cobalt grades 13
Slide 14: Large scale, long-life open pit mining potential
Large scale, long-life open pit mining potential 14
Slide 15: High quality of Goongarrie ore is key to project success
The high quality of Goongarrie ore is the key to project success: • High levels of nickel and cobalt with scandium credit potential • Ore mainly goethitic (>40% Fe), no smectite clays (unlike many other laterite deposits, so no drying required before ore processed) • Highly soluble in PAL, low acid
Slide 16: 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 17: Kalgoorlie, Western Australia infrastructure and jurisdiction
• Kalgoorlie, Western Australia offers world-class infrastructure in an established mining district – Over 125 years of mining in the region – Nil sovereign risk, very strong Local Government support – Goongarrie is 80 km north on the main Goldfields Highway – Railway line, power line, optic fibre c
Slide 18: Nickel supplies most critical among battery minerals
350 300 • High levels of most battery minerals but not nickel 250 • No shortage of graphite or lithium 200 • Nickel supplies most critical Years 150 • Declining nickel reserves 100 • Growing nickel demand expected 50 to result in rising prices 0 Graphite Lithium Aluminium Cobalt Manganese Copper Nic
Slide 19: Nickel Production and Consumption
Nickel Production and Consumption • Production and consumption growth CAGR +5.8% 2,500 have been increasing Production (kt) • During the Chinese economic boom, 2000-2015, GDP growth between 10 2,000 Consumption (kt) and 30% per annum (pa) initiated the Chinese Boom 2000-15 CAGR +3.1% acceleration •
Slide 20: Nickel market size and EV demand
• Current nickel market size ~2.5 million tonnes pa • Depending on the scenario for the EV/SSB rate of adoption, nickel volumes to meet additional demand vary between 750,000 tonnes and 2 million tonnes pa • Nickel demand from EV/SSB is expected to far exceed nickel production from existing operatio
Slide 21: 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 22: Drilling the Mount Zephyr project
22 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 23: 3,500km2 of 100% controlled tenure in WA
✓ 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) confirms gold mineralisation potential with multiple targets ✓ Drilling confirms gold mineralisation at Gale and nickel sulphide gossan at
Slide 24: 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 25: Mt Zephyr potential next significant discovery
• Granitoid hosted gold mineralisation from surface* • On Celia Shear Zone along strike from geologically similar Jupiter and Wallaby gold mines • Mt Zephyr has the scope, scale, and potential to be home to the next significant discovery of WA’s Eastern Goldfields. It includes: • Orogenic gold miner
Slide 26: Cathedrals Belt nickel sulphide potential
• The Cathedrals Belt, Australia’s newest nickel province, is a geologically unusual E-W belt. • Ardea has the eastern strike extent of the host structure of St George Mining’s recent Mt Alexander Ni-Cu(-PGE) sulphide discoveries. • St George Mining notes that*: – they have 42 untested conductors wi
Slide 27: Historic silver mine workings at Lewis Ponds, NSW
27 Examining historic silver mine workings at Lewis Ponds, NSW
Slide 28: 3,216km2 of tenure within Lachlan Fold Belt, NSW
3,216km2 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 reviews completed and strategy defined for all projects • First phase mapping and auger geochemical sampling undertake
Slide 29: Mt Aubrey epithermal gold
1,350m length • Mt Aubrey epithermal gold, >1km strike length, open at depth. • Mined by BHP Gold in 1990-91 – 3 backfilled open pits Equivalent depth at Mt Aubrey Vera – +10g/t Au ore left in pit floor – 1991 gold price US$350 oz, now >US$1,400 oz. 1000m RL • Comparable to upper levels of Nancy Nor
Slide 30: 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 31: Goongarrie is Australia's premier nickel-cobalt project
• Goongarrie is clearly Australia’s premier nickel-cobalt project • Globally significant mineral resource in an infrastructure rich and stable jurisdiction provides ability to increase production from multiple processing hubs within the KNP • Up to 100% off-take is available, subject to financing su
Slide 32: For further information visit www.ardearesources.com.au
For further information regarding Ardea, please visit www.ardearesources.com.au 32
Slide 33: Goongarrie reserves and resource utilisation
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*) 33 View over Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the deposit (blue-green = Co >0.05
Slide 34: 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 35: 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 36: KNP nickel-cobalt mineral resource (JORC 2012)
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 37: Refined cobalt and nickel vs 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 38: 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 38