Goongarrie Nickel-Cobalt Project ARL 100%

The Goongarrie Nickel-Cobalt Project is Ardea’s flagship project. The 100% owned GNCP is part of the largest Nickel Cobalt Resource in the developed world. Goongarrie is located in the tier-one mining jurisdiction of Kalgoorlie, which offers world-class infrastructure in an established mining hub.

Goongarrie is a globally significant, readily scalable project, which is being developed to become a long-term producer of high-quality nickel-cobalt sulphate.

Ardea is positioning Goongarrie to be a supplier of high-purity nickel and cobalt sulphate to the lithium ion battery market as the automotive electrification revolution continues to rapidly grow. The electric vehicle market is expected to account for 14% of new car sales by 2025, whilst the cobalt sulphate market is forecasted to reach US$9.5 billion by 2025.

Increased demand for cobalt sulphate is driven by the higher energy density it provides to both electric vehicle and energy storage system batteries.

On 15 February 2021, Ardea presented an updated JORC 2012-compliant Mineral Resource Estimate (MRE) completed for the Goongarrie Nickel Cobalt Project (GNCP), including a GNCP High Grade Resource - 60 million tonnes at 1.0% nickel Sustainable Long-life Battery Metal Resource Confirmed

JORC 2012-compliant Mineral Resource Estimate (MRE) completed for the Goongarrie Nickel Cobalt Project (GNCP)
	GNCP based on 0.8% Ni cut‑off grade	GNCP based on 0.5% Ni cut‑off grade	KNP based on 0.5% Ni cut‑off grade
Measured Indicated & Inferred MRE	60Mt at 1.0% Ni and 0.07% Co Contained metal 595kt nickel and 44kt cobalt	259Mt at 0.7% Ni and 0.05% Co Contained metal 1,817kt nickel and 119kt cobalt	826Mt at 0.7% Ni and 0.05% Co Contained metal 5,817kt nickel and 384kt cobalt
Notes: GNCP Maiden scandium component 74Mt at 35ppm scandium GNCP dominantly premium goethite mineralogy with excellent mineralised zone continuity, low acid consumption and good plant rheology Manganese credit, potential for Precursor Cathode Active Material (PCAM) Significant alumina credit within Clay Upper Goethite, recent Ardea R&D indicates potential for High Purity Alumina (subject to bench-scale testing)

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The GNCP R&D product studies and resource update is the culmination of 12 months’ work and demonstrates that the GNCP is one of the largest and most strategic nickel-cobalt deposits in the developed world.

With the GNCP located 70km north of the City of Kalgoorlie-Boulder and the 25km long line of resources on granted mining leases, the project is strategically positioned to provide sustainable and ethical mineral supply in the premier mining jurisdiction in the world, Western Australia.

Most importantly for future project development, using a 0.8% nickel cut‑off grade, the MRE is 60 million tonnes at 1% nickel with strong cobalt, scandium and aluminium credits. This is a significant project advancement.

The Company is targeting leach feed grades to a 2Mtpa High Pressure Acid Leach (HPAL) plant exceeding 1% nickel for 25 years. Ardea uniquely within Australian laterites has resource optionality due to the large size and exceptional quality of the KNP resources for mine high grading and selective recovery of key geo-metallurgical mineralisation types.

The GNCP also has significant manganese credits and thus has potential for Precursor Cathode Active Material (PCAM) for use in lithium-ion batteries (LIB). Of significance, the nickel-cobalt-manganese for use in NCM811 cathodes - 8 parts nickel, 1 part cobalt and 1 part manganese – approximates the KNP in-ground metal ratio.

Resource

Table 1-1 – GNCP nickel, cobalt and scandium Mineral Resources based on a 0.8% Ni cut‑off grade
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Contained Metal		Sc Resources
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Ni (kt)	Co (kt)	Mt	Sc (ppm)
Goongarrie Hill	Indicated	5.3	0.92	0.050	49	2.6	2.4	17
	Inferred	1.9	0.92	0.034	17	0.6	0.4	16
	Subtotal	7.2	0.92	0.046	66	3.3	2.8	17
Goongarrie South	Measured	11.0	1.13	0.106	125	11.6	11.0	39
	Indicated	21.1	0.99	0.071	208	15.0	15.5	25
	Inferred	1.2	0.92	0.043	11	0.5	0.5	25
	Subtotal	33.3	1.03	0.081	344	27.1	27.0	31
Big Four	Indicated	12.1	0.97	0.068	118	8.3	8.9	27
	Inferred	2.7	0.94	0.062	25	1.7	0.5	27
	Subtotal	14.7	0.97	0.067	143	9.9	9.4	27
Scotia Dam	Indicated	2.9	0.98	0.108	29	3.2	2.9	28
	Inferred	1.4	1.02	0.057	14	0.8	0.0	26
	Subtotal	4.3	0.99	0.091	43	4.0	2.9	28
GNCP Total	Measured	11.0	1.13	0.106	125	11.6	11.0	39
	Indicated	41.5	0.97	0.070	404	29.0	29.7	25
	Inferred	7.1	0.95	0.051	67	3.6	1.4	23
	Grand Total	59.6	1.00	0.074	595	44.3	42.2	29

Table 1-2 – GNCP nickel, cobalt and scandium Mineral Resources based on a 0.5% Ni cut‑off grade
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Contained Metal		Sc Resources
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Ni (kt)	Co (kt)	Mt	Sc (ppm)
Goongarrie Hill	Indicated	40	0.65	0.037	260	14.7	10.5	16
	Inferred	29	0.60	0.025	178	7.3	2.0	16
	Subtotal	69	0.63	0.032	438	21.9	12.5	16
Goongarrie South	Measured	18	0.94	0.085	172	15.4	18.2	40
	Indicated	82	0.71	0.049	587	40.2	53.1	23
	Inferred	10	0.64	0.033	61	3.1	5.5	24
	Subtotal	110	0.75	0.053	820	58.7	76.8	27
Big Four	Indicated	49	0.71	0.047	345	22.9	31.9	24
	Inferred	14	0.68	0.043	95	6.1	2.9	24
	Subtotal	63	0.70	0.046	440	28.9	34.8	24
Scotia Dam	Indicated	12	0.71	0.065	82	7.4	11.2	25
	Inferred	5	0.72	0.043	37	2.2	0.6	22
	Subtotal	17	0.72	0.058	118	9.6	11.7	25
GNCP Total	Measured	18	0.94	0.085	172	15.4	18.2	40
	Indicated	182	0.70	0.047	1,274	85.1	106.6	23
	Inferred	58	0.64	0.032	371	18.6	11.0	23
	Grand Total	259	0.70	0.046	1,817	119.2	135.8	25

Table 1-3 – Updated KNP nickel and cobalt Mineral Resources based on a 0.5% Ni cut‑off grade
Camp	Prospect	Resource Category	Size (Mt)	Ni (%)	Co (%)	Contained Metal		Estimation Details
Camp	Prospect	Resource Category	Size (Mt)	Ni (%)	Co (%)	Ni (kt)	Co (kt)	Method	Source	Year
Goongarrie	Goongarrie South	Measured	18	0.94	0.085	171	15	LUC	Ardea	2021
		Indicated	82	0.71	0.049	584	40	LUC	Ardea	2021
		Inferred	10	0.64	0.033	61	3	LUC	Ardea	2021
	Highway	Indicated	53	0.66	0.042	349	22	OK	Heron	2009
	Highway	Inferred	34	0.64	0.038	218	13	OK	Heron	2009
	Ghost Rocks	Inferred	47	0.66	0.042	312	20	OK	Snowden	2004
	Goongarrie Hill	Indicated	40	0.65	0.037	259	15	LUC	Ardea	2021
	Goongarrie Hill	Inferred	29	0.60	0.025	176	7	LUC	Ardea	2021
	Big Four	Indicated	49	0.71	0.047	346	23	LUC	Ardea	2021
	Big Four	Inferred	14	0.68	0.043	96	6	LUC	Ardea	2021
	Scotia	Indicated	12	0.71	0.065	82	7	LUC	Ardea	2021
	Scotia	Inferred	5	0.72	0.043	37	2	LUC	Ardea	2021
	Goongarrie Subtotal	Measured	18	0.94	0.085	171	15
		Indicated	235	0.69	0.046	1,620	108
		Inferred	140	0.65	0.037	900	52
		Combined	393	0.68	0.044	2,692	175
Siberia	Siberia South	Inferred	81	0.65	0.033	523	27	OK	Snowden	2004
	Siberia North	Indicated	10	0.64	0.051	64	5	OK	Snowden	2009
	Siberia North	Inferred	53	0.66	0.043	352	23	OK	Snowden	2009
	Black Range	Indicated	9	0.67	0.090	62	8	OK	HGMC	2017
	Black Range	Inferred	10	0.69	0.100	68	10	OK	HGMC	2017
	Siberia Subtotal	Indicated	19	0.65	0.070	126	13
		Inferred	144	0.66	0.041	943	59
		Combined	163	0.66	0.045	1,070	73
KNP WEST TOTAL		Measured	18	0.94	0.085	171	15
		Indicated	255	0.69	0.048	1,747	121
		Inferred	283	0.65	0.039	1,844	111
		Combined	556	0.68	0.045	3,761	248

Bulong	Taurus	Inferred	14	0.84	0.051	119	7	OK	Snowden	2007
	Bulong East	Indicated	16	1.06	0.055	169	9	OK	Snowden	2004
	Bulong East	Inferred	24	0.79	0.053	190	13	OK	Snowden	2004
	Bulong Subtotal	Indicated	16	1.06	0.055	169	9
		Inferred	38	0.81	0.052	309	20
		Combined	54	0.88	0.053	477	29
Hampton	Kalpini	Inferred	75	0.73	0.044	550	33	OK	Snowden	2004
Hampton	Hampton Subtotal	Inferred	75	0.73	0.044	550	33
KNP EAST TOTAL		Indicated	16	1.06	0.055	169	9
		Inferred	114	0.76	0.047	859	53
		Combined	130	0.79	0.048	1,028	62

Yerilla	Jump Up Dam	Measured	4	0.94	0.048	36	2	OK	Snowden	2008
		Indicated	42	0.78	0.043	324	18	OK	Snowden	2008
		Inferred	18	0.63	0.034	116	6	OK	Snowden	2008
	Boyce Creek	Indicated	27	0.77	0.058	206	16	OK	Snowden	2009
	Aubils	Inferred	49	0.70	0.066	346	33	OK	Heron	2008
KNP YERILLA TOTAL		Measured	4	0.94	0.048	36	2
		Indicated	68	0.78	0.049	531	33
		Inferred	68	0.68	0.057	462	39
		Combined	140	0.73	0.053	1,028	74

KNP TOTAL		Measured	22	0.94	0.079	207	17
		Indicated	339	0.72	0.048	2,446	163
		Inferred	465	0.68	0.044	3,165	203

GRAND TOTAL		Combined	826	0.70	0.046	5,817	384
Legend: LUC – Local Uniform Conditioning; OK – Ordinary Kriging

Table 5-1 – GNCP nickel, cobalt and scandium Mineral Resources based on a 1.0% Ni cut‑off grade
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Contained Metal		Sc Resources
Deposit	Resource Category	Tonnes (Mt)	Ni (%)	Co (%)	Ni (kt)	Co (kt)	Mt	Sc (ppm)
Goongarrie Hill	Indicated	1.0	1.11	0.061	12	0.6	0.6	17
	Inferred	0.3	1.11	0.039	4	0.1	0.1	14
	Subtotal	1.4	1.11	0.055	15	0.8	0.7	17
Goongarrie South	Measured	6.9	1.28	0.125	88	8.6	6.9	39
	Indicated	7.5	1.17	0.090	88	6.8	5.7	25
	Inferred	0.2	1.11	0.049	3	0.1	0.1	26
	Subtotal	14.6	1.22	0.106	178	15.5	12.7	33
Big Four	Indicated	3.9	1.16	0.089	46	3.5	3.1	28
	Inferred	0.6	1.13	0.088	7	0.5	0.2	29
	Subtotal	4.5	1.15	0.089	52	4.0	3.2	28
Scotia Dam	Indicated	1.0	1.16	0.148	12	1.5	1.0	29
	Inferred	0.7	1.17	0.067	8	0.4	0.0	20
	Subtotal	1.7	1.16	0.116	19	1.9	1.0	29
GNCP Total	Measured	6.9	1.28	0.125	88	8.6	6.9	39
	Indicated	13.5	1.16	0.092	156	12.4	10.3	26
	Inferred	1.8	1.14	0.067	21	1.2	0.4	24
	Grand Total	22.2	1.20	0.100	265	22.2	17.6	31

Table 5-2 – GNCP nickel, cobalt and scandium Mineral Resources based on a combination of 0.5% Ni and 20 ppm Sc cut‑off grades
Deposit	Resource Category	Tonnes (Mt)	Sc (ppm)	Ni (%)	Co (%)	Contained Metal
Deposit	Resource Category	Tonnes (Mt)	Sc (ppm)	Ni (%)	Co (%)	Sc (kt)	Ni (kt)	Co (kt)
Goongarrie Hill	Indicated	2.5	25	0.73	0.052	0.06	19	1.3
	Inferred	0.6	24	0.67	0.050	0.01	4	0.3
	Subtotal	3.1	25	0.72	0.052	0.08	23	1.6
Goongarrie South	Measured	16.7	42	0.96	0.086	0.70	160	14.4
	Indicated	28.6	31	0.77	0.066	0.89	220	18.9
	Inferred	2.8	37	0.64	0.035	0.10	18	1.0
	Subtotal	48.2	35	0.83	0.071	1.69	399	34.3
Big Four	Indicated	16.0	35	0.77	0.063	0.56	123	10.0
	Inferred	1.4	36	0.72	0.057	0.05	10	0.8
	Subtotal	17.3	35	0.77	0.062	0.61	133	10.8
Scotia Dam	Indicated	5.5	36	0.75	0.091	0.20	42	5.1
	Inferred	0.2	36	0.62	0.036	0.01	1	0.1
	Subtotal	5.8	36	0.75	0.089	0.21	43	5.1
GNCP Total	Measured	16.7	42	0.96	0.086	0.70	160	14.4
	Indicated	52.7	33	0.77	0.067	1.71	403	35.3
	Inferred	5.0	35	0.66	0.043	0.18	33	2.1
	Grand Total	74.4	35	0.80	0.070	2.59	597	51.9

For more detail and explanatory discussion, see ASX announcement dated 15 February 2021.

(February 2021)