Ardea Resources (ARRRF)

[Chelski]

Ardea Delivers Outstanding Pre-Feasibility Study for the Goongarrie Nickel Cobalt Project with Significant Expansion Potential
Study into the production of high quality nickel and cobalt sulphates has confirmed the economic viability of this scalable, multi-decade production opportunity in Western Australia.

1.0 Mtpa base case over an initial 25-year mine life is readily capable of expansion to reflect the orebody’s larger production potential.
95.5 % cobalt recovery and 94.5 % nickel recovery (life of mine).
Strong financials for both the base 1.0 Mtpa and 1.5 Mtpa cases.
Case Pre-tax NPV8 Post-tax NPV8 IRR Payback

1.0 Mtpa A$1.43 billion A$1.04 billion 25 % 5.3 years

1.5 Mtpa A$1.93 billion A$1.40 billion 25 % 5.6 years

1.0 Mtpa base case production.
5,500 tpa of cobalt sulphate (1,180 tpa contained cobalt).
41,500 tpa of nickel sulphate (9,300 tpa contained nickel).
Capital cost of A$599 million including A$77 million contingency.
Competitive industry C1 cash cost of US$0.42/lb nickel metal (after cobalt credits).
Strong interest from potential EPC and offtake partners.
Definitive Feasibility Study (DFS) programs underway.
Upside options being assessed, including higher throughput/shorter autoclave residence time, multiple parallel trains, mineralised neutraliser optimisation, and scandium production.
Goongarrie reserve is less than 5 % of the total Kalgoorlie Nickel Project (KNP) resource, confirming the project’s potential scalability.