Ardea Reaches Major Partnership Milestone with Japanese Industrial Companies

• Major Partnership Secured: Japanese consortium (Sumitomo Metal Mining & Mitsubishi Corporation) earns 17.5% stake in Goongarrie Hub after investing ~$49M (50% of DFS budget)
• Clear Development Pathway: Consortium ownership increases to 35% upon DFS completion and 50% following positive Final Investment Decision
• Board Representation: Japanese partners appoint director to KNPL board, gaining active governance participation alongside Ardea leadership
• World-Class Resource: a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in Australia.
• Strategic Validation: Partnership with major Japanese industrial companies significantly de-risks development and provides integrated supply chain access

Ardea Resources Limited (ASX: ARL) is an Australian-focused battery and critical minerals company advancing its flagship Kalgoorlie Nickel Project (KNP) in Western Australia. The company has established itself as a significant player in the global battery metals sector, with the KNP representing one of the largest nickel-cobalt resources in the developed world at 854 million tonnes grading 0.71% nickel and 0.045% cobalt.

Under the leadership of Managing Director and CEO Andrew Penkethman, a Fellow of the Australasian Institute of Mining and Metallurgy with extensive experience in exploration and project development, Ardea has systematically advanced the Goongarrie Hub as its most advanced project within the broader KNP portfolio. The company's strategic focus centers on supplying ethical and sustainable battery metals feedstock to global supply chains from its tier-one Australian jurisdiction.

The Goongarrie Hub represents the flagship asset within Ardea's portfolio, and combined with Western Australia's established mining infrastructure and regulatory framework, has attracted interest from major global players seeking reliable critical minerals supply. The recent partnership with Japanese industrial giants Sumitomo Metal Mining and Mitsubishi Corporation validates this strategic positioning and provides a clear pathway for project development.

Partnership Structure Delivers Key Validation

The consortium achieved this ownership milestone after investing 50% of the $98.5 million Definitive Feasibility Study (DFS) budget - approximately $49 million - demonstrating significant financial commitment to the project. This represents the first tranche of a structured partnership that could see the Japanese consortium ultimately control 50% of the project.

Under the cooperation agreement, the consortium's ownership will increase to 35% upon DFS completion and reach 50% if they make a positive Final Investment Decision. This staged approach provides a clear pathway for project development while maintaining alignment between all parties.

The consortium has also exercised its right to appoint a director to the Kalgoorlie Nickel Pty Ltd (KNPL) board, joining Ardea's Non-Executive Chairman Mat Longworth and CEO Andrew Penkethman. This board representation signals active participation in project governance and decision-making.

Project Development Momentum

The consortium's investment milestone coincides with ongoing DFS work for a proposed high-pressure acid leach (HPAL) operation targeting plus 30,000 tonnes per annum of nickel production. The partnership structure provides a clear funding pathway for what would be a multi-billion dollar development project.

The collaboration leverages Sumitomo's extensive experience in nickel processing and Mitsubishi's global trading and development capabilities, while Ardea contributes its substantial resource base and local expertise. This combination addresses key development challenges including technical risk, funding requirements, and offtake arrangements.

Investment Implications

For Ardea shareholders, the partnership represents significant de-risking of the development pathway. The consortium's substantial financial commitment and staged ownership structure provide validation of the project's economics while maintaining Ardea's controlling position through the development phase.

The partnership also aligns with broader strategic initiatives around critical minerals supply chain security between Australia and Japan, potentially providing additional government support for the project's development.

Investors should monitor progress toward DFS completion, which would trigger the consortium's move to 35% ownership and potentially accelerate development timelines. The involvement of major Japanese industrial partners significantly improves the probability of successful project development and financing.