Ardea Resources 2025 Annual Report

• Joint Venture Operational: Sumitomo Metal Mining and Mitsubishi Corporation partnership established through binding Shareholders' Agreement execution in August 2024
• DFS Milestone Reached: Consortium earned 17.5% KNPL ownership after 50% expenditure of A$98.5 million Definitive Feasibility Study budget in July 2025
• Financial Position: A$14.6 million cash reserves with zero debt, supplemented by A$4.6 million Sumitomo Metal Mining placement
• Resource Drilling Completed: 45,735m reverse circulation and 2,278m diamond core drilling finished to upgrade resources to Measured category
• Safety Performance: Zero lost time injuries recorded across operations and contractor activities

Ardea Resources Limited (ASX:ARL) is a Western Australian-based critical minerals company focused on developing the world-class Kalgoorlie Nickel Project. The company holds 3,500km² of tenements containing the Kalgoorlie Nickel Project, which comprises nickel-cobalt-scandium laterite deposits totalling 854Mt at 0.71% Ni and 0.045% Co, containing 6.1Mt nickel and 386kt cobalt. Operations are located within 150km of Kalgoorlie-Boulder.

Joint Venture Partnership & DFS Advancement

Ardea completed its strategic partnership with Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) during FY2025. Following Foreign Investment Review Board approval in August 2024, the parties executed a binding Shareholders' Agreement establishing the Incorporated Joint Venture through Kalgoorlie Nickel Pty Ltd (KNPL). The agreement provides for the Consortium to fully fund the KNP-Goongarrie Hub Definitive Feasibility Study.

SMM reinforced its commitment through a strategic placement in April 2025, acquiring 10.73 million Ardea shares for A$4.6 million at a 10% premium to five-day VWAP, becoming a 5.1% shareholder. The consortium appointed its first director to the KNPL board following the ownership milestone achievement. KNPL's owner's team expanded to 44 members by year-end to manage DFS workstreams.

The partnership reached its first major milestone when DFS expenditures surpassed 50% of the A$98.5 million budget during FY2025. On 4 July 2025, the Consortium earned its initial 17.5% ownership stake in KNPL. Upon DFS completion, the Consortium will hold 35% ownership, with rights to increase to 50% upon a positive Final Investment Decision.

Kalgoorlie Nickel Project Development

The Goongarrie Hub is located 70km northwest of Kalgoorlie-Boulder with access to existing infrastructure including the Goldfields Highway, rail line, power infrastructure and fibre optic cable. The project connects to rail networks serving Port Kwinana industrial area and eastern Australian seaboard ports. Resources from Goongarrie, Highway and Siberia North deposits will supply a processing operation at Goongarrie South.

KNPL completed infill resource definition drilling during FY2025, totalling 45,735m reverse circulation drilling and 2,278m diamond core drilling. The programme focused on upgrading nickel-cobalt laterite resources to Measured category for early mining areas. Resource modelling updates commenced for Big Four/Scotia Dam and Highway deposits. Diamond drilling provided metallurgical, geotechnical and quality control samples.

Process development activities included bench-scale metallurgical testing for goethite and magnesian ores, detailed process plant design work with piping and instrument diagrams, and 3D modelling. Worley Chemetics received the early contractor involvement acid plant contract. Hydrogeological programmes advanced borefield development within 80km of the processing plant, with test pumping operations ongoing at multiple locations.

ESG Framework & Community Engagement

Environmental, Social and Governance considerations guide project design with focus on minimising development footprint and CO2 emissions. Ardea's Research and Development identified Mineralised Neutraliser materials within planned nickel laterite pits, potentially replacing imported limestone for acid waste stream neutralisation while reducing transport-related carbon emissions. The company lodged an International Patent Application for this process.

Community engagement continued with stakeholders including the City of Kalgoorlie-Boulder, Shire of Menzies, Western Australian Government, and Native Title claimant groups. Ardea contributed approximately A$18,000 to local initiatives including the Eastern Goldfields education fund and Menzies Community School sensory playground. The company maintains a permanent West Kalgoorlie Operations Office for ongoing community presence.

Environmental baseline surveys expanded to align with revised project scope and regulatory guidance. SLR Consulting was appointed as ESG advisor and Minviro engaged for Life Cycle Assessment updates. The Commonwealth's Major Projects Facilitation Agency supported Ardea's reapplication for Major Project Status. KNPL executed a Heritage Agreement with the Marlinyu Ghoorlie Native Title claim group covering 100 tenements in September 2025.

Outlook

The company will continue DFS completion with remaining workstreams including environmental approval processes and resource studies. The strategic partnership provides technical input and potential funding pathways toward Final Investment Decision consideration. Market analysts forecast nickel supply deficits emerging around 2030, with the Goongarrie Hub's development timeline targeting this market transition period.

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