Ardea Resources Advances Goongarrie Hub Feasibility Study with Combined International Backing of ~A$1 Billion

• The DFS is targeting completion in the first half of calendar year 2026, with multiple technical workstreams in their final stages.
• Japanese Consortium partners Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation earned a combined 35% interest in the project's joint venture company, with the right to increase this to 50% upon a positive Final Investment Decision.
• Export Finance Australia and the US Export-Import Bank provided coordinated, conditional letters of support for the project totalling approximately A$1 billion combined.
• The Goongarrie Hub was named in the Japan-US Critical Minerals Project Cooperation framework by Japan's Ministry of Economy, Trade and Industry and Ministry of Foreign Affairs.
• Ardea closed the quarter with A$19.75 million cash on hand and no debt, with A$15.9 million in remaining Consortium DFS funding.

Ardea Resources (ASX: ARL) is an Australian-based nickel developer advancing the Kalgoorlie Nickel Project (KNP) in Western Australia's Eastern Goldfields region, in joint venture with Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation. The KNP's flagship component, the Goongarrie Hub, sits within what the company describes as Australia's largest nickel-cobalt resource and one of the largest in the developed world, at 854 million tonnes grading 0.71% nickel and 0.045% cobalt, containing 6.1 million tonnes of nickel and 386,000 tonnes of cobalt. Ardea plans to develop a multi-decade operation producing more than 30,000 tonnes of nickel per year, with all key deposits located on granted mining leases in a jurisdiction recognised for its ESG credentials. Ardea also holds the 100%-owned Kalpini Hub, which sits outside the joint venture and is currently under scoping-level review.

Goongarrie Hub DFS Progress and Japanese Consortium Funding Support

The DFS for the Goongarrie Hub, located 70 kilometres northwest of Kalgoorlie-Boulder in Western Australia, continued to advance during the March 2026 quarter. The company is targeting completion of the draft DFS report in the first half of calendar year 2026, with the schedule subject to ongoing value engineering inputs and finalisation of remaining technical workstreams. Value engineering involves reviewing and refining a project's design to reduce costs while maintaining technical outcomes.

The Japanese Consortium, comprising Sumitomo Metal Mining and Mitsubishi Corporation operating through their joint venture company GH Nickel Pty Ltd, was issued the second tranche of interest in Kalgoorlie Nickel Pty Ltd (KNPL) during the quarter, bringing their aggregate holding to 35%. KNPL is the incorporated entity overseeing the DFS. Under the terms of the cooperation agreement, the Consortium retains the right to increase this to 50% following a positive Final Investment Decision (FID), the formal point at which the parties commit to constructing and operating the project.

In February 2026, Export Finance Australia (EFA) and the Export-Import Bank of the United States (EXIM) provided coordinated, conditional, and non-binding letters of support for the Goongarrie Hub's development, with a combined total of approximately A$1 billion. In March 2026, the project was included in the Joint Fact Sheet for Japan-US Critical Minerals Project Cooperation, released by Japan's Ministry of Economy, Trade and Industry (METI) and Ministry of Foreign Affairs (MOFA). 

Managing Director and CEO Andrew Penkethman commented: 

"The inclusion of the Goongarrie Hub within the Japan-U.S. Critical Minerals Project Cooperation framework, alongside coordinated support from EFA and EXIM, highlights the Project's strategic importance in building secure and resilient Critical Minerals supply chains."

DFS Technical Workstreams and Infrastructure Development

Resource models for all five key Goongarrie Hub deposits, covering Big Four/Scotia Dam, Goongarrie South, Goongarrie Hill, Highway, and Siberia North, were completed during the quarter and used by external consultants to produce updated mine plans, mining schedules, and Ore Reserve estimates. These outputs underpin the production assumptions and economic forecasts within the DFS. For reference, the 2023 pre-feasibility study defined an Ore Reserve of 194.1 million tonnes grading 0.70% nickel and 0.05% cobalt, with the updated DFS figures currently being finalised.

Borefield drilling and water flow testing were completed during the quarter, with results used to quantify suitable aquifers for the project's processing facility. Geotechnical drilling at proposed infrastructure sites was also completed, with no material issues identified to date. Results are being used to inform ground preparation and foundation designs, with further assessment still required across remaining sites. Gas supply and renewable energy integration studies are also underway.

Ardea continued advancing research and development work on its proprietary Mineralised Neutraliser (MN) technology, for which patent applications are pending in Australia and through the World Intellectual Property Office. The MN concept involves using naturally occurring carbonate material within the ore body as part of the processing plant operations. The current DFS is based on a mixed sulphide process flowsheet, which differs from the mixed hydroxide approach used in the 2023 pre-feasibility study. R&D work during the quarter covered areas including process kinetics, selective impurity removal, and value metal recovery, with outcomes used to support DFS workstreams and demonstrate the technology. 

Managing Director and CEO Andrew Penkethman noted:

"The combination of substantial technical workstream progress, ongoing DFS report drafting and value engineering refinement, is intended to ensure that the DFS, when completed, supports the most robust development decisions for Ardea, the Consortium and KNPL."

Corporate Financial Position and Stakeholder Engagement

Ardea reported A$19.75 million in cash and no debt at the end of the March 2026 quarter. The DFS continues to be funded solely by the Japanese Consortium up to an agreed budget of A$98.5 million, with A$15.9 million of that commitment remaining as at 31 March 2026. Total net operating expenditure for the quarter was A$5 million, which included A$7.3 million in feasibility study costs, partly offset by A$8.4 million in Consortium DFS funding received and A$3.7 million in government incentive receipts relating to prior periods.

During the quarter, Ardea completed a A$5 million placement to professional and sophisticated investors, with proceeds directed to working capital and assessment of the Kalpini Hub. The company and its strategic adviser, ICA Partners, are working with the Consortium to determine an optimal post-DFS funding strategy, which management has described as a priority workstream.

Stakeholder and investor engagement continued throughout the quarter. Managing Director and CEO Andrew Penkethman attended Canberra Minerals Week, where meetings included a session with Japan's Ambassador to Australia, Mr Kazuhiro Suzuki. He also joined a Western Australian Government trade delegation to Canada and the United States, attending the PDAC 2026 Convention in Toronto and holding investor and government meetings in New York and Washington DC. Ardea and KNPL also hosted site visits for key stakeholders and participated in the RIU Conference in Fremantle.

Outlook

Near-term priorities include completing the updated Mineral Resource Estimate and Ore Reserve, finalising geotechnical reporting to guide infrastructure placement, and completing outstanding environmental surveys, with additional fieldwork required in Spring 2026. A multi-agency site visit to the Goongarrie Hub is being planned for the second half of 2026 in coordination with the WA Department of Energy and Economic Diversification. KNPL plans to meet with relevant Traditional Owner groups during the June 2026 quarter to present project updates. Following DFS completion, Ardea and the Consortium will focus on finalising a project development funding strategy.

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