Ardea Resources Quarterly Update - June 2025

• Maintained zero lost-time injuries with $49 million remaining in committed DFS funding from Japanese consortium partners 
• Completed 6,208 metres of RC infill drilling and 1,149 metres of diamond drilling at Goongarrie South and Goongarrie Hill deposits 
• Strong financial position with $14.6 million cash on hand and no debt following successful $4.6 million placement 
• Strategic partners SMM and Mitsubishi Corporation earned first tranche interest in joint venture after spending 50% of DFS budget 
• Advanced environmental and community initiatives including Native Title celebrations support and comprehensive baseline studies

Ardea Resources (ASX: ARL) is an ASX-listed nickel development company focused on building one of the world's largest critical mineral operations. The company is developing the Kalgoorlie Nickel Project (KNP), which hosts Australia's largest nickel-cobalt resource at 854 million tonnes containing 6.1 million tonnes of nickel and 386,000 tonnes of cobalt. Located in Western Australia's proven mining jurisdiction, the project benefits from exemplary Environmental, Social and Governance (ESG) credentials.

The company operates through two main hubs: the Goongarrie Hub (82.5% Ardea ownership with consortium partners earning up to 50%) and the Kalpini Hub (100% Ardea ownership). This strategic structure provides both immediate development opportunities through the joint venture and longer-term growth potential through wholly-owned assets.

Strategic Progress on the Kalgoorlie Nickel Project DFS

The definitive feasibility study for the Goongarrie Hub continued across multiple technical workstreams. During the quarter, strategic partners Sumitomo Metal Mining and Mitsubishi Corporation earned their first tranche of interest after expending 50% of the allocated $98.5 million DFS budget.

The project completed 6,208 metres of reverse circulation infill drilling at key deposits, designed to upgrade nickel-cobalt laterite resources to the measured category for initial mining areas. The drilling programme intersected expected widths of nickel laterite mineralisation, with initial geochemical results showing previously untested mineralised neutraliser intersections. This technology is subject to Ardea's global patent applications.

The bulk High-Pressure Acid Leaching processing tests concluded during the period. Process plant design reached 60% completion with piping and instrumentation diagrams substantially completed. The non-process infrastructure design advanced to 80% completion, with services agreement awarded to contractor Primero.

Managing Director Andrew Penkethman stated:

"Considerable work continues to be undertaken as part of the Goongarrie Hub DFS, which is being managed by KNPL. Significant input into the DFS is also being provided by Ardea, SMM, and MC personnel to ensure that the collective experience of all KNPL shareholders is incorporated to deliver optimal outcomes."

Strong Financial Backing and Cash Position

Ardea ended the quarter with $14.6 million cash on hand and no debt. The company completed a $4.6 million placement to strategic partner Sumitomo Metal Mining at a 7.5% premium to last traded price.

The consortium funding arrangement provides $49 million in remaining committed DFS funding. This structure allows the company to advance its flagship project with DFS costs funded by consortium partners. The company's quarterly expenditure of $16.9 million primarily consisted of DFS activities.

The company received a $1.2 million Research and Development tax incentive rebate during the quarter. Based on current expenditure levels, available funding provides coverage for 3.77 quarters for DFS completion.

Permitting, ESG and Community Initiatives Advancing

Environmental and social governance initiatives continued during the quarter. The company recorded zero lost-time injuries across field operations including drilling programmes and site activities.

Environmental baseline studies expanded to align with the project's development footprint, with surveys extending to new borefield and pipeline areas. The studies support regulatory approval processes under both State Environmental Protection Act and Commonwealth Environment Protection and Biodiversity Conservation Act assessments.

Community engagement activities included financial support for Indigenous Native Title celebration activities and local sporting organisations. The company contributed funds to assist Kakarra Part A Traditional Owners with on-country celebrations following Native Title consent determination, with Ardea representatives attending August celebrations at Goongarrie Homestead.

Preparation for Lead Agency Status submission to the Department of Energy and Economic Diversification continues, with new senior approval team members appointed including Head of Approvals and Compliance and Approvals Manager positions. The company completed an ESG strategy development workshop and commissioned Life Cycle Assessment revisions to align with DFS parameters.

Summary and Next Steps

Ardea Resources completed key activities across technical, financial and regulatory areas during the June quarter. The consortium partner milestone was achieved and the company maintained its cash position of $14.6 million.

Upcoming activities include continued process testwork and design work, mineral resource estimate updates incorporating recent drilling results, and progression of approvals programmes. The company expects to provide regular DFS updates as workstreams advance toward completion, with community consultation and stakeholder engagement continuing. 

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