Ardea Resources Reports DFS Progress with Renewed Major Project Status

• Australian Federal Government renewed Major Project Status for the Kalgoorlie Nickel Project for a further three-year term
• Cash position of $11.6 million with zero debt at 31 December 2025; Japanese Consortium funding DFS up to $98.5 million with $25.6 million remaining
• Lead Agency Status application submitted to Western Australian Department of Energy and Economic Diversification
• Mineral Resource Estimate update completed following infill drilling programme; hydrogeological bore drilling underway with three of six production bores completed
• Zero lost time injuries recorded during quarter; DFS on schedule for first-half 2026 completion

Ardea Resources Limited (ASX:ARL) is a Western Australia-based critical minerals company and nickel developer progressing the Kalgoorlie Nickel Project in partnership with Sumitomo Metal Mining and Mitsubishi Corporation. The company holds a nickel-cobalt resource of 854 million tonnes containing 6.1 million tonnes of nickel and 386,000 tonnes of cobalt. The Goongarrie Hub is located 70 kilometres northwest of Kalgoorlie-Boulder on granted mining leases with access to highways, rail, power infrastructure and ports.

Goongarrie Hub DFS Progress with Major Project Status Renewed and Lead Agency Application Submitted

The Australian Federal Government renewed Major Project Status for the Kalgoorlie Nickel Project during the December 2025 quarter, extending the designation for a further three years. This status recognises the project's alignment with Australia's Critical Minerals Strategy and enables participation in government incentive programmes, including the Critical Mineral Production Tax Incentive scheme. The designation applies to projects considered nationally significant for economic development and critical mineral supply.

Kalgoorlie Nickel Pty Ltd submitted its Lead Agency Status application to the Western Australian Department of Energy and Economic Diversification. Lead Agency Status establishes a single coordinating agency for project approvals. A determination is expected during the March 2026 quarter. The joint venture company is owned by Ardea (82.5%) and GH Nickel Pty Ltd (17.5%), with the Japanese Consortium earning up to 50% through DFS funding and a positive Final Investment Decision.

The DFS work programme recorded zero lost time injuries during the quarter. Field operations included water bore drilling, diamond core drilling and environmental surveys.

Managing Director Andrew Penkethman stated:

"With Major Project Status renewed, strong government engagement, a robust financial position and a well-resourced Owners Team, Ardea, KNPL, Sumitomo Metal Mining and Mitsubishi Corporation are well-placed to complete the DFS in the first half of 2026."

Mineral Resource Estimate Update and Hydrogeological Programmes with Heritage Surveys Completed

Geological work focused on finalising Mineral Resource interpretation and modelling following completion of infill drilling. All assay results from the June and September 2025 drilling programmes were received. Resource models for Goongarrie South, Goongarrie Hill, Highway and Siberia North deposits were completed and provided to mining consultants for mine plan optimisation and Ore Reserve updates. All deposits assessed in the DFS have progressed to mine design stage.

Hydrogeological drilling commenced at the Scorpion East borefield area during the quarter. The programme includes aircore drilling to identify groundwater flow, followed by mud rotary drilling for bore installation. Three of six planned production bores were completed by December 2025, with the remainder scheduled for early 2026. Modelling work continued on mine hydrogeological data to inform mining studies.

Heritage surveys were completed with Marlinyu Ghoorlie claim representatives at the Goongarrie Hub and Scorpion East borefield areas. Flora and fauna surveys were conducted over planned infrastructure and accommodation village locations. Geotechnical investigations were undertaken for tailings storage facility and evaporation pond locations. These surveys are required for the Environmental Protection Authority referral process.

Financial Position with $11.6 Million Cash and Japanese Consortium DFS Funding

Ardea held $11.6 million in cash with no debt at 31 December 2025. The Japanese Consortium is funding 100% of DFS costs up to $98.5 million, with $25.6 million in uncommitted funding remaining at quarter-end. The Consortium, comprising Sumitomo Metal Mining and Mitsubishi Corporation, is earning an initial 35% interest in Kalgoorlie Nickel Pty Ltd by funding the DFS, with the right to increase to 50% upon a positive Final Investment Decision.

During the December quarter, the Consortium contributed $5.9 million towards DFS activities, bringing total funding to $72.9 million. Under the funding arrangement, Ardea preserves its cash position whilst the DFS progresses. Ardea and the Consortium are discussing funding strategies for project construction following DFS completion.

Quarterly expenditure totalled $9.8 million, comprising $8.6 million on exploration and evaluation (including $8.1 million for feasibility studies), $969,000 on staff costs, and $446,000 on administration. DFS expenditure covered metallurgical testwork, process plant engineering, non-process infrastructure design, environmental surveys and approvals work. The company received $130,000 in interest and $5.9 million in Consortium DFS funding during the quarter.

Next Steps

Ardea is progressing the Goongarrie Hub Definitive Feasibility Study towards completion in the first half of 2026. Immediate work includes finalising the Mineral Resource Estimate and Ore Reserve updates, completing geotechnical investigations for infrastructure placement, and advancing heritage, native title and approvals processes. The company continues engagement with First Nations groups, local government authorities and state and federal agencies regarding project development.

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