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ASX:ARLPage 1 1 Strategic Nickel-Cobalt Supply Chain for Global Battery Value Chains Andrew Penkethman Managing Director & CEO Noosa Mining Conference July 2025 For personal use only
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ASX:ARLPage 2 Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX: Kalgoorlie Nickel Project Mineral Resource Estimate Exceeds 6 Million Tonne Contained Nickel (30 June 2023), KNP Goongarrie Hub Ore Reserve and Feasibility Study Defines +40 Year Operation with Strong Financial Metrics (5 July 2023), Kalgoorlie Nickel Project Goongarrie Hub Tenement Consolidation (17 July 2023), ARL SMM and MC to form a JV to develop KNP Goongarrie Hub ASX Announcement (29 April 2024), KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium (30 August 2024). This presentation is not an invitation, offer or recommendation (express or implied) to subscribe for, or apply for the purchase of, or to take any other action in respect of securities of any entity described herein and is not a prospectus, product disclosure statement or disclosure document for the purposes of the Corporations Act 2001 (Cth) and has not been lodged with ASIC. None of Ardea Resources Limited (Ardea or the Company) or its representatives are providing or offering investment advice or services by making this presentation. Neither Ardea nor its representatives make any representation, warranty or guarantee of any kind, express or implied, as to the accuracy, completeness or reasonableness of the information contained herein or any other written or oral communication transmitted or made available to any person receiving this presentation. To the maximum extent permitted by law, Ardea and representatives expressly disclaim any and all liability based on or arising from, in whole or in part, such information, or any errors or omissions. This presentation contains forward-looking statements regarding the Company’s resources, intentions and future business. These statements reflect current information, expectations, intentions and strategies regarding the future, and are subject to certain risks and uncertainties. Should one or more of these risks or uncertainties materialise, or should any of the underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this presentation. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. Other than where required by law, the Company is under no obligation to revise any forward looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. The Goongarrie Project has completed the Pre-Feasibility Study phase and has commenced programs that are part of the Definitive Feasibility Study. Though reasonable care has been taken to ensure that the facts are accurate and/or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results and developments of projects and the market development may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. A key conclusion of the Pre-Feasibility Study, which is based on forward looking statements, is that the Goongarrie Project is considered to have positive economic potential. No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. 2 Disclaimer For personal use only
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ASX:ARLPage 3 Multi-decade nickel-cobalt Mineral Resource1 The largest nickel-Cobalt MRE1 in Australia, located in Tier 1 jurisdiction KNP Goongarrie Hub - 584Mt at 0.69% Ni and 0.043% Co for 4Mt of contained Ni and 250kt of contained Co 1 DFS fully funded by Partners 2 KNP Kalpini Hub – 100% ARL 270Mt at 0.76% Ni and 0.05% Co for 2Mt of contained Ni and 136kt of contained Co 1 Plus Ni Sulphide at Kalpini 3 1. See full Mineral Resource Estimate (MRE) tables in Appendix 1 of this presentation and 30 June 2023 ARL ASX Announcement. Also see GSWA rankings 20 June 2024 Flyer 2. See 30 August 2024 ASX release Kalgoorlie Nickel Project (KNP) Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium 3. See 14 January 2022 ASX release Emu Lake Nickel Sulphide discovery confirmed with 2.72m at 5.42% Ni Goongarrie Hub Infrastructure Advantages: ✓ Highway ✓ Fibre optic link ✓ Power & nearby gas ✓ Rail link to 2 ports For personal use only
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ASX:ARLPage 4 Experienced international partners 4 Partnership validates project, connects to global market 1. Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC), together the Consortium, fully funding DFS up to A$98.5M to earn 35% interest in KNPL, and a further 15% interest in KNPL on Final Investment Decision (FID). Consortium earned its first 17.5% in July 2025 - see Ardea 4 July 2025 ASX announcement 2. See 30 August 2024 ASX release KNP Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium Kalgoorlie Nickel Pty Ltd (KNPL) Managing Kalgoorlie Nickel Project Definitive Feasibility Study (DFS) DFS UNDERWAY • Staged earn-in agreement with Sumitomo Metal Mining & Mitsubishi Corporation1 • Support from Ministry of Economy, Trade and Industry (METI) • Together, sole funding of in-progress DFS up to A$98.5M1,2 82.5% 17.5% For personal use only
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ASX:ARLPage 5 Sumitomo Metal Mining and Mitsubishi Corp 5 Material scale and experience in mining, metals and finance “Sumitomo Metal Mining Co., Ltd. (SMM) dates from the 16th century and copper processing in Japan. SMM is an integrated producer spanning from mineral resources development, smelting & refining, to the production of battery materials and functional materials. For nickel, its strength lies in HPAL (High Pressure Acid Leach). SMM successfully developed and operates two HPAL operations in the Philippines, at Coral Bay and Taganito.” Long Term Vision: “Become the world leader in the non-ferrous metals industry” Grow nickel production from 81ktpa (FY23) to 150ktpa Active in Australia for ~70 years “Mitsubishi Corporation operates a wide range of businesses spanning multiple industries and overseen by eight industry-specific business groups: Environmental Energy, Materials Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, Smart-Life Creation, and Power Solution.” Mitsubishi Corporation Subsidiaries in Australia Images Source: https://www.smm.co.jp/en/business/refining/products/ Image Source: https://www.mitsubishicorp.com/au/en/about/group.html Scandium Oxide Nickel Sulphate Ferronickel Electrolytic Cobalt Electrolytic Nickel Nickel Chloride For personal use only
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ASX:ARLPage 6 Proven, mature, “off the shelf” technology 6 HPAL now into 5th generation of technical advances Moa Bay Nickel, Cuba 1950’s 1990’s Eastern Goldfields, WA Coral Bay, Philippines (SMM) 2000’s 2010’s Ramu, PNG Taganito, Philippines (SMM) Industrial Parks, Indonesia 2020’s Example HPAL Image Sources (left to right): https://thecubaneconomy.com/articles/tag/sherritt-international/ ; https://www.australianmining.com.au/glencore-reduces-capacity-at-murrin-murrin/ ; https://www.smm.co.jp/en/corp_info/location/overseas/ ; https://www.smm.co.jp/en/corp_info/location/overseas/ ; https://www.petromindo.com/news/article/mbma-gem-team-up-to-develop-600m-hpal-processing-plant For personal use only
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ASX:ARLPage 7 0 100 200 300 400 500 600 700 800 2020 2021 2022 2023 2024 2025F 2026F '000t Ni HPAL Nickel Production 7 Rapid growth in HPAL nickel production since 2020 Source: Company reports, Ferroalloynet, Macquarie Commodities Strategy, March 2025 Global MHP and MSP production +300% >450% For personal use only
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ASX:ARLPage 8 Goongarrie Advantages 8 Global industry has moved on from the “WA perception” • Project partners have deep experience in HPAL, mega project development, and operations. • Demonstrated peer project delivery and ramp-up • Major partners DFS funding allows a quality study aligned with scale of project • Vendor HPAL experience has grown materially • Consistent ore means reliable, cost-competitive operation For personal use only
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ASX:ARLPage 9 • 9.1 million Electric Vehicles (EV) sales for H1 2025, representing growth of 28% for Year to Date1 • EV sales up 24% June 2025 compared to June 2024, with around 1.8 million units sold June 20251 • 13.6GWh Global energy storage grid deployments January 2025, representing 94% year on year increase2 Battery demand to grow 7-fold by 2040 9 Nickel demand continues to grow via emerging markets and the evolving energy transition Graphs after: © Benchmark Mineral Intelligence, updated 11 February 2025; Used with permission Increasing stainless steel and battery demand, along with growth in high-nickel cathodes will continue to expand nickel demand 1. EV Statistics from Rho Motion 15 July 2025 2. Rho Motion Energy 1 March 2025 For personal use only
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ASX:ARLPage 10 Steel demand growth 10 Growing production & demand from India helps offset China Source: WSA, China Customs, WIND, Macquarie Strategy, March 2025 1700 1800 1900 2000 2100 2020 2021 2022 2023 2024 2025F 2026F 2027F 2028F 2029F Mt Global Steel Consumption +132Mt >7% For personal use only
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ASX:ARLPage 11 Potential for Scandium by-product1 11 20x • Increasing global interest in security of supply following China’s addition of the element to export control list • Scandium as an alloy, increases the strength of aluminium, reduces its weight and improves other qualities • Scandium plays an important role in Solid Oxide Fuel Cells • Scandium alloy in powders for 3D printing is a rapidly growing market Published on mining.com.au Oct 2024, source Internal EY market study 2022 1. Scandium was not considered in ARL 5 July 2023 PFS For personal use only
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ASX:ARLPage 12 Security and diversity of Critical Minerals 12 Production is aligned with forecast nickel market deficits towards end of decade RC Infill Drilling KNP Goongarrie Hub With global uncertainty increasing, Goongarrie Hub’s forecast scale & long life provides strategic benefits: ✓ security of supply chain ✓ geographic diversification For personal use only
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ASX:ARLPage 13 +40 year1 project, significant growth potential 13 Nationally strategic KNP Goongarrie Hub to strengthen the battery minerals supply chain for decades Goongarrie Hill Goongarrie South Big Four / Scotia Dam Highway Deposit 17km To Siberia N To Kalgoorlie - Boulder 2023 PFS1 • Average 30ktpa Ni and 2ktpa Co • +40 years forecast operation Growth opportunities • Only 6 of 9 deposits, hosting ~76% of the Goongarrie Hub Ni Resource, were considered in 2023 Ore Reserve1,2 ✓ Potential for project expansion or life extension • Goongarrie DFS investigating flow sheet optimisation ✓ Potential for capacity expansion 1. See full tables in Appendices of presentation & 5 July 2023 Pre Feasibility Study (PFS) ASX Announcement. 2. See full Mineral Resource Estimate (MRE) tables in Appendix 1 of this presentation and 30 June 2023 ARL For personal use only
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ASX:ARLPage 14 Competitive costs 14 • PFS2 Low C1 Opex before Cobalt credit of US$10,197/t Ni (US$4.62/lb) in MHP LOM compares well with Indonesian Opex • Australia’s recently approved tax credit3: ✓Provides 10% refund against processing costs (64% of PFS Opex estimate2) for first decade ✓Not included in PFS financial analysis • KNP Goongarrie Hub low cost and long mine life, mean the project will be able to operate throughout the commodity price cycles. Goongarrie advantages provide margin through nickel price cycles A B 2. See Appendix 2 and 5 July 2023 ARL PFS ASX Announcement (A) LOM C1 Cost including Co credit US$5,763/t2 (B) LOM C1 Cost excluding Co credit US$10,197/t2 NB: Project MRE, Ore Reserve, Production, Operational and Financial metrics are being updated as part of the in -progress DFS. 3. “Critical Minerals Production Tax Inventive” as part of The Future Made in Australia (Production Tax Credit (PTC) and Other Measures) Bill 2024 (https://www.industry.gov.au/news/incentive -critical-minerals-production-and-processing-Australia) For personal use only
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ASX:ARLPage 15 Near-term news flow from underway Goongarrie DFS 15 KNP Goongarrie DFS using high quality, global consultants For personal use only
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ASX:ARLPage 16 Ardea Exploration Pipeline Upside 16 Battery and Critical Mineral exploration potential Ardea controls ~3,500km2 of tenure in the Eastern Goldfields of WA with unrivalled exploration potential • Kalpini Project - Massive nickel-copper-PGE sulphides discovered at Emu Lake (AELD0003: 2.72m at 5.42% Ni & 0.85% Cu from 391.04m) within largely untested 20km of strike1 • EIS2 hole AHID0024, beneath Highway Nickel Laterite confirms Lithium-Caesium-Tantalum mineral system2 Upcoming EIS drilling will target lithium bearing pegmatites and nickel sulphides • Ardea retain 100% ownership of non-Goongarrie Hub KNP projects (with MRE 270Mt at 0.76% Ni and 0.05% Co for 2Mt of contained Ni & 136kt of containted Co)4 providing an internal pipeline for future growth of laterite resources and other commodities • Scandium and Rare Earth Elements (REE) identified at Ardea’s KNP Kalpini tenure3 1 See 14 Jan 2022 ARL ASX Announcement 3 See 14 Mar 2022 ARL ASX Announcement 2 See 15 Dec 2023 ARL ASX Announcement. EIS is State Government Exploration Incentive Scheme 4 See full MRE tables in Appendix 1 and 30 June 2023 ARL ASX Announcement For personal use only
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ASX:ARLPage 17 Operating to high ESG standards 17 Recruiting and retaining the best people, building a skilled, passionate team Workforce of ~60 across Ardea & KNPL with 50:50 gender split Ardea is leading the way on gender equality We engage early with First Nations Communities for meaningful outcomes & partnerships including Ardea’s Indigenous Education Grant program Strong leadership & governance Delivering a diverse, resilient and sustainable Critical Minerals supply chain Meeting global and National net zero ambitions Innovative design Reducing CO2 emissions & environmental footprint Waste heat to power, in-pit tailings disposal For personal use only
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ASX:ARLPage 18 18 KNP Goongarrie Hub: An Australian nickel project with the best possible Partners, Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation 1. See 5 July 2023 ARL PFS ASX Announcement and Appendices of this presentation for Key Financial Metrics 2. Project Ore Reserve, production, operation and financial metrics are being updated as part of the in-progress DFS >40 year mine life with expansion potential Producing low cost ~30ktpa nickel & 2ktpa cobalt1,2 For resilience through multiple price cycles Project to boost national, state & local economy Supporting regional communities, large workforce, suppliers & stakeholders including First Nations people Long term supply of low cost1,2 Nickel-Cobalt in best jurisdiction Ideally timed for project development into forecast nickel deficit DFS Underway Consistent news flow with A$98.5M study, fully funded by project partners, in progress For personal use only
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ASX:ARLPage 19 © Benchmark Mineral Intelligence 2020 19 For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 ardea@ardearesources.com.au A black background with a black square Description automatically generated with medium confidence Youtube - Free social media icons ASX:ARL Keep up to date with news, videos and more at our website: www.ardearesources.com.au or follow our socials For personal use only
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ASX:ARLPage 20 20 Appendix 1 Corporate, Reserves & Resources For personal use only
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ASX:ARLPage 21 Ardea Resources - Snapshot 21 Experienced Board & management, respected Partners, supportive Shareholders, tight capital structure Mat Longworth Non-Executive Chair Experienced across exploration, project evaluation / development including KNP and corporate management Andrew Penkethman MD & CEO Experienced geologist with strong technical and corporate focus including discovery and strategic partner success. ASX, TSX and AIM experience Ian Buchhorn Technical Executive Mineral economist and geologist, with significant Eastern Goldfields of WA, exploration, evaluation, development and operations experience Maree Arnason Non-Executive Director Highly experienced director and executive in the natural resources, energy and manufacturing sectors Sam Middlemas Company Secretary Chartered Accountant experienced in providing Company Secretary services Michael Rodriguez Executive Director Metallurgist experienced in the design, construction, commissioning and operation of metallurgical operations including HPAL Rebecca Moylan Chief Financial Officer Experienced CFO with expertise in financial and corporate management, accounting, project financing and contract negotiation 210,412,915 Shares on Issue 3,513,400 Performance Rights. 3,000,000 Options Market Cap $84.2M $0.40 Share Price 22 July 2025 Cash $12M2 No Debt March 2025 Consortium fully funding DFS $98.5M To earn 35% interest in KNP Goongarrie Hub, and can increase to 50% on successful FID1 Top 40 Shareholders ~55% equity Board & Management ~10% equity (1) See 30 August 2024 ASX release Kalgoorlie Nickel Project (KNP) Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium (2) Unaudited. 31 March Cash Available of $12M - ARL March quarterly report, 29 April 2025 (3) DFS funds available $ 64M see ARL March Qtr Report, 29 April 2025 $64M remaining to be expended by Consortium in DFS Funding 31 March 2025 3 For personal use only
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ASX:ARLPage 22 Ardea wishes to clarify that its current Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines is: Note: 0.5% nickel cutoff grade used to report resources. Minor discrepancies may occur due to rounding of appropriate significant figures. 1. The Goongarrie Hub is part of KNPL Incorporated Joint Venture. See 30 August 2024 ASX release, KNP Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium. The Goongarrie Hub Resources are reported on a 100% basis, with Ardea holding an 82.5% interest. 2. The KNP Kalpini and Yerilla Hubs are known collectively as the Kalpini Hub and remain a 100% owned Ardea asset. Appendix 1 - Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 June 2023, ARL ASX PFS Announcement 5 July 2023 and ARL ASX Consortium Announcement 26 April 2024, 14 August 2024 and 30 August 2024. Resource Estimation, Exploration Results, and Industry Benchmarking The Resource Estimation, Exploration Results and Industry Benchmarking summaries are based on information reviewed or compiled by Mr Ian Buchhorn, and Mr Andrew Penkethman. Mr Buchhorn is a Member of the Australasian Institute of Mining and Metallurgy and Mr Penkethman is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Both Mr Buchhorn and Mr Penkethman are full-time employees of Ardea Resources Limited and have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Buchhorn and Mr Penkethman have reviewed this press release and consent to the inclusion in this report of the information in the form and context in which it appears. Mr Buchhorn and Mr Penkethman own Ardea shares. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate in the previous market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement. The Mineral Resource Estimate information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 30 June 2023, in accordance with Listing Rule 5.8. The Mineral Resource Estimate in the above table is inclusive of the Ore Reserve shown in the table next slide. 22 Contained Contained KNP Hub Resource Category Size (Mt) Ni (%) Co (%) Ni (kt) Co (kt) Goongarrie Hub1 Measured 18 0.94 0.085 171 15 Indicated 277 0.7 0.046 1,923 127 Inferred 289 0.67 0.037 1,951 108 Sub Total Combined 584 0.69 0.043 4,044 250 Kalpini Hub including Yerilla Hub2 Measured 4 0.94 0.048 36 2 Indicated 84 0.83 0.050 699 42 Inferred 182 0.73 0.051 1,321 92 Sub Total Combined 270 0.76 0.050 2,056 136 Kalgoorlie Nickel Project Total Measured 22 0.94 0.079 207 17 Indicated 361 0.73 0.047 2,622 169 Inferred 471 0.70 0.043 3,272 200 KNP Grand Total 854 0.71 0.045 6,101 386 For personal use only
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ASX:ARLPage 23 Appendix 1 - Competent Persons cont 23 Ore Reserves Information in this presentation that relates to Ore Reserves at the Kalgoorlie Nickel Project Goongarrie Hub is based on and fairly represents information and supporting documentation compiled by Mr Jake Fitzsimons, a Competent Person who is a full- time employee of Orelogy Mine Consulting, a company engaged by Ardea. Mr Fitzsimons is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Fitzsimons has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code). Mr Fitzsimons does not hold securities in Ardea and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear. Ardea confirms that all the material assumptions underpinning the production target, and the forecast financial information derived from the production target continue to apply and have not materially changed. Noting that the PFS included the inclusion of a small amount of Inferred Mineral Resource (20Mt or 9%) spread over the Life of Mine (page 26 of Ardea 5 July 2023 PFS ASX announcement). The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement noted above and that all material assumptions and technical parameters underpinning the Ore Reserve in the previous market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement. Contained Contained Goongarrie Hub Ore Reserve Category Size (Mt) Ni (%) Co (%) Ni (kt) Co (kt) Ore Reserve1 Proven 16.7 0.96 0.09 160 15 Probable 177.4 0.68 0.05 1,204 84 Grand Total 194.1 0.70 0.05 1,365 99 Note: Minor discrepancies may occur due to rounding of appropriate significant figures. Full details on the Ore Reserve are available in the 5 July Ardea ASX announcement, see Section 5 and Appendix 1. The Ore Reserve information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with Listing Rule 5.9. 1 KNP Goongarrie Hub Ore Reserve is reported on a 100% basis. Ardea Resources holds an 82.5% interest in the KNP Goongarrie Hub. KNP Goongarrie Hub Ore Reserve Summary For personal use only
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ASX:ARLPage 27 27 Appendix 2 2023 PFS For personal use only
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ASX:ARLPage 28 Unique characteristics drive low cost 28 Potential lowest cost producer thanks to KNP Goongarrie Hub ore deposit characteristics & geometry Goethite Premium Ore • 25km continuous strike • Mainly free-digging ore makes up ~70% of Plant Feed1 • Low acid consumption and energy requirements1 Conventional low-cost open pit mining • Mining costs <12% of total OPEX1 • Very low strip ratio of 1.8:1 (waste:ore)1 Mineralised Neutraliser (MN)2 • Replace imported neutraliser (lime) with MN from within designed pits ✓ Increased metal recovery ✓ Reduced costs and emissions. ✓ International Patent Application lodged2 Mineralised Neutraliser 2 Premium Goethite 3 Goongarrie South - Pamela Jean Deeps Section 666 9600mN 3 1 See 5 July 2023 ARL PFS ASX Announcement. NB: Project MRE, Ore Reserve, Production, Operation & Financial numbers are being updated in current in-progress DFS 2 See 16 November 2022 ARL MN ASX Announcement, Appendix 1 for assays of MN in AHID0012 20-22m photographed and 15 June 2023 ARL MN ASX Announcement 3 See 8 October 2018 High-grade nickel-cobalt mineralisation extended at Goongarrie for AGSD001 as shown on cross section and in photograph for the 96-102m interval. For personal use only
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ASX:ARLPage 29 PFS Key Financial Metrics 29 PFS defines > 40-year operation with strong financial metrics1: Financials Nickel Revenue A$ M 44,429 Cobalt Revenue A$ M 7,880 Revenue - combined A$ M 52,309 EBITDA LOM A$ M 34,217 EBITDA Annual (average) A$ M 800 EBITDA margin % 65% Net Cash Flow (Pre-tax) A$ M 31,100 Valuation Net Present Value (NPV7)2 A$ M 4,980 Internal Rate of Return (IRR)2 % 23% Total Capital Payback3 years 3.1 Assumptions Exchange rate AUD:USD 0.67 Nickel Price US$/t 25,000 Cobalt Price US$/t 60,000 1. See 5 July 2023 ARL PFS ASX Announcement. 2. Post tax. 3. From start of operation. NB: Project MRE, Ore Reserve, Production, Operation and Financial numbers are being updated as part of the in-progress DFS • Pre-tax NPV7 of A$7,625M (IRR 30%) • Post-tax NPV7 of A$4,980M (IRR 23%) • Average Annual EBITDA of A$800M • Project pay back within 3.1 years • Low cost after Cobalt credit of US$5,763/t Ni in MHP LOM For personal use only
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ASX:ARLPage 30 PFS 2023 Capital Cost Estimate 30 Preproduction Cost Category Costs (A$) Mining – overheads, mobilisation, pre-strip and other 98M Process plant & infrastructure 2,264M Sulphuric acid, steam and power plant 574M Borefield 181M Total Capital Cost1 3,117M KNP – Goongarrie Hub • Contingency considered appropriate to the level of the capital cost estimate has been included • Base date March 2023 • Refer to 5 July 2023 ARL PFS ASX Announcement for full details and Reasonable Basis Statement Ardea 5 July 2023 PFS capital cost estimate based on a 3.5Mtpa processing operation consisting of x2, 1.5Mtpa HPAL autoclaves and a 0.5Mtpa Atmospheric leach circuit. For personal use only
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ASX:ARLPage 31 DFS Key Budget Items 31 DFS Cost Centre Costs (A$) Drilling 13.4M Metallurgical Test Work 2.3M Mine Design (incl dewatering & geotechnical) 15.0M Process Plant Design 28.3M Buildings and Camp Design 5.3M Approvals 4.9M Staff, Corporate and Other 26.2M Other Expert Consultants 1.5M Tenement Costs 1.6M DFS Total Budget 98.5M The Consortium (SMM and MC) are funding 100% of the KNP Goongarrie Hub DFS costs, up to the agreed budget of A$98.5 million For personal use only
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ASX:ARLPage 33 Innovated approach to elevate ESG performance 33 Continual improvement within a responsible ESG framework, enhanced by innovation in plant design • Ardea’s R&D defined MN, within designed pits. This material can replace imported neutralising material – reducing need to import lime, increasing metal recovery, reducing costs and emissions. An International Patent Application has been lodged for this process1 • In-pit tailings storage evaporation, suited to the semi-arid environment, improving rehabilitation outcomes2 • Excess steam from Acid Plant will be fed to onsite power plant reducing CO2 emissions2 • Life Cycle Assessment (LCA) is expected to be 11.9 kg CO2 eq. per kg nickel in MHP based on project and upstream emissions2 • Recent “A” Score from Digbee ESG for Ardea and KNP activities, demonstrates continuous improvement in ESG performance3 Mineralised Neutraliser 1 2.See 5 July 2023 ARL PFS ASX Announcement. 1 See 16 November 2022 ARL MN ASX Announcement, Appendix 1 for assays of MN in AHID0012 20-22m photographed and 15 June 2023 ARL MN ASX Announcement 3.See 9 May 2023 ARL ESG ASX Announcement. For personal use only
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ASX:ARLPage 34 34 25 years of Goongarrie Hub stakeholder engagement and ore body knowledge ASX:ARL 2009 $34.5M PFS for KNP by Vale-Inco. Provided invaluable data to help expedite Ardea feasibility studies. Transfer of KNP to ARL KNP tenure and extensive technical database breathes new life in Ardea. Feb - ARL lists on ASX Positive 2018 1.5Mtpa PFS and 2.25Mtpa Expansion Study for KNP Goongarrie Hub. National & global significance of KNP enhanced Ardea pilot plant produces quality specification nickel and cobalt sulphate. NSW projects divested via Godolphin IPO - free in-specie shares to eligible shareholders. Ardea’s divestment strategy benefits KNP and Shareholders Study streams and approvals continue for priority KNP KNP Flowsheet is developed and optimised. KNP flowsheet work,+ successful NiS & Au exploration Nickel sulphide and gold targets at KNP and other tenements. Divestment on non- core tenements through JV. Update to Goongarrie Hub high grade Ni and Co resource. Engagement with potential Strategic Partners. Ni sulphide discovery confirmed at Emu Lake. KNP Goongarrie Hub work pace increases, update for KNP Mineral Resource. Emu Lake NiS discovery Gold projects divested via KalGold Mining IPO - free in-specie shares to eligible shareholders. Awarded Major Project Status. Metallurgical testwork provides material type process pathways, Mineralised Neutraliser concept confirmed and patent lodged. KNP MRE increases and KNP Goongarrie Hub PFS 3.5Mtpa base case indicates >40year mine life Non-binding MOU with Japanese Consortium confirms global status KNP Goongarrie Hub PFS 3.5Mtpa base case including updated Ore Reserve, defines large scale, long life, and low cost Ni-Co operation. Strategic Partner search narrows to quality Japanese Consortium. April 2024, Cooperation Agreement with Consortium of SMM and MC signed and DFS underway with Soft Start. August 2024, all CPs met with Shareholder Agreement signed, the adopted A$98.5M DFS Program & Budget now in full swing, under banner of KNPL, with support from ARL, SMM and MC. DFS underway with quality international partners For personal use only
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ASX:ARLPage 35 35 Appendix 3 KNPL For personal use only
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ASX:ARLPage 36 36 Partnership detail 36 Partnership validates KNP Goongarrie Hub’s global significance as a desirable Critical Minerals source * The Consortium comprised of Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) are fully funding the in progress DFS up to A$98.5M and assisting in optimising debt financing to earn: MILESTONE INTEREST IN KNPL DFS 50% complete 17.5% DFS Completion 35% Positive FID 50% KNP Goongarrie HubNon KNP Goongarrie Hub Projects Incorporated Joint Venture (IJV) 80% 20% Consortium has received support under Japanese Ministry of Economy, Trade and Industry (METI) Critical Minerals Supply Security Plan ^ See 30 June 2023 ARL MRE announcement. Or see Appendix 2 in this presentation * See 30 August 2024 ASX release KNP Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium. SMM and MC, together the Consortium, fully funding DFS up to A$98.5M to earn 35% interest in KNPL, and a further 15% interest in KNPL on positive Final Investment Decision (FID). Consortium to assist KNPL in optimising debt financing Kalgoorlie Nickel Pty Ltd (KNPL) KNPL is 100% subsidiary of Ardea and holds the KNP Goongarrie Hub. KNPL is managing the underway Definitive Feasibility Study (DFS) The Consortium is contributing financially and technically, to ultimately earn a 50% interest in KNPL*, Ardea will retain 50% interest into production Ardea retains 100% of Non KNP Goongarrie Hub Projects including: - KNP Kalpini & Yerilla Hubs (known collectively as Kalpini Hub) MRE 270Mt @ 0.76% Ni & 0.05% Co for 2Mt of contained Ni & 136kt of contained Co^ - Kalpini Project – Massive Nickel Sulphide at Emu Lake - Scandium & Rare Earth elements identified at KNP Kalpini - Perrinvale Project prospective for nickel sulphide 82.5% 17.5% For personal use only