Announcement PDF 6 October 2020 ASX and Media Release ADAVALE RESOURCES LIMITED ANNOUNCES SHARE PURCHASE PLAN Adavale Resources Limited (ASX:ADD) (“Adavale” or “the Company”) is pleased to announce the Company is undertaking a Share Purchase Plan (“SPP”) to provide existing shareholders with the opportunity to subscribe for shares at an issue price of $0.03 representing a discount of 20% to the five (5) day Volume Weighted Average Price (VWAP) preceding and including Monday, 5 October 2020. The Company will progress the exploration and development of its high-grade nickel sulphide assets in Tanzania as well as strengthen its balance sheet SPP offer opens 10am Thursday, 8 October 2020 & closes 5pm Tuesday, 27 October 2020 Each eligible shareholder under the SPP, has the opportunity to acquire up to $30,000 worth of shares at an issue price of $0.03 (subject to scale-back at Adavale’s absolute discretion), without paying any brokerage fees, commissions or other transaction costs. The SPP will be targeted at A$1,200,000 (before costs), being a maximum of 40,000,000 Shares, however the Company reserves the right to accept oversubscriptions for a further $300,000 at its sole discretion by announcement to ASX, subject to the Listing Rules. In addition, Adavale may, in its absolute discretion, scale back applications. Participation in the SPP is optional and not underwritten. This SPP offers relies on the exception 5 of Listing Rule 7.2, notably that that the SPP will satisfy the conditions in the ASIC Corporations (Share and Purchases Plans) Instrument 2019/447. This SPP will satisfy each of the exception 5 conditions including: • • the number of shares to be issued will not being greater than 30% of the existing shares already on issue; and the issue price shall not be at a discount to the VWAP market price greater than 20%. Adavale Resources Limited’s Chairman Mr Grant Pierce commented “I would like to take this opportunity to thank every Adavale shareholder for your ongoing support. On behalf of your new Board of Directors, I am pleased to be able to have the opportunity invite all existing shareholders to subscribe for Adavale shares at an issue price representing a discount of slightly less than 20% to the 5-day VWAP at close of trade on Monday, 5 October 2020. Net proceeds from the SPP will be used to strengthen Adavale’s balance sheet and enable Adavale to progress ‘boots on ground’ exploration work on its tenements.” The SPP Booklet will be released as per the indicative timetable below setting out the full details of the SPP, including how to participate under the SPP Terms and Conditions. Event Date Record Date 7.00pm (AEDT), Monday, 5 October 2020 Despatch/Lodgement of and Distribution of SPP Letter/Booklet (containing terms and conditions of the SPP) On or about Thursday, 8 October 2020 SPP offer opens 10.00am (AEDT), Thursday, 8 October 2020 5.00pm (AEDT), Tuesday, 27 October 2020 Thursday, 29 October 2020 SPP offer closes SPP results announcement Issue and allotment of New Securities Expected quotation of and trading date of new Shares on ASX Tuesday, 3 November 2020 Wednesday, 4 November 2020 Company Address: Suite 9.03, 88 Phillip Street, Sydney NSW 2000, Australia P a g e |1 This release is approved by the Board of Directors. Julian Rockett In-house counsel and company secretary E. julian@adavaleresources.com About Adavale Adavale Resources Limited is an Australian Stock Exchange (ASX) listed mineral exploration company with assets in Tanzania and South Australia. Adavale has 100% ownership of the Kabanga North and Kabanga North East concessions, covering over 400km2 adjoining the Kabanga Nickel Project and the recent application for Burigi licence located along the Karagwe-Ankoilean system in Tanzania. Historically owned by BHP Billiton (BHP), the Kabanga Nickel Project (“The Project”) is in a highly prospective nickel region which holds one of the world’s largest undeveloped high-grade nickel sulphide resources of 58Mt @2.62% Nickel. Adavale also holds three exploration licences within the highly prospective sedimentary uranium province within the northern part of the Lake Frome Embayment in Australia. For more information please visit: www.adavaleresources.com Company Address: Suite 9.03, 88 Phillip Street, Sydney NSW 2000, Australia P a g e |2