Announcement PDF ASX ANNOUNCEMENT/MEDIA RELEASE 19 July 2023 S Successful Placement Facilitates Ongoing Massive Nickel Sulphide Drilling Program • • Binding commitments received to raise $1.65 million via a Placement to sophisticated and professional investors The Company will also undertake a 1-for-5 Entitlement Offer to eligible shareholders on the same terms as the Placement to raise a further $2 million • The Entitlement Offer is underwritten for $600,000 • Directors and management intend to subscribe for their rights under the Entitlement Offer • Funds will be used to progress the current drilling program at the Kabanga Jirani Nickel Project following the recent successful intersection of massive nickel sulphides at the Luhuma Central Prospect Adavale Resources Limited (ASX: ADD) (“or the Company”) is pleased to advise that it has received binding commitments to raise $1.65 million (before costs) through a placement to new and existing sophisticated and professional investors (“Placement”). The Placement will comprise the issue of approximately 86.8 million new fully paid Ordinary shares at an issue price of $0.019 per share (“New Shares”) and a 1:1 attaching listed option (ADDOA) exercisable at $0.03 per share expiring 31 December 2025 (“Attaching Options”). Post the Placement, the Company will also conduct a 1 for 5 Entitlement Offer on the same terms as the Placement Offer to raise up to ~$2m (“Entitlement Offer”). The directors and management of the Company intend to subscribe for their rights in the Entitlement Offer totalling approximately $118,000. Funds will be used to progress and accelerate the nickel exploration at the Company’s Kabanga Jirani Nickel Project in Tanzania, including Downhole EM (DHEM), RC & diamond drilling, general working capital and costs associated with the Placement and Entitlement Offer. ASX: ADD DIRECTORS & OFFICERS GRANT PIERCE CHAIRMAN DAVID RIEKIE EXECUTIVE DIRECTOR JOHN HICKS DIRECTOR ALLAN RITCHIE CHIEF EXECUTIVE OFFICER LEONARD MATH CFO & COMPANY SECRETARY ISSUED CAPITAL Shares: ~523 million Options: 191 million Performance rights: 11.25million ABOUT ADAVALE Adavale Resources is an ASX-listed exploration company targeting projects in the 'battery materials‘ space. The company is currently focused on both its 100% owned Kabanga Jirani Nickel Project and 2 Farm-in ‘Luhuma’ licences adjacent and along strike from the world’s largest undeveloped high grade NiS resource of 58Mt @ 2.62% Ni. Adavale is also progressing exploration on its 100% owned uranium tenements in South Australia Placement shares of 86.8 million New Shares will be issued pursuant to the Company’s available placement capacity under ASX Listing Rule 7.1 and 7.1A and is expected to be settled on or about 28 July 2023. Subject to receipt of shareholder approval at a General Meeting of shareholders to be convened by the Company, a further 86.8 million Attaching Options will be issued. Placement Shares will rank equally with existing fully paid ordinary shares, noting that they will be issued after the Record Date for the Entitlement Offer and will not carry an entitlement to participate in the Entitlement Offer. GBA Capital Limited acted as Lead Manager for the Placement and Underwriter to the Entitlement Offer. ENTITLEMENT OFFER The non-renounceable Entitlement Offer will be offered to existing shareholders on a pro-rata basis of one (1) new share for every five (5) ordinary fully paid shares held in the Company on Friday, 28 July 2023 (Record Date), at an issue price of $0.019 per share to raise up to ~$2.0M (before costs). The pricing and terms of the Entitlement Offer have been set so that shareholders can obtain new shares at the same price and terms as subscribers under the Placement. Entitlements may only be exercised by Eligible Shareholders being persons with a registered address on the Company’s Share Register in Australia or New Zealand. The Entitlement Offer shares will be issued pursuant to a disclosure document issued under section 713 of the Corporations Act to be lodged with the ASIC on 24 July 2023. Placement shares will not carry an entitlement to participate in the Entitlement Offer. Eligible shareholders will be given the opportunity to apply for additional securities in excess of their entitlement, via a shortfall facility which shall be allocated at the absolute discretion of the ADD Board. The Entitlement Offer is underwritten for $600,000. Adavale’s Executive Director, David Riekie, commented: “We are grateful for the support of our existing and new shareholders in this Placement. We have made significant progress in our understanding of the geology and controls on mineralisation at Kabanga Jirani this year, particularly in light of our recent massive sulphide intersections at Luhuma Central. We firmly believe that the vectors to mineralisation are pointing us in the right direction for a discovery. We currently have two drill rigs on site and with this level of exploration activity there should be plenty of newsflow over the coming months to look forward to.” This announcement is authorised for release by the Board of Adavale Resources Limited. Further information: For broker and media enquiries: David Riekie Executive Director E: investor@adavaleresources.com Andrew Rowell White Noise Communications E: andrew@whitenoisecomms.com P: +61 400 466 226 ASX Announcement 2 INDICATIVE PLACEMENT & ENTITLEMENT OFFER TIMETABLE The indicative timetable below remains subject to change at the Company’s discretion, subject to compliance with applicable laws and the ASX Listing Rules. Event Date (AWST) Announcement of the Placement and Entitlement Offer, and lodgment of Appendix 3B with ASX Wednesday, 19 July 2023 Lodgment of Prospectus with the ASIC and ASX Monday, 24 July 2023 Existing Shares quoted on an ‘EX’ basis Thursday, 27 July 2023 Record Date for determining Entitlements Friday, 28 July 2023 Anticipated Manual Settlement of new shares issued under the Placement Monday, 31 July 2023 Notice of General Meeting Dispatched On or around mid-August 2023 Prospectus - Entitlement Offer and Acceptance Form dispatched to Eligible Shareholders Wednesday, 2 August 2023 Closing Date of Entitlement Offer (Offer closes 5:00pm AWST)* Thursday, 31 August 2023 Securities quoted on a deferred settlement basis from market open Friday, 1 September 2023 Announcement of results of the Entitlement Offer Thursday, 7 September 2023 Quotation of Securities issued under the Entitlement Offer* Thursday, 7 September 2023 General Meeting to approve Attaching Options On or around mid-September 2023 *The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date. As such the date the Securities are expected to commence trading on ASX may vary. ASX Announcement 3 Forward looking statements This document contains forward-looking statements concerning Adavale. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Adavale’s beliefs, opinions and estimates of Adavale as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of nickel, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward- looking statements in this document will actually occur. ABOUT ADAVALE Adavale Resources Limited (ASX:ADD) is a nickel sulphide exploration company that holds 100% of the Kabanga Jirani Nickel Project, a portfolio of 12 highly prospective granted licences covering ~1,216km2 along the Karagwe-Ankolean belt in Tanzania. The six southernmost licences are proximal to the world-class Kabanga Nickel Deposit (58Mt @ 2.62% Ni). Adavale has farmed-in to two more highly prospective licences contiguous to our seven southernmost licences, adding a further 99km2 to the portfolio 1,315sq km). Adavale’s licences were selected based on their strong geochemical and geophysical signatures from the previous exploration undertaken by BHP. Adavale also holds exploration licences for their sedimentary uranium potential within the northern part of the highly prospective Lake Frome Embayment in South Australia. ASX Announcement 4