ASX ANNOUNCEMENT/MEDIA RELEASE 17 August 2023 Multiple Massive and Semi Massive Nickel Sulphide Zones Intersected at Luhuma Central ASX: ADD DIRECTORS & OFFICERS HIGHLIGHTS GRANT PIERCE CHAIRMAN • DAVID RIEKIE EXECUTIVE DIRECTOR Fourth diamond drillhole has intersected multiple zones of massive, semi-massive and disseminated nickel sulphide from 250m to 323m • Four distinct zones of sulphides were intersected, ranging in thickness from 1.12m to 7.5m • Drilling targeted the DHEM conductor identified, returning the greatest cumulative thickness of massive and semi-massive sulphides to date, totalling 21.55m • The multiple zones appear to represent a thickening of the conductor to the south • All four completed drillholes completed at Luhuma Central have intersected sulphides showing an open-ended strike extent of 200m Adavale Resources Limited (ASX: ADD) (“or the Company”) is pleased to advise that four zones totalling 21.55m of massive, semi-massive and disseminated nickel sulphides were intersected from 250m to 323.2m in DDLUHC004 at Luhuma Central (see Figures 2 and 3). Adavale’s Executive Director, David Riekie, commented: “Results from the current drilling at Luhuma Central are extremely pleasing and DDLUIHC004 is no exception. To date, all four drillholes have intersected nickel sulphides and with our disciplined approach, we are now confident of ongoing success on this target. “We will continue to use DHEM to survey completed drillholes to orientate drilling to target the primary conductor identified at Luhuma Central. “Drillhole DDLUHC005 is currently being planned to test the extent of the SW extension and down dip potential, given the broad zones of mineralisation intersected. “Drilling is also continuing at HEM2, 10km to the south, with updates expected shortly.” JOHN HICKS DIRECTOR ALLAN RITCHIE CHIEF EXECUTIVE OFFICER LEONARD MATH CFO & COMPANY SECRETARY 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 Technical Summary and interpretation Drillhole DDLUHC004 is situated approximately 200m to the south of drillhole DDLUHC003, which intersected 7.55m of massive sulphides from 261.7m, in addition to a separate interval of 5.13m of massive and/or blebby sulphides from 237.4m (refer to ASX announcement dated 25 July 2023: Figure 1 and Table 1). Figure 1: Plan view of current and proposed drill hole locations (yellow dots) at Luhuma Central plus historical holes (red dot massive sulphides intersected, black dots indicate ultramafic rocks intersected) together with location of the AMT lines L1 to L3 that have been surveyed by Adavale. Blue outline reflects the magnetic low interpreted to be the host mafic-ultramafic intrusion and the red corridor is the AMT anomaly projected to surface and interpreted as the mineralised trend. The background Colour image represents gridded C25 (db/dt) from the NRG Xcite airborne EM survey. DDLUHC004 core is concurrently being cut for assay and the hole cased in preparation for Downhole Electromagnetic (DHEM) surveying. The DHEM survey team remains at site and will continue surveying completed holes at Luhuma Central. The sulphide zones intersected in DDLUHC004 between 250m to 323m are dominated by pyrrhotite with between 1% to 5% pentlandite and minor pyrite and chalcopyrite. Handheld XRF readings returned results between 1.40% and 2.70% Ni within the massive sulphides and 0.5% to 0.6% Ni in the disseminated sulphides. While the Company takes every reasonable measure to ensure the reliability and accuracy of the XRF devices by regular calibration checks against certified standards and is confident of the reported values, the readings are point measurements on core or core chips and therefore may not reflect the assayed grade of the broader sampled interval. Initial assay results expected within 3 to 4 weeks. ASX Announcement 2 Figure 2: Photograph of Semi-Massive and Massive Sulphides between 250.20m and 257.50m Figure 3: Photograph of Semi-massive sulphides from 286.70m to 294.20m Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. The Company regularly uses a portable hand-held XRF analyser to screen drill core for mineralisation before cutting and sampling. This allows for some understanding of the distribution of mineralisation prior to sampling to better ensure that the sampled core is representative of the type and style of mineralisation. Numerous readings are obtained and recorded for future reference. The hand-held XRF provides confirmation that mineralisation is present however it is not an accurate determination of the elemental concentration within the sample analysed. Limitations include very small analysis window, possible inhomogeneous distribution of mineralisation, analytical penetration depth and possible effects from irregular rock surface. The pXRF readings are subject to confirmation by chemical analysis from an independent laboratory. ASX Announcement 3 Luhuma Central Diamond Drilling Program and DHEM Surveys Adavale has now successfully completed four diamond drillholes at Luhuma Central, all situated within Prospecting Licence, PL 23980/2023 (referred to as Luhuma Central). The drilling is part of 5,000m combined diamond (DD) and reverse circulation (RC) drill program designed to test a series of targets within the Company’s Kabanga Jirani Nickel Project. The mineralised intercepts to date, including DDLUHC004, are as follows: Drillhole ID Nature of Mineralisation From (m) To (m) Thickness (m) DDLUHC001 Massive Sulphide 223.35 227.5 4.15 DDLUHC002 Blebby Sulphide 200.7 205.6 4.90 DDLUHC003 Massive Sulphide 261.7 269.25 7.55 DDLUHC004 Semi-Massive Sulphide 250.20 256.42 6.22 DDLUHC004 Massive Sulphide 256.42 257.54 1.12 DDLUHC004 Disseminated Sulphide 286.70 294.20 7.50 DDLUHC004 Alternating interspersed narrow Semi-massive and Massive Sulphide 316.26 323.00 6.74 Dip -60 -60 -60 -65 Length (m) 300.9 451.3 361.3 386.0 Drillholes completed to date are tabulated below. Drillhole ID DDLUHC001 DDLUHC002 DDLUHC003 DDLUHC004 Easting 261206 261267 261182 261149 Northing 9711222 9711177 9711297 9711143 Elevation 1508 15131 1515 1522 Azimuth 120 120 115 120 Next Steps The Company currently has two drill rigs operating within the Luhuma trend - one rig is focused on Luhuma Central step out drilling, to test both depth and strike extensions of the massive nickel sulphide intersections, whilst the multipurpose rig is presently focussed on “deeper” 500m+ high priority targets at HEM2. Included in the upcoming news flow will be: • • • • Visual interpretation from drilling planned holes (at LUHC and HEM2), as appropriate; Aqua regia and full acid digest drillhole assay results; Downhole EM results; and DD drilling HEM2 NE and RC drilling at HEM2 E and HEM4. This announcement is authorised for release by the Board of Adavale Resources Limited. ASX Announcement 4 Further information: David Riekie Executive Director E: investor@adavaleresources.com For broker and media enquiries: Andrew Rowell White Noise Communications E: andrew@whitenoisecomms.com P: +61 400 466 226 References/ Previous ASX Releases 1 See ASX:ADD release on 22 May 2023 titled “ Geologically Significant Nickel Sulphide Licence Granted”. 2 Evans, D. M., Hunt, J. P. P. M. and Simmonds, J. R., 2016. An overview of nickel mineralisation in Africa with emphasis on the Mesoproterozoic East African Nickel belt (EANB). Episodes, 39/2, 319-333. DOI: 10.18814/epiiugs/2016/v39i2/95780; see also ASX:ADD release 16 December 2021 “Adavale Discovers Significant Mafic-Ultramafic Intrusion”. See ASX:ADD release on 4 April 2023 titled “Nickel Sulphide Drill Targets and 15km Soil Anomaly Defined”. 3 See ASX:ADD release on 6 June 2023 titled “ Massive Nickel Sulphides Intersected at Kabanga Jirani”. 4 See ASX:ADD release on 19 June 2023 titled “ADD Continue to Intersect Zone of Strong Nickel Sulphides”. 5 See ASX:ADD release on 11 July 2023 titled “Assays confirm Massive Nickel Sulphides at Luhuma Central Prospect”. 6 See ASX:ADD release on 25 July 2023 titled “ADD Replicates Maiden Massive Nickel Sulphide Intersection”. 7 See ASX:ADD release on 4 August 2023 titled “DHEM Delivers Massive Sulphides Extensions”. 8 Competent Persons Statement The information in this release that relates to “exploration results” for the Project is based on information compiled or reviewed by Mr David Dodd of MSA, South Africa. Mr Dodd is a consultant for Adavale Resources Limited and is a member of the SACNASP. Mr Dodd has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaken to qualify as a Competent Person under the ASX Listing Rules. Mr Dodd consents to this release in the form and context in which it appears. Cautionary Statements Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. The Company regularly uses a portable hand-held XRF analyser to screen drill core for mineralisation before cutting and sampling. This allows for some understanding of the distribution of mineralisation prior to sampling to better ensure that the sampled core is representative of the type and style of mineralisation. Numerous readings are obtained and recorded for future reference. The hand-held XRF provides confirmation that mineralisation is present however it is not an accurate determination of the elemental concentration within the sample analysed. Limitations include very small analysis window, possible inhomogeneous distribution of mineralisation, analytical penetration depth and possible effects from irregular rock surface. The pXRF readings are subject to confirmation by chemical analysis from an independent laboratory. 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. ASX Announcement 5 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 6 Appendix 1 Adavale Resources Limited – Reverse Circulation and Diamond Drilling Program - Kabanga Jirani Nickel Project JORC Code Edition 2012: Table 1 Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code Explanation Commentary Sampling techniques • RC drilling is conducted primarily to identify the presence of mafic/ultramafic intrusions or to precollar ahead of converting to diamond drilling. RC chips that are identified as mafic or ultramafic are initially analysed with a pXRF, but representative samples are also submitted to ALS (South Africa) for analyses by ICP MS. • • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. For RC analyses sampling is not representative of the broader geological horizons and simply represents values derived from select points. The pXRF has been calibrated using the AMIS standards AMIS0315, AMIS0317, AMIS0319, AMIS0329, AMIS384 and AMIS0367. Standards used to verify quality of results measured include AMIS0317 and AMIS0315. If mineralisation is intercepted with RC drilling than RC material will be captured for every metre drilled. The material is put through a riffler and one third is taken for further analyses where it is sieved to remove the chips which are stored in a chip tray. Both the fines and the chips are logged and analysed using the pXRF to record Ni values. MgO values are also noted for each lithological interval. Any mineralised fines will be submitted for analyses using aqua regia digest. All sampling equipment must be cleaned between samples to prevent contamination. SG is calculated at site using a pycnometer and measurements are taken systematically down the drillhole. This is used to reconcile intercepted lithologies against the modelled gravity anomalies to verify that the causative source has been intercepted. For diamond drilling sampling takes place as follows: Core is aligned and a cutting line is drawn to prevent sampling bias. Samples are marked off in pre-defined intervals of 1 m or smaller if required to honour lithological contacts. The core is split along the china marker reference line. The sampling depth and sample ID are then transferred onto the half core remaining so that the core can be revisited and act as a reference. The remaining sampled half of the core is then submitted to an accredited laboratory (ALS South ASX Announcement 7 Criteria JORC Code Explanation Commentary Africa) along with QAQC samples which will form 15% of all samples submitted and will include certified blanks and Ni standards. Drilling techniques • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Combination of RC and diamond drilling using NQ sized core. Current depth limit of RC drilling is 150m and for diamond drilling is 600m. Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. For RC Drilling Logging • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • • Sub-sampling techniques and sample preparation Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. • If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • ASX Announcement Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Bulk sample retrieved from the cyclone, sample is put through the riffler and 2 to 3 kg sample retrieved for analyses (if required). Chips from this sample are extracted by washing some of the sample material – these chips are placed in a chip tray in order to keep a record of lithologies for each metre drilled. The riffler is cleaned with compressed air between sample collection to prevent contamination. For Diamond Drilling RQD measurements are taken of core to record recovery. Nature of mineralisation is not nuggety and prone to strong variations in grade that correlate to core loss or loss of fines. Sample length may be compromised when drilling through massive sulphides where core loss is often prevalent. The following is recorded for each interval in the lithology log: Borehole ID, From and to depths, lithology code, weathering, colour, grain size, rock texture and contact type and angle The following is recorded for each mineralized interval in the mineralisation log: borehole ID, from and to depths, mineralisation type, mineralisation style and mineralisation abundance (usually as a sulphide percentage) Chips from RC drilling are stored in a chip tray with a representative sample captured for every metre. Drill core has been cut in half with half core remaining in the core tray and the other half submitted to the laboratory. Where the lithology is uniform samples are taken at 1 m intervals otherwise sample lengths are dictated by geological contacts. RC material has been captured for every metre drilled. For details of sampling technique see “Sampling techniques” section. 8 Criteria Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points ASX Announcement JORC Code Explanation • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Commentary Core samples will be analysed by ALS laboratory in South Africa. An aqua regia digest will be used to avoid the inclusion of silicate Ni. CRM’s, blanks and standard will be inserted to verify laboratory accuracy, precision or bias. QAQC samples will form 15% of all samples submitted. In some instances a four acid digest will also be used and some samples may be analysed by SGS in Tanzania. Chips from RC drilling are stored in a chip tray with a representative sample captured for every metre to enable check sampling to be undertaken. All logging and pXRF readings have been undertaken by a senior exploration personnel. Primary data was collected in the core shed using a set of standard logging templates and entered into a tablet with tailor made dropdown menus. The data is forwarded to their independent data management consultant (MSA) for validation and loading into the company’s drilling database The drillhole collars were surveyed with a handheld GPS unit with an accuracy of 5m which is considered sufficiently accurate for the purpose of the drillhole. All co- ordinates are expressed in Arc1960. 9 Criteria JORC Code Explanation Commentary • Specification of the grid system used. • Quality and adequacy of topographic control. • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Sample security • The measures taken to ensure sample security. Samples are kept in the core shed and then delivered in person by the geologist to the courier company from where they are dispatched to the laboratory. Audits or reviews • The results of any audits or reviews of sampling techniques and data. Internal audits/reviews of procedures are ongoing, however no external reviews have been undertaken. Data spacing and distribution Orientation of data in relation to geological structure ASX Announcement No regular drill hole spacing has been set with individual holes design to intersect specific targets. Diamond drillholes were designed to test coincident gravity, Geochemical and HEM/DHEM and AMT anomalies. Drillholes are designed to intercept conductors orthogonally if possible or alternatively to drill through the EM anomalies. 10 Section 2: Reporting of Exploration Results Criteria JORC Code Explanation Commentary Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The Kabanga Jirani Nickel Project located in Tanzania covering 1,215.97km2 comprises of ten granted licences, all are 100% owned by Adavale Resources as follows: • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. PL 11406 298 km2 Kabanga North East PL 11886 23 km2 Kabanga South East PL 11405 114 km2 Kabanga North PL 11538 64 km2 Burigi PL 11537 194 km2 Burigi North PL 11591 182 km2 Kabanga East PL11590 273 km2 Kabanga West PL11592 19.4 km2 Ruiza North East PL 12175 44.83 km2 Southeast Wedge PL 23980/2023 3.74 km2 Luhuma Central In addition there are two licences with farm-in agreements (65% ownership interest) PL11692 26 km2, Luhuma North PL11693 73 km2, Luhuma South Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. Not applicable, not referred to. Geology • Deposit type, geological setting and style of mineralisation. The exploration target is a magmatic Ni-Cu-PGE sulphide with the same genesis to the Kabanga N-Cu-PGE sulphide deposit that the licences are adjacent to. Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: DDLUHC 001 • easting and northing of the drill hole collar Elevation 1508 ASX Announcement Easting 261206 Northing 9711222 11 Criteria JORC Code Explanation Commentary • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar Azimuth: 120 • dip and azimuth of the hole EOH: 300.9m • down hole length and interception depth DDLUHC 002 • hole length. Easting 261267 • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Northing 9711177 Dip: 60° Elevation 1513 Azimuth: 120 Dip: 60° EOH: 451.3m DDLUHC 003 Easting 261182 Northing 9711297 Elevation 1515 Azimuth: 115 Dip: 60° Planned EOH: 361.3m DDLUHC 004 Easting 261149 Northing 9711143 Elevation 1512 Azimuth: 120 Dip: 65° EOH: 386m Data aggregation methods • • • Relationship between mineralisation ASX Announcement • • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Not applicable – no assay results reported in this announcement. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. Not applicable – insufficient data available at this point to describe relationship between mineralisation widths and intercept length. 12 Criteria JORC Code Explanation Commentary widths and intercept lengths • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Plan views and cross-sections have been provided Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Once laboratory results are received more comprehensive reporting will be submitted. Other substantive exploration data • Other exploration data, if meaningful and material, should be reported including (but not