Announcement PDF ASX ANNOUNCEMENT/MEDIA RELEASE 6 June 2023 Massive Nickel Sulphides Intersected at Kabanga Jirani Nickel Project • Massive Nickel sulphides over 4.15m intersected on Adavale’s Luhuma Central Prospecting Licence • Luhuma Central is located within Adavale’s flagship Kabanga Jirani Nickel Project, located adjacent to the Tier-1, high grade Kabanga Nickel Sulphide Deposit (58Mt @ 2.62% Ni) • Diamond drilling is ongoing to outline potential strike and depth extensions with priority targets coinciding with strong geophysical anomaly • Two diamond drill rigs currently engaged on the program Adavale Resources Limited (ASX: ADD) (“or the Company”) is pleased to advise that 4.15m of massive nickel sulphide associated with a maficultramafic intrusion was intercepted between 223.35m and 227.50m in drill hole DDLUHC001 (Figure 1) located within Adavale’s Prospecting Licence PL 23980/20231. Figure 1 Massive sulphide unit of 4.15m showing sulphide composition and chalcopyrite blebs Adavale’s Technical Director, John Hicks commented: “We are delighted with this drill result. It validates Adavale’s exploration strategy and builds confidence in the prospectivity of our other priority target areas within the Luhuma Trend. With a second diamond drilling rig currently being mobilised to site, Adavale is well positioned to advance drilling its priority targets. Two follow up drillholes will now be drilled around this massive sulphide intersection.” 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: ~520 million Unlisted options: 191 million Performance rights: 17 million 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 Detail The massive sulphide core (visual estimates) intersected in DDLUHC001 are being cut and prepared for assay with the results expected in late June/early July. Visually, the mineralogy of the sulphide intersection is dominated by pyrrhotite but with between 1% to 5% pentlandite and this appears to align well with pXRF readings that indicate a nickel grade of somewhere between 1.2% and 2.3% Ni for the intersection with a calculated average of 1.5% Ni. 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. Figure 2 Plan view of current and proposed drilling at Luhuma Central and Priority drilling locations at HEM2 and HEM2 NE ASX Announcement 2 Luhuma Central Diamond Drilling Program Adavale commenced diamond drilling (DDLUHC001) on Prospecting Licence, PL 23980/2023 (referred to as Luhuma Central), on 26 May 2023 as part of a 5,000m combined DD and RC drill program to test a series of targets generated by the Company on the Luhuma Trend 3. The Luhuma Trend is a narrow 15km long belt within Kabanga NE and adjoining licenses characterised by strongly elevated gravity and electromagnetic anomalism. The addition of soil sampling data from a program covering the majority of the belt recently completed by Adavale has resulted in the identification of two parallel zones of anomalous copper (Figure 2). The anomalous copper coincides with a series of historically drilled (1990s) holes that reportedly intersected a series of mafic-ultramafic bodies including, importantly, some with associated massive sulphide mineralisation, LUH06, within Luhuma Central. Three priority target areas about the Luhuma Trend have been chosen by Adavale for testing as part of the current drill program; Luhuma Central, HEM 2 and HEM 2 NE. Drilling will commence shortly at HEM 2. DDLUHC001, which was drilled in order to validate a historically reported (1994) massive sulphide intersection by drill hole LUH06, intersected 4.15 metres of nickel bearing massive sulphides (> 80% sulphide) between 223.35m and 227.50m down-hole (Figure 3). The orientation and true thickness of the massive sulphides is not known at this point but will be assisted with outcomes from the additional planned holes. Figure 3 Core photo of the visual mineral intercept zones in DDLUHC001 at Luhuma Central of 4.15 metres of nickel bearing massive sulphides between 223.35m and 227.50m down-hole ASX Announcement 3 Visual examination of the core indicates that on a 100 percent sulphide basis, pyrrhotite is the most dominant sulphide, representing upwards of 90% of all sulphide present. Pentlandite is also present ranging between 1% to 5%. Fine chalcopyrite and pyrite is also present representing approximately 5% of the total sulphide present. Systematic portable XRF (pXRF) readings taken along the length of the massive sulphides recorded nickel values ranging between 1.2% to 2.3% Ni, with a calculated average of 1.5% Ni. The massive sulphides intersected DDLUHC001 are enclosed within a thick cumulate textured norite to gabbronorite intrusion; the geometry of which is also unknown at this point. Drilling is now completed on DDLUHC001 at 300.3m. The Ni readings reported in this announcement and earlier announcements by the Company are based on hand-held (portable pXRF) and desktop XRF devices. 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. The DDLUHC001 massive sulphide intersection is broadly coincident with a strong AMT anomaly that was recently identified by Adavale on several 200 metre spaced survey lines completed across Luhuma Central. To further test this correlation, drillholes are planned on the DDLUHC001 drill section, with drill hole DDLUHC002 to be completed next approximately 60 metres up-dip (to the east) of DDLUHC001. Additional holes, including DDLUHC003, as shown below, will be refined following detailed logging and assaying of the core. These additional holes have been designed to test the extensions of the same strong AMT anomaly shown in Figure 4 and Table 1. These drillholes will be cased for future Downhole Electromagnetic surveys. Figure 4 Current (DDLUHC001) and proposed drill holes (DDLUHC002 and DDLUHC003) targeting sulphides intercepted in historic drillhole LUH06 ASX Announcement 4 Drillhole ID DDLUHC001 DDLUHC002 DDLUHC003 Easting 261201 261264 261320 Northing 9711219 9711176 9711146 Elevation 1505 1508 1514 Azimuth -60 -60 -60 Dip 120 120 298 Length (m) 300.3 450 300 Table 1: Collar location, azimuth dip and length (m). The Company will update the market during the course of the current exploration program and when laboratory analytical results become available. 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 References 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 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. 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 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 1505 ASX Announcement Easting 261202 Northing 9711219 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: 300.3m Dip: 60° • down hole length and interception depth • hole length. • 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. • 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. 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’). Not applicable – insufficient data available at this point to describe relationship between mineralisation widths and intercept length. • 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 exploration data, if meaningful and material, should be reported including (but not No other material information that hasn’t been reported. Data aggregation methods • • Relationship between mineralisation widths and intercept lengths • • • Diagrams Other substantive exploration data ASX Announcement 12 Criteria JORC Code Explanation Commentary limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; b