Adavale Resources Limited provide an exploration update for the Company's Kabanga Jirani Nickel Project (Kabanga). Additional drilling and casing of the holes for DHEM survey has been undertaken since December 2022. Initial drill tests have now been completed on target areas HEM 4 located in Kabanga East and HEM 9 in Kabanga West.

Both HEM 4 and HEM 9 are areas of coincident gravity, magnetic and EM anomalies and were drill tested by RCDDKE 006 and DDKW 007 respectively during December 2022. Drilling completed during 2022 (HEM 2, 4 and 9) shows the geology intersected at HEM 2 is the best potential host rock encountered during this initial drill program. Drilling was suspended in late December due to the onset of the wet season and will resume following the wet season in early 2023.

Over the intervening period, DHEM surveying will be undertaken on the four diamond holes completed during 2022 to verify the EM anomalies targeted by each drillhole have been adequately tested and to detect any other off-hole conductors that maybe associated with nearby nickel sulphide mineralisation. This will indicate what follow-up drilling is required, particularly at HEM. In addition, a series of geochemical soil sampling programs have been implemented starting in the high priority area northeast of Luhuma.

The soil results will be analysed against gravity anomalies to assist with prioritising drillhole targeting. Drilling was completed on drillhole RCDDKE 006 at HEM 4with the 500.5m deep hole designed to test a discrete EM anomaly underlying a gravity anomaly. The modelling shows a clearly defined vertical conductor, which at depth flattens out and envelopes the conductor.

Drillhole RCDDKE 006 intersected an abundance of dolerite after 170m that may explain the source of the HEM 4 gravity anomaly while two zones of finely disseminated and narrow veins of sulphide (chalcopyrite and pyrrhotite) maybe the cause of the conductivity. DHEM will assist with future exploration at this target area. Drilling was also completed at HEM 9 which has discrete, coincident magnetic, gravity and EM conductors.

This target was drill tested by DDKW 007 aimed at a fairly flat lying conductor shown in Figure 5 and to a target depth of 371.1m. As was the case at HEM 4, a 70m thick dolerite unit may explain the HEM 9 gravity anomaly while the conductivity maybe attributed to thin sulphide veins over 300m in width. With both HEM 4 and 9 target areas, Adavale's geophysical surveys correctly identified zones of greater density and conductivity as evidenced by the dolerite and sulphide vein intercepts at these two locations.

In these two instances, however the intrusions have largely been composed of dolerite and the sulphides hosted within sediments rather than associated with layered mafic-ultramafic intrusions. To assist with differentiating between gravity anomalies associated with thickened dolerite units and mafic-ultramafic intrusions, the Company has implemented a series of additional geochemical soil sampling programs.