Ardea Resources Limited present the summary outcomes of the Pre-Feasibility Study (PFS) completed on its 100%-owned Kalgoorlie Nickel Project (KNP) Goongarrie Hub, located 70km northwest of the mining capital of Australia, the City of Kalgoorlie-Boulder. The KNP was awarded Major Project Status by the Federal Government in March 20221. The PFS presents a high-quality evaluation of the Project and defines a compelling investment case to advance the Goongarrie Hub through to Definitive Feasibility Study (DFS).

The PFS has also identified clear project enhancement opportunities which will be quantified during the DFS. The PFS should be regarded as being comprised of conservative assumptions and outcomes. PFS Highlights include: Ore Reserve - 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of contained nickel and 99,000t of contained cobalt.

Mining optimisation studies have projected production of approximately 30,000t of nickel and 2,000t of cobalt per year for more than 40 years. Year 1 to 5 (post ramp up) production >34ktpa nickel and >3ktpa cobalt. Conventional low-cost open pit mining methods result in mining costs comprising less than 12% of total operating cost with a very low strip ratio at an average of 1.5 for the first 35 years of mine life2.

The project generates3: Pre-tax NPV7 of AUD 7,625 million and IRR of 30% Post-tax NPV7 of AUD 4,980 million and IRR of 23% Average Annual EBITA of AUD 800 million Project pay back within 3.1 years. Direct cash cost after Co by products of USD 3,763/t Ni in MHP during the first five years of operation, and USD 5,763/t Ni inMHP over life of mine. Total capital cost of AUD 3,117 million, including process plant and infrastructure cost of AUD 2,264 million and sulphuric acid, steam, and power plant cost of $574 million.

Life Cycle Assessment (LCA) is expected to be 11.9 kg CO2 eq. per kg nickel in MHP based on Ardea's Scope 1, 2 and upstream Scope 3 emissions.