ABN 30 614 289 342
2025 Annual Report
Ardea Resources Limited & controlled entities
Annual Report 2025
Corporate Directory
Directors
Mathew Longworth, (Non-Executive Chair)
Andrew Penkethman, (Managing Director
and Chief Executive Officer)
Maree Arnason, (Non-Executive
Director)
Michael Rodriguez, (Executive Director)
Company Secretary
Sam Middlemas
Registered and Business Office
Suite 2, 45 Ord Street, West Perth
Western Australia 6005
PO Box 1433, West Perth
Western Australia 6872
Tel:
(08) 6244 5136
Email: info@ardearesources.com.au
Website
www.ardearesources.com.au
Auditor
Dry Kirkness (Audit) Pty Ltd
(formerly Butler Settineri (Audit) Pty Ltd)
50 Colin Street
Perth WA 6005 Australia
Share Registry
Automic Group
GPO Box 5193
Sydney NSW 2001
Tel:
1300 288 664 (within Australia)
Tel:
+61 2 9698 5414 (international)
Web:
www.automicgroup.com.au
Stock Exchange Listing
The Consolidated Entity’s shares are
quoted on the Australian Securities Exchange.
The Home Exchange is Perth.
ASX Code: ARL - ordinary shares
Table of Contents
Chairman and Managing Director’s Letter ................1
Delivering Strong Progress - Highlights .....................2
Activities Report .....................................................................3
Directors’ Report .................................................................19
Consolidated Statement of
Comprehensive Income.............................................37
Consolidated Statement of
Financial Position..........................................................38
Consolidated Statement of
Changes in Equity ........................................................39
Consolidated Statement of Cashflows .....................40
Notes to the Financial Statements .............................41
Directors’ Declaration........................................................58
Consolidated Entity Disclosure Statement .............59
Independent Auditor’s Report.......................................60
Shareholder Information..................................................65
Tenement Schedule...........................................................67
Glossary ..................................................................................72
Ardea Resources’ defining achievement in FY2025 was securing its transformational joint venture with
Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation, establishing a landmark Australia–Japan
critical minerals partnership, accelerating the Goongarrie Hub DFS and delivering strong progress
from an owner's team that has grown to 44 members at year end.
Chairman and Managing Director’s Letter to Shareholders
Dear Shareholders,
We are pleased to share with you the progress Ardea Resources Limited (Ardea or the Company) has made over the past year as we continue
to advance our strategic land holding in the best resources operating jurisdiction in the world, the Eastern Goldfields of Western Australia.
The defining achievement of FY2025 was the successful execution, completion and commercial commencement of our transformational strategic
partnership with Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) (together, the Consortium). This partnership
represents more than just funding – it establishes a major Critical Minerals collaboration between Australia and Japan, validating the world class
nature of the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub. Following Foreign Investment Review Board (FIRB) approval1, Ardea executed
the binding Shareholders’ Agreement2 (SHA), completing all conditions precedent to the Cooperation Agreement, under which the Consortium is
fully funding the KNP - Goongarrie Hub Definitive Feasibility Study (DFS). The SHA also established comprehensive governance frameworks for
our Incorporated Joint Venture (IJV) through Kalgoorlie Nickel Pty Ltd (KNPL). Further strengthening our partnership, SMM executed a strategic
placement with Ardea during the year, acquiring 10.73M new Ardea shares for total consideration of $4.6M, becoming a 5.1% shareholder3,4 .
KNPL, the IJV company managing the DFS, drew on substantial technical input from both Ardea and the Consortium during the year. Key activities
for the DFS were materially advanced, and the DFS owner’s team grew alongside the workload, numbering 44 at the end of FY2025.
The Company is well-funded, with no debt and a cash position of $14.6M as of 30 June 2025. With issued capital of 210.4M shares at 30 June
2025, the Company maintains a disciplined capital structure.
Subsequent to 30 June, 2025, and following expenditures reaching 50% of the DFS budget during FY2025, on 4 July 2025, the Consortium earned
its first ownership tranche of KNPL, becoming a 17.5% owner of KNPL. The Consortium also appointed its first director to the KNPL board, which
is now comprised of Ardea representatives Mathew Longworth and Andrew Penkethman plus the Consortium appointee5.
Although the prices for nickel and cobalt have continued to decline over the past year, impacting the Ardea share price, long-term demand for
these future-facing metals remains robust, underpinned by continued growth in the stainless-steel sector, electric vehicles and renewable energy
technologies. On this basis, industry observers continue to forecast a nickel market supply deficit emerging in CY2030. With this in mind, Ardea
considers the timing to be undertaking the DFS and, subject to a positive Final Investment Decision (FID), project development, aligns well with
expected nickel deficits and related price appreciation. Nickel-cobalt from the KNP - Goongarrie Hub is expected to be highly sought after as it will
provide supply chain diversity, security and meet the high ESG standards expected from modern society.
The Ardea board saw two changes during the year. We welcomed Michael Rodriguez in December 2024 as an Executive Director of Ardea. Michael
brings extensive hydrometallurgical project development and operations experience, particularly in lateritic nickel, to the Board and has been
working closely with both the Ardea and KNPL teams on the optimisation and delivery of the KNP - Goongarrie Hub DFS. In March 2025, Ian
Buchhorn stepped down from his Executive Director position on the Ardea Board, while remaining in an Executive capacity with the Company.
Ian’s tireless efforts in the service of Ardea and its corporate predecessors, dating back to 1996, laid the foundation for the publication of the 2023
KNP - Goongarrie Hub Pre-Feasibility Study and the formation of the IJV with the Consortium. We are grateful that Ian is continuing to share his
extensive experience and knowledge of the KNP by remaining in his Executive role during this pivotal time in your Company’s maturation.
The Ardea Board remains committed to delivering long-term value through the continued advancement and development of our world-class assets.
We sincerely thank our shareholders and all stakeholders for their ongoing support and extend our deep appreciation to the entire Ardea and KNPL
teams for their exceptional efforts during this period.
Mat Longworth,
Andrew Penkethman,
Chairman
Managing Director & CEO
Ardea Resources
Ardea Resources
1.
Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture FIRB Approval Received" of 14 August 2024 for further information.
2.
Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium" of 30 August 2024 for further information.
3.
Refer to the Company's ASX Announcement titled "ARL Secures Strategic $4.6M Sumitomo Metal Mining Placement" of 16 April 2025 for further information.
4.
Refer to the Company's ASX Announcement titled "Becoming a substantial holder” of 23 April 2025 for further information.
5.
Refer to the Company's ASX Announcement titled "Goongarrie Hub Project DFS Reaches Major Milestone” of 4 July 2025 for further information.
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 1
Highlights Year Ending 30 June 2025
•
Ardea’s cooperation agreement with SMM and MC advanced significantly, with key regulatory approvals and a binding SHA executed
in August 2024 to formalise an IJV. SMM further reinforced its commitment to the Project1 and the partnership in April 2025 through a
strategic A$4.6M investment to become an Ardea shareholder2.
•
KNPL completed the DFS infill drilling program, totaling 45,735m of reverse circulation (RC) drilling and 2,278m of diamond core
drilling. The program, designed to upgrade nickel-cobalt laterite resources to the Measured category to support detailed mining studies,
focused on the early years of the anticipated mine plan to increase production certainty during the critical ramp up period of the Project.
•
Board Appointment of Michael Rodriguez as Executive Director3, bringing over 30 years of relevant hydrometallurgical experience,
including successful optimisation of the Murrin Murrin operation – Australia’s longest running and largest current nickel-cobalt producer.
Retirement of Executive Director Ian Buchhorn in March 20254, transitioning to a Technical Executive role to ensure continuity of his
extensive knowledge of the KNP - Goongarrie Hub project and the Eastern Goldfields region.
•
Ardea and KNPL reported zero lost time injuries (LTI) during the year, despite a significant increase in site-based activities and the
mobilisation of multiple contractor teams, highlighting all parties’ commitment to safe operations and systems.
•
Subsequent to 30 June 2025, the Consortium earned its first 17.5% stake in KNPL in July 20255, having reached the 50% DFS
expenditure milestone late in FY2025, marking substantial progress towards the study's completion.
1.
Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium" of 30 August 2024 for further information.
2.
Refer to the Company's ASX Announcement titled "ARL Secures Strategic $4.6M Sumitomo Metal Mining Placement" of 16 April 2025 for further information.
3.
Refer to the Company's ASX Announcement titled "Ardea Strengthens Board with Appointment of Michael Rodriguez as Executive Director” of 19 December 2024 for further information.
4.
Refer to the Company's ASX Announcement titled "Executive Director Ian Buchhorn Retires from the Board” of 21 March 2025 for further information.
5.
Refer to the Company's ASX Announcement titled "Goongarrie Hub Project DFS Reaches Major Milestone” of 4 July 2025 for further information.
Delivering Strong Progress
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 2
During the year, KNPL completed the DFS infill drilling program, totaling 45,735m of reverse circulation drilling
and 2,278m of diamond core drilling. Resource modelling updates commenced as the results of the infill resource definition
drilling were received for areas of infill.
Environmental, Social and Governance
In order to achieve excellence in sustainability, Ardea adheres to four key pillars that integrate all aspects of its operations:
Environmental, Social and Governance (ESG) considerations are at the forefront for Ardea and KNPL. Project designs and work practices are
based on the Company minimising the project development footprint and CO2 green-house gas emissions when in production.
The flowsheet is further enhanced by Ardea’s Research and Development (R&D) on KNP - Goongarrie Hub ore materials, which has led to
alternative flowsheet neutralising materials being identified. These materials, identified within the planned nickel laterite pits, can replace imported,
nickel-barren limestone or calcrete to neutralise acid waste streams while lowering the operation’s carbon emissions through reduced transport
requirements. Ardea has named this material Mineralised Neutraliser (MN) and lodged an International Patent Application. The MN provides a
low-cost, lower carbon-intensity neutralisation alternative to limestone from third-party suppliers.
Ardea enjoys strong support from the communities in which it operates, primarily the City of Kalgoorlie-Boulder and the Shire of Menzies. The
environmental setting, being the Great Western Woodlands, allows excellent post-mining rehabilitation and reforestation. The planned in-pit tailings
disposal strategy minimises total land disturbance and maximises the ultimate rehabilitation footprint of the Project.
During the past year, Ardea continued to engage with stakeholders, who are supportive of the Goongarrie Hub development and the contributions
the operation can make to the local community through increased skilled job opportunities, training and enhancing community contributions.
Stakeholder engagement also continued with the Western Australian Government, the Shire of Menzies and City of Kalgoorlie-Boulder in addition
to on-going discussions with the Marlinyu Ghoorlie Native Title Claimants and determined Kakarra Part A Native Title Claimant.
The Commonwealth, via agencies such as Austrade, the Critical Minerals Office (CMO), Export Finance Australia, and the Major Projects Facilitation
Agency (MPFA), continues to be updated with Ardea’s progress on its DFS. The MPFA has supported Ardea in re-applying for Major Project Status,
which reached the end of its three year term in March 2025 but remains current while in renewal application. A successful reapplication for Major
Project Status will support future Commonwealth assistance as well as liaison with Federal and State approvals agencies.
In having a West Kalgoorlie Operations Office, KNPL maintains a permanent presence and regular engagement with the communities within which
the Company operates.
ESG Compliance
There were nil LTIs recorded during the year, reflecting KNPL and Ardea’s strong focus on maintaining a safe workplace. Health and safety initiatives
included continued refinement of site inspection processes, implementation of vehicle monitoring systems for remote operations, and expanded
induction and training programs to support both Ardea and KNPL personnel. KNPL engaged specialist consultants to strengthen ESG performance,
including SLR Consulting as ESG advisor and Minviro to update the Life Cycle Assessment. Environmental work programs progressed with
expanded baseline studies, borefield water pipeline corridor surveys and hyrdrological modelling work to optimise project design.
With significant contractor mobilisation to the KNP – Goongarrie Hub during FY2025, supporting the DFS drilling programs and environmental
surveys, the focus continued to be on assisting contractors with the documentation and safety expectations of Ardea and KNPL for the works that
have been undertaken.
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 3
Activities Report
Governance
Our business is underpinned by a
structured set of policies that
reflect our ESG principles, which
are at the core of our
governance. Our leadership
emphasises ethics, transparency,
accountability and integrity.
People
We aim for a respectful and
inclusive workplace, where talent
is developed and supported. We
have put in place a framework to
protect the health, safety and
well-being of our team members.
Zero LTIs were reported across
Ardea and KNPL’s work teams
during the year, including
contractors.
Community
We work closely with all
stakeholders, with the aim that
we make a positive contribution
and maintain close ties with the
communities in which we
operate. During the year
~$18,000 in funding was
awarded to local initiatives,
focused on the Eastern
Goldfields education fund.
Environment
We constantly work to
understand and manage our
impact on the environment and
measure decisions that could
affect the way we operate. During
the year comprehensive baseline
environmental surveys were
expanded and progressed, inline
with the revised project scope for
the DFS.
Community engagement remained a priority, with Ardea making contributions to local initiatives such as the Menzies Community School sensory
playground, support for sporting clubs, and active dialogue with First Nations groups including participation in on-country cultural celebrations.
These activities demonstrate the Company’s commitment to safety, sustainability, and constructive stakeholder relationships as development of
the KNP advances.
Clockwise from top left: Native flora at Goongarrie; Karlkurla / Silky Pear native to the Goldfields and regarded an important bush tucker / medicinal
plant by First Nation Peoples; Through the Eastern Goldfields Education Grant Program, Ardea sponsored the Menzies Community School’s Play
for All sensory playground, officially opened on 19 February 2025; The playground offers a wide range of experiences; The Shire of Menzies has
been restoring the historically significant Goongarrie Station House, which is adjacent to KNP Goongarrie Hub. Ardea received permission to use
the new facilities during recent site visits; KNPL Principal Geologist undertaking field assessment.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 4
Corporate Objectives
Strategy
Ardea’s priority is KNP nickel-cobalt laterite project development, commencing with the Goongarrie Hub, as a strategic, long life operation producing
responsible nickel and cobalt for the global supply chain to further advance the transition to a low carbon future. To advance this objective, Ardea
progressed its milestone Cooperation Agreement1 into a binding SHA with the Consortium, consisting of SMM and MC, forming an IJV to develop
the KNP - Goongarrie Hub2. The DFS was well underway and, subsequent to the reporting period, reached the 50% spend milestone, with the
Consortium taking its first 17.5% ownership stake in the IJV3.
Ardea also remains committed to maximising the complementary internal pipeline of Critical Mineral resource and exploration projects outside of
the Goongarrie Hub, primarily at the 100% owned Kalpini and Yerilla Hubs, now consolidated under the “Kalpini Hub” name. These strategic
tenement holdings provide Ardea with future growth opportunities beyond the Goongarrie Hub Project.
Execution of Shareholder Agreement for Kalgoorlie Nickel Project - Goongarrie Hub
During FY2025, Ardea, SMM and MC satisfied all necessary conditions precedent, including FIRB approval4, and progressed the binding Cooperation
Agreement into a binding SHA on 30 August 2024. With the transaction completed, Ardea and the IJVs focus is on the successful completion of
the KNP – Goongarrie Hub DFS. Ardea and the Consortium are providing technical and commercial input into the DFS, which KNPL is managing.
Upon conclusion of the DFS spend, the Consortium will have subscribed to a 35% ownership in KNPL. The Consortium will also retain the right to
increase its ownership in KNPL to 50% upon a positive FID by the Consortium. To reach a FID requires all relevant approvals to be granted and
project development funding to be secured, with a positive FID initiating project development.
Ardea’s collaboration with the Consortium is the first Critical Minerals collaboration between Australia and Japan, with the project expected
to be a multi decade (>40 years), low cost source of nickel-cobalt that provides supply chain diversity, security and meets the high ESG standards
expected from Australia and Japan5.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 5
Figure 1: Structure of the Kalgoorlie Nickel Pty Ltd Joint Venture.
Ardea, Sumitomo Metal Mining and Mitsubishi Corporation
developing the KNP Goongarrie Hub
82.5%3
17.5%3
KNPL is a Joint Venture between Ardea Resources Limited, and GH Nickel Pty Ltd.
GH Nickel Pty Ltd is a Joint Venture between Mitsubishi Corporation’s wholly owned subsidiary,
Mitsubishi Development Pty Ltd, and Sumitomo Metal Mining Co. Ltd.2,3
1.
Refer to the Company's ASX Announcement titled "Ardea, Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC) to form a Joint Venture to develop the Kalgoorlie Nickel Project
(KNP) – Goongarrie Hub" of 29 April 2024 for further information.
2.
Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium" of 30 August 2024 for further information.
3.
Refer to the Company's ASX Announcement titled "Goongarrie Hub Project DFS Reaches Major Milestone” of 4 July 2025 for further information.
4.
Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture FIRB Approval Received" of 14 August 2024 for further information.
5.
Refer to the Company's ASX Announcement titled "KNP Goongarrie Hub Ore Reserve & Feasibility Study Defines +40 Year Operation with Strong Financial Metrics” of 5 July 2023 for further
information.
Nickel Market Commentary
Market pricing for nickel remains volatile. While demand for nickel has continued to grow, driven by continued growth in the steel, electric vehicle (EV)
and fixed energy storage (both domestic and grid scale) markets, supply has outpaced demand, underpinned by continued investment in Indonesian
production capacity (www.stainless-steel-world.net Nickel Market in 2025 April 2025). The market remains in surplus, despite a number of material
mine closures in recent times. Nickel prices peaked at approximately US$18,000/t on the London Metal Exchange (LME) during FY2025, but softened
to approximately US$15,200/t by year-end, reflecting the current oversupplied market (www.westmetall.com-market data Nickel 2024-2025).
Market uncertainty remained, with supply chain disruptions and geopolitical tensions creating volatility in nickel prices. Concerns about the environmental
sustainability of Indonesian nickel production have also become more prevalent during the year.
In the long term, the outlook for nickel remains strong. Analysts continued predicting growth in demand, driven by the electrification of transportation
and the ongoing development of renewable energy infrastructure. Most forecasts suggest a return to a balanced market by the end of the decade.
Nickel end users will also need to balance this demand with the challenges of supply certainty and sustainability in an increasingly uncertain world.
Security and diversity of nickel supply is imperative, particularly from jurisdictions such as Western Australia that consistently meet the high ESG
standards expected from modern society. Ardea believes that the in-progress Goongarrie Hub DFS, and development and production plans are ideally
timed to bring online Australia’s next large-scale, low-cost nickel-cobalt producer as the nickel market moves back towards deficit.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 6
Expected
Goongarrie Hub
production
Figure 2:
A.
Base Case Nickel Supply and Demand Forecast.
B.
Global Nickel Demand by Market Segment.
A
B
The Demand forecast is based on Benchmark’s Base Case scenario, nickel
demand is expected to grow at a CAGR of 4.6% from 2024 to 2045.
Data © Benchmark Mineral Intelligence. Used with permission
Kalgoorlie Nickel Project - Goongarrie Hub
Overview
The KNP - Goongarrie Hub is located 70km northwest of the
mining centre the City of Kalgoorlie-Boulder and is the subject
of the IJV with the Consortium and current DFS. (Figure 3 shows
Goongarrie Hub tenements green). Resources from the
Goongarrie, Highway and Siberia North nickel-cobalt laterite
deposits are planned to be the base load feed for a processing
operation located at Goongarrie South.
The mineral resources at Goongarrie are dominantly the
premium goethite style and extend continuously over 25km of
strike and at Highway, 30km north, over a strike length of 10km
(Figure 3). All key Goongarrie Hub mineral resources are located
on granted mining leases and tenure 100%-controlled by KNPL.
The project has ready access to high-quality infrastructure with
the Goldfields Highway, rail line, fibre optic cable and power
infrastructure passing through the project area. The Goldfields
gas pipeline is located some 30km to the east and there are two
port options, Esperance and Kwinana, that are well serviced from
the KNP by existing road and rail networks.
Significantly, the Goongarrie Hub is located on the rail connection
to the developing battery hub at the Port of Kwinana industrial
area immediately south of Perth, as well as east to Port Augusta
and developing low-carbon energy hubs on the eastern Australia
seaboard.
Ardea is actively engaged with Federal and State agencies and
statutory authorities who are coordinating the drive for a
downstream battery industry within Western Australia and
Australia.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 7
Figure 3: KNP location plan. Projection GDA94 Zone 51.
KNP Goongarrie Hub is well serviced by high-quality infrastructure such as Goldfields Highway and rail line passing through the project.
KNP - Goongarrie Hub DFS Work Streams
Ardea’s focus remains the development of the KNP – Goongarrie
Hub managed by KNPL, which is undertaking the Goongarrie Hub
DFS.
Key activities undertaken during the FY2025 to enable KNPL
to deliver the DFS, include:
•
Infill resource definition RC drilling designed to upgrade nickel-
cobalt laterite resources to the Measured category, focused on
the forecast early mining areas, was completed with 45,735m
drilled.
•
Resource modelling updates commenced as the results of the
infill resource definition drilling were received, beginning with
the Big Four/Scotia Dam and Highway deposits.
•
Diamond drilling for metallurgical, geotechnical and other
samples, as well as geological Quality Assurance / Quality
Control (QAQC) completed, with 2,278m drilled.
•
Exploration Incentive Scheme (EIS) co-funded drill holes at the
Highway deposit, testing the extent and structural controls of
intrusive systems underlying the tenement, as well as providing
additional geotechnical information were completed.
•
Hydrogeological campaigns were progressed, focused on
palaeochannel characterisation, as well as the development of
monitoring and test pumping wells. Test pumping was ongoing
at the end of FY2025.
•
Process water balance was completed.
•
Bench scale metallurgical testing, focused on the ore preparation
circuit, ore leaching conditions and autoclave residence time,
downstream rheology and tailings stream characterisation.
•
Detailed process plant design work was materially progressed, including piping and instrument diagrams (P&IDs), 3D modelling and plant
layout, mechanical and electrical equipment and load listing.
•
Process specialist Worley Chemetics was awarded the ECI acid plant contract, a key piece of infrastructure to support the Goongarrie Hub
operation.
•
Logistics studies in support of construction activities, operations and product export were advanced.
•
Non-Process infrastructure planning and designs progressed by specialist consultants.
•
Expanded environmental baseline surveys were completed to align with the updated project footprint and environmental standards.
•
Engagement and collaboration with Native Title claimant groups continued during the year. Subsequent to the Reporting Date, Ardea announced
that its majority (82.5%) owned subsidiary, KNPL, had executed a Heritage Agreement with the Marlinyu Ghoorlie Native Title claim group
(Marlinyu Ghoorlie). The Heritage Agreement comprises 100 tenements which overlap the Marlinyu Ghoorlie Native Title Claim area, which
covers the majority of the KNP - Goongarrie Hub1.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 8
Figure 4: KNP Goongarrie Hub General Arrangement plan
showing areas of DFS Infill Drilling.
1.
Refer to the Company's ASX Announcement titled "Heritage Agreement signed with Marlinyu Ghoorlie Claim Group" of 3 September 2025 for further information.
Processing Research and Development
The Ardea FY2025 R&D is based upon metallurgical experiments aimed at optimising the plant performance and revenue from the KNP and its
Goongarrie Hub. This is fundamental to delivering the Goongarrie Hub as a world-competitive Critical Minerals project.
Global Patent Application – Mineralised Neutraliser
Ardea filed Australian patent application 2023377792 during the year based on PCT/AU2023/0505201 relating to the use of MN in the Ardea
process. PCT/AU2023/050520 derived priority from Australian provisional application 2022903389 filed on 11 November 20222. AU2023377792
is pending at IP Australia and a Direction to Request Examination has not yet been issued. MN was a key innovation of the 2023 PFS, and continued
to be a key workstream in the DFS, with ore processing paths to add to both ESG credentials and recovered metal.
Scandium and Rare Earth Elements
CSIRO-Ardea continued conceptual nickel sulphide and hydrothermal alteration target concepts at the Highway Nickel Prospect, pursuant to an
EIS jointly State government/Ardea funded diamond core hole3. Based on the EIS research, DFS drilling at Highway included a multi-element
assay suite to quantify the potential Sc-REE-Lithium-Caesium-Tantalum (LCT) potential and better define the role of MN in the staged neutralisation
of the autoclave Pregnant Liquor Solution (PLS). This drilling program was completed in the June Quarter 2025.
Future Battery Industries – Cooperative Research Centre (FBICRC)
Ardea continued to support the FBICRC developments and has monitored progress, with this workstream drawing to a close as of 30 June 2025.
Australian Research Council
Ardea continues to support the Australian Research Council’s (ARC) Industrial Transformation Training Centre in Critical Minerals.
Bench-scale Metallurgy
Bench scale metallurgical testing commenced for the DFS during the year. Testing has focused on leaching tests for the goethite (limonite) and
magnesian (saprolite) ores.
An accredited Perth-based laboratory also completed testwork for the ore preparation circuit. The testwork primarily intended to generate leach
feed samples for downstream testing but also provided information about milling characteristics of the ore and the potential for selective upgrading
of nickel content by differences in the grind response for different minerals (e.g. goethite versus silica). This testwork was ongoing at the end of
FY2025.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 9
Ardea’s Kalgoorlie Office and core
yard - preparation of bulk samples
for Metallurgical test work.
1.
Refer to the Company's ASX Announcement titled "Kalgoorlie Nickel Project Mineralised Neutraliser International Patent Application Lodged" of 15 June 2023 for further information.
2.
Refer to the Company's ASX Announcement titled "Kalgoorlie Nickel Project: Metallurgical Update -“ Mineralised Neutraliser" of 16 November 2022 for further information.
3.
Refer to the Company's ASX Announcement titled "Nickel Sulphide Prospectivity Confirmed and Lithium-Caesium-Rubidium bearing intrusives in Highway EIS drillhole" of 15 December 2023
for further information.
Geology
Resource Workflows
Resource workstreams have remained the primary focus for the geology team, with substantial progress made on RC infill resource drilling designed
to upgrade nickel-cobalt laterite resources to the Measured category for the anticipated early mining areas. The RC drilling program was completed
during the year, with 45,735 metres drilled across the Goongarrie Hub deposits including Big Four, Scotia Dam, Highway, Siberia North, and
Goongarrie South. Initial geochemical assay results have demonstrated the likely existence of additional, previously untested MN material at depth
below primary nickel-cobalt mineralisation in several areas.
Work on updated DFS Mineral Resource Estimates (MREs) commenced. String interpretation for Big Four/Scotia Dam and Highway deposits was
completed, with initial geostatistical analysis and block model construction commenced. The Diamond Drilling program completed 2,278 metres
of drilling, providing critical data for QAQC analysis through RC hole twinning. Manual density measurements and downhole geophysical surveys
were conducted on selected DD holes to collect density and moisture data for use in resource and mine models. MN samples were also strategically
selected from some geology DD holes for metallurgical testwork, representing different physical and geochemical properties across the deposits.
The KNP MRE (using a 0.5% Ni cut-off grade) stands at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of
contained cobalt (See Appendix 1 - Table 1). All the resources are constrained within optimised pit shells using appropriate nickel and cobalt
prices, mining and processing costs and pit slope parameters to determine the material that could potentially be economically mined in the future.
The Mineral Resource has been estimated and reported in accordance with the guidelines of the 2012 edition of the Australian Code for the
Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code (2012).
Hydrogeology
At Goongarrie, all nickel-cobalt-scandium mineral resources are located on granted mining leases. As such, KNPL has first rights to any groundwater
underlying these areas. Past work by Ardea has defined multiple water sources, with water for project development to be sourced from multiple
dedicated borefields.
During FY2025, KNPL’s hydrogeological work program has focused on measuring and understanding the water resources contained on the
company’s mining leases, as well as investigating additional water sources that can support the long life of the Goongarrie Hub. KNPL has identified
several strategic borefields, within an 80km radius of the likely Goongarrie Hub Processing plant, which can satisfy the Project’s process water
demands. The borefields are expected to provide sufficient capacity, as well as redundancy, to the process water supply.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 10
KNPL Geologists
inspecting drill core as
part of the KNP
Goongarrie Hub Infill
Drilling Program.
KNPL completed engineering work to determine the optimum pipeline routes
from the borefields to the site, with heritage and environmental baseline
surveys the next step in the study. Concurrently, KNPL has applied for
Miscellaneous Licences covering the pipeline corridors and borefields.
The technical validation of water resources has been well advanced, with key
activities completed by KNPL at one of the borefields during the year, including
over 9,000m of drilling comprising 69 monitoring wells and nine test wells, test
pumping (eight of nine wells completed) and hydrogeological modelling to
prove the quantity and quality of water available at the Project. A similar work
program for the remaining borefields is due for completion before the end of
the DFS period.
The project has achieved 30% design completion for both the borefield
infrastructure and the water delivery pipeline. KNPL continued to explore
opportunities to integrate the anticipated mine dewatering requirements into
the process water supply, potentially reducing demand on the dedicated
process water borefields and maximising the utilisation of water that would otherwise require disposal.
Infrastructure and Logistics
The KNP has access to high-quality infrastructure with the Goldfields Highway, rail line and power infrastructure passing through the project area
and the Goldfields Gas Pipeline within 25km. Ardea, KNPL the City of Kalgoorlie-Boulder and Shire of Menzies liaise regularly on key project
development updates, community and accommodation developments.
KNPL has continued studies to progress road access, haulage, and utilities strategies for the KNP – Goongarrie Hub. Other activities included
concept planning for the accommodation village and related facilities to ensure that installed infrastructure can support the anticipated workforce
requirements for construction and operations.
Over the year, studies were further refined and narrowed as results from geotechnical and hydrogeological studies were received. These activities
were complemented by progressive integration of environmental and permitting considerations into the design process, with logistics and non-
process infrastructure (NPI) planning maturing into a coordinated framework considering transport, energy, water, accommodation and
communications. Primero Engineering was awarded the NPI Services Contract for the DFS.
Environment and Rehabilitation
ESG considerations remain at the forefront for Ardea and KNPL, with project designs to consider the minimisation of the development footprint
and greenhouse gas emissions. Project development will be undertaken with systematic rehabilitation concurrent with operations as a core principle.
Due to the expanded development footprint of the Goongarrie Hub since the July 2023 PFS, baseline surveys completed in 2018 were extended
and aligned with the latest regulatory guidance during the year. Planning and scoping for baseline studies along the proposed water pipeline
corridor progressed, with LiDAR remote sensing surveys completed. SLR Consulting was appointed as the preferred ESG consultant, and Minviro
was once again engaged for Life Cycle Assessment updates to ensure
comprehensive environmental performance evaluation.
The remaining baseline studies will determine if formal environmental
assessment is required under the State Environmental Protection Act (EP Act)
and the Commonwealth Environment Protection and Biodiversity Conservation
Act (EPBC Act). If it can be shown that the impacts are low or can be managed
by other regulatory agencies or mechanisms the Environmental Protection
Authority may make an assessment on the application that the Project does
not require formal assessment.
Mine rehabilitation methodology leverages four decades of WA open pit
experience, utilising mining voids for waste disposal and progressive
rehabilitation with stockpiled topsoil and revegetation. Local and
Indigenous contractors will be given specific opportunities to tender for
portions of the rehabilitation and revegetation works.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 11
Hydrological well drilling
as part of KNP
Goongarrie Hub DFS.
Preparing disturbed
ground for
rehabilitation
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 12
WA Nickel Sulphides and Critical Minerals
Ardea’s extensive and strategic land holding in the Eastern Goldfields
of WA comprises tenements covering approximately 3,500km2 and,
in addition to the globally significant nickel-cobalt-scandium KNP
resource, is highly prospective for nickel sulphides and other Critical
Minerals (Figure 5, 6 and 7).
Ardea is undertaking initial Nickel Laterite and Nickel Sulphide reviews
for the Yerilla Hub (Aubils, Boyce Creek and Jump Up Dam Nickel
Projects) and Kalpini Hub (Kalpini and Bulong Nickel Projects, Emu
Lake nickel sulphide) shown in Figure 5. These “non-Goongarrie Hub”
projects are collectively termed the “Kalpini Hub.”
Kalpini Nickel Project
Ardea’s Kalpini Nickel Project is located 70km northeast of the City
of Kalgoorlie-Boulder and covers 121km2 of contiguous granted tenure
100%-owned by Ardea (Figure 5). Regionally there are two distinct
Kalpini ultramafic units each with 20-25km strike within Ardea tenure
(Figure 7):
•
The Kalpini Eastern Komatiite Belt hosts the Wellington East and
Acra North nickel laterite deposits containing 75Mt at 0.73%
nickel and 0.04% cobalt, for 549.7kt nickel and 32.6kt cobalt
(See Appendix 1 - Table 1). The ultramafics are typical of the
Walter Williams Formation style consisting of a thick 200-600m
sheet with olivine orthocumulate upper and lower contacts and
core olivine meso-adcumulate (Dunitic Sheet Flows-Layered Lava
Lakes) which weathers to nickel laterite.
•
The Kalpini Western Komatiite Belt hosts the Emu Lake Binti Binti
nickel sulphide mineralisation. There are at least two fertile nickel
sulphide ultramafic flows at Emu Lake. The volcanics are
characterised by a bi-modal co-magmatic suite, with each cycle
having a footwall dacite volcanic overlain by ultramafic volcanic
flows. The ultramafics are orthocumulate flows typically 10-40m
thick, with massive, matrix, blebby and disseminated nickel
sulphides identified in the Western Ultramafic (WU) and Central
Ultramafic (CU).
Nickel Laterite Studies
The Kalpini Nickel Project includes Nickel Laterite mineralisation
associated with significant Rare Earth Element (REE) and Scandium
credits (Figure 6).
At the Wellington East Prospect, re-sampling historic drill pulps by
Ardea during 2020 to 2022 identified significant Rare Earth Element
and Rare Metal (RM) grades within the historic nickel-cobalt laterite
mineralisation. Studies completed during FY2024 on this resampling
work suggested that the Kalpini REE occurs within the Enrichment
Zone of the main Nickel Laterite. In contrast, scandium is more
enriched within younger duricrust overlying the Nickel Laterite.
Figure 5: Ardea tenement plan showing location of the Kalpini Hub,
Emu Lake Nickel Sulphide Camp. Projection MGA 94 Zone 51.
Figure 6: Northern Kalpini Nickel Project, aeromagnetic image
showing historic drillholes as black dots, and if available % Total
Rare Earth Oxide (TREO) assays.
Highlights from 2022 re-sampling1, included:
•
WERC0371: 12m at 1.70% nickel, 0.151% cobalt, 28g/t scandium from 20m with;
o
0.244% Total Rare Earth Oxide (TREO) includes neodymium, praseodymium, lanthanum, cerium
o
1.320% Total Rare Metal Oxide (TRMO) includes titanium, yttrium , zircon, niobium, hafnium, tantalum and tungsten
•
VKPRC0112: 4m at 1.66% nickel, 0.102% cobalt, 40g/t scandium from 29m with 0.1297% TREO; 0.7193% TRMO
Ardea historic scandium intercepts2 include:
•
AKR0015, 20m at 102g/t scandium from 38m
•
AKR0017, 6m at 463g/t scandium from 28m
Nickel Sulphide Exploration
Ardea’s nickel sulphide exploration targets complement the development of the KNP nickel laterite. Nickel sulphide has value for a nickel laterite
operation, in that it is a potential addition to any goethite autoclave feed for exothermic heating (optimise steam use), Eh reduction to control
hexavalent chromium, adding nickel and sulphur units to the autoclave reaction vessel, and typically improving overall nickel recoveries.
An additional benefit is that metal concentrations considered deleterious to
conventional nickel sulphide flotation concentrator processing do not affect
the HPAL process, opening the possibility of mineral extraction from deposits
that may otherwise have been historically overlooked.
The Type 1 massive nickel-copper-PGE sulphides discovered at the Binti
Prospect in the Kalpini Project (i.e. AELD0003: 2.72m at 5.42% Ni and 0.85%
Cu from 391.04m3 ) occur in the Kurnalpi Terrane which is significant given
there are only a few other Type 1 nickel sulphide occurrences in this Terrane.
Ardea holds over 20km strike of the prospective Western Ultramafic
sequence that is largely unexplored and highly prospective for primary
magmatic nickel sulphide mineralisation.
The plan for the Kalpini Hub is to postpone proposed nickel sulphide drill
exploration activities until after KNPL priority DFS workstreams have been
finalised. Low cost/low impact work, such as geo-metallurgical interpretation,
continued during the year.
Figure 7: The Kalpini Project showing Komatiite Belts. Nickel laterite
resources are located on the Eastern Komatiite Belt, with the Western
Belt highly prospective for nickel sulphide (NiS) mineralisation.
Projection MGA 94 Zone 51.
Critical Mineral Exploration
Highway Nickel Project
An application for EIS Round 29 was submitted for three diamond holes on Highway tenement M29/214, following up from the Round 26 EIS
drillhole which defined fertile horizons of an LCT intrusive system4. Two drillholes of PQ/HQ diameter diamond drilling were completed at Highway
under the program for a total of 378.9m. The original scope of 800m total drilling was unable to be achieved due to ongoing DFS works and limited
drill rig availability. The drilling aimed to determine the extent and structural controls of intrusive systems underlying the Highway tenement and
successfully intercepted highly altered micaceous zones in the southernmost drillhole at Highway. Felsic Intrusives associated with alteration zones
were also identified in the northernmost hole. Assays from the drilling remained outstanding at the end of June 2025.
Activities Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 13
1.
Refer to the Company's ASX Announcement titled "High-grade Nickel-Cobalt Confirmed at Kalpini with Scandium and Rare Earth Elements" of 14 March 2022 for further information.
2.
Refer to the Company's ASX Announcement titled "Kalpini drill results highlight cobalt-nickel mineralisation, and scandium discovery" of 22 June 2017 for further information.
3.
Refer to the Company's ASX Announcement titled "Emu Lake Nickel Sulphide Discovery confirmed with 2.72m at 5.42% Ni" of 14 January 2022 for further information.
4.
Refer to the Company's ASX Announcement titled "Nickel Sulphide Prospectivity Confirmed and Lithium-Caesium-Rubidium bearing intrusives in Highway EIS drillhole" of 15 December 2023
for further information.
Table 1 - KNP nickel and cobalt MRE based on a greater than 0.5% Ni cut-off grade. (There is no change from the ARL ASX MRE release 30 June 2023 or the
2024 Ardea Annual Report.) The Mineral Resource Estimate in this table is inclusive of the Ore Reserve shown in Table 2
Contained
Contained
Camp
Resource
Tonnes
Ni
Co
Ni
Co
Estimation Details
Category
(Mt)
(%)
(%)
(kt)
(kt)
Method, Source, Year
Goongarrie
Goongarrie South
Measured
18
0.94
0.085
171
15
LUC, Ardea, 2021
Indicated
82
0.71
0.049
584
40
LUC, Ardea, 2021
Inferred
10
0.64
0.033
61
3
LUC, Ardea, 2021
Highway
Indicated
71
0.69
0.038
487
27
LUC, Ardea, 2023
Inferred
21
0.67
0.040
141
8
LUC, Ardea, 2023
Ghost Rocks
Inferred
47
0.66
0.042
312
20
OK, Snowden, 2004
Goongarrie Hill
Indicated
40
0.65
0.037
259
15
LUC, Ardea, 2021
Inferred
29
0.60
0.025
176
7
LUC, Ardea, 2021
Big Four
Indicated
49
0.71
0.047
346
23
LUC, Ardea, 2021
Inferred
14
0.68
0.043
96
6
LUC, Ardea, 2021
Scotia Dam
Indicated
12
0.71
0.065
82
7
LUC, Ardea, 2021
Inferred
5
0.72
0.043
37
2
LUC, Ardea, 2021
Goongarrie Subtotal
Measured
18
0.94
0.085
171
15
Indicated
253
0.69
0.044
1,758
112
Inferred
127
0.65
0.037
823
47
Combined
398
0.69
0.044
2,753
175
Siberia
Siberia South
Inferred
81
0.65
0.033
525
27
OK, Snowden, 2004
Siberia North
Indicated
14
0.72
0.042
102
6
Ni(UC) Co(OK), Snowden, 2009
Inferred
72
0.74
0.034
534
25
Ni(UC) Co(OK), Snowden, 2009
Black Range
Indicated
9
0.67
0.090
62
8
OK, HGMC, 2017
Inferred
10
0.69
0.100
68
10
OK, HGMC, 2017
Siberia Subtotal
Indicated
24
0.70
0.061
165
14
Inferred
163
0.69
0.038
1,127
61
Combined
186
0.69
0.040
1,292
75
KNP Goongarrie
TOTAL
Measured
18
0.94
0.085
171
15
Hub1
Indicated
277
0.70
0.046
1,923
127
Inferred
289
0.67
0.037
1,951
108
Combined
584
0.69
0.043
4,044
250
Bulong
Taurus
Inferred
14
0.84
0.051
119
7
OK, Snowden, 2007
Bulong East
Indicated
16
1.06
0.055
169
9
OK, Snowden, 2004
Inferred
24
0.79
0.053
190
13
OK, Snowden, 2004
Bulong Subtotal
Indicated
16
1.06
0.055
169
9
Inferred
38
0.81
0.052
309
20
Combined
54
0.88
0.053
477
29
Hampton
Kalpini
Inferred
75
0.73
0.044
550
33
OK, Snowden, 2004
Hampton Subtotal
Inferred
75
0.73
0.044
550
33
KNP Kalpini Hub2
TOTAL
Indicated
16
1.06
0.055
169
9
Inferred
114
0.76
0.047
859
53
Combined
130
0.79
0.048
1,028
62
Yerilla
Jump Up Dam
Measured
4
0.94
0.048
36
2
OK, Snowden, 2008
Indicated
42
0.78
0.043
324
18
OK, Snowden, 2008
Inferred
18
0.63
0.034
116
6
OK, Snowden, 2008
Boyce Creek
Indicated
27
0.77
0.058
206
16
OK, Snowden, 2009
Aubils
Inferred
49
0.70
0.066
346
33
OK, Heron, 2008
KNP Yerilla Hub2
TOTAL
Measured
4
0.94
0.048
36
2 2.
(Now part of
Indicated
68
0.78
0.049
531
33
Kalpini Hub)
Inferred
68
0.68
0.057
462
39
Combined
140
0.73
0.053
1,028
74
KNP TOTAL
Measured
22
0.94
0.079
207
17
Indicated
361
0.73
0.047
2,622
169
Inferred
471
0.70
0.043
3,272
200
GRAND TOTAL
Combined
854
0.71
0.045
6,101
386
Appendix 1
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 14
Mineral Resource Estimate (MRE)
Minor discrepancies may occur due to rounding of appropriate significant figures.
Legend: LUC – Local Uniform Conditioning; UC – Uniform Conditioning; OK – Ordinary Kriging.
1. The Goongarrie Hub is part of KNPL
Incorporated Joint Venture.
See 30 August 2024 ASX release.
Goongarrie Hub Resources are reported
on a 100% basis, with holding an 82.5%
interest. See 4 July 2025 ASX release
2. The KNP Kalpini and Yerilla Hubs
are known collectively as the
Kalpini Hub and remain a
100% owned Ardea asset.
The 2023 PFS (ASX release 5 July 2023) defined a KNP Goongarrie Hub Ore Reserve of 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt contained
nickel and 99kt contained cobalt (Table 2). Goongarrie Hub deposits Ghost Rocks, Siberia South and Black Range have not been included in
the current Ore Reserve and provide potential to significantly extend the mine life.
Notes:
1.
The Ore Reserve is reported in accordance with JORC Code (2012). The Ore Reserve information shown in this ASX release has been previously released
on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with Listing Rule 5.9.
2.
Ore reserves are reported at a cut-off of 0.5% Ni for primary feed stock to the processing facility, plus mineralised neutraliser as ore at a cut-off of 0.25% Ni
and Loss on Ignition (LOI) above 25%.
3.
The Ore Reserve was evaluated using a base price of US$22,000/t for Ni and US$51,000/t for Co at 85% payable for a Mixed Hydroxide Precipitate (MHP)
product, and an exchange rate 0.69 USD/AUD.
4.
Ore Reserves account for mining dilution and mining ore loss.
5.
Ore Reserves are reported on a Dry Tonnage Basis.
6.
Proven Ore Reserves are based on Measured Mineral Resources only and Probable Ore Reserves are based on Indicated Mineral Resources only.
7.
The sum of individual amounts may not equal due to rounding.
8.
This Ore Reserve estimate is for a subset of the KNP Goongarrie Hub deposits Mineral Resources, being Goongarrie South, Big Four / Scotia Dam,
Goongarrie Hill, Highway and Siberia North. Those Mineral Resources are inclusive of the Ore Reserves shown in this table.
9.
The Ore Reserve Summary was detailed in ARL ASX PFS Announcement, 5 July 2023.
10.
Goongarrie Hub MRE and Ore Reserve are reported on a 100% basis. Subsequent to 30 June 2025, Ardea moved to an 82.5% interest. (Refer to the
Company's ASX Announcement titled "Goongarrie Hub Project DFS Reaches Major Milestone" of 4 July 2025 for further details).
Appendix 1 continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 15
Table 2 - KNP Goongarrie Hub Ore Reserve Summary consisting of ore above 0.5% Ni as the feed stock for the processing facility, and ore as Mineralised
Neutraliser above 0.25% Ni and Loss on Ignition (LOI) above 25%
Deposit
Ore >= 0.5% Ni
Ore > 0.25% Ni and LOI > 25%
Total Ore
Mt Ni (%)
Co (%)
Ni (kt) Co (kt)
Mt
Ni (%)
Co (%)
Ni (kt)
Co (kt)
Mt
Ni (%) Co (%)
Ni (kt)
Co (kt)
Proven
Goongarrie South
16.7
0.96
0.09
160
15
0.05
0.43
0.03
0.20
0.01
16.7
0.96
0.09
160
15
Proven Sub-total
16.7
0.96
0.09
160
15
0.05
0.43
0.03
0.20
0.01
16.7
0.96
0.09
160
15
Probable
Big Four / Scotia Dam
34.9
0.76
0.07
265
23
0.8
0.38
0.04
3
0
35.7
0.75
0.06
268
23
Goongarrie South
33.6
0.79
0.07
265
23
1.8
0.40
0.03
7
1
35.4
0.77
0.07
272
24
Goongarrie Hill
15.8
0.70
0.04
110
7
0.1
0.44
0.02
0
0
15.9
0.70
0.04
111
7
Highway
54.0
0.70
0.04
380
22
27.2
0.39
0.01
106
4
81.2
0.60
0.03
486
26
Siberia North
9.2
0.74
0.05
68
4
-
-
-
-
-
9.2
0.74
0.05
68
4
Probable Sub-total
147.4
0.74
0.05
1,087
79
29.9
0.39
0.02
117
5
177.4
0.68
0.05
1,204
84
Proven + Probable Total
Big Four / Scotia Dam
34.9
0.76
0.07
265
23
0.8
0.38
0.04
3
0
35.7
0.75
0.06
268
23
Goongarrie South
50.2
0.85
0.08
425
38
1.9
0.40
0.03
7
1
52.1
0.83
0.07
432
39
Goongarrie Hill
15.8
0.70
0.04
110
7
0.1
0.44
0.02
0
0
15.9
0.70
0.04
111
7
Highway
54.0
0.70
0.04
380
22
27.2
0.39
0.01
106
4
81.2
0.60
0.03
486
26
Siberia North
9.2
0.74
0.05
68
4
-
-
-
-
-
9.2
0.74
0.05
68
4
TOTAL
164.1
0.76
0.06
1,247
94
30.0
0.39
0.02
117
5
194.1
0.70
0.05
1,365
99
Ore Reserve
COMPLIANCE STATEMENT (JORC CODE (2012))
A competent person’s statement for the purposes of Listing Rule 5.22 has previously been announced by the Company for:
1
Kalpini drill results highlight cobalt-nickel mineralisation, and scandium discovery, 22 June 2017.
2.
Emu Lake Nickel Sulphide Discovery confirmed with 2.72m at 5.42% Ni, 14 January 2022.
3.
High-grade Nickel-Cobalt Confirmed at Kalpini with Scandium and Rare Earth Elements, 14 March 2022.
4.
Kalgoorlie Nickel Project Recognition on All Tiers of Australian Government, 21 March 2022.
5.
Nickel sulphide anomalism from aircore drilling at Kalpini Project, 2 May 2023.
6.
Mineralised Neutraliser Global Patent Lodged, 15 June 2023.
7.
Kalgoorlie Nickel Project Mineral Resource Estimate Exceeds 6 Million Tonnes Contained Nickel, 30 June 2023.
8.
KNP - Goongarrie Hub Ore Reserve and Feasibility Study Defines +40 Year Operation with Strong Financial Metrics, 5 July 2023.
9.
Nickel Sulphide Prospectivity Confirmed and Lithium-Caesium-Rubidium bearing intrusives in Highway EIS drillhole, 15 December 2023.
10.
Kalgoorlie Nickel Project - Goongarrie Hub DFS Drilling Underway, 4 July 2024.
11.
Kalgoorlie Nickel Project – Goongarrie Hub DFS Underway, 8 July 2024.
12.
KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium, 30 August 2024.
13.
Annual Report 2024, 13 September 2024.
14.
Big Four & Scotia Dam RC Infill Drilling Program Complete, 14 April 2025.
15.
Highway RC Infill Drilling Program Complete, 25 June 2025.
16.
Goongarrie Hub Project DFS Reaches Major Milestone, 4 July 2025.
17.
KNPL signs Heritage Agreement for Goongarrie, 3 September 2025.
Competent Persons Statement
Resource Estimation, Exploration Results, and Industry Benchmarking
The Resource Estimation, Exploration Results and Industry Benchmarking summaries are based on information reviewed or compiled by Mr Andrew Penkethman, a
Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Penkethman is
a full-time employee of Ardea Resource Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Penkethman has reviewed this press release and consents to the inclusion in this report of the information in the form and
context in which it appears. Mr Penkethman owns Ardea shares.The Company confirms that it is not aware of any new information or data that materially affects
information included in previous announcements, and all material assumptions and technical parameters underpinning the estimates continue to apply and have not
materially changed. Ardea wishes to clarify that its current Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines
is:
Contained
Contained
KNP
Resource
Size
Ni
Co
Ni
Co
Hub
Category
(Mt)
(%)
(%)
(kt)
(kt)
Goongarrie Hub1
Measured
18
0.94
0.085
171
15
Indicated
277
0.70
0.046
1,923
127
Inferred
289
0.67
0.037
1,951
108
Goongarrie Hub1
Total
584
0.69
0.043
4,044
250
Kalpini Hub
Measured
4
0.94
0.048
36
2
inc Yerilla Hub2
Indicated
84
0.83
0.050
699
42
Inferred
182
0.73
0.051
1,321
92
Kalpini Hub2
Total
854
0.71
0.045
6,101
386
Kalgoorlie
Measured
22
0.94
0.079
207
17
Nickel Project
Indicated
361
0.73
0.047
2,622
169
Inferred
471
0.70
0.043
3,272
200
Total KNP
Combined
854
0.71
0.045
6,101
386
The Mineral Resource Estimate information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 30 June 2023, in
accordance with Listing Rule 5.8. The Mineral Resource Estimate in the above table is inclusive of the Ore Reserve shown in table 2 of this release. There is no
change from the 2024 Ardea Annual Report. This is supported by the ASX 30 June 2023 release.
The Ore Reserve information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with
Listing Rule 5.9. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market
announcements noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate and Ore Reserve in the previous
market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings
are presented have not been materially modified from the original market announcements.
Appendix 1 continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 16
Note: 0.5% nickel cutoff grade used to report resources. Minor discrepancies may occur due to
rounding of appropriate significant figures.
1.
The Goongarrie Hub is part of KNPL Incorporated Joint Venture. See 30 August 2024 ASX
Goongarrie Hub Resources are reported on a 100% basis. Subsequent to 30 June 2025,
Ardea moved to an 82.5% interest. (Refer to the Company's ASX Announcement titled
"Goongarrie Hub Project DFS Reaches Major Milestone" of 4 July 2025 for further details)
2.
The KNP Kalpini and Yerilla Hubs are known collectively as the Kalpini Hub and remain a
100% owned Ardea asset.
Governance Arrangements and Internal Controls
Ardea reports its Mineral Resources and Ore Reserves periodically, using internal and external geologists who are experienced in best practice modelling and estimation
methods. Ardea uses industry-standard quality control procedures as part of all sampling and analysis programs associated with its Mineral Resource and Ore Reserve
programs. All competent persons engaged by Ardea or its subsidiaries are suitably qualified and experienced as per the requirements defined in the JORC Code (2012)
Edition. These competent persons undertake regular reviews of the quality and suitability of the underlying information used to generate Resource Estimates. Reviews
use a combination of internal and external verification processes for Mineral Resource Estimates. Competent persons also report any activities that may have a material
impact on Resource Estimates to the Ardea Board and Management. Ardea's management regularly assesses all reviews and reporting, and Ardea employs a permanent
Database Manager to review all results before internal release for use, so that data integrity is maintained.
ASX CHAPTER 5 COMPLIANCE AND PFS CAUTIONARY STATEMENT
The Company has concluded that it has a reasonable basis for providing the forward-looking statements and forecast financial information included in this announcement.
The detailed reasons for that conclusion are outlined throughout this announcement and all material assumptions, including the JORC Code (2012) modifying factors,
upon which the forecast financial information is based are disclosed in this announcement. This announcement has been prepared in accordance with the JORC Code
(2012) and the ASX Listing Rules.
The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors were applied in drawing a
conclusion or making a forecast or projection as reflected in the forward-looking information.
The KNP - Goongarrie Hub Project is at the PFS phase and although reasonable care has been taken to make sure that the facts are accurate and/or that the opinions
expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual
results and developments of projects and the scandium market development may differ materially from those expressed or implied by these forward-looking statements
depending on a variety of factors.
A key conclusion of the PFS, which are based on forward looking statements, is that the Goongarrie Hub is considered to have positive economic potential.
The Mineral Resource used for the PFS was classified under JORC Code (2012) Guidelines and announced by the Company on 30 June 2023. The cut-off grades
adapted for the PFS and reported in Table 2 are the basis of the production target assumed for the PFS.
The Company believes it has a reasonable basis to expect to be able to fund and further develop the KNP - Goongarrie Hub. However, there is no certainty that the
Company can raise funding when required.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on
expectations, estimates and projections as of the date of this release.
This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management’s expectations with respect
to, among other things, the timing and amount of funding required to execute the Company’s programs, development and business plans, capital and exploration
expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to
obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company’s properties, environmental
risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development
of mineral properties, the Company’s ability to raise funding privately or on a public market in the future, the Company’s future growth, results of operations, performance,
and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may” and similar expressions have been used
to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given,
and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions, and other factors that
could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors,
including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable
terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Australia or other countries
in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities,
employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of
mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be
considered carefully. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any
forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions,
the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause
results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any
such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-
looking information contained herein to reflect new events or circumstances, except as may be required by law.
No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained
in this release.
Appendix 1 continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 17
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 18
Financial Statements
for the year ended
30 June 2025
ABN 30 614 289 342
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 19
The Directors present their report on Ardea Resources Limited and the entities it controlled (Ardea, the Company or Consolidated Entity), at the
end of and during the year ended 30 June 2025 (financial period).
DIRECTORS & SENIOR MANAGEMENT
The names and details of the Directors and Senior Management of Ardea during the financial period and until the date of this report are:
Mathew Longworth – BSc (Hons) MAusIMM
Non-Executive Chair Appointed 31 July 2020
Mathew Longworth is a geologist with over 39 years’ experience across exploration, project evaluation/development, operations and corporate
management. He previously held roles as Exploration Manager, COO, and CEO/Managing Director with Australian listed companies, and Mining
Consultant with Xtract Mining consultants. In his senior corporate roles, Mathew led multidisciplinary project evaluation and development teams.
Mr Longworth is a member of the Australasian Institute of Mining and Metallurgy.
Mr Longworth has excellent experience of the key Ardea exploration and development projects, being the Kalgoorlie Nickel Project (KNP). Mr
Longworth joined Heron Resources in 2003 as Exploration Manager, rising to Managing Director from 2007 to 2011. Mr Longworth applied his
intimate knowledge of the Eastern Goldfields geology to the KNP to collaborate with Vale Inco in their 2005 to 2009 KNP feasibility study.
He is currently Chairman of the unlisted Company Greenfields Exploration Pty Ltd, until recently Non-Executive Director at Asra Minerals Ltd,
and Non-Executive Chairman of unlisted Northam Resources Limited. Mr Longworth has no other public company directorships.
Interests in shares: 986,428
Interest in rights: 600,000
Maree Arnason – BA, FAICD
Non-Executive Director Appointed 10 July 2023
Maree Arnason has over 35 years' experience across the natural resources, energy and manufacturing sectors with companies including BHP
Billiton, Carter Holt Harvey, Svenska Cellulosa AB and Wesfarmers. She has worked across commodities including copper, gold, iron ore, timber,
coal, mineral sands and natural gas and gained expertise in governance, strategy, sustainability, risk, corporate affairs, transformations and
integrations across exploration to full production environments.
Ms Arnason is a Co-founder and Director of Energy Access Services, which operates an independent Western Australian-focused digital trading
platform for wholesale gas buyers and sellers and also has a significant record of service in the not-for-profit sector.
Ms Arnason holds a Bachelor of Arts from Deakin University. She is a Fellow of the Australian Institute of Company Directors (FAICD), an AICD
WA Division Councillor and a WA Director on the AICD Board.
Ms Arnason is an independent Non-executive Director of ASX-listed Gold Road Resources Limited and VHM Limited.
Interests in Shares – 15,000
Interests in Rights – 600,000
Michael Rodriguez, BSc (Met), FAusIMM, MAICD
Executive Director Appointed 19 December 2024
Michael Rodriguez is a qualified metallurgist with over 30 years’ experience in the design, construction, commissioning and operation of complex
hydrometallurgical and pyrometallurgical operations in Australia, Europe, North and South America. This includes the successful optimisation of
Murrin Murrin, Australia’s largest and longest-running nickel laterite high pressure acid leach (HPAL) operations producing refined nickel-cobalt.
Mr Rodriguez is a Non-Executive Director at Golden Deeps Limited.
Interests in Shares – nil
Interests in Rights – nil
Directors’ Report
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 20
Andrew Penkethman – BSc, FAusIMM, MAIG
Managing Director and Chief Executive Officer
Appointed Managing Director 5 February 2020 following his appointment as Chief Executive Officer on 1 April 2019
Andrew Penkethman is a resources sector executive and geologist with 30 years’ experience in the industry. His technical skills include project
evaluation, exploration, discovery, resource development, feasibility study management, permitting, stake holder engagement and mine
development across open pit and underground operations within Australia and overseas. Commodities experience includes battery minerals,
base metals, gold and energy commodities over a range of geological settings.
Mr Penkethman’s technical expertise is complimented with a strong corporate focus including investor relations, capital raising, strategic partner
processes, joint venture management, and project acquisition and divestment. Mr Penkethman has ASX, AIM and TSX equity markets
experience. He holds a Bachelor of Science degree from the University of Wollongong, is a Fellow of the Australasian Institute of Mining and
Metallurgy and a Member of the Australian Institute of Geoscientists.
From 2021, Mr Penkethman is a Non-Executive Director at Kalgoorlie Gold Mining Limited (16 November 2021 to present).
Interests in shares: 2,882,401
Interest in rights: 1,000,000
Ian Buchhorn – BSc (Hons), Dipl. Geosci (Min. Econ), MAusIMM
Executive Director Appointed 17 August 2016, resigned 31 March 2025
Ian Buchhorn is a Mineral Economist and Geologist with over 40 years experience. He was the founding Managing Director of Heron Resources
Limited for a period of 11 years until early 2007 and returned to that role briefly prior to his resignation as an Executive Director in June 2017. Mr
Buchhorn previously worked with a number of international mining companies and has worked on nickel, bauxite and industrial mineral mining
and exploration, gold and base metal project generation and corporate evaluations. For the last 30 years Mr Buchhorn has acquired and
developed mining projects throughout the Eastern Goldfields of Western Australian and has operated as a Registered Mine Manager.
Interests in shares: 14,410,585
Interest in rights: 800,000
Robert (Sam) Middlemas – B.Com., PGradDipBus. CA
Company Secretary
Mr Middlemas was appointed Company Secretary and Chief Financial Officer on 20 October 2016. He is a chartered accountant with more than
25 years experience in various financial, board and company secretarial roles with a number of listed public companies operating in the resources
sector. He is the principal of a corporate advisory company which provides financial and secretarial services specialising in capital raisings and
initial public offerings. Previously Mr Middlemas worked for an international accountancy firm. His fields of expertise include corporate secretarial
practice, financial and management reporting in the mining industry, treasury and cash flow management and corporate governance. Mr
Middlemas ceased the role of Chief Financial Officer on the 8 June 2022 and continues as the company’s Company Secretary.
Interests in shares: 813,700
Interest in rights: nil
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity during the financial period consisted of mineral exploration and evaluation (Feasibility Studies)
in Western Australia.
There have been no significant changes in these activities during the financial period.
DIVIDENDS
No dividend has been paid and no dividend is recommended for the current financial period.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 21
REVIEW OF OPERATIONS AND ACTIVITIES
The Consolidated Entity recorded an operating loss after income tax for the Financial Period ended 30 June 2025 of $3,259,277 (2024 -
$6,462,028).
Ardea is a critical minerals company. The KNP is comprised of a series of major undeveloped nickel-cobalt-scandium laterite deposits,
which total 854Mt at 0.71% Ni and 0.045% Co (6.1Mt contained nickel metal, 386kt contained cobalt metal – ASX release 30 June
2024). All KNP projects are located within 150km of the regional mining hub of the City of Kalgoorlie-Boulder, Western Australia.
Western Australia
KNP and Goongarrie Hub
The key objective for Ardea is developing a nickel-cobalt mining operation at the Goongarrie Hub within the KNP which provides supply chain
security and diversity and meets the high ESG standards expected from Australia and Japan.
The Goongarrie Hub is located 70km northwest of the mining city of Kalgoorlie-Boulder and is Ardea’s most advanced project, within the broader
KNP. Resources from the Goongarrie and Highway deposits are planned to be the base load feed for a High-Pressure Acid Leach (HPAL) plant.
All Goongarrie Hub resources are located on granted mining leases. KNP - Goongarrie Hub tenue is 100% controlled by Kalgoorlie Nickel Pty
Ltd (KNPL). The KNP resource category breakdown is as follows:
Resource Estimate for the KNP based on a 0.5 % nickel cut-off. Note that all values have been rounded
appropriate to their deemed accuracy. (ASX Announcement 30 June 2023).
Resource Category
Quantity
(Mt)
Nickel
(%)
Cobalt
(%)
Contained
nickel (kt)
Contained
cobalt (kt)
Measured
22
0.94
0.079
207
17
Indicated
361
0.73
0.047
2,622
169
Inferred
471
0.70
0.043
3,272
200
KNP Total Resources
854
0.71
0.045
6,101
386
Key events for the year ended 30 June 2025 include:
Consortium Earns 17.5% Interest in KNPL
On 4 July 2025, Ardea announced that the Japanese Consortium (Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation
via GH Nickel Pty Ltd) had earned a 17.5% equity interest in KNPL by contributing 50% of the A$98.5 million Definitive Feasibility
Study (DFS) budget. (Refer to the Company's ASX Announcement titled "Goongarrie Hub Project DFS Reaches Major Milestone” of 4 July 2025 for further
information.)
Execution of Shareholders’ Agreement
On 30 August 2024, Ardea executed a binding Shareholders’ Agreement with GH Nickel Pty Ltd, formalizing the joint venture structure
for the development of the KNP – Goongarrie Hub. (Refer to the Company's ASX Announcement titled "KNP – Goongarrie Hub Joint Venture Transaction
Completion with Japanese Consortium" of 30 August 2024 for further information.)
Strategic Equity Placement
On 16 April 2025, Ardea announced a A$4.6 million strategic equity placement to Sumitomo Metal Mining Co., Ltd at a 10% premium
to the 5-day volume-weighted average price (VWAP). (Refer to the Company's ASX Announcement titled "ARL Secures Strategic $4.6M Sumitomo Metal
Mining Placement" of 16 April 2025 for further information.)
Research and Development (R&D) Tax Incentive Rebate
Ardea received a $1.2 million R&D Tax Incentive Rebate from the Australian Taxation Office for the FY24 period, recognising innovation
related to Ardea’s patented Mineralised Neutraliser (MN) process. (Refer to the Company's ASX Announcement titled “ARL receives $1.2m R&D rebate”
21 May 2025 for further information)
Completion of Infill Drilling at Highway Deposit
On 25 June 2025, Ardea announced the completion of infill reverse circulation drilling at the Highway nickel-cobalt deposit, reporting
significant high-grade intercepts that reinforce the potential for elevated nickel and cobalt production in the project's early years. (Refer
to the Company's ASX Announcement titled “Highway Infill Drilling highlights widths and grade” 25 June 2025 for further information)
Advancement of Definitive Feasibility Study (DFS) and Engineering Contracts
Throughout the year, Ardea worked with KNPL and the Consortium to progress the DFS for the KNP – Goongarrie Hub, awarding
major engineering contracts for the process plant and utilities component of the DFS to Ausenco.
Environmental and Social Governance (ESG) Initiatives
Ardea advanced its ESG framework with several initiatives, including by KNPL appointing SLR as ESG consultant and engaging Minviro
for Life Cycle Assessment (LCA) work, aligning with high ESG standards expected from Australia and Japan.
Retirement of Ian Buchhorn
As at 31 March 2025, Mr Ian Buchhorn retired from the Ardea Board of Directors and will continue to serve in a technical executive
role for the DFS. (Refer to the Company's ASX Announcement titled "Executive Director Ian Buchhorn Retires from the Board” of 21 March 2025 for further
information)
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 22
CORPORATE AND FINANCIAL POSITION
As at 30 June 2025 the Consolidated Entity had cash reserves of $14.6 million (2024 $14.8 million).
RISK MANAGEMENT
The Board is responsible for the oversight of the Consolidated Entity’s risk management and control framework. Responsibility for control and
risk management is delegated to the appropriate level of management with the Managing Director (or equivalent) having ultimate responsibility
to the Board for the risk management and control framework.
Areas of significant business risk to the Consolidated Entity are highlighted in the Business Plan presented to the Board by the Managing Director
(or equivalent) each year.
Arrangements put in place by the Board to monitor risk management include monthly reporting to the Board in respect of operations and the
financial position of the Consolidated Entity.
EARNINGS/LOSS PER SHARE
2025
2024
Cents
Cents
Basic loss per share
(1.63)
(3.36)
Diluted loss per share
(1.63)
(3.36)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Company during the year not otherwise disclosed in this report.
OPTIONS/PERFORMANCE RIGHTS OVER UNISSUED CAPITAL
Unlisted Options
Nil options issued during the year. 3,000,000 Options were on issue at 30 June 2025 (2024 – 3,000,000).
Performance Rights
As at 30 June 2025 there were 3,513,400 Performance Rights on issue. During the year the Company issued 1,500,000 Performance Rights to
Directors and Employees under the Ardea Performance Rights Plan that was approved at the 2020 AGM. 1,303,000 Performance Rights lapsed
without achieving the hurdle.
CORPORATE STRUCTURE
Ardea Resources Limited (ACN 614 289 342) is a Company limited by shares that was incorporated on 17 August 2016 and is domiciled in
Australia.
EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen since the end of the financial period any item, transaction or event of a material and unusual nature likely, in the opinion of
the Directors of the Consolidated Entity to affect substantially the operations of the Consolidated Entity, the results of those operations or the
state of affairs of the Consolidated Entity in subsequent financial years except for the following:
On 4 July 2025, GH Nickel Pty Ltd acquired a 17.5% interest in KNPL, a subsidiary of Ardea, for cash consideration of $49.25 million. Ardea
retained control of KNPL following the transaction.
At 30 June 2025, the proceeds of $49.25 million had been received and recorded as a liability (Loan from Investor). On 4 July 2025, the liability
was reclassified to equity upon issue of shares to GH Nickel Pty Ltd.
The net assets of KNPL as at 4 July 2025 were $95,025,780.68. GH Nickel Pty Ltd’s share of net assets was $16,629,511.62. The excess of
consideration over the share of net assets, being $32,620,488.38, was recognised in parent reserves within consolidated equity.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 23
The transaction is accounted for as an equity transaction under AASB 10, with no impact on profit or loss and no goodwill recognised. Non-
controlling interest of $16,629,511.62 has been recognised in consolidated equity as at 4 July 2025.
These events represent material non-adjusting events after the reporting period, and do not impact the financial results for the year ended 30
June 2025.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Likely developments in the operations of the Consolidated Entity are included elsewhere in this Annual Report. Disclosure of any further
information has not been included in this report because, in the reasonable opinion of the Directors, to do so would be likely to prejudice the
business activities of the Consolidated Entity.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Consolidated Entity holds various exploration licences to regulate its exploration activities in Australia. These licences include conditions
and regulations with respect to the rehabilitation of areas disturbed during the course of its exploration activities. So far as the Directors are
aware there has been no known breach of the Consolidated Entity’s licence conditions and all exploration activities comply with relevant
environmental regulations.
DIRECTORS’ MEETINGS
The number of meetings of the Consolidated Entity’s Directors held in the period each Director held office during the financial period and the
numbers of meetings attended by each Director were:
Director
Board of Directors’ Meetings
Meetings Attended
Meetings held while a director
Mathew Longworth (Chair)
10
10
Maree Arnason
10
10
Andrew Penkethman
10
10
Ian Buchhorn
7
6
Michael Rodriguez
6
6
In addition to the above there were 2 Audit Committee Meetings and 1 Remuneration Committee Meeting held with the full board in attendance
at each Meeting.
REMUNERATION REPORT
The Directors of Ardea present this Remuneration Report, which has been audited, for the financial year ended 30 June 2025.
The Remuneration Report provides information about the remuneration of Ardea’s key management personnel (KMP), being those executives
with authority and responsibility for planning, directing, and controlling the activities of the Consolidated Entity, and its non-executive directors.
The Remuneration Report has been prepared in accordance with the requirements of the Corporations Act 2001 and contains the following
sections:
Section 1
Remuneration at Ardea
This section of the Remuneration Report provides an overview of Ardea remuneration principles and
the structure of remuneration for KMP.
Section 2
Performance and Executive
Remuneration Outcomes
This section details the remuneration outcomes for Ardea’s KMP in the financial year. It also
demonstrates how the components of remuneration at Ardea are aligned with value creation by
being linked to the Company’s performance.
Section 3
Non-Executive Director
Remuneration
This section outlines the remuneration structure and fees paid to Ardea’s non-executive directors.
Section 4
Statutory Remuneration
Disclosures
This section includes statutorily required remuneration disclosures for the financial year, including
details of equity awards and KMP and non-executive director interests in equity instruments of
Ardea.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 24
Non-executive Directors for the purposes of this report are as follows:
•
Mathew Longworth (Chairman and Non-Executive Director)
•
Maree Arnason (Non-Executive Director)
Executive Directors for the purposes of this report are as follows:
•
Andrew Penkethman – Managing Director and Chief Executive Officer
•
Michae Rodriguez - Executive Director
KMP as identified for the purposes of this report by the criteria set out above are as follows:
•
Ian Buchhorn - Technical Executive
•
Robert (Sam) Middlemas – Company Secretary
•
Rebecca Moylan – Chief Financial Officer
There were no other employees in the Consolidated Entity that met the definition of key management personnel in accordance
with the Corporations Act 2001 or Australian Accounting Standards.
Section 1: Remuneration at Ardea
The Board of Directors is responsible for approving the compensation arrangements for the Directors and KMP. The Board has formed
the view that given the number of Directors on the Board, this function could be performed just as effectively with full Board participation.
Accordingly, it was resolved that there would be no separate Board sub-committee for remuneration purposes and Remuneration
Committee (RC) meetings would be made up of the full board. The Board regularly assesses the appropriateness of the nature and
amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions, with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high-quality Board and executive team.
Compensation levels are set to attract and retain appropriately qualified and experienced directors and executives. As and when required
the Board has access to independent advice on the appropriateness of compensation packages given trends in comparative companies
and the objectives of the compensation strategy.
Non-executive director remuneration consists of fixed directors’ fees and an equity-based component (Committee fees are included in
the base fee). KMP remuneration is structured to consist of fixed and variable remuneration. The KMP compensation structures explained
below are designed to reward the achievement of strategic objectives, align performance with shareholder interests and create the
broader outcome of creating value for shareholders.
The compensation structures take into account:
(i) The relevant person’s duties and responsibilities; and
(ii) Ensure that total remuneration is competitive by market standards.
KMP remuneration and incentive policies and practices are performance-based and aligned to the Consolidated Entity’s vision, values
and overall business objectives. They are designed to motivate KMP to pursue the Consolidated Entity’s long-term growth and success.
Compensation packages include a mix of fixed and variable compensation and short and long-term performance-based incentives.
In addition to salaries, the Consolidated Entity may also provide cash and non-cash benefits to its directors and key management
personnel and contributes to superannuation plans on their behalf.
Fixed remuneration
Total Fixed Remuneration (‘TFR’) consists of base compensation (which is calculated on a total cost basis and includes any fringe
benefits tax charges related to employee benefits), as well as leave entitlements and employer contributions to superannuation funds.
Compensation levels are normally reviewed annually by the Board through a process that considers individual, segment, and overall
performance of the Consolidated Entity.
There was no remuneration review during the reporting period. An external consultant will be engaged during the next financial year to
review the compensation level of the Non-Executive Director, Executive Director, Managing Director and CEO, and the CFO.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 25
Performance-linked remuneration
Ardea’s approach to remuneration is to ensure that remuneration received by KMP is closely linked to the Consolidated Entity’s
performance and the returns generated for shareholders. Performance-linked compensation, as outlined in the Consolidated Entity’s
Employee Securities Incentive Plan (ESIP), includes long-term incentives, and is designed to incentivise and reward employees for
meeting or exceeding Company-wide and individual objectives. The long-term incentive (LTI) is provided as performance rights over
ordinary shares of the Company and cash bonuses. The LTI plans provide for the Board to be able to exercise discretion on the award
of performance rights.
Within the established remuneration framework, each employee is assigned a level that reflects the seniority and responsibility associated
with their role. This level determines an employee’s participation in the LTI, and therefore, the proportion of their total remuneration which
is linked to performance. Senior executives of the Company have a higher proportion of their total potential remuneration ‘at risk’.
The Board considers that the performance-linked compensation structure outlined in the ESIP will generate the desired outcome in
respect of attracting and retaining high-calibre employees and aligning employee performance with shareholder interests. Refer to
Section 2 of this Remuneration Report for an analysis of the Consolidated Entity’s performance in the financial year ended 30 June 2025
and link to overall remuneration.
Short Term Incentive
The STI will be considered in future years to link employee remuneration to key business outcomes which drive value creation in the
short to medium term.
It is proposed that each year, all employees have individual key performance indicators (KPI’s) agreed with their manager. The Board
approves the individual KPI’s for the MD/CEO based on the recommendation of the RC. The MD/CEO approves the individual KPI’s for
the KMP with endorsement from the RC. The individual performance objectives are designed to focus employees on goals and objectives
specific to their roles and typically include financial performance compared to budgeted amounts as well as non-financial metrics which
vary with position and responsibility and include measures such as completion of specific tasks and projects as well as health, safety
and environment outcomes and staff development.
Long Term Incentive
The LTI has been adopted to align employees’ interests directly with shareholders by linking employee remuneration to the Company’s
share price performance over the medium to longer term. The LTI comprises grants of performance rights to all employees, and cash
bonuses to certain senior executives, pursuant to the Company’s ESIP Rules which were approved by shareholders at the 2017 AGM
and updated at the 2020 and 2022 AGM.
The ESIP provides for certain key executives and employees to receive, for no consideration, performance rights. The performance rights
convert to shares of the Company at specified exercise prices as determined by the Board. The grant of performance rights is intended
to align the interests of senior executives and employees with other owners of the Company over the medium to longer term and to
increase those senior executives’ and employees’ proportion of ‘at risk’ remuneration. The ability to exercise the performance rights is
conditional upon each key executive’s ongoing employment by the Company and other applicable vesting hurdles determined by the
Board from time to time.
Section 2: Performance and Executive Remuneration Outcomes
During the financial year ended 30 June 2025 the Consolidated Entity made good progress towards achieving its strategic objectives,
resulting in the Company’s Share price reaching the required performance right vesting conditions.
STI Performance and Outcomes
During the financial year, there were $300,919 STI cash bonuses issued (2024: $647,174).
The STI award is an "at risk" cash incentive based on performance over the 12-month period to 30 June 2025, with payment scheduled
for July 2025. The maximum STI payable was 125% of the base STI opportunity for exceptional performance. No superannuation is
payable on STI unless legally required.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 26
STI Structure and Key Measures
Role
Maximum STI (% of Base Salary)
Company KPI Weighting
Individual KPI Weighting
MD/CEO
40%
70%
30%
Technical Director
40%
70%
30%
Technical Executive
40%
70%
30%
CFO
30%
50%
50%
Company-wide STI performance was primarily measured against delivery of a robust Definitive Feasibility Study (DFS) for the KNP –
Goongarrie Hub and readiness to progress to Front-End Engineering Design (FEED) and Pre Commitment Approval (PCA). The Board
determined this KPI was partially achieved, resulting in a 25% score for the company component of STI.
Individual performance for the MD/CEO and CFO was assessed against pre-approved categories including ESG, funding, commercial,
markets, finance, and risk management. These objectives were qualitative in nature and linked to strategic outcomes.
Following the Board's review:
The MD/CEO was awarded 88% of the individual component of STI.
The Technical Director was awarded 88% of the individual component of STI.
The Technical Executive was awarded 88% of the individual component of STI.
The CFO was awarded 88% of the individual component of STI.
Long Term Incentive Plan (FY26)
A long-term incentive plan has been proposed for FY26, subject to shareholder approval.
Directors
Performance Rights (PRs) are proposed to be issued on the same terms and quantum as FY24, with a vesting hurdle of 1.5× the issue
share price. PRs may convert to shares any time within five years post-vesting. No expense is recognised as at 30 June 2025.
KMP
A cash-based LTI has been proposed, with awards based on either:
Final Investment Decision (FID) for the KNP - Goongarrie Project by 31 December 2028, or
1% of proceeds received from a KNPL sell-down.
Amounts will be allocated at Board discretion, pro-rata to base salary. A liability will be recognised if/when performance criteria are
expected to be met.
Performance Criteria for Performance Rights
The performance criteria for the tranches of new performance rights granted to KMP during the financial year are detailed below. The
performance criteria for the tranches of new performance rights granted to KMP during the financial year are consistent with the
performance criteria for performance rights granted to KMP in the comparative year.
Performance Hurdles
Class ‘O’ Performance Rights: The Company announcing the signing of a Strategic Partner to fund the KNPL feasibility study and provide future
funding for completion of the project; or ii) The Company share price reaching a 30 Day VWAP which is above 58 cents per share. And continuous
service of the Performance Rights holder in their capacity as a Director, an Executive or Employee of the Company, or in a role as otherwise agreed
by the Board of the Company, from the date of issue of the Performance Rights to 1 December 2025.
Class ‘P’ Performance Rights: The Company’s Shares reaching a 30 day VWAP which is equal to or greater than $0.585 per Share; and continuous
service of the Performance Rights holder in their capacity as a Director or Executive of the Company, or in a role as otherwise agreed by the Board
of the Company, from the date of issue of the Performance Rights to 7 December 2023, prior to 6 December 2028.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 27
Class ‘Q’ Performance Rights: The Company’s Shares reaching a 30 day VWAP which is equal to or greater than $0.656 per Share; and continuous
service of the Performance Rights holder in their capacity as a Director or Executive of the Company, or in a role as otherwise agreed by the Board
of the Company, from the date of issue of the Performance Rights to 7 December 2023, prior to 6 December 2028.
Class ‘T’ Performance Rights: The Company’s Shares reaching a 30 day VWAP which is equal to or greater than $0.55 per Share; and continuous
service of the Performance Rights holder in their capacity as a Director or Executive of the Company, or in a role as otherwise agreed by the Board
of the Company, from the date of issue of the Performance Rights to 30 November 2026, prior to 30 November 2031.
Class ‘U’ Performance Rights: The Company’s Shares reaching a 30 day VWAP which is equal to or greater than $0.616 per Share; and continuous
service of the Performance Rights holder in their capacity as a Director or Executive of the Company, or in a role as otherwise agreed by the Board
of the Company, from the date of issue of the Performance Rights to 30 November 2027, prior to 30 November 2031.
KMP and Executive Director Employment Agreements
Remuneration and other terms of employment for KMP are formalised in service agreements, with the exception of Sam Middlemas
who is a contractor to the Company. Details of these agreements are as follows:
Name:
Mr Andrew Penkethman
Title:
Managing Director and Chief Executive Officer
Agreement commenced:
Chief Executive Officer 1 April 2019 and Managing Director 5 February 2020
Term of agreement:
No fixed term
Termination:
The Company may terminate the agreement upon three months’ notice or payment in lieu of
notice. Mr Penkethman can terminate the agreement upon three months’ notice.
The Company may terminate the agreement immediately where the executive commits any act of
serious misconduct, persistent breach or non-observance of a term of this agreement.
Name:
Mr Ian Buchhorn
Title:
Technical Executive
Agreement commenced:
17 August 2016
Term of agreement:
No fixed term
Termination:
The Company may terminate the agreement upon three months’ notice or payment in lieu of
notice. Mr Buchhorn can terminate the agreement upon three months’ notice.
The Company may terminate the agreement immediately where the executive commits any act of
serious misconduct, persistent breach or non-observance of a term of this agreement.
Name:
Ms Rebecca Moylan
Title:
Chief Financial Officer
Agreement commenced:
8 June 2022
Term of agreement:
No fixed term
Termination:
The Company may terminate the agreement upon three months’ notice or payment in lieu of
notice. Ms Moylan can terminate the agreement upon three months’ notice. The Company may
terminate the agreement immediately where the executive commits any act of serious
misconduct, persistent breach or non-observance of a term of this agreement.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 28
The service contracts outline the components of compensation paid to the KMP. The service contracts of the KMP prescribe how
compensation levels are modified year to year. Compensation levels are reviewed each year to take into account cost-of-living
changes, any change in the scope of the role performed by the senior executive and any changes required to meet the principles
of the compensation policy.
Section 3: Non-Executive Director Remuneration
The Company Constitution provides for Non-Executive Directors to be paid or provided remuneration for their services, the total
amount or value of which must not exceed an aggregate maximum of $500,000 per annum (as approved by shareholders at the
2017 AGM) or such other maximum amount determined from time to time by the Company in a general meeting.
The aggregate maximum sum will be apportioned among them in such manner as the Directors in their absolute discretion
determine. Non-Executive Directors’ fees are set based on advice from external advisors with reference to fees paid to other Non-
Executive Directors of comparable companies. Directors’ fees include base fees for Board participation and fees for subcommittee
roles and responsibilities. The structure of Non-Executive Director fees is tabled below.
Non-Executive Director Base Fees (Subcommittee fees are part of base salary)
$
Board Chairman
Non-Executive Director
143,324
89,845
Non-Executive Directors are entitled to be reimbursed for travelling and other expenses properly incurred by them in attending
Directors’ or general meetings of the Company or otherwise in connection with the business of the Consolidated Entity. No retirement
benefits are to be paid to Non-Executive Directors, however, Director remuneration figures quoted herein are inclusive of
superannuation where applicable. The Company determines the maximum amount for remuneration for Directors, including
thresholds for share-based remuneration, by resolution.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 29
Section 4: Statutory Remuneration Disclosures
Details of the remuneration and holdings in the securities of the Company of the KMP and Non-Executive Directors, prepared
in accordance with the requirements of the Corporations Act 2001 and applicable Australian Accounting Standards, are set
out in the following tables.
2024/2025
Base
Bonus 2
Superannuation
Performance
Total
Salary/Fees 1
Contributions
Rights 3
$
$
$
$
$
Directors
M Longworth – Non-Executive Chair
143,324
-
-
104,741
248,065
A Penkethman – MD & CEO
594,540
86,175
68,372
174,569
923,656
I Buchhorn – Executive3
397,717
78,220
45,738
139,655
661,330
Maree Arnason
84,960
-
4,885
104,741
194,586
Michael Rodriguez4
155,813
-
-
-
155,813
Executives
S Middlemas - Company Secretary
75,039
-
-
-
75,039
R Moylan – Chief Financial Officer
291,500
55,706
33,522
-
380,728
Includes director fees and salary.
1. Bonus payments are presented on a cash basis and do reflect the actual timing of payments.
2. Amounts relate to the fair value of performance rights made pursuant to the LTI Plan attributable to the financial year measured in accordance with AASB 2 Share Based
Payments.
3. Resigned as a director on 31 March 2025.
4. Appointed 19 December 2025.
2023/2024
Base
Bonus 2
Superannuation
Performance
Total
Salary/Fees 1
Contributions
Rights 3
$
$
$
$
$
Directors
M Longworth – Non-Executive Chair
101,263
-
-
243,300
344,563
A Penkethman – MD & CEO
391,352
400,000
43,049
840,988
1,675,389
I Buchhorn – Executive
356,444
200,666
39,209
476,898
1,073,217
Maree Arnason (commenced 11 July
2023)
61,510
-
6,766
23,455
91,731
Executives
S Middlemas - Company Secretary
61,550
88,245
-
70,573
220,368
R Moylan – Chief Financial Officer
261,250
88,245
28,738
139,533
517,766
1. Includes director fees and salary.
2. Bonus payments are presented on a cash basis and do reflect the actual timing of payments.
3. Amounts relate to the fair value of performance rights made pursuant to the LTI Plan attributable to the financial year measured in accordance with AASB 2 Share Based
Payments.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 30
The following tables sets out the proportion of fixed and ‘at risk’ performance-based remuneration for Directors and KMP
for the current and previous financial period:
Proportion of remuneration
that is fixed
Proportion of remuneration at
risk as cash settled LTI
Proportion of
remuneration at risk as
equity settled LTI
2025
Non-executive
Mat Longworth - Chair
58%
-
42%
Maree Arnason
46%
-
54%
Executive Director:
Ian Buchhorn
100%
-
0%
Andrew Penkethman
79%
-
21%
Michael Rodriguez
100%
-
0%
KMP:
Sam Middlemas
100%
-
0%
Rebecca Moylan
100%
-
0%
Proportion of remuneration that is
fixed
Proportion of remuneration at
risk as cash settled STI
Proportion of remuneration
at risk as equity settled LTI
2024
Non-executive
Mat Longworth - Chair
42%
-
58%
Maree Arnason
33%
-
67%
Executive Director:
Ian Buchhorn
68%
-
32%
Andrew Penkethman
65%
-
35%
KMP:
Sam Middlemas
100%
-
0%
Rebecca Moylan
100%
-
0%
Performance Rights
The terms and conditions of each grant of performance rights over ordinary shares affecting the remuneration of KMP in the
financial year ended 30 June 2025 are as follows:
Grantee
Rights
Granted
Grant Date
Vesting and
Expiry Date
Exercise
Price
Fair value per
Performance
Right at Grant
% Rights
Vested
% Rights
Lapsed
Volatility
Risk free
rate
Mat Longworth
300,000
7-Dec-23
30-Nov-26
Nil
46.9c
N/A
N/A
76%
4.16%
300,000
28-Nov-24
30-Nov-31
Nil
35c
N/A
N/A
71%
3.83%
Andrew Penkethman
500,000
7-Dec-23
30-Nov-26
Nil
46.9c
N/A
N/A
76%
4.16%
500,000
28-Nov-24
30-Nov-31
Nil
35c
N/A
N/A
71%
3.83%
Ian Buchhorn
400,000
7-Dec-23
30-Nov-26
Nil
46.9c
N/A
N/A
76%
4.16%
400,000
28-Nov-24
30-Nov-31
Nil
35c
N/A
N/A
71%
3.83%
Maree Arnason
300,000
7-Dec-23
30-Nov-26
Nil
46.9c
N/A
N/A
76%
4.16%
300,000
28-Nov-24
30-Nov-31
Nil
35c
N/A
N/A
71%
3.83%
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 31
The number of performance rights over ordinary shares granted to each KMP as part of remuneration is set out below:
Number of rights
granted during the
financial year
Number of rights
granted during the
financial year
Number of
rights vested during the
financial year
Number of rights
vested during the financial
year
2025
2024
2025
2024
Mat Longworth
300,000
300,000
-
750,000
Andrew Penkethman
500,000
500,000
-
1,650,000
Ian Buchhorn
400,000
400,000
-
1,000,000
Maree Arnason
300,000
300,000
-
-
Sam Middlemas
-
-
-
120,000
Rebecca Moylan
-
-
-
185,000
Values of performance rights over ordinary shares (as at date of grant) granted, exercised and lapsed to key management personnel as part of
compensation are set out below:
$ Value of rights granted
during the financial year
$ Value of rights granted
during the financial year
$ Value of rights
vesting during the
financial year 1
$ Value of rights
vesting during the
financial year
Name
2025
2024
2025
2024
Mat Longworth
104,741
140,730
275,300
63,700
Andrew Penkethman
174,569
234,550
450,000
318,500
Ian Buchhorn
139,655
187,640
225,000
245,000
Maree Arnason
104,741
140,730
-
-
Sam Middlemas
-
-
27,000
20,400
Rebecca Moylan
-
-
83,250
-
1.
The $ value of rights vesting during the financial year relates to performance rights that vested in FY2025. As the Company was in a
trading blackout at the time of vesting, ESS statements were issued in FY2025, and the valuation is based on those statements in
accordance with AASB 2.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 32
Movement in shares held
The number of ordinary shares in the Company held during the financial year ended 30 June 2025 by each Director and KMP
of the Consolidated Entity, including their related parties, is set out below:
Ordinary Shares
Ordinary Shares
2025
Opening
Purchases
Received on
performance rights
achieving hurdles
Disposals
Closing
Mr M Longworth
986,428
-
-
-
986,428
Ms M Arnason
15,000
-
-
15,000
Mr M Rodriguez
-
-
-
-
-
Mr A Penkethman
2,882,401
-
-
-
2,882,401
Mr I Buchhorn
14,410,585
-
-
-
14,410,585
Mr S Middlemas
873,701
-
-
-
873,701
Ms R Moylan
185,000
-
-
-185,000
0
2024
Opening
Purchases
Received on
performance rights
achieving hurdles
Disposals
Closing
Mr M Longworth
221,428
15,000
750,000
-
986,428
Ms M Arnason
-
15,000
-
15,000
Mr A Penkethman
1,202,401
30,000
1,650,000
-
2,882,401
Mr I Buchhorn
13,380,585
30,000
1,000,000
-
14,410,585
Mr S Middlemas
753,701
120,000
873,701
Ms R Moylan
-
-
185,000
-
185,000
Shares issued on the exercise of performance rights
During the year, the Company issued nil shares as a result of vesting of performance rights.
Other Transactions with Directors
The Company rents office and storage facilities in Kalgoorlie from an entity associated with Executive Director Ian Buchhorn on
normal arms-length commercial terms. Total rent paid for the financial year was $176,215 (2024 - $92,052 ).
This concludes the Remuneration Report which has been audited.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 33
INDEMNIFYING OFFICERS AND AUDITOR
During the year the Company paid an insurance premium to insure certain officers of the Consolidated Entity. The officers of the Consolidated
Entity covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal
proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Consolidated
Entity. The insurance policy does not contain details of the premium paid in respect of individual officers of the Consolidated Entity. Disclosure
of the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
The Consolidated Entity has not provided any insurance for an auditor of the Consolidated Entity.
AUDITORS’ INDEPENDENCE DECLARATION
Section 370C of the Corporations Act 2001 requires the Consolidated Entity’s auditors Dry Kirkness (Audit) Pty Ltd, to provide the Directors of
the Consolidated Entity with an Independence Declaration in relation to the audit of the financial report. This Independence Declaration is
attached and forms part of this Directors’ Report.
NON-AUDIT SERVICES
The external auditors have not undertaken any non-audit work during the financial year.
PROCEEDINGS ON BEHALF OF THE CONSOLIDATED ENTITY
No person has applied for leave of Court to bring proceedings on behalf of the Consolidated Entity or intervene in any proceedings to which the
Consolidated Entity is a party for the purpose of taking responsibility on behalf of the Consolidated Entity for all or any part of those proceedings.
The Consolidated Entity was not party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the Consolidated Entity support and
have adhered to the principles of corporate governance. The Consolidated Entity’s corporate governance practices have been disclosed in
Appendix 4G in accordance with ASX listing rule 4.7.3 at the same time as the annual report is lodged with the ASX. Further information about
the Company’s corporate governance practices is set out on the Company’s web site at www.ardearesources.com.au/corporate-governance. In
accordance with the recommendations of the ASX, information published on the web site includes codes of conduct and other policies and
procedures relating to the Board and its responsibilities.
DATED at Perth this 23rd day of September 2025
Signed in accordance with a resolution of the Directors
Mathew Longworth Non-Executive Chair
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 34
COMPLIANCE STATEMENT (JORC CODE (2012))
A competent person’s statement for the purposes of Listing Rule 5.22 has previously been announced by the Company for:
1
Kalpini drill results highlight cobalt-nickel mineralisation, and scandium discovery, 22 June 2017.
2.
Emu Lake Nickel Sulphide Discovery confirmed with 2.72m at 5.42% Ni, 14 January 2022.
3.
High-grade Nickel-Cobalt Confirmed at Kalpini with Scandium and Rare Earth Elements, 14 March 2022.
4.
Kalgoorlie Nickel Project Recognition on All Tiers of Australian Government, 21 March 2022.
5.
Nickel sulphide anomalism from aircore drilling at Kalpini Project, 2 May 2023.
6.
Mineralised Neutraliser Global Patent Lodged, 15 June 2023.
7.
Kalgoorlie Nickel Project Mineral Resource Estimate Exceeds 6 Million Tonnes Contained Nickel, 30 June 2023.
8.
KNP - Goongarrie Hub Ore Reserve and Feasibility Study Defines +40 Year Operation with Strong Financial Metrics, 5 July 2023.
9.
Nickel Sulphide Prospectivity Confirmed and Lithium-Caesium-Rubidium bearing intrusives in Highway EIS drillhole, 15 December 2023.
10.
Kalgoorlie Nickel Project - Goongarrie Hub DFS Drilling Underway, 4 July 2024.
11.
Kalgoorlie Nickel Project – Goongarrie Hub DFS Underway, 8 July 2024.
12.
KNP – Goongarrie Hub Joint Venture Transaction Completion with Japanese Consortium, 30 August 2024.
13.
Annual Report 2024, 13 September 2024.
14.
Big Four & Scotia Dam RC Infill Drilling Program Complete, 14 April 2025.
15.
Highway RC Infill Drilling Program Complete, 25 June 2025.
16.
Goongarrie Hub Project DFS Reaches Major Milestone, 4 July 2025.
17.
KNPL signs Heritage Agreement for Goongarrie, 3 September 2025.
Competent Persons Statement
Resource Estimation, Exploration Results, and Industry Benchmarking
The Resource Estimation, Exploration Results and Industry Benchmarking summaries are based on information reviewed or compiled by Mr Andrew Penkethman, a
Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Penkethman is
a full-time employee of Ardea Resource Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Penkethman has reviewed this press release and consents to the inclusion in this report of the information in the form and
context in which it appears. Mr Penkethman owns Ardea shares.The Company confirms that it is not aware of any new information or data that materially affects
information included in previous announcements, and all material assumptions and technical parameters underpinning the estimates continue to apply and have not
materially changed. Ardea wishes to clarify that its current Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines
is:
Contained
Contained
KNP
Resource
Size
Ni
Co
Ni
Co
Hub
Category
(Mt)
(%)
(%)
(kt)
(kt)
Goongarrie Hub1
Measured
18
0.94
0.085
171
15
Indicated
277
0.70
0.046
1,923
127
Inferred
289
0.67
0.037
1,951
108
Goongarrie Hub1
Total
584
0.69
0.043
4,044
250
Kalpini Hub
Measured
4
0.94
0.048
36
2
inc Yerilla Hub2
Indicated
84
0.83
0.050
699
42
Inferred
182
0.73
0.051
1,321
92
Kalpini Hub2
Total
854
0.71
0.045
6,101
386
Kalgoorlie
Measured
22
0.94
0.079
207
17
Nickel Project
Indicated
361
0.73
0.047
2,622
169
Inferred
471
0.70
0.043
3,272
200
Total KNP
Combined
854
0.71
0.045
6,101
386
The Mineral Resource Estimate information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 30 June 2023, in
accordance with Listing Rule 5.8. The Mineral Resource Estimate in the above table is inclusive of the Ore Reserve shown in table 2 of this release. There is no
change from the 2024 Ardea Annual Report. This is supported by the ASX 30 June 2023 release.
The Ore Reserve information shown in this ASX release has been previously released on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with
Listing Rule 5.9. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market
announcements noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate and Ore Reserve in the previous
market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings
are presented have not been materially modified from the original market announcements.
Note: 0.5% nickel cutoff grade used to report resources. Minor discrepancies may occur due to
rounding of appropriate significant figures.
1.
The Goongarrie Hub is part of KNPL Incorporated Joint Venture. See 30 August 2024 ASX
Goongarrie Hub Resources are reported on a 100% basis. Subsequent to 30 June 2025,
Ardea moved to an 82.5% interest. (Refer to the Company's ASX Announcement titled
"Goongarrie Hub Project DFS Reaches Major Milestone" of 4 July 2025 for further details)
2.
The KNP Kalpini and Yerilla Hubs are known collectively as the Kalpini Hub and remain a
100% owned Ardea asset.
Directors’ Report continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 35
Governance Arrangements and Internal Controls
Ardea reports its Mineral Resources and Ore Reserves periodically, using internal and external geologists who are experienced in best practice modelling and estimation
methods. Ardea uses industry-standard quality control procedures as part of all sampling and analysis programs associated with its Mineral Resource and Ore Reserve
programs. All competent persons engaged by Ardea or its subsidiaries are suitably qualified and experienced as per the requirements defined in the JORC Code (2012)
Edition. These competent persons undertake regular reviews of the quality and suitability of the underlying information used to generate Resource Estimates. Reviews
use a combination of internal and external verification processes for Mineral Resource Estimates. Competent persons also report any activities that may have a material
impact on Resource Estimates to the Ardea Board and Management. Ardea's management regularly assesses all reviews and reporting, and Ardea employs a permanent
Database Manager to review all results before internal release for use, so that data integrity is maintained.
ASX CHAPTER 5 COMPLIANCE AND PFS CAUTIONARY STATEMENT
The Company has concluded that it has a reasonable basis for providing the forward-looking statements and forecast financial information included in this announcement.
The detailed reasons for that conclusion are outlined throughout this announcement and all material assumptions, including the JORC Code (2012) modifying factors,
upon which the forecast financial information is based are disclosed in this announcement. This announcement has been prepared in accordance with the JORC Code
(2012) and the ASX Listing Rules.
The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors were applied in drawing a
conclusion or making a forecast or projection as reflected in the forward-looking information.
The KNP - Goongarrie Hub Project is at the PFS phase and although reasonable care has been taken to make sure that the facts are accurate and/or that the opinions
expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual
results and developments of projects and the scandium market development may differ materially from those expressed or implied by these forward-looking statements
depending on a variety of factors.
A key conclusion of the PFS, which are based on forward looking statements, is that the Goongarrie Hub is considered to have positive economic potential.
The Mineral Resource used for the PFS was classified under JORC Code (2012) Guidelines and announced by the Company on 30 June 2023. The cut-off grades
adapted for the PFS and reported in Table 2 are the basis of the production target assumed for the PFS.
The Company believes it has a reasonable basis to expect to be able to fund and further develop the KNP - Goongarrie Hub. However, there is no certainty that the
Company can raise funding when required.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on
expectations, estimates and projections as of the date of this release.
This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management’s expectations with respect
to, among other things, the timing and amount of funding required to execute the Company’s programs, development and business plans, capital and exploration
expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to
obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company’s properties, environmental
risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development
of mineral properties, the Company’s ability to raise funding privately or on a public market in the future, the Company’s future growth, results of operations, performance,
and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may” and similar expressions have been used
to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given,
and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions, and other factors that
could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors,
including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable
terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Australia or other countries
in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities,
employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of
mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be
considered carefully. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any
forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions,
the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause
results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any
such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-
looking information contained herein to reflect new events or circumstances, except as may be required by law.
No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained
in this release.
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of Ardea Resources Limited for the year ended 30 June 2025, I
declare that, to the best of my knowledge and belief, there have been:
a) No contraventions of the auditor independence requirements of the Corporations
Act 2001 in relation to the audit; and
b) No contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Ardea Resources Limited and the entities it controlled
during the year.
DRY KIRKNESS (AUDIT) PTY LTD
ROBERT HALL CA
Director
Perth
Date: 23 September 2025
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 37
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
As at 30 June 2025
The below Consolidated Statement of Comprehensive Income should be read in conjunction with the
Consolidated Entity’s accompanying notes.
NOTES
2025
2024
(Restated)
$
$
Other income
2
3,995,158
2,176,929
Employee expenses
3,863,058
5,002,104
Insurance expenses
37,967
93,543
Secretarial fees
75,039
149,795
Corporate expenses
335,902
207,837
Strategic partnership expenses
2,219,882
1,700,170
Computer support services
82,392
111,690
Depreciation
3
46,226
1,789
Amortisation – right-of-use assets
6(c)
375,454
249,286
Share based payments
16
432,827
1,993,854
Write-off of Exploration Expenditure
465,775
1,532,015
Revaluation of Investments
9
(288,661)
95,456
Employee costs recharged to capitalised exploration
(996,276)
(3,061,149)
Other expenses
604,850
562,567
Loss before income tax Income tax
(3,259,277)
(6,462,028)
Income tax
5
-
-
Net loss attributable to members of the Consolidated Entity’s
15
(3,259,277)
(6,462,028)
Other Comprehensive Loss net of tax
-
-
Total Comprehensive Loss
(3,259,277)
(6,462,028)
Basic earnings/(loss) per share (cents per share)
20
(1.63) cents
(3.36) cents
Diluted earnings/(loss) per share (cents per share)
20
(1.63) cents
(3.36) cents
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers due to the Change in Accounting Policy – Recognition of R&D Tax Incentives
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
The below Consolidated Statement of Financial Position should be read in conjunction with the
Consolidated Entity’s accompanying notes.
NOTES
2025
2024
$
(Restated)
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
14,683,538
14,848,940
Other receivables
6
4,538,433
1,836,770
Other assets
7
227,542
181,627
TOTAL CURRENT ASSETS
19,449,513
16,867,337
NON-CURRENT ASSETS
Property, plant and equipment
8
171,775
110,623
Investments
9
360,945
416,333
Right-of-use Assets
6(a)
237,651
344,384
Capitalised mineral exploration expenditure
10
105,148,924
52,967,804
TOTAL NON-CURRENT ASSETS
105,919,295
53,839,144
TOTAL ASSETS
125,368,808
70,706,481
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
11
7,174,526
2,664,826
Right-of-use Liabilities
6(a)
245,168
269,549
Provisions
12
701,553
616,746
Borrowings
13
49,476,223
904,225
TOTAL CURRENT LIABILITIES
57,597,470
4,455,346
NON-CURRENT LIABILITIES
Right-of-use Liabilities
6(a)
-
70,763
Provisions
12
141,793
84,798
TOTAL NON-CURRENT LIABILITIES
141,793
155,561
TOTAL LIABILITIES
57,739,263
4,610,907
NET ASSETS
67,629,545
66,095,574
EQUITY
Contributed equity
14(a)
79,378,172
75,017,752
Share Based Payment Reserve
16
8,068,822
7,635,994
Accumulated losses
15
(19,817,449)
(16,558,172)
TOTAL EQUITY
67,629,545
66,095,574
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers due to the Change in Accounting Policy – Recognition of R&D Tax Incentives
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2025
The below Consolidated statement of changes in equity should be read in conjunction with the
Consolidated Entity’s accompanying notes.
Notes
Share Based
Accumulated
Losses
Total
Contributed
Equity
Payment
Reserve
$
$
$
$
Balance at 30 June 2023
60,000,784
5,642,140
(19,776,890)
45,866,034
Change in accounting policy
1(o)
-
-
9,680,746
9,680,746
Balance as at 30 June 2023 Restated
60,000,784
5,642,140
(10,096,144)
55,546,780
Total Comprehensive Income (2024:
Restated)
-
-
(6,462,028)
(6,462,028)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
14(b)
16,000,000
-
-
16,000,000
Less share issue costs
14(b)
(983,032)
-
-
(983,032)
Performance Rights issued to staff
-
1,993,854
-
1,993,854
BALANCE AT 30 JUNE 2024 (2024:
Restated)
75,017,752
7,635,994
(16,558,172)
66,095,574
BALANCE AT 30 JUNE 2024
75,017,752
7,635,994
(16,558,172)
66,095,574
Total Comprehensive Income
(3,259,277)
(3,259,277)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
14(b)
4,613,900
-
-
4,613,900
Less share issue costs
14(b)
(253,480)
-
-
(253,480)
Performance Rights issued to staff
-
432,828
-
432,828
BALANCE AT 30 JUNE 2025
79,378,172
8,068,822
(19,817,449)
67,629,545
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers due to the Change in Accounting Policy – Recognition of R&D Tax Incentives
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 40
CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 30 June 2025
The below Consolidated Statement of Cash Flows should be read in conjunction with the
Consolidated Entity’s accompanying notes.
NOTES
2025
2024
$
$
Cash flows from operating activities
Receipts from Customers
-
9,801
Interest received
701,663
422,876
Other Income
-
-
Payments to suppliers and employees (inclusive of goods and services tax)
(6,821,148)
(4,568,160)
Net cash used in operating activities
21(a)
(6,119,485)
(4,135,483)
Cash flows from investing activities
Payments for exploration and evaluation
(48,423,245)
(8,487,816)
Research and development refund received
1,232,057
1,078,649
Proceeds (Payments) for plant and equipment (net)
(82,575)
(80,639)
Proceeds from sale of investments
298,750
-
Net cash used in investing activities
(46,975,013)
(7,489,806)
Cash flows from financing activities
Proceeds from the issue of shares
4,613,900
15,911,304
Equity contribution Joint Venture partner
48,571,997
904,226
Costs of shares issued
(256,801)
(989,672)
Net cash provided by financing activities
52,929,096
15,825,858
Net increase (decrease) in cash held
(165,402)
4,200,569
Cash at the beginning of the financial period
14,848,940
10,648,371
Cash at the end of the financial period
14,683,538
14,848,940
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 41
1.
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
The principal accounting policies adopted in preparing the financial report of the Company, Ardea Resources Limited and its controlled
entities (Ardea, the Company or Consolidated Entity), are stated to assist in a general understanding of the financial report. These
policies have been consistently applied as presented, unless otherwise indicated.
Ardea is a Company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the official list of the
Australian Securities Exchange. The financial statements are presented in Australian dollars which is the Consolidated Entity’s
functional currency.
(a)
Basis of Preparation
This general purpose financial report has been prepared in accordance with Australian Accounting Standards (including Australian
Interpretations) adopted by the Australian Accounting Standards Board and the Corporations Act 2001.
Ardea is a for-profit entity for the purpose of preparing the financial statements.
The financial report has been prepared on the basis of historical costs and does not take into account changing money values or, except
where stated, current valuations of non-current assets.
The financial report was authorised for issue by the Directors.
(b)
Use of Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected. Significant estimates in the financial report include the reporting
of Ore Reserves and Mineral Resources that are based on geological surveys, drilling results, and other technical data where judgement
is needed to define classification into categories such as proven, probable, measured, indicated and inferred. Additional significant
estimates in the financial report is the R&D incentive rebate accrued which is based on management’s estimate of the eligible
expenditure incurred in the year.
Management has assessed that certain exploration activities may give rise to rehabilitation obligations. However, as at 30 June 2025,
insufficient information is available to reliably estimate the cost. No provision has been recognised. This will be reassessed once further
site data is obtained.
(c)
Basis of Consolidation
Controlled Entities
The consolidated financial statements comprise the financial statements of Ardea Resources Limited and its subsidiaries as at 30 June
2025.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and
losses resulting from intra-group transactions have been eliminated in full. The subsidiaries are fully consolidated from the date on
which control is transferred to the consolidated entity and ceases to be consolidated from the date on which control is transferred out
of the consolidated entity.
The acquisition of the subsidiaries have been accounted for using the purchase method of accounting. The purchase method of
accounting involves allocating the cost of the business combination to the fair value of the assets acquired and the liabilities and
contingent liabilities assumed at the date of acquisition. Accordingly, the consolidated financial statements include the results of the
subsidiaries for the period from their acquisition.
(d)
Income Tax
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Current and future tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
Notes to the Financial Statements
For the year ended 30 June 2025
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 42
(e)
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Consolidated Entity and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
(f)
Property, Plant and equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and
impairment losses.
Property, plant and equipment and Motor Vehicles
Property, Plant and equipment, and Motor Vehicles are stated at cost less accumulated depreciation and any impairment in value.
Depreciation
Depreciable non-current assets are depreciated over their expected economic life using the straight line. Profits and losses on disposal
of non-current assets are taken into account in determining the operating loss for the year. The depreciation rate used for each class
of assets is as follows:
Plant & equipment and Motor Vehicles
20 - 33%
(g)
Contributed Equity
Issued capital is recognised as the fair value of the consideration received by the Company.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds
received.
(h)
Exploration and Evaluation Expenditure
Mineral exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest and is subject to
impairment testing. These costs are carried forward only if they relate to an area of interest for which rights of tenure are current and in
respect of which:
such costs are expected to be recouped through the successful development and exploitation of the area of interest, or alternatively
by its sale; or
exploration and/or evaluation activities in the area have not reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable Ore Reserves and active or significant operations in, or in relation to, the area
of interest are continuing.
In the event that an area of interest is abandoned or if the Directors consider the expenditure to be of reduced value, accumulated costs
carried forward are written off in the year in which that assessment is made. A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
Where a mineral resource has been identified and where it is expected that future expenditures will be recovered by future exploitation
or sale, the impairment of the exploration and evaluation is written back and transferred to development costs. Once production
commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves.
Costs of site restoration and rehabilitation are recognised when the Consolidated Entity has a present obligation, the future sacrifice of
economic benefits is probable and the amount of the provision can be reliably estimated.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting
date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
Exploration and evaluation assets are assessed for impairment if:
(i)
sufficient data exists to determine technical feasibility and commercial viability, and
(ii)
facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
For the purpose of impairment testing, exploration and evaluation assets are allocated to cash- generating units to which the exploration
activity relates. The cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable,
exploration and evaluation assets attributable to that area of interest are first tested for impairment and then re-classified from intangible
assets to mining property and development assets within property, plant and equipment.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 43
(i)
Financial risk management
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework, to identify and
analyse the risks faced by the Consolidated Entity. These risks include credit risk, liquidity risk and market risk from the use of financial
instruments. The Consolidated Entity has only limited use of financial instruments through its cash holdings being invested in short term
interest bearing securities. The primary goal of this strategy is to maximise returns while minimising risk through the use of accredited
Banks with a minimum credit rating of A1 from Standard & Poors. The Consolidated Entity has no debt, and working capital is maintained
at its highest level possible and regularly reviewed by the full board.
(j)
Share-based payment transactions
The Company provides benefits to employees (including Directors and consultants) of the Consolidated Entity in the form of share-
based payment transactions, whereby employees render services in exchange for shares or rights over shares (Equity–settled
transactions).
There is currently a plan in place to provide these benefits being an Employee Share Option Plan (ESOP) which provides benefits to
Directors, consultants and senior executives.
The cost of these equity-settled transactions is measured by reference to fair value at the date at which they are granted. The fair value
is determined by an external valuer using either the Black - Scholes or Binomial model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the
shares of Ardea (market conditions).
The cost of equity settled securities is recognised, together with a corresponding increase in equity, over the period in which the
performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting
date).
Where the Consolidated Entity acquires some form of interest in an exploration tenement or an exploration area of interest and the
consideration comprises share-based payment transactions, the fair value of the equity instruments granted is measured at grant date.
The cost of equity securities is recognised within capitalised mineral exploration and evaluation expenditure, together with a
corresponding increase in equity.
(k)
Borrowings
These amounts represent advance payment received from GH Nickel Pty Ltd in respect of the funding of the early DFS.
(l) Equity Contributions
Equity contributions are recognised as the fair value of the consideration received by the Company.
(m) Investments in joint ventures
The Consolidated Entity has entered into a joint venture arrangement in KNPL with a Japanese Consortium (Sumitomo Metal Mining
Co., Ltd and Mitsubishi Corporation). KNPL’s principal place of business is Australia, and its principal activity is the development of the
Goongarrie Hub nickel project.
Joint venture
Country of
incorporation
Principal activity
Ownership interest (%)
2025
Ownership interest (%)
2024
KNPL
Australia
Goongarrie Nickel
Project
100% Ardea **
100% Ardea
** At 30 June 2025, Ardea held 100% of KNPL. Subsequent to year end, the Japanese Consortium satisfied its earn-in obligations and
acquired a 17.5% interest.
Transactions during the year
During the year, the Japanese Consortium advanced funding directly to KNPL under the earn-in arrangements. At 30 June 2025,
these funds were recorded in KNPL’s accounts as a loan liability. The balance is presented within borrowings in the consolidated
statement of financial position.
Subsequent events
Subsequent to year end, the Japanese Consortium satisfied its earn-in obligations and acquired a 17.5% equity interest in KNPL. The
Consolidated Entity retained control of KNPL, which will continue to be fully consolidated. The Consortium’s interest will be
recognised as a non-controlling interest in equity from that date (refer Note 25 Subsequent Events).
Funding commitments and dilution risk
The financial statements have been prepared on a going concern basis. The Consolidated Entity has sufficient cash reserves to meet
its corporate operating costs for at least 12 months from the date of this report.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 44
Under the Cooperation Agreement with the Japanese Consortium, the Consolidated Entity is expected to contribute to FEED and PCA
within the next 12 months. While the final scope and budget of these works are not yet agreed, early indications suggest that the
Consolidated Entity may not currently have committed financial resources sufficient to meet its share of costs.
Should the Consolidated Entity elect not to fund its share of FEED/PCA expenditure, its equity interest in KNPL may be diluted in
accordance with the terms of the Cooperation Agreement.
The Consolidated Entity is actively considering external funding options to meet its potential obligations.
(n)
Significant accounting policies or changes in accounting policies
Effective Date: 1 July 2024
Nature of Change:
From 1 July 2024, the Group has voluntarily changed its accounting policy in relation to the recognition of R&D tax incentives.
Previously, R&D tax incentives were offset against capitalised exploration and evaluation assets, in line with the Group’s previous policy
of reducing the carrying value of assets where government assistance was received.
Under the revised policy, the Group now recognises R&D tax incentives as income in the Statement of Profit or Loss when there is
reasonable assurance that the incentive will be received and the Group will comply with the attached conditions.
This policy change aligns with the requirements of AASB 120 Accounting for Government Grants, which permits either offsetting against
the related asset or recognising income. The Group considers this change provides a more transparent reflection of income and more
accurately represents the nature of R&D tax incentives as government support, rather than a direct cost reduction of capitalised
exploration assets.
Impact of Change:
•
Profit or Loss Impact: R&D tax incentives are now presented as “Other Income”, improving EBITDA in periods where incentives
are recognised.
•
Balance Sheet Impact: Capitalised exploration and evaluation assets are no longer reduced by R&D receipts. Instead, an R&D
receivable is recognised within current assets until receipt of funds.
•
Cash Flow Impact: There is no impact on cash flows.
•
Comparative Information: In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, this
accounting policy change has been applied retrospectively. Comparative information for the year ended 30 June 2024 has been
restated to reflect the change. Further details, including the impact on prior period results, are disclosed in Note (n): Restatement
of Comparatives.
(o)
Change in Accounting Policy and Restatement of Comparatives
Change in Accounting Policy – Recognition of R&D Tax Incentives
Effective 1 July 2024, the Group has voluntarily changed its accounting policy in relation to the recognition of R&D tax incentives.
Previously, R&D tax incentives were offset against capitalised exploration and evaluation assets in the Statement of Financial Position.
From FY25 onwards, R&D tax incentives are recognised as income in the Statement of Profit or Loss in accordance with AASB 120
Accounting for Government Grants.
Management believes this change provides a more transparent and consistent presentation of government incentives as operating
income, rather than a reduction of capitalised assets, and improves comparability with industry peers.
(p) Restatement of Comparatives
In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, the comparative information for the
year ended 30 June 2024 has been restated to reflect the retrospective application of this change in accounting policy.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 45
The impact of this restatement is summarised below:
Statement of Profit or Loss (FY24):
30 June 2024
30 June 2024
Line Item:
As Previously
Reported
$
Adjustment
$
Restated Amount
$
Other Income (R&D)
933,626
1,243,303
2,176,929
Loss before income tax
(7,705,331)
1,243,303
(6,462,028)
Statement of Financial Position (as at 30 June 2023):
As Previously
Reported
$
Adjustment
$
Restated Amount
$
Capitalised Exploration and Evaluation Assets
35,426,032
9,680,746
45,106,778
Accumulated losses
(19,776,890)
9,680,746
(10,096,144)
Statement of Financial Position (as at 30 June 2024):
Line Item:
As Previously
Reported
$
Adjustment
$
Restated Amount
$
Capitalised Exploration and Evaluation Assets
42,884,987
10,082,817
52,967,804
Other Receivables
995,538
841,232
1,836,770
Accumulated losses
(27,482,221)
10,924,049
(16,558,172)
Impact on Cash Flows:
There is no impact on the Statement of Cash Flows arising from this change. Cash inflows from R&D tax incentives remain classified
under cash flows from operating activities.
Impact on Earnings per Share:
Line Item:
As Previously
Reported
cents
Adjustment
cents
Restated Amount
cents
Basic loss per share
(4.01)
0.65
(3.36)
Diluted loss per share
(4.01)
0.65
(3.36)
(q)
New or amended Accounting Standards and interpretations adopted
The Consolidated Entity has adopted all new and amended Australian Accounting Standards issued by the Australian Accounting
Standards Board (AASB) that are mandatory for the annual reporting period ended 30 June 2025. The adoption of these standards
did not have a material impact on the financial statements.
Key amendments relevant to this reporting period included:
AASB 2022-6: Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants
Clarifies the classification of liabilities as current or non-current when the entity is subject to loan covenants. The Consolidated Entity
assessed all borrowing arrangements at 30 June 2025 and confirmed there were no breaches or covenant-related conditions
requiring reclassification.
AASB 2023-3: Amendments to Australian Accounting Standards – Disclosure of Non-current Liabilities with Covenants
As the Consolidated Entity had no borrowings outstanding at 30 June 2025, the amendments had no impact on the classification or
disclosure of liabilities.
AASB 2023-1: Amendments to AASB 107 and AASB 7 – Disclosures of Supplier Finance Arrangements
Adoption of this amendment did not have a material impact on the financial statements.
AASB 2024-1: Amendments to Australian Accounting Standards – Disclosure of Supplier Finance Arrangements
Adoption of this amendment did not have a material impact on the financial statements.
(r)
New Accounting Standards and Interpretations not yet mandatory or early adopted
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the
Consolidated Entity for the annual reporting period ended 30 June 2025.
Australian Accounting Standards and Interpretations recently issued or amended but not yet effective have been considered by the
Consolidated Entity. Based on the current operations and financial position, these are not expected to have a material impact on the
financial statements of the Consolidated Entity in future reporting periods.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 46
2.
OTHER INCOME
2025
$
2024
(Restated)
$
Interest
317,368
611,267
Other Income
3,677,790
1,565,662
3,995,158
2,176,929
2024 Restated: Refer to Note 1(o). Change in Accounting Policy – Recognition of R&D Tax Incentives.
3.
EXPENSES
Contributions to superannuation
274,864 323,158
Depreciation - Plant and equipment
45,969
1,789
Provision for employee entitlements
141,803
98,920
4.
AUDITORS’ REMUNERATION
Audit – Dry Kirkness (Audit) Pty Ltd
Audit and review of the financial statements
52,744
23,663
5.
INCOME TAX
No income tax is payable by the Consolidated Entity as it has carry forward losses for income tax purposes for the year, so current
tax, deferred tax and tax expense is $Nil.
(a) Numerical reconciliation of income tax expense to prima facie tax payable
2025
2024
(Restated)
Loss from continuing operations
(3,259,277)
(6,462,028)
Tax at the tax rate of 30%
(977,783)
(1,938,608)
Tax effect of amounts which are deductible in calculating taxable income:
Temporary differences not recognised
(138,199)
1,949,697
Non deductable expenses/gains
-
-
Deferred tax asset not brought to account
1,115,982
(11,089)
Income tax expense
-
-
*2024 Restated: Refer to Note 1(o). The 2024 restated numbers are due to the
Change in Accounting Policy – Recognition of R&D Tax Incentives
(b) Tax losses
Unused tax losses for which no deferred tax asset has been recognised
85,619,005
41,969,983
Potential tax benefit at 30%
25,685,702
12,590,995
(c) Un-recognised Deferred Tax Assets and Liabilities
Un-recognised deferred tax assets comprise:
Provisions/Accruals/Other
872,019
749,212
Tax losses available for offset against future taxable income
85,619,005
41,969,983
86,491,024
42,719,195
Un-recognised deferred tax liabilities comprise:
Capitalised mineral exploration and evaluation expenditure
109,432,560
57,251,440
(d) Franking credits balance
The Consolidated Entity has no franking credits available as at 30 June 2025.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 47
6.
OTHER RECEIVABLES
2025
2024
(Restated)
$
$
Current
GST receivable
784,538
244,595
R&D Receivable
3,513,690
1,176,216
Interest Receivable and other
132,310 323,064
Bonds and Guarantees (Westpac Bank Guarantees) *
107,895
92,895
4,538,433
1,836,770
* Comprising of bank guarantee of $85,895 for office lease at Level 2, 7 Ventnor Avenue, West Perth (expiry date: 28 February
2026), bank guarantee of $7,000 for warehouse lease at Unit 6, 17 Townsend Street, Malaga (expiry date: 10 September 2026),
and credit card term deposit of $15,000 held as security (expiry date: 11 October 2025).
2025
$
2024
$
6
(a) RIGHT-OF-USE ASSETS & LIABILITIES
Current
Right-of-Use Assets
-
-
Right-of-Use Liabilities
245,168
269,549
Non-Current
Right-of-Use Assets
237,651
344,384
Right-of-Use Liabilities
-
70,763
(b) Right-of-Use liability maturity analysis
Maturity analysis
Within one year
137,009
278,343
Later than one year and not later than three years
7,446
71,438
Less unearned interest
5,519
(9,469)
Total Lease Liability
149,974
340,312
Current
245,168
269,549
Non-Current
-
70,763
Total Right-of-Use liability
245,168
340,312
(c) Amounts recognized in profit and loss
Depreciation expense on right-of-use assets
375,454
249,286
Interest expense on right-of-use liabilities
16,866
15,060
The Company leases its corporate office at Suite 2, 45 Ord St West Perth with a lease expiring on 19 April 2026. Additionally, the
Company leases an office at Level 2, 7 Ventnor Avenue, West Perth. The lease expires on 31 March 2026. The Company leases
its site office at 19 and 21 Close Way, West Kalgoorlie. The lease expires on 31 March 2026. These leases are recognised in
accordance with AASB 16: Leases.
7.
OTHER ASSETS
Current
Prepayments
227,542
181,626
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 48
8.
PROPERTY, PLANT AND EQUIPMENT
2025
2024
$
$
Plant and office equipment
At Cost
581,165
462,745
Accumulated Depreciation
(409,389)
(363,165)
171,775
99,581
Motor Vehicles
At Cost
210,297
210,297
Accumulated Depreciation
(210,297)
(210,297)
-
-
Improvements to property and buildings
At cost
10,945
22,243
Accumulated depreciation
(10,945)
(11,201)
-
11,042
Reconciliation
Plant and office equipment
Carrying amount at beginning of the year
99,581
-
Additions
118,420
101,370
Disposal
-
-
Depreciation
(46,226)
(1,789)
Carrying amount at the end of the year
171,775
99,581
Improvements to Property and Buildings
Carrying amount at beginning of the year
11,298
4,798
Additions
-
6,244
Disposal
(11,298)
-
Depreciation
-
-
Carrying amount at the end of the year
-
11,042
Total
171,775
110,623
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 49
9.
INVESTMENT
No. of
shares
2025
2024
Investment in Godolphin – Shares 1
$ $
Opening balance
554,551
11,645
29,946
Add: Shares purchases
-
-
-
Less: Shares sold
-
-
-
Less: Fair Value adjustment
-
(6,654)
(18,301)
Closing balance
554,551
4,991
11,645
Investment in Metalicity (Arika Resources)– Shares 1
Opening balance
23,843,825
23,688
11,844
Add: Shares purchases
-
-
-
Less: Shares sold
(12,000,000)
-
-
Less: Fair Value adjustment
-
17,765
11,844
Closing balance
11,843,825
41,453
23,688
Investment in KalGold – Shares 1
Opening balance
9,000,000
261,000
270,000
Add: Shares purchases
-
-
-
Less: Shares sold
(500,000)
(46,166)
-
Less: Fair Value adjustment
-
99,666
(9,000)
Closing balance
8,500,000
314,500
261,000
Investment in KalGold –
Options 1
Opening balance
15,000,000
-
-
Add: Options issued in CY
-
-
-
Less: Options terminated
-
-
-
Less: Impairment
-
-
-
Closing balance
15,000,000
-
-
Investment in Larvotto
Opening balance
1,000,000
120,000
200,000
Add: Shares purchases
-
-
-
Less: Shares sold
(15,000,000)
(297,884)
-
Less: Fair Value adjustment
-
177,884
(80,000)
Closing balance
-
-
120,000
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 50
9.
INVESTMENT (Continued)
Shares in Listed Entities are valued at the closing share price on ASX at 30 June 2025.
1.
2025
2024
Non-Current
Unlisted Options in Listed Company
-
-
Investment in Listed Entities
360,944
416,333
360,944
416,333
Particulars in relation to the controlled entities
Ardea Resources Limited is the parent entity.
Name of Controlled Entity
Class of Shares
Equity Holding
2025
2024
Atriplex Pty Ltd ACN 113 719 207
Ordinary
100%
100%
Ardea Exploration Pty Ltd ACN 137 889 279
Ordinary
100%
100%
Kalgoorlie Nickel Pty Ltd ACN 137 889 199
Ordinary
100%
100%
Wellington Nickel Pty Ltd ACN 659 195 294
Ordinary
100%
100%
10.
CAPITALISED MINERAL EXPLORATION EXPENDITURE
2025
2024
(Restated)
$
$
Non-Current - in the exploration phase
Cost brought forward
52,967,804
45,106,778
Add: Expenditure incurred during the year (at cost) (2024: Restated)
52,646,895
9,393,041
Exploration expenditure written off
(465,775)
(1,532,015)
105,148,924
52,967,804
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers are due to the Change in Accounting Policy –
Recognition of R&D Tax Incentives
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 51
11.
TRADE AND OTHER PAYABLES
2025
2024
$
$
TRADE AND OTHER PAYABLES
Current (Unsecured)
Trade creditors
5,706,026
911,250
Other creditors and accruals
1,468,500
1,753,576
7,174,526
2,664,826
Included within trade and other creditors and accruals is an amount of $6,597,394 (2024 - $54,474 ) relating to exploration expenditure.
12.
PROVISIONS
Current
Employee entitlements
681,818
616,745
Non-Current
Employee entitlements
161,528
84,798
843,346
701,544
13.
BORROWINGS
Sumitomo Metals Mining Co. Ltd
-
904,225
GH Nickel Pty Ltd
49,476,233
-
Loan from SMM represents advance payments to KNPL in respect of the funding of the early DFS per the Cooperation Agreement
with a binding Consortium of which SMM is a member.
At 30 June 2025, $49.9 million was received from GH Nickel Pty Ltd and was recorded as a liability (Loan from Investor). On 4 July
2025, $49.25 million liability was reclassified to equity upon the issue of shares in KNPL.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 52
14.
CONTRIBUTED EQUITY
2025
2024
(a)
Ordinary Shares
$
$
210,412,915 (2024 –199,682,915) fully paid ordinary shares
79,378,172 75,017,752
(b)
Share Movements during the Year
2025
2024
Number of shares
$
Number of shares
$
Beginning of the financial
period
199,682,915
75,017,752
171,894,772
60,000,784
New shares issues during the
period
Placement at 70c/share (2024:
43c/share)
10,730,000
4,613,900
22,857,143
16,000,000
Conversion of performance
rights
-
-
4,931,000
-
Less costs of issue
-
(253,480)
-
(983,032)
210,412,915
79,378,172
199,682,915
75,017,752
(c)
Unlisted Options
There were 3,000,000 options on issue during the year ended 30 June 2025 (2024– 3,000,000)
(d)
Share Based Payments
During the current financial year there were a number of Share Based payments made to Directors and Employees with 1,500,000
Performance Rights, (2024 – 1,724,000) issued during the period and there were 1,303,000 Performance Rights (2024 – 129,500)
that lapsed/expired. There were nil shares issued during the period from the conversion of Performance Rights (2024 – 4,931,000).
(e)
Terms and Conditions of Contributed Equity
Ordinary Shares
The Company is a public Company limited by shares. The Company was incorporated in Perth, Western Australia.
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid on the shares respectively
held by them.
Ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the Company, to participate in
the proceeds from the sale of all surplus assets in proportion to the number of shares held.
Ordinary shares which have no par value, entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they may
continue to provide returns for shareholders and benefits for other stakeholders.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 53
14.
CONTRIBUTED EQUITY (Continued)
(f)
Capital Risk Management
Due to the nature of the Consolidated Entity’s activities, being mineral development and exploration, the Consolidated Entity does not
have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Consolidated
Entity’s capital risk management is the current working capital position against the requirements to meet exploration programmes and
corporate overheads. The Consolidated Entity’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate capital raisings as required. The working capital position of the Consolidated Entity at
30 June 2025 are as follows:
2025
2024
$
$
Cash and cash equivalents
14,683,538
14,848,940
Trade and other receivables
4,538,433
1,836,770
Other assets
227,542
181,627
Trade and other payables
(7,174,525)
(2,664,825)
Provisions
(843,346)
(701,546)
Working capital position
11,431,642
13,500,966
15.
ACCUMULATED LOSSES
Accumulated losses at the beginning of the period (2024: Restated)
16,558,172
10,096,144
Net loss attributable to members (2024: Restated)
3,259,277
6,462,028
Accumulated losses at the end of the year (2024: Restated)
19,817,449
16,558,172
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers due to the Change in Accounting Policy – Recognition of R&D
Tax Incentives.
16.
RESERVE
Share Based Payment Reserve
Balance at the beginning of the period
7,635,994
5,642,140
Add: Amounts expensed in current period
432,828
1,993,854
Balance at the end of the period
8,068,822
7,635,994
Share Option reserve
The share option reserve comprises any equity settled share based payment transactions.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 54
17.
RELATED PARTIES
Remuneration of key management personnel:
Full remuneration and other transaction details for Directors and Executives are included in the Directors Report where the
information has been audited as indicated.
Related Party transactions:
Sumitomo Metal Mining Co. Ltd – investor and party to KNP – Goongarrie Hub joint venture
Mitsubishi Corporation Ltd - investor and party to KNP – Goongarrie Hub joint venture
GH Nickel Pty Ltd – holding company for JC investors and party to KNPL - Goongarrie Hub joint venture
Balances and transactions with related parties are as follows:
2025
2024
$
$
Loan from related party -Sumitomo Metals Mining Co. Ltd
-
904,225
Loan from related party – GH Nickel Pty Ltd
49,476,223
-
Ardea’s subsidiary KNPL and SMM agreed funding support arrangements to facilitate the progression of the early DFS works while the
conditions precedent to the Cooperation Agreement are being satisfied. Under the funding support arrangements, the parties have
agreed a contribution plan under which SMM will advance up to A$12,000,000 in funding to KNPL, as and when funds are required to
facilitate agreed early DFS works.
During the reporting period, the Consolidated Entity received $49.47 million from GH Nickel Pty Ltd, which was initially recorded as a
liability (Loan from Investor). On 4 July 2025, GH Nickel Pty Ltd acquired a 17.5% interest in KNPL, a subsidiary of Ardea, for cash
consideration of $49.25 million, and the liability recognised at 30 June 2025 was reclassified to equity upon the issue of shares. The
transaction was accounted for as an equity transaction under AASB 10 Consolidated Financial Statements, with no amounts recognised
in profit or loss and no goodwill recognised.
18.
EXPENDITURE COMMITMENTS
(a)
Exploration
The Consolidated Entity has certain obligations to perform minimum exploration work on mineral leases held. These obligations may
vary over time, depending on the Consolidated Entity’s exploration programmes and priorities. As at balance date, total exploration
expenditure commitments on tenements held by the Consolidated Entity have not been provided for in the financial statements and
those which cover the following twelve month period amount to $3,890,780 (2024 - $4,119,654). These obligations are also subject to
variations by farm-out arrangements or sale of the relevant tenements.
(b)
Capital Commitments
The Consolidated Entity has committed to capital expenditure up to the agreed budget of $98.5 million, fully funded by GH Nickel Pty
Ltd as per the Cooperation Agreement and Shareholder Agreement. As at 30 June 2025, $49 million remains to be spent to complete
the DFS.
Reference 5B June 2025
19.
SEGMENT INFORMATION
The Consolidated Entity operates predominantly in one segment involved in the mineral exploration and development industry in
Australia.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 55
20.
EARNINGS/ (LOSS) PER SHARE
The following reflects the loss and share Data used in
2025
2024 (Restated)
the calculations of basic and diluted earnings/ (loss) per share:
$
$
Earnings/ (loss) used in calculating basic
and diluted earnings/ (loss) per share
(3,259,277)
(6,462,028)
Number of Shares
2025
2024
Weighted average number of ordinary shares used in
calculating basic earnings/ (loss) per share:
201,681,929
192,205,954
Effect of dilutive securities
Share options*
Adjusted weighted average number of ordinary shares
used in calculating diluted earnings/ (loss) per share
201,681,929
192,205,954
Basic and Diluted loss per share (cents per share)
1.63 cents
3.36 cents
*Non-dilutive securities
*2024 Restated: Refer to Note 1(o) for the detailed information on the 2024 restated numbers due to the Change in Accounting Policy – Recognition of R&D Tax
Incentives
As at balance date 3,513,400 performance rights which represent potential ordinary shares were not dilutive as they would decrease
the loss per share.
21.
NOTES TO THE STATEMENT OF CASH FLOWS
(a)
Reconciliation of the loss from ordinary activities after income tax to the net cash flows used in operating activities
2025
2024
$
$
Loss from ordinary activities after income tax
(3,259,277)
(6,462,028)
Non-cash items:
Depreciation
46,226
1,789
Amortisation – ROU
375,454
249,286
Exploration Writedowns
465,775
1,532,015
Revaluation of Investments
(289,661)
95,456
Unrealised FX
-
(887)
Share based payments
432,828
1,993,854
Change in operating assets and liabilities:
Decrease (Increase) in prepayments
(45,914)
(64,237)
Decrease (Increase) in receivables
(3,761,226)
(1,600,997)
(Increase)/Decrease in interest receivable
233,331
(249,287)
Increase in trade creditors and accruals
28,383
466,587
Increase in employee entitlements
(345,334)
(98,868)
Net cash outflows used in operating activities
(6,119,485)
(4,135,483)
(b)
Non Cash Financing and Investing Activities
Full details of the Non Cash impact of the Performance Rights has been disclosed in the Remuneration Report.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 56
22.
FINANCIAL INSTRUMENTS
The Consolidated Entity’s activities expose it to a variety of financial risks and market risks. The Consolidated Entity’s overall risk
management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the
financial performance of the Consolidated Entity.
(a)
Interest Rate Risk
The Consolidated Entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market, interest rates and the effective weighted average interest rates on those financial assets, is not significant. Cash
and cash equivalents are the only assets effected and the average interest rate received is 4.2% (2024: 4.4%).
(b)
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date, is the carrying amount,
net of any provisions for doubtful debts, as disclosed in the balance sheet and in the notes to the financial statements.
The Consolidated Entity does not have any material credit risk exposure to any single debtor or group of debtors, under financial
instruments entered into by it, and hence no credit loss allowance is required.
(c)
Commodity Price Risk and Liquidity Risk
At the present state of the Consolidated Entity’s operations it has minimal commodity price risk and limited liquidity risk due to the level
of payables and cash reserves held. The Consolidated Entity’s objective is to maintain a balance between continuity of exploration
funding and flexibility through the use of available cash reserves.
(d)
Net Fair Values
For assets and other liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily
traded on organised markets in standardised form. The Consolidated Entity has no financial assets where the carrying amount exceeds
net fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial
position and in the notes to the financial statements.
23.
EMPLOYEE ENTITLEMENTS AND SUPERANNUATION COMMITMENTS
Employee Entitlements
The aggregate employee entitlement liability is disclosed in Note 12.
Superannuation Commitments
The Consolidated Entity contributes to individual employee accumulation superannuation plans at the statutory rate of the employees’
wages and salaries, in accordance with statutory requirements, to provide benefits to employees on retirement, death or disability.
Accordingly no actuarial assessments of the plans are required.
24.
CONTINGENT LIABILITIES
There were no material contingent liabilities not provided for in the financial statements of the Company as at 30 June 2025 other
than:
A rehabilitation liability for 172 hectares of exploration disturbance linked to permitted DFS field work (expected to increase once full
assessment is completed).
Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Consolidated Entity has an interest. The
Consolidated Entity is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and
to what extent the claims may significantly affect the Consolidated Entity or its projects. Agreement is being negotiated with various
native title claimants in relation to Aboriginal Heritage issues regarding certain areas in which the Consolidated Entity has an interest.
Notes to the Financial Statements continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 57
25.
EVENTS SUBSEQUENT TO BALANCE DATE
There has not arisen since the end of the financial period any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the Consolidated Entity to affect substantially the operations of the Consolidated Entity, the results of those
operations or the state of affairs of the Consolidated Entity in subsequent financial years except for the following:
On 4 July 2025, GH Nickel Pty Ltd acquired a 17.5% interest in KNPL, a subsidiary of Ardea, for cash consideration of $49.25 million.
Ardea retained control of KNPL following the transaction.
At 30 June 2025, the proceeds of $49.7 million had been received and recorded as a liability (Loan from Investor). On 4 July 2025,
$49.25 million the liability was reclassified to equity upon issue of shares to GH Nickel Pty Ltd.
The net assets of KNPL as at 4 July 2025 were $95,025,780.68. GH Nickel Pty Ltd’s share of net assets was $16,629,511.62. The
excess of consideration over the share of net assets, being $32,620,488.38, was recognised in parent reserves within consolidated
equity.
The transaction is accounted for as an equity transaction under AASB 10, with no impact on profit or loss and no goodwill recognised.
Non-controlling interest of $16,629,511.62 has been recognised in consolidated equity as at 4 July 2025.
These events represent material non-adjusting events after the reporting period under AASB 110, and do not impact the financial results
for the year ended 30 June 2025.
26.
PARENT COMPANY
2025
2024 (Restated)
$
$
Assets
Total current assets
16,881,591
16,290,124
Total non-current assets
12,786,065
11,572,248
Total Assets
29,667,656
27,862,372
Liabilities
Total current liabilities
1,201,213
1,766,734
Total non-current liabilities
141,792
84,798
Total Liabilities
1,343,005
1,851,532
Net Assets
28,324,650
26,010,840
Equity
Issued capital
38,982,594
34,761,703
Reserves
8,068,821
7,635,995
Accumulated losses
(18,726,764)
(16,386,858)
Total Equity
28,324,651
26,010,840
Total comprehensive loss for the year
(2,339,914)
(6,290,716)
*2024 Restated: Refer to Note 1(o). The 2024 restated numbers are due to the Change in Accounting Policy – Recognition of R&D Tax Incentives
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2025 and 30 June 2024.
Contingent Liabilities
The parent company had no contingent liabilities as at 30 June 2025 and 30 June 2024.
Capital Commitments
The parent company had no capital commitments at 30 June 2025 and 30 June 2024.
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 58
In the opinion of the Directors of Ardea Resources Limited (the Consolidated Entity):
(a)
the financial statements and notes, set out on pages 37 to 57, are in accordance with the Corporations Act 2001, including:
(i)
complying with Accounting Standards in Australia and the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(ii)
giving a true and fair view of the financial position of the Consolidated Entity as at 30 June 2025 and of its
performance, as represented by the results of its operations, for the financial year to 30 June 2025.
(iii)
the attached Consolidated Entity Disclosure Statement gives a true and correct view of the Consolidated Entities
as at 30 June 2025.
(b)
there are reasonable grounds to believe that Ardea Resources Limited will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Managing Director
and the Chief Financial Officer for the year to 30 June 2025.
This declaration is made in accordance with a resolution of the Directors.
Signed at Perth this 23rd day of September 2025.
Mathew Longworth
Chairman
Directors’ Declaration
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 59
For the year ended 30 June 2025
The following controlled entities are included in the consolidated financial statements of Ardea Resources
Limited (the Consolidated Entity):
Controlled Entity Name
Entity Type
Country of
Incorporation
Ownership Interest
(%)
Tax residency
Atriplex Pty Ltd ACN
Body Corporate
Australia
100%
Australia
Ardea Exploration Pty Ltd
Body Corporate
Australia
100%
Australia
Kalgoorlie Nickel Pty Ltd
Body Corporate
Australia
100%
Australia
Wellington Nickel Pty Ltd
Body Corporate
Australia
100%
Australia
Basis of Preparation:
The consolidated financial statements have been prepared in accordance with the Australian Accounting
Standards Board (AASB) standards and interpretations, as well as the Corporations Act 2001. All inter-
company transactions, balances, income, and expenses between entities within the group have been
eliminated in full.
Significant Accounting Policies:
The accounting policies adopted by the Consolidated Entities in the preparation of these consolidated financial
statements are set out in the Notes. These policies have been consistently applied to all entities within Ardea
Resources Limited (the Consolidated Entity).
Consolidated Entity Disclosure Statement
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ARDEA RESOURCES LIMITED
Report on the financial report
Opinion
We have audited the financial report of Ardea Resources Limited (“the Company”) and its controlled entities
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2025 the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
material accounting policy information, the consolidated entity disclosure statement and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i)
giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its
financial performance for the year then ended; and
ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We have conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those Standards are further described in the Auditor’s responsibilities for the audit of the financial report
section of our report.
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our ethical
requirements in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Change in Accounting Policy Restatement
We draw attention to Note 1 paragraphs (m), (n) and (o) in the financial statement that describe the Group has
voluntarily changed its accounting policy in relation to the recognition of Research and Development (R&D)
tax incentives with effective from 1 July 2024.
Previously, R&D tax incentives were offset against capitalised exploration and evaluation assets in the
Statement of Financial Position. From 1 July 2024, R&D tax incentives are recognised as income in the
Statement of Profit or Loss in accordance with AASB 120 Accounting for Government Grants.
In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, this
accounting policy change has been applied retrospectively by restating each of the affected financial
statement line items and relevant comparative information.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period.
These matters were addressed in the context of our audit of the financial report, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit matter
Capitalised mineral exploration expenditure
(refer note 10)
The Group operates as an exploration entity and its
primary activity is the exploration for and evaluation
of economically viable mineral deposits.
All exploration and evaluation expenditure incurred
has been capitalised and recognised as an asset in
the Statement of Financial Position.
The closing value of this asset is $105,148,924 as at
30 June 2025.
The carrying value of capitalised mineral exploration
assets is subjective and is based on the Group’s
intention and ability, to continue to explore the
asset. The carrying value may also be affected by the
results of ongoing exploration activity indicating that
the mineral reserves and resources may not be
commercially viable for extraction. This creates a
risk that the asset value included within the financial
statements may not be recoverable.
Our audit procedures included:
• ensuring the Group’s continued right to explore for
minerals in the relevant exploration areas including
assessing documentation such as exploration and
mining licences;
• enquiring of management and the directors as to
the Group’s intentions and strategies for future
exploration activity and reviewing budgets and cash
flow forecasts;
• assessing the results of recent exploration activity
to determine whether there are any indicators
suggesting a potential impairment of the carrying
value of the asset;
• assessing the Group’s ability to finance the planned
exploration and evaluation activity; and
• assessing the adequacy of the disclosures made by
the Group in the financial report.
Other information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the period ended 30 June 2025, but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the financial report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with the Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
c) for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
Research and Development Tax Incentive
(refer notes 2 and 6)
Management and their advisors have applied
judgements,
assumptions
and
estimates
in
determining
the
R&D
Tax
Incentive
refund
recognised for the 2025 year.
Our audit procedures included:
• evaluating the assumptions, methodologies and
conclusions used by the Group in preparing the
R&D Tax Incentive estimate; and
• assessing the adequacy of the disclosures made by
the Group in the financial report.
Equity and Capital Structure
Refer note 14
During the year, the Company issued ordinary shares
and performance rights.
Our audit procedures included:
• an examination of the issue of ordinary shares
during the year as disclosed in note 14.
• an assessment whether share-based payments
should have been recognised in relation to
performance rights
• a reconciliation of the third-party share registry to
information announced to the public
ii) the consolidated entity disclosure statement that is true and correct and is free from
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
• Identify and assess risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the
direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significant
in the audit of the financial report of the current period and are therefore key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh public interest
benefits of such communication.
Report on the remuneration report
Opinion
We have audited the remuneration report included on pages 23 to 32 of the directors’ report for the year
ended 30 June 2025.
In our opinion, the remuneration report of Ardea Resources Limited, for the year ended 30 June 2025,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with section 300A of the Corporations Act 2001.
Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in
accordance with Australian Auditing Standards.
DRY KIRKNESS (AUDIT) PTY LTD
ROBERT HALL CA
Director
Perth
Date: 23 September 2025
Shareholder Information
The following additional information was applicable at 15 September 2025.
1.
Distribution of Fully Paid Ordinary Shareholders is as follows:
Size of Holding
Number of Holders
Shares Held
%
1 -
1,000
621
339,260
0.16%
1,001 -
5,000
1,346
3,540,713
1.68%
5,001 -
10,000
487
3,848,970
1.83%
10,001 -
100,000
908
29,402,417
13.97%
100,001 -
221
173,281,555
82.35%
Total
3,583
210,412,915
100.00%
a)
There were 621 shareholders who held less than a marketable parcel.
b)
The twenty largest shareholders hold 54.54% of the issued fully paid capital of the Company.
2.
Substantial Shareholders of Fully Paid Ordinary Shareholders are as follows:
Holder
Number of Shares
%
Golden Energy & Resources Limited
18,265,975
8.70%
Ian Buchhorn and Associates
14,410,585
6.85%
Sumitomo Metal Mining Co., Ltd.
10,730,000
5.10%
3.
Voting Rights
In accordance with the Company's constitution, voting rights are on the basis of a show of hands, one vote for every
registered holder and on a poll, one vote for each share held by registered holders.
4.
Top 20 Shareholders of Fully Paid Ordinary Shares
Number of Shares %
1
CITICORP NOMINEES PTY LIMITED
49,049,492 23.31%
2
HAZURN PTY LTD
6,911,093 3.28%
3
BNP PARIBAS NOMINEES PTY LTD
6,266,654 2.98%
4
BNP PARIBAS NOMS PTY LTD
5,563,194 2.64%
5
JOSCO PTY LTD
5,383,809 2.56%
6
CUE1 PTE LTD
5,187,500
2.47%
7
MR IAN JAMES BUCHHORN
5,111,678 2.43%
8
SHENTON WORLD FUND LTD
4,857,143 2.31%
9
MR MICHAEL ANDREW HARRIS
3,330,000 1.58%
10 ENERJEE PTY LTD
2,880,000 1.37%
11 BNP PARIBAS NOMINEES PTY LTD
2,501,614 1.19%
12 ALEXANDER ASSETS PTY LTD
2,500,000 1.19%
13 QY LONG RIVER PTY LTD
2,450,000 1.16%
14 B & J O'SHANNASSY MANAGEMENT PTY LTD
2,165,572 1.03%
15 EST MRS PAMELA JEAN BUCHHORN
2,059,829 0.98%
16 LATSOD PTY LTD
2,053,310 0.98%
17 MR IWAN JONES & MS JOYCE CHRISTINE JONES
1,716,338 0.82%
18 RAW POWER (AUST) PTY LTD
1,678,572 0.80%
19 JOSCO PTY LTD
1,666,664 0.79%
20 MAYFAIR VENTURES PTE LTD
1,428,572 0.68%
Total Top 20 Shareholders
114,761,034 54.54%
Total issued capital - selected security class(es)
210,412,915 100.00%
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 65
5. Share Buy-Backs
There is no current on-market buy-back scheme.
6. Stock Exchanges
The Securities of the Company are not quoted on any other stock exchanges.
7. Unquoted Securities
The Securities of the Company are not quoted on any other stock exchanges.
Class of Number Number Holders >20% (Name and Holding)
Security on Issue of Holders
Performance Rights 3,513,400 5 Andrew Penkethman – 1,000,000 (28%),
Ian Buchhorn – 800,000 (23%)
Unlisted Options 3,000,000 1 New Electric Partners Pty Ltd – 3,000,000 (100%)
8. Restricted Securities
There were no restricted securities or securities subject to voluntary escrow on issue.
9. On Market Buy-back
There was no current on market buy-back.
10. Other Items
There were no issues of securities approved for the purposes of item 7 section 611 of the Corporations Act which
have not been completed.
No securities were purchased on-market during the Reporting Period under or for the purposes of any employee
incentive scheme or to satisfy the entitlements of the holders of options or other rights to acquire securities granted
under an employee incentive scheme.
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 66
Shareholder Information continued
Tenement Schedule
Ardea Resources Limited Tenement Schedule (WA) as at 30 June 2025
Tenement
Location Ardea Interest Status Note
Tenement
Location Ardea Interest Status Note
(%)
(%)
Goongarrie Hub
E24/196
Goongarrie 100 Live 16
M24/731
Goongarrie 100 Live 3,16
E24/209
Goongarrie 100 Live 16
M24/732
Goongarrie 100 Live 3,16
E24/211
Goongarrie 100 Live 16
M24/744
Goongarrie 100 Live 16
E29/934
Goongarrie 100 Live 16
M24/778
Goongarrie 100 Live 3,16
E29/1028
Goongarrie 100 Live 16
M29/167
Goongarrie 100 Live 16
E29/1038
Goongarrie 100 Live 16
M29/202
Goongarrie 100 Live 16
E29/1039
Goongarrie 100 Live 16
M29/272
Goongarrie 100 Live 16
E29/1045
Goongarrie 100 Live 16
M29/278
Goongarrie 100 Live 16
E29/1048
Goongarrie 100 Live 16
M29/423
Goongarrie 100 Live 16
L24/239
Goongarrie 100 Live 16
M29/426
Goongarrie 100 Live 16
L29/134
Goongarrie 100 Live 16
P24/5260
Goongarrie 100 Live 16
L29/135
Goongarrie 100 Live 16
P24/5328
Goongarrie 100 Live 16
L30/67
Goongarrie 100 Live 16
P24/5329
Goongarrie 100 Live 16
L30/68
Goongarrie 100 Live 16
P24/5799
Goongarrie 100 Pending 16
L16/141
Goongarrie 100 Live 16
P24/5169
Goongarrie-Windanya 100 Live 16
M24/1021
Goongarrie- Windanya 100 Pending 16
L30/85
Goongarrie 100 Live 16
P29/2646
Highway North 100 Live 16
M24/919
Goongarrie-Scotia 100 Ni rights Live 6
P29/2647
Highway North 100 Live 16
M24/959
Goongarrie-Scotia 100 Ni rights Live 6
P29/2648
Highway North 100 Live 16
M24/541
Goongarrie 100 Live 16
P24/5528
Goongarrie 100 Live 16
P29/2559
Highway North 100 Live 16
E29/1082
Goongarrie 100 Live 16
P29/2560
Highway North 100 Live 16
E29/1089
Goongarrie 100 Live 16
P29/2501
Highway - Moriarty 100 Live 16
P29/2561
Highway North 100 Live 16
P29/2562
Highway North 100 Live 16
E29/941
Ghost Rocks 100 Live 16
E29/981
Ghost Rocks 100 non Li-Au rights Live 15,16
M29/214
Highway 100 Live 16
L16/143
Goongarrie – Credo West 100 Live 16
L16/144
Goongarrie – Credo West 100 Live 16
E29/1083
Goongarrie 100 Live 16
L16/145
Goongarrie – Credo West 100 Live 16
L16/147
Goongarrie – Credo West 100 Live 16
L16/146
Goongarrie – Credo West 100 Live 16
L16/148
Goongarrie – Credo West 100 Live 16
L24/252
Goongarrie 100 Live 16
L30/95
Goongarrie – Credo West 100 Live 16
E29/984
Highway North 100 Live 15,16
M29/424
Goongarrie 100 Live 16
P29/2530
Goongarrie 100 Live 15,16
M29/445
Highway North 100 Live 15,16
P29/2532
Goongarrie 100 Live 15,16
E29/1062
Goongarrie 100 Live 15,16
P29/2467
Goongarrie 100 Live 15,16
L24/253
Goongarrie 100 Live 16
P29/2468
Goongarrie 100 Live 15,16
L24/254
Goongarrie 100 Live 16
P29/2380
Goongarrie 100 Live 15,16
L24/255
Goongarrie 100 Live 16
E24/244
Goongarrie 100 Pending 16
E24/245
Goongarrie 100 Pending 16
E29/1294
Goongarrie 100 Pending 16
L16/159
Goongarrie-Scorpion East 100 Pending 16
L16/160
Goongarrie-Scorpion Central 100 Pending 16
L16/161
Goongarrie-Jaurdi 100 Pending 16
L16/162
Goongarrie-Jaurdi 100 Pending 16
L16/163
Goongarrie-Jaurdi 100 Pending 16
L24/261
Goongarrie-Jaurdi 100 Pending 16
L24/262
Goongarrie-Jaurdi 100 Pending 16
L24/262
Goongarrie-Jaurdi 100 Pending 16
L24/263
Goongarrie-Jaurdi 100 Pending 16
L24/264
Goongarrie 100 Pending 16
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 67
Tenement
Location Ardea Interest Status Note
Tenement
Location Ardea Interest Status Note
(%)
(%)
Goongarrie Hub Expansion Siberia
E24/203
Siberia North 100 Live 16
P24/5235
Siberia North 100 Live 16
E29/889
Siberia North 100 Live 16
P24/5236
Siberia North 100 Live 16
M24/634
Siberia North 100 non Au-Ag rights Live 1,4,16
P29/2484
Siberia North 100 Live 16
M24/660
Siberia North 100 non Au-Ag rights Live 4,16
P29/2485
Siberia North 100 Live 16
M24/663
Siberia North 100 non Au-Ag rights Live 4,16
P24/5416
Siberia North 100 Live 16
M24/664
Siberia North 100 non Au-Ag rights Live 4,16
P24/5417
Siberia North 100 Live 16
M24/665
Siberia North 90 non Au-Ag rights Live 2,4,16
P24/5418
Siberia North 100 Live 16
M24/683
Siberia North 100 non Au-Ag rights Live 4,16
P24/5566
Siberia North 100 Live 16
M24/686
Siberia North 100 non Au-Ag rights Live 4,16
P24/5567
Siberia North 100 Live 16
M24/772
Siberia North 100 non Au-Ag rights Live 4,16
L24/248
Siberia North 100 Live 16
M24/797
Siberia North 100 non Au-Ag rights Live 4,16
L24/249
Siberia North 100 Live 16
M24/915
Siberia North 100 non Au-Ag rights Live 4,16
L24/250
Siberia North 100 Live 16
M24/916
Siberia North 100 non Au-Ag rights Live 4,16
L24/251
Siberia North 100 Live 16
M24/1002
Siberia North 100 Pending 16
P24/5599
Siberia North 100 Live 16
P24/5618
Siberia South 100 Live 16
P24/5623
Siberia South 100 Live 16
P24/5619
Siberia South 100 Live 16
P24/5624
Siberia South 100 Live 16
P24/5620
Siberia South 100 Live 16
P24/5625
Siberia South 100 Live 16
P24/5621
Siberia South 100 Live 16
L29/181
Siberia North 100 Live 16
P24/5622
Siberia South 100 Live 16
L29/183
Siberia North 100 Live 16
E29/1010
Siberia North 100 Live 16
L24/260
Siberia Central 100 Pending 16
L29/225
Siberia North 100 Pending 16
Goongarrie Hub Expansion Black Range
M24/757
Black Range 100 non Au-Ag rights Live 4,16
M24/973
Black Range 100 non Au-Ag rights Pending 4,16
P24/4395
Black Range 100 non Au-Ag rights Live 4,16
P24/4396
Black Range 100 non Au-Ag rights Live 4,16
P24/4400
Black Range 100 non Au-Ag rights Live 4,16
P24/4401
Black Range 100 non Au-Ag rights Live 4,16
P24/4402
Black Range 100 non Au-Ag rights Live 4,16
P24/4403
Black Range 100 non Au-Ag rights Live 4,16
P24/5593
Black Range 100% non Au rights Live 14,16
P24/5594
Black Range 100% non Au rights Live 14,16
P24/5595
Black Range 100% non Au rights Live 14,16
P24/5596
Black Range 100% non Au rights Live 14,16
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 68
Tenement Schedule continued
Tenement
Location Ardea Interest Status Note
Tenement
Location Ardea Interest Status Note
(%)
(%)
Kalpini Hub
E27/524
Kalpini 100 non Au rights Live 9
P25/2454
Kalpini-Bulong 100 Live
E27/606
Kalpini 100 Live
P25/2455
Kalpini-Bulong 100 Live
E27/607
Kalpini 100 Live
P25/2456
Kalpini-Bulong 100 Live
E28/1224
Kalpini 100 Live
P25/2457
Kalpini-Bulong 100 Live
E28/2978
Kalpini 100 Live
P25/2458
Kalpini-Bulong 100 Live
M27/395
Kalpini 100 Live
P25/2459
Kalpini-Bulong 100 Live
M27/506
Kalpini 100 Live
P25/2460
Kalpini-Bulong 100 Live
M27/512
Kalpini 100 Pending
P25/2461
Kalpini-Bulong 100 Live
M28/199
Kalpini 100 Live
P25/2482
Kalpini-Bulong 100 Live
M28/201
Kalpini 100 Live
P25/2483
Kalpini-Bulong 100 non Au rights Live 14
M28/205
Kalpini 100 Live
P25/2484
Kalpini-Bulong 100 non Au rights Live 14
E27/278
Kalpini-Acra 100 Ni Lat Ore Live 5
P25/2559
Kalpini-Bulong 100 non Au rights Live 14
E27/438
Kalpini-Acra 100 Ni Lat Ore Live 5
P25/2560
Kalpini-Bulong 100 non Au rights Live 14
E27/520
Kalpini-Acra 100 Ni Lat Ore Live 5
P25/2561
Kalpini-Bulong 100 non Au rights Live 14
E27/579
Kalpini-Acra 100 Ni Lat Ore Live 5
P25/2609
Kalpini-Bulong 100 Live
E28/2483
Kalpini-Acra 100 Ni Lat Ore Live 5
P25/2613
Kalpini-Bulong 100 Live
E25/578
Kalpini-Bulong 100 non Au rights Live 14
P25/2614
Kalpini-Bulong 100 Live
M25/59
Kalpini-Bulong 100 non Au rights Live 14
P25/2615
Kalpini-Bulong 100 Live
M25/134
Kalpini-Bulong 100 Live
P25/2650
Kalpini-Bulong 100 non Au rights Live 14
M25/145
Kalpini-Bulong 100 Live
P25/2305
Kalpini-Bulong 100 non Au rights Live 13,14
M25/151
Kalpini-Bulong 100 non Au rights Live 14
M31/488
Kalpini-Lake Rebecca 100 non Au rights Pending 14
M25/161
Kalpini-Bulong 100 Live
P31/2038
Kalpini-Lake Rebecca 100 non Au rights Live 14
M25/171
Kalpini-Bulong 100 non Au rights Live 14
P31/2039
Kalpini-Lake Rebecca 100 non Au rights Live 14
M25/187
Kalpini-Bulong 100 Live
P31/2040
Kalpini-Lake Rebecca 100 non Au rights Live 14
M25/209
Kalpini-Bulong 100 Live
M25/19
Kalpini-Bulong 100 non Au rights Live 13,14
E27/646
Kalpini 100 Live
P25/2307
Kalpini-Bulong 100 non Au rights Live 13,14
P25/2295
Kalpini-Bulong 100 non Au rights Live 14
P25/2409
Kalpini-Bulong 100 non Au rights Live 13,14
P25/2296
Kalpini-Bulong 100 non Au rights Live 13,14
L27/102
Kalpini 100 Live
P25/2743
Kalpini-Bulong 100 Pending
L31/88
Kalpini 100 Live
E25/657
Kalpini-Bulong 100 Pending
E28/3309
Kalpini 100 Live
P25/2837
Kalpini-Bulong 100 Pending
P25/2770
Kalpini-Bulong 100 Pending
M25/377
Kalpini-Bulong 100 non Au rights Pending 14
P25/2771
Kalpini-Bulong 100 Pending
P25/2768
Kalpini-Bulong 100 Pending
P25/2773
Kalpini-Bulong 100 Pending
P25/2769
Kalpini-Bulong 100 Live
P25/2839
Kalpini-Bulong 100 Pending
P25/2778
Kalpini-Bulong 100 Live
P25/2766
Kalpini-Bulong 100 Live
P25/2779
Kalpini-Bulong 100 Live
P25/2767
Kalpini-Bulong 100 Pending
P25/2838
Kalpini-Bulong 100 Pending
P25/2765
Kalpini-Bulong 100 Live
P25/2766
Kalpini-Bulong 100 Live
P26/4543
Kalpini-Bulong 100 Live
P25/2764
Kalpini-Bulong 100 Pending
E27/647
Kalpini 100 Live
P26/4542
Kalpini-Bulong 100 Live
P28/1423
Kalpini 100 Pending
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 69
Tenement Schedule continued
Tenement
Location Ardea Interest Status Note
Tenement
Location Ardea Interest Status Note
(%)
(%)
Kalpini Hub - Yerilla
E39/1954
Kalpini-Yerilla-Aubils 100 Live
M39/1147
Kalpini-Yerilla-Aubils 100 Pending
E31/1092
Kalpini-Yerilla-Boyce Creek 100 Live
E31/1169
Kalpini-Yerilla-Boyce Creek 100 Live
E31/1208
Kalpini-Yerilla-Boyce Creek 100 Live
E31/1213
Kalpini-Yerilla-Boyce Creek 100 Live
M31/483
Kalpini-Yerilla-Boyce Creek 100 Live
M31/493
Kalpini-Yerilla-Boyce Creek 100 Pending
M31/475
Kalpini-Yerilla-Jump Up 100 Live
M31/477
Kalpini-Yerilla-Jump Up Dam 100 Live
M31/479
Kalpini-Yerilla-Jump Up 100 Live
WA Regional
M15/1101
WA Regional Pre-emp Ni-Co Lat Live 7
M15/1263
WA Regional Pre-emp Ni-Co Lat Live 7
M15/1264
WA Regional Pre-emp Ni-Co Lat Live 7
M15/1323
WA Regional Pre-emp Ni-Co Lat Live 7
M15/1338
WA Regional Pre-emp Ni-Co Lat Live 7
M27/510
WA Regional 100 Ni Lat Ore Live 8
M27/272
Kanowna East Non-Au Rights Live 10
E40/350
Kookynie Non-Au Rights Live 11
E40/357
Kookynie Non-Au Rights Live 11
E29/1006
Perrinvale 100 non Au rights Live 14
E29/1078
Perrinvale 100 non Au rights Live 14
E37/1271
Mt Zephyr 20 Live 12
E39/1706
Mt Zephyr 20 Live 12
E39/1854
Mt Zephyr 20 Live 12
E39/2520
Mt Zephyr 100 Pending
Tenement Schedule continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 70
Notes:
1.
Britannia Gold Ltd retains precious metal rights.
2.
Impress Ventures Ltd has a 10% equity free-carried interest to a decision to mine.
3.
Norton Gold Fields Limited retains certain Au claw-back rights and royalty receivable.
4.
Ora Banda Mining Ltd holds Au-Ag rights while Ardea retains all non Au-Ag rights.
5.
Acra – Held by Essential Metals Limited, wholly owned subsidiary of Develop Global. Ardea retains rights to Ni laterite ore.
6.
Black Mountain Gold Limited all rights with exception of Ardea retaining Ni rights.
7.
Ramelius Resources Limited assignee (Maximus Resources Ltd) all rights, Ardea pre-emptive right to Ni-Co laterite.
8.
Paddington Gold Pty Ltd all mineral rights (except nickel sulphide) while Ardea retains rights to nickel laterite ore.
9.
By Sale Agreement between Northern Star (Carosue Dam) Pty Ltd and Kalnorth Gold Mines Ltd, Northern Star (Carosue Dam) Pty Ltd now owns Au
rights while Ardea retains non-Au rights.
10. Northern Star (Kanowna) Limited holds Au rights. Ardea retains non-Au rights.
11. The Option to purchase the tenements was transferred to Arika Resources Limited (renamed from Metalicity Limited) on 21 November 2020. Ardea retains
non Au rights.
12. The Mt Zephyr/Darlot East tenements were farmed out to Red 5 Limited on 18 November 2020 whereby Red 5 Limited earned 80% equity interest. Red
5 Limited merged with Silver Lake Resources Limited in late 2024 and the combined entity is known as Vault Minerals Limited. Ardea is free carried to
Decision to Mine.
13. Purchase of tenements by Binding Terms Sheet and Alluvial Rights Agreements dated 4 June 2021 between the Seller Steven Lionel Kean and Ardea
Resources Limited. Ardea retains non Au rights.
14. By way of the Demerger Implementation Deed executed between Ardea Resources Limited, Kalgoorlie Gold Mining Limited, Yerilla Nickel Pty Ltd, Kalgoorlie
Nickel Pty Ltd and Ardea Exploration Pty Ltd dated 9 September 2021, certain tenements have been transferred to Kalgoorlie Gold Mining Limited. For
certain other tenements, Ardea Resources Limited or its subsidiaries will continue to hold and retain non-gold rights while Kalgoorlie Gold Mining Limited
retains gold rights only.
15. Tenement Swap Agreement between Brightstar Resources Limited subsidiaries, Goongarrie Operational and Mining Pty Ltd and Menzies Operational and
Mining Pty Ltd, and Ardea Resources Limited subsidiary, Kalgoorlie Nickel Pty Ltd dated 15 July 2023. E29/1062 Infrastructure Rights only. E29/981,
Brightstar has lithium and gold rights.
16. The Japanese Consortium may acquire 50% equity of KNPL from the tenement holder by completing the Goongarrie Hub DFS and making a positive FID,
refer to ASX announcements 26 April 2024 and 30 August 2024. Subsequent to the Reporting Date, the Japanese Consortium acquired an initial 17.5%
stake in KNPL, refer to ASX announcement 4 July 2025.
Tenement Schedule continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 71
Glossary
ASIC means Australian Securities and Investments Commission.
ASX means ASX Limited (ABN 98 008 624 691) or the Australian Securities Exchange, as appropriate.
Australian Registry means Security Transfer Registrars Pty Ltd of 770 Canning Highway, Applecross WA.
Ardea or ARL or Company means Ardea Resources Limited (ABN: 30 614 289 342) ARL : ASX is the Ardea code on ASX.
AL means Atmospheric Leach (being a hydrometallurgical process done at atmospheric pressure, in contrast to high pressure leach HPAL).
Au means Gold.
Anomaly means a value higher or lower than expected, which outlines a zone of potential exploration interest but not necessarily of commercial
significance.
Austrade - Australian Trade and Investment Commission.
Co means Cobalt.
Consortium means the parties (SMM and MC) earning equity in KNPL pursuant to the Cooperation Agreement.
Cooperation Agreement means an agreement with Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) (Consortium) to form a
50:50 incorporated joint venture (JV) to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub (Transaction). The incorporated JV vehicle is
Kalgoorlie Nickel Pty Ltd (KNPL), which is currently a wholly owned subsidiary of Ardea.
CMO means Australian Federal Government - Critical Minerals Office.
Critical Minerals means metals and non-metals that are considered vital for the economic well-being of the world's major and emerging economies,
yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors. The current Australian Government Critical
Minerals List at February 2024 is: High-Purity Alumina (Al), Antimony (Sb), Arsenic (As), Beryllium (Be), Bismuth (Bi), Chromium (Cr), Cobalt (Co),
Fluorine (F), Gallium (Ga), Germanium (Ge), Graphite (C), Hafnium (Hf), Indium (In), Lithium (Li), Magnesium (Mg), Manganese (Mn), Molybdenum
(Mo), Nickel (Ni), Niobium (Nb), Platinum-group elements (PGE) including Platinum (Pt) and Palladium (Pd), Rare-earth elements (REE), Rhenium
(Re), Scandium (Sc), Selenium (Se), Silicon (Si), Tantalum (Ta), Tellurium (Te), Titanium (Ti), Tungsten (W), Vanadium (V), Zirconium (Zr).
Cu means Copper.
DFAT means Australian Federal Government - Department of Foreign Affairs and Trade.
DHEM means downhole electromagnetics.
DWER means WA Department of Water and Environmental Regulation.
EFA means Export Finance Australia.
EM means electromagnetics.
EV means Electric Vehicle.
ESG means Environmental Social and Governance principles.
Feasibility study means a study with three progressively more detailed stages:
Scoping Study means a first pass estimate of engineering requirements and costs of a mining operation, processing plant and plant infrastructure.
Included in the cost estimates will be infrastructure, tailings disposal, power supply, and owner's costs. The plant design may change as a result
of test work analysis, optimisation studies and engineering improvements performed during execution of the follow-up Pre-feasibility Study.
Operating and capital cost estimates are to an order of magnitude accuracy of ± 30%.
Pre-feasibility Study (PFS) means an engineering and cost study of a mining operation, processing plant and plant infrastructure. Included in the
cost estimates will be infrastructure, tailings disposal, power supply, and owner's costs. The plant design may change as a result of test work
analysis, optimisation studies and engineering improvements performed during execution of the Pre-feasibility Study. Operating and capital cost
estimates are to an accuracy of ± 25%.
Definitive Feasibility Study (DFS) means a feasibility study undertaken to a high degree of accuracy which may be used as a basis for raising
finance for the construction of a project. Typically operating and capital cost estimates are to an accuracy of +/- 15-20%. A DFS is the standard
of report required by primary debt funders to demonstrate the technical and commercial viability of a project.
FID means Final Investment Decision which when made for the Goongarrie Hub entitles the Consortium to a 50% interest in KNPL.
FIRB means Foreign Investment Review Board
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 72
Goethite means the dominant nickel cobalt ore type at Goongarrie, which is free dig and has a low energy requirement for comminution along with low
acid consumption during processing.
GWL means groundwater extraction licences.
HPAL means High-Pressure Acid Leach.
JV means the Transaction, in which KNPL will manage the DFS process, with the Consortium providing 100% of the funding for the DFS up to a budget
of approximately A$98.5 million via staged equity contributions over approximately 18 months. Ardea and the Consortium will provide technical and
commercial input into the DFS. At the conclusion of the DFS spend, the Consortium will have subscribed to a 35% ownership in KNPL and retain the
right to increase its ownership in KNPL to 50% upon a positive FID decision by the Consortium. Subsequent to the Reporting Date, the Japanese
Consortium acquired an initial 17.5% stake in KNPL, refer to ASX announcement 4 July 2025.
KNPL means the incorporated JV vehicle is Kalgoorlie Nickel Pty Ltd, which is currently a wholly owned subsidiary of Ardea.
KNP means Kalgoorlie Nickel Project, a nickel cobalt laterite project located through an arc 30 to 150km north-north west to east of Kalgoorlie.
It is comprised of the:
• Goongarrie Hub – Goongarrie South, Big Four. Goongarrie Hill, Highway, Siberia North deposits subject to the Consortium DFS expenditure and
additionally Ghost Rocks, Black Range and Siberia South deposits.
• Kalpini Hub – Kalpini, Bulong deposits and Yerilla – Jump Up Dam, Boyce Creek, Aubils and Lake Rebecca deposits which are owned 100% by
Ardea.
LIB means Lithium Ion Battery.
LCA means Life Cycle Assessment.
LCT means Lithium Caesium Tantalum which metal association along with other rare metal critical minerals is particularly found in Ardea drilling of
felsic intrusions at the Highway nickel laterite deposit and elsewhere within Ardea’s KNP tenure.
m means metre and km means kilometres.
MC means Mitsubishi Corporation.
Mt means Million tonnes.
Mineralisation means in economic geology, the introduction of valuable elements into a rock body.
Mineralised Neutraliser means a specific plant feed unique to the Goongarrie Hub for which the fine component is AL feed and coarse component is
a neutraliser.
MHP means Mixed Hydroxide Precipitate.
MPFA means Australian Federal Government - Major Projects Facilitation Agency.
MPS means Major Project Status - KNP was award MPS in March 2022 by the Prime Minister of Australia.
MSP means Mixed Sulphide Precipitate.
Ni means Nickel.
Nickel Laterite means Nickel occurring as an oxidised hydrated iron oxide, ferruginous clay, smectite clay, chlorite and serpentine assemblage overlying
weathered ultramafic rock.
Nickel Sulphide means nickel occurring in an un-oxidised sulphide assemblage associated with fresh ultramafic rock.
NCM means Nickel-Cobalt-Manganese.
OEM mean Original Equipment Manufacturers.
OECD means Organisation for Economic Cooperation and Development.
PCAM Precursor Cathode-active Material.
PGE means Platinum Group Metals - Ruthenium (Ru), Rhodium (Rh), Palladium (Pd), Osmium (Os), Iridium (Ir), and Platinum (Pt).
PLS means Pregnant Liquor Solution.
Project means a grouping of prospects within a specific geographic location, often with a common geological setting.
Prospect means a target upon which exploration programs are planned or have commenced.
R&D means Research and Development.
RC means Reverse Circulation drilling method employing a rotating or hammering action on a drill bit which returns a sample to the surface inside the
rod string by compressed air. Sample quality is very good, particularly if the drill hole is dry.
Glossary continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 73
REE means Rare Earth Elements, notably Neodymium (Nd), Praseodymium (Pr) and Cerium (Ce).
Reserves or Ore Reserves or Mineral Reserves as defined by JORC Code (2012):
Proven or Proved Ore Reserve means the economically mineable part of a Measured Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material is mined. Appropriate assessments, which may include Feasibility Studies, have been
carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. The term
"economic" implies that extraction of the Ore Reserve has been established or analytically demonstrated to be viable and justifiable under
reasonable investment assumptions.
Probable Ore Reserve is the economically mineable part of an Indicated Mineral Resource.
Resource or Mineral Resource (MRE) means a Mineral Resource Estimate as defined by JORC Code (2012) and is a concentration or occurrence of
material of intrinsic economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable prospects for eventual
economic extraction. Mineral Resources are further sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured
categories.
Measured Resource means a ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or quality), densities,
shape and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine
planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling
and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to
confirm geological and grade (or quality) continuity between points of observation where data and samples are gathered. A Measured Mineral
Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be
converted to a Proved Ore Reserve or under certain circumstances to a Probable Ore Reserve.
Indicated Resource means an ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade (or quality), densities,
shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and
drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are
gathered. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve.
Inferred Resource means an ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade (or quality) are estimated
on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality)
continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral
Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continue exploration.
JORC Code (2012) means the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and is a professional
code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves. The JORC
Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels
of confidence in geological knowledge and technical and economic considerations in Public Reports.
Sc means Scandium.
SHA means Shareholders’ Agreement with GH Nickel Pty Ltd which is the vehicle through which Sumitomo Metal Mining Co., Ltd, and Mitsubishi
Corporation, through its fully owned subsidiary Mitsubishi Development Pty Ltd, (Consortium) will acquire shares in Kalgoorlie Nickel Pty Ltd (KNPL).
SMM means Sumitomo Metal Mining Co., Ltd.
SSB means Static Storage Battery.
V means Vanadium.
WA means Western Australia.
WWF means Walter Williams Formation, the dominant host unit that has weathered to form the Goongarrie Hub nickel laterite deposits and potentially
prospective for hosting magmatic nickel sulphide.
WU, CU, EU means ultramafic units Western Ultramafic, Central Ultramafic and Eastern Ultramafic at the Kalpini Emu Lake nickel sulphide project.
The WU and CU units are the prime nickel sulphide targets.
Photographs next page: The Ardea and KNPL Teams hosted a number of Goongarrie site visits and stakeholder meetings during the year; which are
important opportunities to consolidate and grow Community, Stakeholder, Government and Shareholder relationships and communication.
Glossary continued
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 74
Ardea Resources Limited & controlled entities
Annual Report 2025 - page 75
ASX Code ARL
www.ardearesources.com.au