Extraordinary General Meeting29 September 2016

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Disclaimer• Compliance Statement (JORC 2012 and NI43-101)

• A competent person’s statement for the purposes of Listing Rule 5.22 has previously been announced by the Company for:

• Lewis Ponds on 27 August 2015, 2015 Heron Annual Report;

• Kalgoorlie Nickel Project on 21 October 2013 and 31 June 2014, 27 August 2015, 2015 Heron Annual Report;

• Big Four-Goongarrie on 13 March 2012, 26 June 2012 and 24 July 2012.

• 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. All projects will be subject to new work programs following the listing of Ardea, notably drilling, metallurgy and JORC Code 2012 resource estimation as applicable.

• The Mineral Resource for Lewis Ponds was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

• The exploration results are based on information reviewed by Mr David von Perger, who is a Member of the Australian Institute of Mining and Metallurgy (Chartered Professional – Geology). Mr von Perger is a full time employee of Heron Resources 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 2004 edition of the “Australasian Code for Reporting of Exploration Results and “qualified person” as this term is defined in Canadian National Instrument 43-101 (“NI 43-101”). Mrvon Perger 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.

• The exploration results for Mt Zephyr (including table 1) are based on information reviewed by Mr Ian Buchhorn, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Buchhorn is a full time employee of Heron Resources 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 2004 edition of the “Australasian Code for Reporting of Exploration Results and “qualified person” as this term is defined in Canadian National Instrument 43-101 (“NI 43-101”). Mr. Buchhorn 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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

• This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian and Canadian securities laws, which are based on expectations, estimates and projections as of the date of this news 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 ability to complete the Ardea spin-out, the timing and amount of funding required to execute the Company’s exploration, 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.

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Disclaimer

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION (cont)

• 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, the ability to complete the Ardea spin-out on the basis of the proposed terms and timing or at all, the ability to complete the Woodlawn Zinc-Copper Project Feasibility Study on time or at all, and whether the feasibility study is positive and otherwise consistent with the business plans of the Company, 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 Canada, 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 news release.

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Spin-out of Heron’s non-Woodlawn Assets

• 27 June 2016 – Positive BFS announced for Woodlawn Heron commitment to Woodlawn funding

• 10 Aug 2016 – spin-out of non-Woodlawn AssetsHeron model of Avoca, Pioneer, Rubicon, Epsilon

• 29 Sep 2016 – Heron EGM to approve spin-out • 06 Oct 2016 – Record Date for In-Specie Ardea shares

approx 1 for 10 distribution to Heron shareholdersHeron has applied for ATO Class Ruling re nil CGTexpect nil cost to Heron shareholdersF

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Ardea Capital Structure

Shares Issue Price $0.20

Million ValueA$M

In-specie to Heron shareholders 41.5 8.3

Subscription (maximum) 30.0 6.0

total 71.5 14.3

OptionsNil Issue Price, exercise $0.25, 3 years

Million ValueA$M

Heron expense re-imbursement 10.0

Advisors fees 2.4

total 12.4

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Indicative Ardea IPO Schedule

• Oct 2016 – Prospectus lodged

• Nov 2016 – $3.5 - 6.0M public raising– Euroz Securities – Lead Manager

– Priority offer for Heron shareholders

• Dec 2016 – February 2017

Heron-style to “hit the ground running”– Drilling & metallurgy commence Lewis Ponds, PFS underway

– Drilling commence Mt Zephyr, follow up “Jupiter-style” RAB gold

– Drilling commence Taurus Gold, target open pit gold productionFor

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Ardea Management

• Stephen Dennis – Chairman (interim)– Commerce, lawyer

– Managed mining operations at Murrin Murrin, Rasp, Endeavour

• Managing Director designate (to be appointed Oct 2016)– Economic geologist, industry expert Eastern Goldfields

– Previously managed ASX-listed explorer

• Ian Buchhorn – non-executive director– Mineral economist, previously registered mine manager

– Up to 20 years experience with the Ardea mineral properties For

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Ardea Assets – Lachlan Fold Belt NSW

Lewis Ponds• 6.6Mt at 1.5g/t Au, 69g/t Ag, 2.4% Zn

VMS-style mineralization• $1.4M PFS - drilling, resource, metallurgy

Calarie• 0.5Mt at 2.2g/t Au, orogenic gold• Parkes Lineament structure exploration

Gundagai• Gold stockworks, historic workings• Soil gold/copper anomalies for drilling

Restdown• Lithium-tungsten-tin quartz stockworks• Anomalous lithium in rock chip samples

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Lewis Ponds

Lewis Ponds Main Zone

• Initial drilling to optimize mineralization models, geometallurgy studies, structure

• Metallurgy variability tests, critical in VMS

• Test up-dip ore projections in oxide zone, largely untested

• Soil gold anomalies, McPhillamy-style gold targets, no previous testing

• Premium exploration potential, 50km strike Godolphin Fault from McPhillamysin south to Copper Hill East in north

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Lewis Ponds

Lewis Ponds PFS

• Confirmation core drilling planned

• Optimize drilled ore domains, followed by detailed review of historic data base

• Previous drill core structural logging interpreted a “western lode position” up-dip of the known primary mineralization

• Core will be used for detailed structural analysis, geometallurgy, metallurgy, geotechnical studies

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Ardea Assets – Eastern Goldfields WA

Mt Zephyr

• Gale granitoid gold

• BIF gold

• Komatiite channel nickel sulphide

Kalgoorlie East

• Taurus historic workings

• 1996 drilling: 5m at 38g/t Au (15m depth)

Bardoc Tectonic Zone

• Historic workings, gold stockworks

KNP

• Focus on cobalt resources

• $1M PFS

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Mt Zephyr Regional

• Celia Lineament, 50km NW along strike from Dacian Gold Mt Morgans project

• Domain at east of Celia Lineament:

• Jupiter, Wallaby, Sunrise Dam granitoid-hosted gold

• Mt Windarra nickel sulphide stratigraphy

• West Celia

• Mt Morgans BIF-hosted gold workings

• Jaguar-Bentley VMS stratigraphyFor

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Mt Zephyr Drill Targets

Gale Gold

• Soil geochem peak 273ppb Au, 6-18m at 0.5g/t Au from surface in RAB drilling

• RC drill testing main anomaly planned

Jones Area A, B Nickel Sulphide

• Olivine cumulate channel facies, ironstone at basal contact

Mt Zephyr Gold (Dunns New Find)

• Mt Morgans BIF stratigraphy

• 3km strike old workings, desultory shallow percussion drilling

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Mt Zephyr Dunns New Find

Mt Zephyr Gold (Dunns New Find)

• Historic drilling tested lodes at shallow depths in the depleted regolith

• 1980s work, only assayed if logged BIF with visible gold in a panning dish

• Requires drilling at depth below surface depletion zone

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Bardoc Tectonic Zone (BTZ)

Big Four

• Objective is open pit gold mine

• Deepest hole in lode horizon returned 6m at 8.58g/t Au, requires follow up drilling

Ghost Rocks

• Drill testing the historic Isobel gold workings, no previous drilling

Goongarrie Hill

• Historic gold workings, no previous drilling

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Kalgoorlie Nickel Project (KNP)

KNP

• Resource 805 million tonnes at 0.7% nickel and 0.05% cobalt

• Cobalt focus:

• Black Range

20.1Mt at 0.8% Ni and 0.10% Co

• Goongarrie South

5.8Mt at 1.1% Ni and 0.10% Co

• PFS budget $1.0M

• Beneficiation, leaching, acid and metal recovery, mining schedule, engineering, tailings, hydrology

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Ardea Strategic Plan

• Focus on the advanced stage projects:– Lewis Ponds gold

– Mt Zephyr gold and nickel sulphide

– Taurus gold

• Excellent team assembled for the task– Strong project working knowledge

• Heron-style to “hit the ground running”– Focus on drilling and feasibility programs

– Shareholder return maximized by on-the-ground activityFor

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Thank youArdea Resources LimitedLevel 1/7 Havelock Street

West Perth WA 6005 Australia

Tel: +61 8 6500 9200

ardea@ardearesources.com.auFor

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