Adavale Resources Limited announced that its wholly owned subsidiary has been granted Prospecting Licence, PL 12175/2023, covering an area of 44.83km (The Southeast Wedge). In addition, the Company has exercised its option to acquire 65% of the Luhuma Nickel (Farm-in) Project. Adavale's wholly owned subsidiary, Adavale Resources Tanzania Limited was awarded Prospecting Licence, PL 12175/2023, on 23 January 2023.

The tenement covers an area of 44.83km and is contiguous with Adavale's Kabanga East and Kabanga Southeast Projects. The Southeast Wedge completes coverage over a cluster of coincident gravity and Heli-EM anomalies identified by Adavale in 2022. The anomalies, which are considered prospective for nickel and copper mineralisation, will feature in future Company drill programs. They are also along strike from drill hole RCDDKE006 which was drilled to a depth of 500m in late 2022 and has assays pending.

As announced on 15 December 2021 titled "Highly Prospective Nickel Sulphide Tenure", Adavale executed a binding farm-in agreement to earn up to 80% interest in the Luhuma licenses (comprising PL's 11692/2021 and 11693/2021). The farm-in allows Adavale to earn into the project through staged payments. Following the recent exploration activities conducted on the Luhuma farm-in tenements with multiple drill targets identified, the Company decided to proceed with the Stage 2 payment to acquire the 65% interest in the licences.

The Luhuma farm-in licences cover 99 km2 over what is referred to as the Luhuma trend, an area known to contain several prospective mafic-ultramafic intrusions. The Company considers these licences as key areas, as the Company continues to build its presence in the East African Nickel Belt. The Stage 2 payments consist of a USD 50,000 cash payment and USD 150,000 worth of Adavale shares, calculated based on the volume weighted average price for the five days preceding the issue of shares.

The Company plans to continue exploring and drill within the Luhuma trend during 2023.