Adavale Resources Limited provided an update on the Company's early 2022 exploration plans, outcomes from the recent field exploration activities, including the maiden drill program completed in 2021. Planning for exploration activities are currently being finalised for 2022, however initial field activities customised for the prevailing seasonal weather conditions commenced on 20 January 2022. These initial exploration activities will focus on two prospective mafic-ultramafic intrusion bodies identified in 2021 (the prerequisite host rocks for a nickel sulphide deposits), together with orientation geochemical soil sampling programs over several strong gravity anomalies known to be underlain by prospective mafic-ultramafic intrusions.

The successful introduction of gravity surveying in September 2021 led to the identification of two previously unknown prospective mafic ­ ultramafic intrusions ("intrusions"). Initial exploration activities for 2022 will be directed towards the completion of extensive gravity surveys, with the objective of better defining the newly discovered intrusions extent, as well as identifying new intrusions on a more regional basis. Intrusions identified will be further explored with detailed electromagnetic surveys to prioritise targets for Adavale's next drilling campaign.

The following is an overview of Adavale's exploration strategy and plans for the resumption of exploration activities in 2022. The strategy is based on the keys learnings from the exploration programs conducted in 2021 and which resulted in the discovery of two large previously unknown mafic bodies at Target 7 and 21. Adavale is very encouraged by this development and believe more prospective mafic ­ ultramafic bodies will be identified in 2022 with the adoption of this strategy.

The Luhuma Corridor currently encompasses Adavale North-eastern and Eastern Prospecting Licences and the Farm-In Agreement tenement to the NE of Target 7. It contains the Luhuma mafic/ultramafic intrusion, a chonolith-like body that has been identified over a strike length of 5km. The Farm-In Agreement gives Adavale access to this key exploration ground around Luhuma and further expands the Company's effective footprint, around the eastern limb of Kabanga Jirani Nickel Project. Adavale has always considered the region prospective, which is now being confirmed with the exploration outcomes at Target 7 and 16 along what is now potentially a highly prospective emerging new trend.

A historical massive sulphide intersection of 8.4m @ 1.1% Ni is recorded in drill hole LUH061 at Luhuma. Apart from this historical intersection, little is known about the Luhuma mafic-ultramafic intrusion. The Luhuma LUH06 intersection falls within a small 3.74km2 area ("LUH06 Area") held by the Tanzanian Government and is not part of the Adavale Farm-In Agreement.

The 2021 field season included the completion of a gravity survey to the south of the LUH06 Area, which suggests that the mafic-ultramafic body identified at Target 7 may in fact be an extension of the mineralised Luhuma intrusion, the southern boundary of which is located 2km to 3km to the NE of Target 7. If proven to be the case, the actual strike extent of the Luhuma intrusion would approach 8km in length.