Announcement PDF ASX ANNOUNCEMENT 18 July 2023 Andromeda Metals Limited ABN: 75 061 503 375 Presentation at Noosa Mining Conference Corporate details: ASX Code: ADN Cash (31 March 2023): $19.6m Issued Capital: 3,110,270,932 ordinary shares 24,760,000 unlisted options 18,596,711 performance rights Directors: Mick Wilkes Non-Executive Chair Bob Katsiouleris CEO & Managing Director James Marsh Executive Director, Sales & Marketing Andromeda Metals Limited (ASX: ADN) (Andromeda, the Company) is pleased to advise that its CEO & Managing Director, Bob Katsiouleris, will be presenting at the Noosa Mining Conference. A copy of the presentation is included in this announcement, Details for the conference, including how to register to access the online webcast, are as follows: Date: 20 July 2023 Time: 1:50pm AEST (1:20pm ACT) Webcast: https://us06web.zoom.us/meeting/register/tZcpdOCvrjojGNR Nvi5lkdF0LnApKU11g-4Q#/registration Melissa Holzberger Non-Executive Director Austen Perrin Non-Executive Director This ASX announcement has been approved for release by the Board of Andromeda Metals Limited. Company Secretary Sarah Clarke Contact details: Level 10 431 King William Street, Adelaide SA 5000 Tel: +61 8 7089 9800 ir@andromet.com.au For more information about the Company and its projects, please visit our website, www.andromet.com.au or contact: Manager, Investor Relations & Corporate Affairs Patrick Sinclair T: 08 7089 9819 M: 0403 708 431 e: Patrick.Sinclair@andromet.com.au www.andromet.com.au ir@andromet.com.au www.andromet.com.au About Andromeda Andromeda Metals (ASX: ADN) is an ASX-listed emerging industrial minerals producer. Our vision is to lead the world in the sustainable supply of superior quality industrial minerals. We see 2023 as a transformational year for Andromeda. Following which we anticipate becoming a globally significant producer of halloysite-kaolin products. Having received all major regulatory approvals, we are progressing towards early-stage construction of Stage 1A Processing Plant, while also advancing funding discussions aimed at enabling a final investment decision to be made. From there, we aim to leverage the uniqueness of our Great White Project resources to grow through meeting the growing long-term demand for kaolin, expanding our range of high-margin kaolin-based products and developing many new technologies at the forefront of science, and essential to building a more sustainable future. Andromeda’s kaolin deposits are located in South Australia’s Eyre Peninsula, a Tier 1 mining jurisdiction, and contain some of the highest purity kaolin ever discovered. Kaolin has been used in ceramics production for centuries because of its unique properties as a bright white inert mineral with very fine particle size. In addition to ceramics, today, kaolin can be found in a range of everyday products, including ceramic tiles, porcelain tableware, cosmetics, paint, rubber, medicines, paper, pesticides, orthodontics, orthopedics, and plastics. Every modern home and car contains kaolin in some form. Using a novel flowsheet, we also have the potential to use our high-quality kaolin as a feedstock to produce the critical mineral Highpurity Alumina (HPA). Our large, high-quality deposits also contain a rare form of kaolin called halloysite, a naturally occurring nanotube. Halloysite is highly desirable in some applications where it attracts a premium price. Halloysite-kaolin can be used in emerging high-tech nanotechnologies and applications, such as carbon capture, soil remediation, water purification, hydrogen storage, medicine delivery and renewable energy. Noosa Mining Conference Noosa 20 July 2023 ASX:ADN www.andromet.com.au Disclaimer and compliance statement No investment advice and investment risk This Presentation has been prepared by Andromeda Metals Limited (ACN 061 503 375) (Andromeda or Company). By accessing this Presentation, you acknowledge that you have read and understood the following statement. The information contained in this Presentation does not constitute investment or financial product advice (nor taxation or legal advice) and is not intended to be used as the basis for making an investment decision or as a recommendation to acquire shares and does not take into account the reader's personal circumstances. The information contained in this Presentation is of a general nature and is for information purposes only. This Presentation has been prepared without taking into account any particular person’s objectives, financial situation or needs; does not purport to identify the nature of specific market or other risks associated with any investments described within it and does not constitute any legal, taxation, investment or accounting advice. All information in this Presentation is indicative, is based on certain assumptions and current market conditions and is subject to change without notice. No information contained in this Presentation constitutes a prediction or forecast as to the performance of any investments. Assumptions upon which financial illustrations are based may differ from actual circumstances. No reliance should be placed on the information in this Presentation and any investment decision should be based only on a person's own due diligence, inquiry, assessment and professional advice. Forward-looking statements This Presentation contains or may contain certain “forward-looking statements” and comments about future events, that are based on Andromeda management's beliefs, assumptions and expectations and on information currently available to management as at the date of this Presentation. Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "plan", "believes", "estimate", "anticipate", "outlook", and "guidance", or similar expressions, and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and production potential, product quality estimates of future Mineral Resources and Ore Reserves. Where Andromeda expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Andromeda that the matters stated in this presentation will in fact be achieved or prove to be correct. Except as required by law and ASX Listing Rules, the Company undertake no obligation to provide any additional or updated information or update any forward-looking statements whether on a result of new information, future events, results or otherwise. Readers are cautioned against placing undue reliance on forward-looking statements. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Andromeda, the directors, and management of Andromeda. These factors include, but are not limited to difficulties in forecasting expected production quantities, the potential that any of Andromeda’s projects may experience technical, geological, metallurgical and mechanical problems, changes in market prices and other risks not anticipated by Andromeda, changes in exchange rate assumptions, changes in product pricing assumptions, major changes in mine plans and/or resources, changes in equipment life or capability, emergence of previously underestimated technical challenges, increased costs, and demand for production inputs. To the maximum extent permitted by law, neither Andromeda nor its related corporations, Directors, officers, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. Andromeda is under no obligation to release any updates or revisions to the information in this presentation to reflect any change in expectation or assumptions and disclaim all responsibility and liability for these forward-looking statements (including without limitation, liability for fault or negligence). This announcement has been compiled by Andromeda from the information provided by the various contributors. All financial assumptions and estimates are quoted in Australian Dollars (‘A$’ or ‘AUD’) only, unless indicated otherwise heading. An investment in Andromeda's securities is subject to investment and other known and unknown risks, some of which are beyond the control of Andromeda including loss of income and principal invested. No warranty While care has been taken in preparing the information in this Presentation, no representation or warranty, express or implied, is made as to the currency, accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this Presentation. The information in this Presentation has been obtained from or based on sources believed by Andromeda to be reliable. This includes references to test results and reports completed by external parties. No member of Andromeda or any person with a direct or indirect interest in Andromeda or any of their respective directors, officers, employees, affiliates, partners, consultants, agents, representatives or advisers (including, without limitation, advisers and their related bodies corporate, shareholders or affiliates, and any of their respective officers, directors, employees, affiliates, partners, representatives, consultants, agents or advisers, together the Advisers) guarantees or makes any representations or warranties, express or implied, as to or takes responsibility for, the currency, accuracy, reliability, completeness or fairness of this Presentation nor the information, opinions and conclusions contained in this Presentation. Mineral Resources and Ore Reserves Estimates As an Australian company with securities listed on the Australian Securities Exchange (ASX), Andromeda is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and that the Ore Reserve and Mineral Resource estimates underpinning the production targets in this presentation have been prepared by a Competent Person in accordance with the JORC Code. Information that relates to Mineral Resources estimates has been previously announced to ASX on 23 December 2019, "Significant increase in Mineral Resource for the Poochera Kaolin Project", 29 September 2020, "New mineral resource estimate for Hammerhead Halloysite-Kaolin Deposit" and 11 August 2020, “New Mineral Resource for the Mount Hope Kaolin project”, all available at https://www2.asx.com.au/markets/company/adn. Andromeda confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. Andromeda confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements. Competent Person's Statements Information in this announcement has been compiled by Mr. James Marsh a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Marsh is an employee of Andromeda Metals Limited who holds shares and options in the company and has sufficient experience, which is relevant to the style of mineralisation, type of deposits and their ore recovery under consideration and to the activity being undertaking to qualify as Competent Persons under the 2012 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). This includes Mr. Marsh attaining over 30 years of experience in kaolin processing and applications. Mr. Marsh consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. 2 Acknowledgement of Country On behalf of Andromeda, I respectfully acknowledge that we are meeting on Sunshine Coast Country, home of the Kabi Kabi peoples and the Jinibara peoples, the Traditional Custodians, whose lands and waters we all now share. Andromeda operates on the lands of the Kaurna people of the Adelaide Plains and the Wirangu people of South Australia’s Eyre Peninsula. We pay our respects to their Elders both past and present, and extend that respect to Elders from other communities who may be present today. 3 Our Vision and Strategic Intent To be The Great White Mineral Company We are passionate about developing, commercialising and monetising The Great White Project We can be The “Best” white mineral company in the world The Great White Project is our economic engine 4 Go To Market Methodology – Strategy Map Execute with a focus on Core and Complementary 5 Our Products Positioned to respond to megatrends Adjacent HPA / Other Minerals Core Great White CRMTM Urbanisation Technology Ceramic tile bodies Ceramic glazes and engobes High end porcelain and tableware Decarbonisation Complementary Great White HRMTM Low carbon footprint cement 6 LOI received from IberoClays1 Results confirm above market value-in-use for Great White CRM™ in fastest growing ceramics segments Great White CRM™ properties and applications2 Top 3 Iron/Aluminium ratio (Fe2O3/Al2O3) of global kaolin samples High brightness is retained in high temperatures, with very good colour evolution, which is valued in high quality porcelain and ceramic tiles Very high dry mechanical strength is highly-valued in large format porcelain tiles Porcelain and ceramic large format tiles and glazes Positioned to offer exceptional value-in-use 1 Refer to ADN ASX dated 10 July 2023, titled Letter of Intent received from IberoClays for exclusive distribution to the Mediterranean region, in which IberoClays confirms its intention for an exclusive distribution agreement covering Spain, France, Italy, Portugal, Morocco, Egypt and Turkey with targeted volumes of 15,000 - 20,000 tonnes per annum (tpa) during the first 3 years of production and pre-payment until 30 September 2025. 2 As determined by testing conducted on Great White CRM™ by IberoClays (May/June 2023) 7 Global Ceramic Tile Market Asia-Pacific market to grow by over 3% CAGR1 +3.3% CAGR 2022-2026 1 Compound Annual Growth Rate Figures shown are millions of square metres (mln sqm). Source: Ceramic Tile Market Forecast Analysis – Trend 2022-2026, MECS, 2022 +3.2% CAGR 2022-2026 8 Global Ceramic Tile Market – Asia Pacific Market driven by strong trends in growth drivers Asia-Pacific 2022-26 CAGR1 Growth drivers: 4.0%  Economic growth 0.6%  Population growth 1.5%  Increasing urbanisation 5.0%  Higher levels of wealth (per capita) 4.1%  Construction investment 1 Compound Annual Growth Rate Source: Ceramic Tile Market Forecast Analysis – Trend 2022-2026, MECS, 2022 Increasing need for safe, hygienic and durable building materials Increasing demand for high-end fashion/designer ‘look and feel’ Focus on sustainability – durability and substitution away from marble and stone 9 Global Ceramic Tile Export Market Top 4 export leaders are China, Spain, Italy and India, representing 76% of market at over 3 billion m2 of global exports China Spain, India and Italy represent:  Over 86% of export value (in €) by the Top 10  Italy and Spain are leaders in average export € value, with Italy exceeding China by ~2.5 times Average Export Price (€/m2) 1.2% 2.6% 1.3% 0 5.2% 9.3% 21.5% 5 10 15 Italy Total Global Exports €16.04bn 32.4% Spain Poland China Turkey Mexico 22.9% UAE Brazil Country Turkey All figures are related to 2021 exports of ceramic tiles. Source: World production and consumption of ceramic tiles, MECS/ACIMAC report, 2022. Brazil Italy Spain Poland China Mexico India Iran UAE India Iran 10 Great White CRM™ – Key high value-in-use markets Focused on key markets in Asia that are growing and where our high-quality products are in demand 130.0  Europe represents 35% of global exports, focused on high value-in-use segments 996.5  Asia accounts for 47% of global exports, of which 70% is to other Asian countries All figures are related to 2021 exports of ceramic tiles (millions of m2)). Source: World production and consumption of ceramic tiles, MECS/ACIMAC report, 2022 11 Ceramics Tiles – Key Urban Trends Increasing demand in Consumer & Commercial segments Consumer Preferences  Consumers are experimenting with design, colors, and patterns  Looking for unique look to set themselves apart Ceramic Tiles  Residential – Increasing adoption in halls, lobbies and bedrooms due to low cost, low maintenance and durability  Commercial – Increasing usage as a cost-effective alternative to conventional stone (eg. granite, marble) in corporate offices, hotel lobbies, and museums Ceramic Wall Tiles  Rapidly replacing traditional wall coverings, such as paint, wallpapers and wooden panels.  Increased usage driven by durability, stain & scratch resistance, and low maintenance properties. 12 Source: Ceramic Tiles Market Analysis 2017-2030, Grand View Research,, 2022 Interim Results received from ITC Great White CRM™ validation program  Stage 1: Basic Characterisation – COMPLETED • Instituto de Tecnología Cerámica (ITC), located at the University of Castellón in Spain, is progressing with technical evaluation and formulation at pilot plant level • Interim results received on testing of suitability for ceramic glazes, confirmed and validated the work done with IberoClays • Benchmarking work comparisons to alternative European kaolins, validated previous results  Stage 2: Complementary use in glazes • Comparative benchmarking will be finalised Stages 1-3: Results to be included in uDFS  Stage 3: Complementary use in sanitaryware • Expanding work already done into a new end use segment  Stage 4: Pilot Trial • Pilot production trial will be conducted at a frit and glaze producer in Spain 13 Why now? Forces making now the right time for developing GWP Geopolitical forces impacting access to historical supply The confluence of numerous forces means the time to develop The Great White Project is now! Global depletion of high-quality kaolin deposits • Porcelain tableware market Unique, high-quality, large resources • • Geopolitical forces impacting access to existing supply • Requiring new formulations for ceramic tiles with high value minerals Defined, very high value-in-use Clear view on target segments GWP set for development • Fully permitted • The right team in place • Progressing funding discussions 14 Stage 1A Processing Plant Design and procurement readiness ahead of planned construction Long lead items - Procurement progress in line with first shipment in October 2024       Dryer – ordered Thickener Drum washer Filter press Filter cake feeder Noodler  Ordered  Ordered  Ordered To be ordered in coming weeks All items scheduled to arrive according to revised anticipated schedule for first shipment in October 2024 15 The Mine-to-Market Response Ideal optionality to address and grow our our core segments aligned with our Commercial Strategy Great White Deposit by Product Great White Deposit – Starter pit 16 Next Steps Activities Commercial Operations Funding – ITC Stages 2 & 3 to be completed by end of July (Stage 1 was completed on time) – Follow-up on China demand and sample requests post-June trip – Spain/Italy trip for CERSAIE (22-25 Sept) and preparations for commercial discussions – Great White HRM™ validations are ongoing – Progressing with procurement of long-lead items – Earthworks planned to commence in early October – Streaky Bay Pilot Plant to recommence producing large scale samples production by late-July – Updated DFS on-track for delivery mid-August – Formal offtake agreements to be finalised with Foshan Gaoming (120kt) and IberoClays (15-20ktpa) – Progressing discussions with debt investors with access to data room – Board to consider and determine appropriate debt funding proposals – Meetings with investors in Sydney and Noosa this week (with Melbourne & Perth to follow) – Non-deal roadshow for Asian and Australian investors (August – September) 17 The Great White Mineral Company ASX:ADN andromet.com.au Level 10, 431 King William Street, Adelaide, South Australia 5000 +61 8 7089 9800 Authorised for release by the Board of Andromeda Metals Ltd