Announcement PDF ANNUAL REPORT 2025 Company information Contents DIRECTORS Letter from the Chair 4 Acting CEO’s report 6 Operations review 8 Sue-Ann Higgins Executive Chair Mick Wilkes Independent Non-executive Director Jean-Dominique Sorel Non-executive Director Miguel Galindo Non-executive Director COMPANY SECRETARY Sarah Clarke Acting CEO, General Counsel and Company Secretary ANDROMEDA METALS LIMITED ABN: 75 061 503 375 ASX code: ADN REGISTERED AND PRINCIPAL ADDRESS 9 HPA Project 18 Exploration 21 Great White Deposit 22 Hammerhead Deposit 23 Tiger Deposit 24 Eyre Kaolin Project 25 Mount Hope Kaolin Project 26 Level 10, 431 King William Street Adelaide, South Australia 5000 Corporate 27 Sustainability 29 CONTACT DETAILS Resources and reserves 38 Competent person statements 41 Schedule of tenements 42 Telephone: +61 8 7089 9800 ir@andromet.com.au www.andromet.com.au SHARE REGISTRY Directors’ report 43 Computershare Investor Services Pty Ltd Level 5, 115 Grenfell Street Adelaide, South Australia 5000 Directors and key management personnel 44 Operating and financial review 49 GPO Box 1903, Adelaide, SA 5001 Remuneration report (audited) 54 Enquiries (within Australia): 1300 556 161 Enquiries (outside Australia): +61 3 9415 4000 Auditor’s independence declaration 76 AUDITORS Deloitte Touche Tohmatsu 11 Waymouth Street Adelaide, South Australia 5000 Financial report 77 Notes to the financial statements 82 Directors’ declaration 114 Independent auditor's report 115 SOLICITORS Shareholder information 120 Minter Ellison Lawyers 25 Grenfell Street Adelaide, South Australia 5000 Glossary 123 BANKERS Westpac Banking Corporation Level 5, 97 King William Street Adelaide, South Australia 5000 2 The Great White Project A NDR OMEDA M E TAL S L I MI T E D Highlights THE GREAT WHITE PROJECT High-grade, development-ready project with funding discussions underway BUILDING BLOCKS ARE IN PLACE TO DELIVER THE GWP 9 Long-life, high-quality resource 9 Strong economics 9 High grade, in demand, premium products 9 Stage1A+ binding offtakes finalised 9 Low capex hurdle 9 All approvals in-place to commence development 9 Low-risk jurisdiction 9 Conventional mining 9 Mining lease 9 Experienced 9 Long-lead 9 Premium products 9 Stage 1A+ 9 Logistics pathway 9 Binding offtakes 9 $75 million debt 9 Mining contractors granted Environmental plan (PEPR) approved validated by experts and customers in place operation project team and development strategy ready 2024 bankable feasibility study finalised facility with Merricks Capital credit approved equipment ordered and under fabrication selected shortlisted 9 Clear market and product upside 9 Shovel-ready, with project team in place Funding process underway to secure balance of equity funding for a final investment decision HPA PROJECT HPA Scoping Study demonstrating market-leading economics of Andromeda’s innovative process 9 Scoping Study justifies the commercialisation of Andromeda’s HPA production technology using Great White kaolin feedstock 9 Strong economic potential for Andromeda to become a leading global producer of low-cost, low-carbon HPA 9 Market-leading economics with low cost of production and capital expenditure 9 HPA processing technology with lower-carbon emissions up to 48% lower than traditional process Andromeda’s Great White refined kaolin product Proven process with recovered hydrochloric acid (HCl) Andromeda’s novel process Calcination of HPA Andromeda’s marketleading low-cost, lowcarbon HPA product A NNUA L R E P O R T 202 5 3 Letter from the Chair Dear Shareholders, Welcome to the Annual Report covering the 2025 financial year (FY25) for Andromeda Metals Limited (Andromeda, the Company). Future growth opportunities It is with great optimism and pride that I write this year’s Chair’s Letter, reflecting on the diligent approach taken in making strides in advancing the Great White Project (GWP) towards a final investment decision. Stage 1A+ is the initial stage of GWP, with other product and customer growth opportunities being pursued to support future expansions over GWP’s three development stages. Building a strong foundation One of these opportunities is our High Purity Alumina (HPA Project), following breakthrough test work results confirming HPA produced to 99.9985% purity using our proprietary flowsheet and kaolin from GWP. GWP continues to be the cornerstone of our strategy for positioning the Company for long-term success in the industrial minerals sector. With four binding offtake agreements now secured, covering key global markets, we have laid a robust commercial foundation for Stage 1A+ production. These agreements validate the high-quality and premium pricing of our products, reinforce the global demand for high-quality kaolin, and underpin our development funding strategy. Stage 1A+ funding momentum The Company has continued evaluating potential funding options to best suit the long-term interests of the Company and its shareholders. A major highlight was receiving credit approval from Merricks Capital for a $75 million debt facility, a strong vote of confidence in the GWP and our broader strategy. We continue to actively engage with equity and alternative capital providers to secure the remaining funding required to support a final investment decision (FID). 4 A NDR OMEDA M E TAL S L I MI T E D The Company continues to pursue future growth opportunities. Following these outstanding results a HPA Scoping Study was published, which Sarah discusses in her Acting CEO’s Report. Disciplined financial and capital management Andromeda’s strategic focus remains on developing GWP and our portfolio of kaolin projects. To support the Company while the development funding process is underway, a number of initiatives were implemented to raise capital, reduce costs and divest non-core assets. During FY25, two capital raisings were undertaken, to support the Company while the project funding was progressed. This included: • a share placement and pro-rata entitlement offer in August 2024, which raised $3.82 million before costs, • a share placement in May 2025, which raised $5 million before costs, • with attaching options under these offers which, if exercised, will provide an additional $11.6 million in working capital. Letter from the Chair Throughout the financial year, the Board also remained focused on prudently managing costs and conserving cash. This saw a number of cost saving and cash conservation measures implemented. This included voluntary reductions in director fees, some staff reducing their hours to being part-time, and the granting of zero exercise price options (ZEPOs) in lieu of part payment of director fees and employee salaries. In total, these measures conserved over $610,000 in cash payments during the financial year, reflecting our shared commitment to the Company’s success and our belief in the value we are creating. In addition, savings were achieved through salary savings from non-replacement of personnel, minimising discretionary expenditure and the divestment of our non-core copper and gold assets. Governance and leadership The Board remains committed to responsible financial and business practices, and the highest standards of corporate governance. I invite you to read about these in the Director’s Report starting on page 43 of this Report. This financial year saw a significant amount of Board and Senior Management renewal, including the appointments of Jean-Dominique (JD) Sorel and Miguel Galindo as Non-executive Directors. Their deep expertise in industrial minerals and global markets strengthens our governance and broadens our strategic capabilities. Following their appointments in January 2025, Austen Perrin elected to step down from the Board, to ensure an orderly transition and to keep the size of the Board appropriate to the size and position of the Company. I thank Austen for the valuable contribution he has made since his appointment in June 2022. The financial year also saw Sarah Clarke step into the role of Acting CEO, following the resignation of Luke Anderson who had replaced Bob Katsiouleris as CEO and Managing Director. The Board thanks Sarah for her strong leadership in guiding the team in addition to her existing management duties as General Counsel and Company Secretary. I would like to take this opportunity to thank you, our shareholders, for your continued support, and our employees for their dedication during the year. Similarly, our successes could not have been achieved without the support of our offtake partners, suppliers and the local Eyre Peninsula community. Rest assured that the Board and Management remain committed and focused on maximising shareholder value through a considered and methodical approach to securing financing and progressing GWP towards a final investment decision. Yours sincerely, Sue-Ann Higgins Executive Chair A NNUA L R E P O R T 202 5 5 Acting CEO's report “Whilst our primary focus remains the initial Stage 1A+ development of the GWP, the exciting breakthrough results of producing HPA to 99.9985% purity and the strong outcomes of the HPA Scoping Study, show great promise for future growth.” Dear Shareholders, I am pleased to report that during the 2025 financial year, a number of significant milestones were achieved, which sees the Company well positioned as it seeks to secure development funding to support a final investment decision for the GWP. Stage 1A+ development funding process Great White Project milestones During FY25, due diligence was undertaken by a select number of capital providers, covering potential investments through cornerstone equity, global bond markets, government funding and other instruments such as royalties. In July 2024, a binding offtake agreement with Traxys, was signed, further validating our high-quality kaolin products across key segments in global markets. This sees a total of four (4) binding offtake agreements underpinning the Stage 1A+ project funding process and long-term economics of GWP. Additionally, future expansions are supported by the agreement with Traxys which includes a binding commitment to purchase 50% of the available processing capacity, up to 130,000 wmt p.a. Operationally, we progressed with a range of project readiness activities in preparation of an anticipated FID for Stage 1A+ being made. These included: • procurement of the long lead items, with almost all now fabricated, warehoused and ready for shipment to the mine site, • plant optimisation and advanced detailed plant design and engineering, and • project and resource planning. These now see us well-positioned to commence efficient construction and delivery of the Project following an FID being made. The financial year saw number of significant milestones achieved towards securing the funding required to support a final investment decision for Stage 1A+ of the Great White Project. 6 A NDR OMEDA M E TAL S L I MI T E D Following the Traxys agreement being signed, the Company re-engaged with capital market financiers, with the aim of securing the required funding to support an FID for Stage 1A+. A major milestone was achieved when, in March 2025 the Company entered exclusive negotiations with Merricks Capital for a $75 million debt facility, for which credit approval was received in June 2025. This facility is subject to final documentation and represents a cornerstone of our funding strategy. Following this, together with Merricks Capital, we worked on finalising the binding financing documentation, which are well progressed. Finalisation and execution subject to finalisation of the balance of funding required to support and FID. In parallel, the Company also progressed its funding process for the balance of Stage 1A+ project funding, with a select number of capital financiers undertaking due diligence. This process remains ongoing and includes discussions for investment through cornerstone equity and alternative funding structures, either at the company or project level. Acting CEO's report Project readiness During FY25, the project team has worked diligently to progress detailed design and engineering, procurement and project planning activities for Stage 1A+, in anticipation of FID being made. Detailed plant design and engineering works were progressed, and are at an advanced state, which supported procurement activities. Key long lead items have been fabricated, and are currently being warehoused, ready for shipment to the mine site following an FID being taken. Reflecting our commitment to disciplined project planning and execution, the Company has methodically prepared itself to be in an advanced state of operational readiness. This places the Project in the enviable position of being construction-ready, with the required approvals in place to commence construction, and a committed Project Team poised for delivery. Innovation and future growth While our primary focus remains the development of the GWP, the Company also continues to pursue potential high value-accretive opportunities. During FY25, we achieved a breakthrough in our High Purity Alumina (HPA) project, with test work confirming HPA produced to 99.9985% purity using our proprietary flowsheet and kaolin from GWP. This innovation positions Andromeda to enter the highvalue HPA market with a process that is both cost and carbon efficient. Following this success, the results of an HPA Scoping Study were released1, demonstrating market-leading economics using the Compay's innovative technology. We look forward to progressing this exciting opportunity to diversify our product portfolio into a higher-value product which is on Australia’s Critical Minerals list. The HPA Scoping Study supports the commercialisation of Andromeda’s HPA technology, with the following key findings: • Potential Net Present Value2 of ~$1,010 million and post-tax internal rate of return (IRR) of 69% • Capital expenditure of $155 million giving marketleading capital intensity of $15,459 per tonne of HPA (US$9,894/t) 1 Refer to ADN ASX dated 18 September 2025 titled HPA Scoping Study demonstrates market-leading economics of Andromeda’s innovative technology; all material assumptions and technical parameters underpinning the estimates and forecast financial information continue to apply and have not materially changed. NPV10 using a discount rate of 10%. 2 • Low-carbon HPA processing technology – with modelled carbon emissions up to 48% lower than traditional aluminium alkoxide process • Andromeda’s technology has the potential to disrupt the existing market by producing HPA sourced from kaolin. We also advanced exploration at the Eyre Kaolin Project, earning a 51% interest and initiating further drilling and analysis during the financial year. Exploration at the Eyre Kaolin Project progressed, with drilling at the Chairlift Deposit and reanalysis of historic drillholes. These activities support our strategy to expand our kaolin resource base and enhance future production potential. Looking ahead As we move towards a final investment decision, our focus remains on securing funding and preparing for construction for the GWP, as well as unlocking further value by progressing the HPA Project. Progressing GWP continues to represent the best opportunity to maximise long-term value for Andromeda and its shareholders. We are confident in the Project’s fundamentals and are excited about the opportunities ahead. In closing, I would like to thank our team, Board, shareholders, and partners for their unwavering support. Together, we are looking to build a resilient, innovative, and future-focused industrial minerals company, to deliver long-term value for you, our shareholders, the local Eyre Peninsula community and South Australia. Yours sincerely, Sarah Clarke Acting CEO, General Counsel and Company Secretary A NNUA L R E P O R T 202 5 7 Operations review Andromeda is an Australian company with a vision of becoming “The Great White Mineral Company” and leading the world in the sustainable supply of superior quality industrial minerals. Andromeda’s aim is to develop its globally significant, high-quality kaolin resources into world-class mining operations that produce superior quality halloysitekaolin to supply global markets. Andromeda's resources contain a unique blend of bright kaolinite and halloysite clays, that can produce a refined product with a high average alumina content of greater than 36% and low levels of impurities. Through developing the Great White Project, Andromeda is focused on leveraging the potential of this unique, worldclass resource for the long-term benefit of our shareholders, the local Eyre Peninsula and Traditional Owner communities and the South Australian economy. Kaolin GREAT WHITE Kaolin EYRE KAOLIN Kaolin MOUNT HOPE OVERVIEW OF ANDROMEDA’S CURRENT KAOLIN PROJECTS AND RESOURCES GREAT WHITE PROJECT (GWP) EYRE KAOLIN PROJECT MOUNT HOPE KAOLIN PROJECT Flagship project with 15.1 Mt Ore Reserve1 51% interest of Eyre Kaolin Joint Venture, with four exploration licences covering 2,799 km2. 100% interest in tenements, over which significant areas of ultra-high bright white kaolin, with exceptionally low iron contaminant levels, have been defined. The 2023 DFS shows strong economics through a 3 staged development over a 28-year life-of-mine.2 8 Exploration being undertaken for kaolin with properties complementary to those of the Great White Deposit. 1 Refer to Table of Reserves – Great White Deposit on page 40. The 15.1 Mt Ore Reserves includes 5.1 Mt classed as Proven and 10.0 Mt as Probable. 2 Refer to ADN ASX dated 24 August 2023 titled 2023 Definitive Feasibility Study Results; Andromeda confirms that it is not aware of any new information or data that materially affects the information included in these market announcements (unless otherwise stated) and that all material assumptions and technical parameters underpinning the estimates and forecast financial information continue to apply and have not materially changed. A NDR OMEDA M E TAL S L I MI T E D Operations review The Great White Project SOUTH AUSTRALIA 100% Andromeda GWP is a development-ready project with all key approvals for commencement of construction, with feasibility studies completed, and binding offtakes finalised for the first Stage 1A+ phase of production of 100,000 wmt pa. Andromeda has continued to progress and de-risk the Project’s development. GWP is wholly owned by Andromeda and includes several high-quality deposits of kaolin, containing naturally occurring kaolinite plates and halloysite tubes. Through making an anticipated final investment decision for GWP, Andromeda seeks to become a globally significant supplier of high-quality kaolin products to international markets. Following the signing of a binding offtake agreement with Traxys, the Company re-engaged with capital market financiers, with the aim of securing the required funding to support a final investment decision for Stage 1A+. Poochera is located on the Eyre Highway about 635 km northwest by road from Adelaide and 65 km east of Streaky Bay, on the Eyre Peninsula in South Australia (Figure 1). On 4 June 2025, Merricks Captial confirmed credit approval for a A$75 million debt facility to support the GWP's development, with the Company actively seeking the balance of funding required to support a final investment decision. The Project has highly valued kaolinite and halloysite mineral deposits with a world-class iron to alumina ratio, outstanding mechanical strength, exceptional fired brightness, and distinctive rheological properties. 136° This led to the signing of a binding offtake agreement with Traxys1, bringing to four the number of binding offtakes supporting initial development of the Project. To support these offtake agreements, the decision was taken to bring forward Stage 1A+ expansion, for total initial production to 1000,000 tpa2. GWP comprises three mining tenements and three exploration tenements approximately 635 km west by road from Adelaide. The Project is located within the District Council of Streaky Bay, approximately 15 km southwest of the township of Poochera. 134° During FY25, the Company progressed implementation of the revised commercial strategy of targeting high value markets, including high-quality ceramic tiles, ceramic porcelain tableware and low-carbon concrete production. 138° Roxby Downs Tarcoola Woomera S OUTH AUSTRALIA Ceduna 32° ML 6532 – Great White Deposit Streaky Bay Great White Project Port Augusta Poochera Whyalla Kimba Lucky Bay 34° Port Pirie Kadina GREAT AUSTRALIAN BIGHT 1 Port Lincoln Adelaide 36° Main road Railway Town Lake Exploration Licence 0 100 200 Kilometres AND SA11 2 Refer to ADN ASX dated 17 July 2024 titled Binding Offtake Agreement signed with Traxys. Refer to ADN ASX dated 6 May 2024 titled Andromeda expansion plans for The Great White Project. Andromeda is not aware of any new information or data that materially affects the information included in this market announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. Figure 1 The Great White Project regional location map. A NNUA L R E P O R T 202 5 9 The Great White Project COMMERCIAL STRATEGY MARKET TO MINE Andromeda’s commercial strategy has identified a product portfolio of high-quality kaolin products able to command premium pricing, in growing established markets. Andromeda’s commercial strategy has identified a high value-in-use (VIU) for the Great White Project’s core kaolin product portfolio. Through Andromeda’s market to mine approach, white mineral options are proposed for those strategic market opportunities with the greatest economic potential. Andromeda’s commercial strategy uses both top down, market to mine, and bottom up, mine to market, approaches to carefully determine the most suitable markets to engage and strategically supply. The marketing and sales strategy is essential to ensure the success of the product in the market. The commercial strategy methodology assists in providing direction towards the markets which are best suited for GWP products, the underlying drivers for why they are the best suited, and the key customers, stakeholders, partners and competitors anticipated response. Great White CRM™ and Great White KCM™90 were found to be high value products in the established and growing markets for high quality ceramic tiles and ceramic porcelain tableware. Great White HRM™ is identified as a complementary product, which requires further customer product validation which is being undertaken. The identified uses of Great White HRM™ are as a rheology modifier and as an additive in the global market for low-carbon concrete production. There is also the opportunity to further beneficiate the Company's kaolin products to produce high-purity alumina (HPA) which is a high value accretive product. Branding and market positioning Andromeda’s core products are ideally suited for, and targeted at, the high-quality ceramic tiles and slabs, and porcelain tableware market segments. These market segments are large and established, where customers require consistent quality in kaolin products to be maintained over time. Table 1 Andromeda’s core and complementary product portfolio. DESCRIPTION END-USE Great White CRMTMP Fully refined ultra-fine dried kaolin product with high brightness. Optimised for use in high-quality porcelain tableware. Great White CRMTMT Fully refined ultra-fine dried kaolin product with high brightness and high alumina content. Optimised for use in high-quality ceramic tiles and slabs. Great White KCMTM90 Refined, bright white kaolin product. For use in ceramics and can also be used to improve lower grade resources to increase the total value of the resultant combined product, for use in other industry applications. Great White HRMTM Concrete additive to reduce carbon Optimised for use as a cement additive in the production of low-carbon concrete. Highly reactive halloysite-kaolin rheology modifier High solids slurries including concrete and a large range of associated applications where its suspension properties are very effective. Befeficiation of GWP kaolin products into the critical mineral HPA Light-emitting diode lighting (LEDs), Lithiumion batteries semi-conductors, and other high-performance technologies. COMPLEMENTARY CORE PRODUCT 10 High-Purity Alumina (HPA) A NDR OMEDA M E TAL S L I MI T E D The Great White Project Figure 2 Images show (from left) raw kaolin clay from Andromeda’s GWP, which is then refined and processed, before being graded and packaged into various products that meet our clients’ exacting specifications. Target markets Europe Key markets – Spain & Italy Asia Pacific Key markets – India & Japan Target segments High-end ceramics: tiles and countertops High-end ceramics – tiles, tableware and countertops Spain Countertops⁴ Italy Stage 1A+ path to market India Countertops⁴ #1 importer of kaolin¹ #5 ceramic tile producer² #2 exporter of ceramic tiles³ #4 importer of kaolin¹ #7 ceramic tile producer² #4 exporter ceramics tiles³ China 1. 2. 3. 4. 5. 6. Binding offtakes with IberoClays, Traxys #9 importer of kaolin¹ #2 ceramic tile producer (14% CAGR)² #3 exporter of ceramic tiles³ Japan #3 importer of kaolin¹ Leading high-end porcelain tableware producer⁶ Largest market A broad range of high-end applications via distribution US$160 billion global market opening to porcelain slabs due to silicosis risk #1 consumer of kaolin #2 importer of kaolin¹ #1 exporter ceramic tiles² As above – US$160 billion global market opening to porcelain slabs due to silicosis risks Stage 1A+ path to market Binding offtakes with Plantan Yamada, Traxys Deep high end-market Multiple applications High long-term growth⁵ Kaolin demand to grow by CAGR of 4.6% to 2025; imports CAGR of 6.6% Stage 1A+ path to market Binding offtake with Foshan Gaoming Based on World Bank data. World production and consumption of ceramic tiles 2022, Manufacturing Economics Studies (MECS), October 2023. Top 10 countries for ceramic tile exports in 2018-2022 in million square metres, and Compound Annual Growth Rate (CAGR) 2018-22, Baraldi, 2023. Global Countertop Industry Report, Freedonia Group, March 2023. HQ Kaolin Market Study, TZMI, 2023. Kaolin consumption by leading tableware manufacturers in Asia (excluding China), Hart, 2021. A NNUA L R E P O R T 202 5 11 The Great White Project To support premium pricing of kaolin products from GWP into these segments, an extensive series of product validation work and trials have been conducted. Successful product validation programs require credible independent institutions and/or potential offtake partners with the requisite industry expertise, capability, with the requisite equipment to test and validate the high-quality and value in use of Andromeda’s products. For Great White CRMTM and Great White KCMTM90, this has included: • Independent test work, international benchmarking and value in use analysis, conducted by Spain’s Institute of Technical Ceramics (ITC); • Product characterisation and international benchmarking conducted by IberoClays; and, • Succesful commercial scale pilot plant ceramic glaze trials. The product validation program for these products determined they: Binding offtake agreements The successful results from the product validation trials supported products marketing efforts, which ultimately led to the signing of four binding offtake agreements across global markets, with: • Yamada Plantan, a high-quality ceramics and porcelain tableware manufacturer, for Great White KCMTM90 into the Japanese market6; • Foshan Gaoming for the purchase of Great White CRMTM and Great White KCMTM90 over 5 years, for sales into the Chinese market7; • IberoClays, the leading formulator of ceramic tile minerals into Europe, for Great White CRMTM and Great White HRMTM for sales over an initial period of 5 years into various markets across the Mediterranean8; and, • Traxys, a leading global industrial minerals trader for Great White CRMTM and Great White HRMTM for sales over an initial period of 5 years into various markets across the Mediterranean9. Together these four binding offtake agreements underpin production under Stage 1A+ and support funding discussions to support a final investment decision being made. • exhibited world class levels of brightness, aluminium-to-iron ratios and mechanical strength when fired; In FY25, further product validation trials were conducted to extend the use of Great White CRMTM into ceramic and porcelain glaze formulations10. • represented above-market value in use in the fast- growing large format porcelain and ceramic tile and glaze segments3,4; and, The trials assessed the use of Great White CRMTM in two key glaze formulation segments: • supported up to a 20% zircon-displacement potential in the ultra-white and super-white ceramic slab segments5. • a standard glaze composition to manufacture singlefired wall tiles with a glossy white opaque finish, with kaolin content of 8.3% by weight; and, • a matt “smaltobbio” glaze composition for the manufacture of porcelain tiles, with a kaolin content of 22%. The findings of the trials successfully validated Great White CRMTM as a high-quality kaolin product for use in industrial glaze formulations, enhancing Andromeda Metals’ position as a key supplier to the ceramic industry. 6 3 4 5 12 Refer ADN ASX dated 8 June 2023 titled Investor Presentation. Refer ADN ASX dated 19 January 2024 titled Binding Sales and Distribution Agreement with IberoClays SLU. Refer ADN ASX dated 18 June 20