Announcement PDF FINANCIAL REPORT For the Half-Year Ended 31 December 2024 Andromeda Metals Limited Page 2 CONTENTS Page Directors’ Report Auditor’s Independence Declaration Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Review Report 3 13 14 15 16 17 18 24 25 Andromeda Metals Limited Page 3 Directors’ Report The names of the directors of Andromeda Metals Limited (Andromeda, the Company) during the halfyear period and as at the date of this report, are: Sue-Ann Higgins Executive Chair (appointed 11/09/2024) Non-Executive Director (to 11/09/24) Sustainability & Governance Committee Chair LLB (Hons), BA, ACIS, GAICD Grad Dip Company Secretarial Practice Grad Dip Applied Finance and Investment Michael Wilkes BEng (Hons), MBA, MAusIMM, MAICD Non-Executive Director (from 11/09/2024) Non-Executive Chair (to 11/09/2024) Remuneration and Nomination Committee Chair Audit and Risk Committee Chair (from 29/01/2025) Luke Anderson (Appointed 01/08/24, Resigned 11/09/2024) CEO & Managing Director BA (Acc.), CA Robert Katsiouleris (Resigned 31/07/2024) CEO & Managing Director BEng, MBA Austen Perrin (Resigned 31/01/2025) Non-Executive Director Audit and Risk Committee Chair B. Econ. (Acc.), CA, GAICD Jean-Dominique Sorel (Appointed 23/12/2024) Non-Executive Director BSc, MBA Miguel Galindo (Appointed 16/01/2025) Non-Executive Director MEngSc (Chem) majoring in Ceramic Technology, Post-graduate studies at London Business School (UK), Fuqua Business School at Duke University (USA) and INSEAD (Singapore) Andromeda Metals Limited Page 4 Operating and Financial Review Strategy To achieve the goal of delivering superior long-term shareholder returns, the directors of Andromeda Metals have formulated a strategy for the Company, comprising the following key elements: • The Company’s primary focus is on advancing the Great White Project (GWP, the Project) through to a final investment decision for development and production. This is underpinned by the Directors continuing to see a strong growing market, with supply deficits, for high-quality kaolin products driven by long-term declines in global sources of supply. • The Company will seek to pursue additional opportunities to develop new products, processes and/or technologies that leverage the high-quality kaolin from GWP and have the potential to further enhance shareholder value. • The Company will adhere to principles of good corporate governance, caring for its employees, conducting its operations in an environmentally sensitive and safe manner, and maintaining respect for its stakeholders and for the communities in which it operates. • The Company acknowledges the importance of committing to, and establishing, an integrated approach to Sustainability supported by consistent reporting on Environmental, Social and Governance (ESG) frameworks and factors. As the Company moves into production its aspiration is to adopt, monitor and report on relevant frameworks and metrics that emerge from the developing consensus and convergence of ESG standards used in Australia and the main markets in which the Company sells its products. The Company will also comply with all legislative requirements for sustainability reporting. Financial Results Income for the six months ending 31 December 2024 was $534,651, representing a 26% decrease from the $720,868 during the prior corresponding period (pcp). The decrease was driven by a reduction in accrued research and development incentives for activities conducted by the Company and reduced interest income on bank deposits. The net result of operations for the six months ending 31 December 2024 was a loss after income tax of $2,337,940 (31 December 2023 loss of $4,213,684) representing a 45% decrease from the corresponding period. Exploration and evaluation expenditure for the six months ending 31 December 2024 was $1,423,289 (2023: $2,635,720), the majority of which was directed towards the advancement of the Great White Project. In accordance with the Group’s accounting policy, $1,402,443 (2023: $2,630,342) was capitalised and a total of $20,846 (2023: $5,378) was recognised in the profit and loss as a result of amounts expensed. Operating expenditure, excluding exploration and evaluation impairment and expenses for the six months ending 31 December 2024 totalled $2,718,628 (2023: $4,075,382) which is inclusive of the valuation of options and performance rights issued to directors and employees. At 31 December 2024, the Company held cash and cash equivalents totalling $3,205,225 (31 December 2023: $8,378,141). Subsequent to the half-year period, the company received the following: • a tax refund of $2.34 million, related to tax incentives for Stage 1A+ research & development activities undertaken during the 2024 financial year; and, • proceeds of $950,000 following the sale, via an off-market transfer, of 52,010,000 shares in Cobra Resources PLC (LSE: COBR). Andromeda Metals Limited Page 5 Review of Operations During the period 1 July to 31 December 2024, the primary focus for Andromeda has been to continue the advancement of the Great White Project (GWP, the Project). The Company continued moving towards making a final investment decision while progressively de-risking the Project and evaluating funding arrangements. Commercial In July 2024, a Binding Offtake Agreement with Traxys Europe S.A (Traxys), was signed for sales across global markets, covering: • • Great White CRM™ purchases for sale into ceramics applications, for: o 25,000 wmt during the first year of production, 40,000 wet metric tonnes (wmt) for year two and 50,000 wmt p.a. for year three onwards (+/-10% at Traxys’ option); o 50% of future production capacity increases, capped at 130,000 wmt p.a.; o Exclusive marketing and distribution in the Middle East (excluding Egypt and Morocco), Turkey, Sweden, Denmark, Norway, Finland, Iceland, Poland, Brazil, India 1, Vietnam and Bangladesh; o Favourable payment terms with 90% of amounts provisionally invoiced payable upon receipt of commercial documents and bills of lading, with the remaining 10% paid on final invoice; o Prices for year 1 and 2 are consistent with pricing assumptions in the 2023 Definitive Feasibility Study 2, with prices for year 3 onwards subject to annual negotiation 3; and, o For each year, the parties share equally in pricing upside on on-sales by Traxys (other than sales of product for use in ceramic tile bodies) and in risk for on-sales of Great White CRM™ at less than the contract price 4; and, Great White HRM™ purchases for sale into concrete applications of 5,000 – 10,000 wmt p.a. 5 The agreement is for a term of 5-years with automatic yearly extensions (unless terminated earlier), and followed the signing of a non-binding Heads of Agreement with Traxys in November 2023. This resulted in a total of four (4) binding offtake agreements supporting the development of Stage 1A+ of the GWP. The other binding offtake agreements signed previously: • Plantan Yamada Co Ltd for sales into the Japanese market, in June 2023; • Foshan Gaoming Xing-Yuan Machinery Co. Ltd for sales into the Chinese market, in October 2023; and, • IberoClays SLU for sales across Mediterranean markets, in January 2024. 1 Note sales by Andromeda under the Opaque HOA announced on 9 November 2023 will no longer be pursued directly, with any sales of Great White CRM™ in India and Middle East jurisdictions to be managed by Traxys. 2 Refer ADN ASX dated 24 August 2023 titled The 2023 DFS delivers significantly improved economics… 3 If agreement cannot be reached in 6 months, the audited volume weighted average sale price of the product for the Company and Traxys for the relevant contract year will apply. 4 To ensure a steady revenue line, Andromeda's share of any negative price difference from the fixed contract price will be financed by a secured finance facility provided by Traxys, accruing interest at 15% per annum and limited to US$5 million (A$7.5 million), to be subordinate to any project financing facility. The Facility may be repaid at any time and must be repaid within 5 years of the first date of delivery of Great White CRM™ or on earlier termination of the Agreement, unless Traxys elects to convert the Facility into ordinary shares (subject to any necessary approvals). 5 Subject to a condition precedent in favour of Traxys relating to market acceptance of the product. Andromeda Metals Limited Page 6 In August, having obtained the required binding offtake agreements to underpin the Stage 1A+ planned production, the Company reactivated its project funding process, seeking the finance required to support a final investment decision for Stage 1A+ (see further details under Stage 1A+ Project Funding on page 10). Stage 1A+ production volumes shown above exclude sales of Great White HRM™ under signed agreements. Great White HRM™ is an additive designed to assist in the decarbonisation of concrete, whose product validation program is ongoing (see further details in following section titled Technical). Conditional offtake agreements 6 for Great White HRM™ sale into concrete applications have been signed with: • Traxys for 5,000 wmt in year 1 and 10,000 wmt p.a. for year 2 onwards (as noted previously), with exclusive marketing and distribution in Turkey, India, France and the Middle-East; and • IberoClays 2,000 wmt p.a. with non-exclusive marketing and distribution rights in Spain and Portugal for concrete applications. Technical During the period, the product validation program on Great White CRM™ facilitated by Galesk Consultancy continued, with pilot scale production tests of its use in ceramic glazes undertaken in the commercial production of glossy glazed and porcelain glazed tiles. 6 Subject to conditions precedent in favour of the buyer relating to market acceptance of the product. Andromeda Metals Limited Page 7 The pilot scale production tests were conducted at a commercial manufacturer of frits and glazes in Spain, with additional test work conducted independently by the Institute of Ceramic Technology (ITC), located at the University of Castellón, Spain. During the period, the product validation program for the commercialisation of Great White HRM™ continued to progress under Stage 2 of the Strategic Alliance Agreement with Hallett Group signed in November 2023. Under Stage 2, Hallett Group will undertake laboratory trials to test the suitability of Great White HRM™ for use in various concrete and mining applications. Separately, additional samples of Great White HRM™ were sent overseas to assess potential customer applications in offshore markets. Operations Andromeda continued planning activities in anticipation of a final investment decision being made. During the period, the procurement of Stage 1A+ long lead items was progressed, with the following activities conducted and current status shown as follows: • Drum washer – factory acceptance testing (FAT) completed, warehoused, ready for shipment; • Thickener – FAT completed, warehoused, ready for shipment; • Fluid bed dryer – FAT completed, warehoused, ready for shipment; • Filter Press – FAT process in progress; and • Filter Cake Feeder – engineering design completed, with fabrication to commence following an anticipated final investment decision being made. Warehousing of long lead items is actively managed to optimise product warranty conditions, with delivery timeframes aligned with anticipated development schedule. The Company also made preparations for the procurement of the ‘balance of plant’ capital and infrastructure items to support the expanded Stage 1A+ nominal production of 100,000 wmt p.a. Operations at the Streaky Bay Pilot Plant were minimised to conserve cash, while also enabling the delivery of samples for customer testing and product validation. During the period there were no lost time injuries and no reportable environmental incidents. Andromeda Metals Limited Page 8 Regional Minerals Exploration GWP – Regional Exploration (Andromeda 100%) Eyre Kaolin Project (Andromeda has earned the right to a 51% interest by expending $750,000 by November 2024) During the period, the Company earned the right to a 51% interest in the Eyre Kaolin Joint Venture (EKJV) under Stage 1 of the agreement with Peninsula Exploration Pty Ltd signed in August 2021, by satisfying the $750,000 expenditure commitment on exploration and evaluation activities within the initial three (3) year timeframe. The four tenements comprised in the EKJV are located in close proximity to the GWP, which include kaolin prospects with complementary properties to those at GWP. From within the EKJV Project area, the South Australian Core Library holds around 400 broad spaced historic drillholes. Of these, approximately 250 drillholes were only assayed for either uranium or heavy mineral sands. Hence, Andromeda has commenced a program to assess these holes for a broader range of commodities, including metals and commercial minerals. The Company has the right to earn a further 29% interest in the EKJV (for a total of 80%) by expending a further $2 million on exploration over an additional period of three years. Metals Projects Andromeda’s strategic focus remains on developing its portfolio of kaolin projects which has resulted in the Company divesting its gold and copper assets. During the period, the Company continued to progress the tenement transfers related to the previously completed sales of the Wudinna Gold Project and Moonta Copper Gold Project, via South Australia’s subdivision process. Additionally, Western Australian tenement E63/2089, held by Mylo Gold Pty Ltd, was surrendered. Research Projects In June 2024, the Company announced that it progressed plans to produce the critical mineral, highpurity alumina (HPA) from kaolin sourced from the GWP, using its novel flowsheet for which an international Patent Co-operation Treaty (PCT) application had previously been filed. During the period, test work on the Company’s novel flowsheet was progressed. Finance The Company continued to prudently manage costs during the period. In addition to minimising expenditure, the Company identified other measures to support it in conserving cash. A total of over $1.5 million in cash saving initiatives were implemented, including: • Mick Wilkes electing not to receive any director fees until the Project is fully financed; • Sue-Ann Higgins accepting reduced fees than what she would ordinarily have received as an Executive Chair; • No salary increases being awarded, and no short-term incentives (STIs) being paid, following the annual remuneration review for the 2024 financial year; Andromeda Metals Limited Page 9 • Reducing some staff to a temporary part-time commitment to save salary costs (noting that retention of staff is important for the funding due diligence process and to demonstrate the Company can deliver the Project); and, • Implementation of a strategy to allow directors and employees to have some of their remuneration or fees satisfied by the issue of zero exercise price options (ZEPOs), whilst development funding is being pursued. During the period, the Company conducted a capital raising, raising approximately $3.82 million (before costs), including: • $3.4 million via the Placement to sophisticated and institutional investors; • approximately $260,000 by way of the take up of entitlements under the Entitlement Offer by eligible shareholders, including full take-up by Directors Mick Wilkes and Austen Perrin; • approximately $140,000 from eligible shareholders under a Top-up Facility; and • $10,000 from each of Sue-Ann Higgins (Executive Chair) and Sarah Clarke (Acting CEO) out of the remaining shortfall. New securities offered under the above were at a price of $0.012 per new fully paid ordinary share (New Share), with a free attaching listed option for every New Share subscribed, exercisable at $0.0175 and expiring 30 September 2027 (Option). To seek shareholder approval or ratification for the issuing of New Shares and Options under the capital raising, a General Meeting occurred on 10 October 2024, with all 4 resolutions put before the meeting, passed. Advance Finding awarded for GWP by Australian Government During the period, the Australian Government’s AusIndustry awarded the Company an Advance and Overseas Finding Certificate (Advance Finding). The Advance Finding covers certain activities related to scaling up of product and process development under Stage 1A+ of the GWP, covering Great White CRM™, Great White KCM™90, Great White HRM™, in addition to feedstock for HPA trials. The Advance Finding enables Andromeda to claim refundable tax offsets or cash rebates of 43.5%7 on eligible expenditure of up to ~$26 million 8, on the following: • Streaky Bay Pilot Plant expenditure, • Expenditure related to the Project team, exploration and evaluation, and site administration, • Stage 1A+ design works and processing operating costs, • Mining operating costs during testing period, and • Depreciation on plant and mine development during testing period. Andromeda’s Advance Finding is binding for the three income tax years commencing with the 2024 financial year and including the two subsequent financial years. During the period, an Income Tax Return for the 2024 financial year, was submitted. Subsequent to the period, a tax refund of $2.34 million was received, related to tax incentives predominately for Stage 1A+ research & development activities undertaken during the 2024 financial year. 7 Subject to the applicable research & development incentive and income tax rules. Should aggregated turnover exceed $20 million during any financial year, rather than refundable the amounts claimed will be applied as carried-forward tax losses at the relevant non-refundable R&D tax offset rate. 8 Eligible expenditure must be incurred in order to claim. Andromeda Metals Limited Page 10 Stage 1A+ Project Funding During the period, the Company reactivated its project funding process with the aim of securing the required finance to support a final investment decision for Stage 1A+. The Stage 1A+ project funding process aims to secure the $90 million (excluding financing costs, interest and cash reserves), which includes: • $84 million capital expenditure for Stage 1A+, • less any capital expenditure already incurred prior to a final investment decision, • plus working capital expected during the planned development period. The Company is targeting debt to equity structures of up to two thirds debt to one third equity, at either company or asset level, and will consider alternative financing structures such as royalties. To support the Stage 1A+ project funding process, the Company has appointed: • Azure Capital, a leading Australian corporate advisory firm, to seek cornerstone investment to support the development funding; and, • Pareto Securities, a specialist provider of brokerage and advisory services for companies seeking to access certain debt markets, to run a process in those markets. The debt and equity funding processes are competitive and being run in parallel. Positive progress is being made, with advanced due diligence in progress with a select number of capital providers. Outlook and Future Developments Looking forward, the Company’s primary focus will continue to be directed towards further advancing GWP, through the following: • Finalisation of the funding process aimed at securing financing required for Stage 1A+ • Subject to securing the required funding and a final investment decision being made, commencement of construction of Stage 1A+ • Progression of ongoing discussions, and identification of new potential opportunities, aimed at securing further binding offtake agreements to underpin future expansions for GWP; • Pursuit of additional opportunities to develop new products, processes and/or technologies that leverage the high-quality kaolin from GWP and have the potential to further enhance shareholder value; and • Continuation of exploration activities focused on prospects with complementary attributes to the GWP. Dividends No dividends were paid or declared since the start of the financial year, and the directors do not recommend the payment of dividends in respect of the financial year. Changes in State of Affairs There was no significant change in the state of affairs of the Group during the financial year. Andromeda Metals Limited Page 11 Competent Persons Statements Information in this report that relates to the Exploration Results for The Great White Project, Eyre Kaolin Project and Mt Hope Halloysite-Kaolin Project are based on information evaluated by Mr Eric Whittaker who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Whittaker is the Chief Geologist of Andromeda Metals Limited and has sufficient experience 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Whittaker consents to inclusion in this document of the information in the form and context in which it appears. Subsequent Events On 16 January 2025, Miguel J. Galindo joined the Board of Andromeda as a Non-Executive Director. Mr Galindo is a chemical engineer with a major in ceramic technology, and is a globally recognised expert in industrial minerals, with over 25 years’ experience at Rio Tinto in operations, sales and marketing and general management. He is the founder and CEO of Galesk Consultancy S.L.U. (Galesk); On 20 January 2025, a tax refund of $2.34 million was received, related to tax incentives for Stage 1A+ research & development activities undertaken during the 2024 financial year. On 31 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. On 24 February 2025, the Company received proceeds of A$950,000 following the sale, via an offmarket transfer, of its 52,010,000 shares in Cobra Resources PLC (LSE: COBR) received from the sale of its remaining 25% interest Wudinna Gold Project. On 26 February 2025, 1,972,789 ordinary shares were issued, subject to escrow conditions, following exercise of an equivalent number of unlisted ZEPOs (ASX: ADNAC) issued under the Employee Incentive Plan, following approval by shareholders at the 2024 Annual General Meeting. On 31 January 2025, 5,918,367 unlisted ZEPOs (ASX: ADNAC) lapsed. Other Matters There has not been any other matter or circumstance occurring subsequent to the end of the half-year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or state of affairs of the Group in future financial years. Andromeda Metals Limited Page 12 Auditor’s Independence Declaration The auditor's independence declaration is included on page 13 of the half-year financial report. Dated at Adelaide this 14th day of March 2025 and signed in accordance with a resolution of the directors. Sue-Ann Higgins Executive Chair Michael Wilkes Non-Executive Director Deloitte Touche Tohmatsu ABN 74 490 121 060 Level 25, Festival Tower, Station Road Adelaide SA 5000 Australia Tel: +61 8 8407 7000 www.deloitte.com.au 14 March 2025 The Board of Directors Andromeda Metals Limited 431 King William Street ADELAIDE SA 5000 Dear Board Members Auditor’s Independence Declaration to Andromeda Metals Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Andromeda Metals Limited. As lead audit partner for the review of the financial report of Andromeda Metals Limited for the half year ended 31 December 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of: • The auditor independence requirements of the Corporations Act 2001 in relation to the review; and • Any applicable code of professional conduct in relation to the review. Yours faithfully DELOITTE TOUCHE TOHMATSU Darren Hall Partner Chartered Accountants Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte organisation. Andromeda Metals Limited Page 14 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Half-Year ended 31 December 2024 Note Other income Half-Year Ended 31/12/24 Half-Year Ended 31/12/23 $ $ 534,651 720,868 (133,117) (20,846) (869,095) (375,947) (15,540) (981,441) (138,498) (310,034) (28,073) (853,792) (5,378) (909,336) (762,591) (43,505) (1,699,826) (205,031) (528,631) 73,538 (2,337,940) (4,213,684) Income tax expense - - Loss for the period (2,337,940) (4,213,684) - - (2,337,940) (4,213,684) (0.07) (0.07) (0.14) (0.14) Impairment of exploration and evaluation assets Exploration and evaluation expenditure expensed Administration expenses Corporate consulting expenses Company promotion Salaries and wages Directors fees Research & development Share based remuneration Loss before income tax Other comprehensive income Total comprehensive loss for the period Earnings Per Share Basic (cents per share) – (Loss) Diluted (cents per share) – (Loss) 2 3 5 The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. Andromeda Metals Limited Page 15 Condensed Consolidated Statement of Financial Position as at 31 December 2024 Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables 31/12/24 $ 30/06/24 $ 3,205,225 3,184,013 5,436,262 706,141 6,389,238 6,142,403 142,978,301 6,643,981 1,985,880 143,987,140 5,949,169 1,989,303 TOTAL NON-CURRENT ASSETS 151,608,162 151,925,612 TOTAL ASSETS 157,997,400 158,068,015 CURRENT LIABILITIES Trade and other payables Provisions Lease liabilities 1,057,024 254,952 217,751 2,250,227 251,112 215,898 TOTAL CURRENT LIABILITIES 1,529,727 2,717,237 NON-CURRENT LIABILITIES Provisions Lease liabilities 132,275 260,023 109,407 365,437 TOTAL NON-CURRENT LIABILITIES 392,298 474,844 1,922,025 3,192,081 156,075,375 154,875,934 223,385,175 1,166,548 (68,476,348) 219,882,120 1,132,222 (66,138,408) 156,075,375 154,875,934 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Exploration and evaluation assets Property, plant and equipment Other financial assets 3 TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY 4 The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. Andromeda Metals Limited Page 16 Condensed Consolidated Statement of Changes in Equity for the Half-Year ended 31 December 2024 Balance at 1 July 2024 Issued capital Share Option Reserve $ $ NCI Acquisition Reserve $ Accumulated losses Total $ $ 219,882,120 205,409 926,813 (66,138,408) 154,875,934 Loss for the period - - - (2,337,940) (2,337,940) Total comprehensive income (loss) for the period - - - (2,337,940) (2,337,940) 3,400,000 - - - 3,400,000 421,382 - - - 421,382 (318,473) 6,253 - - (312,220) 146 - - - 146 - 16,190 - - 16,190 - 73,668 - - 73,668 - (61,785) - - (61,785) Balance at 31 December 2024 223,385,175 239,735 926,813 (68,476,348) 156,075,375 Balance at 1 July 2023 219,882,120 4,287,070 926,813 (62,939,160) 162,156,843 Loss for the period - - - (4,213,684) (4,213,684) Total comprehensive income (loss) for the period - - - (4,213,684) (4,213,684) - 35,693 - - 35,693 - 97,235 - - 97,235 - 42,504 - - 42,504 Performance Rights Forfeited - (36,392) - - (36,392) Performance Rights Expired - (3,363,042) - 3,363,042 - Options Forfeited - (212,578) - - (212,578) Options Expired - (706,866) - 706,866 - 219,882,120 143,624 926,813 (63,082,936) 157,869,621 Issue of share capital through placement Issue of share capital through entitlement offer Cost associated with the issue of shares Shares issued on the exercise of listed options Fair value of options issued to directors Fair value of options issued to employees Fair value of performance rights issued to employees Fair value of options issued to directors Fair value of performance rights issued to directors Fair value of performance rights issued to employees Balance at 31 December 2023 The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. Andromeda Metals Limited Page 17 Condensed Consolidated Statement of Cash Flows for the Half-Year ended 31 December 2024 Half-Year Ended 31/12/24 $ Half-Year Ended 31/12/23 $ 28,000 (2,683,101) 516,308 (4,000,822) Net cash used in operating activities (2,655,101) (3,484,514) Cash flows related to investing activities Interest received Government grants received Payment/Refund for Bank Guarantee Payments for exploration and evaluation expenditure Payments for plant and equipment 68,813 (1,700,378) (1,282,238) 202,839 690,630 7,000 (2,561,661) (1,656,494) Net cash used in investing activities (2,913,803) (3,317,686) Cash flows related to financing activities Proceeds from shares and equity options Payment for Capital Raising costs Lease payments Interest paid 3,821,528 (312,219) (162,623) (8,819)