Andromeda Metals : Maiden Tiger Kaolin Resource & Rare Earth Element Potential

23 March 2022

Maiden Tiger Kaolin Resource and Regional Rare Earth

Element Potential

Summary

∙The inaugural Mineral Resource Estimate completed for the Tiger

Kaolin Deposit

∙100% Indicated Resource of 12.1Mt of Bright White kaolinised granite

∙ISO Brightness R457 cut-offof 75 yielding 7.2Mt of<45-micronkaolin product

∙Regional elevated levels of cerium in clay-richintervals indicating the potential presence of ionic adsorption clay rare earth elements (REEs)

∙This type of mineralisation is rarely found outside of China and is generally considered to be some of the cheapest and most readily accessible sources of heavy rare earths

∙Regional potential for Rare Earth Element ion-adsorptionclay deposits is being assessed.

The main focus for Andromeda remains delivery of the Great White DFS and permitting of the Mining Lease

Discussion

The inaugural Tiger Mineral Resource Estimate is reported in accordance with the 2012 JORC Code. The Tiger Kaolin Deposit is part of the Great White Kaolin Project, located on the Eyre Peninsula of South Australia, approximately 10km to the south of the Great White Deposit,Figure 1.

In addition, assays from the Bronze Whaler prospect have returned elevated Total Rare Earth Oxides (TREOs) as exampled by TW19AC001 from 10m, 18m @ 1752ppm TREO in the <45µm fraction including from 18m, 5m @ 2256ppm TREO in the <45µm. The regional potential for ion-adsorptiondeposits (IAD) is to be assessed, with potential that deposits of the Great White Kaolin Project share several similarities to Chinese IADs, which are the world's primary source for heavy rare earth elements.

ASX ANNOUNCEMENT

ANDROMEDA METALS LTD (ANDROMEDA, ASX: ADN)

onlyAndr meda Metals Limited ABN 75 061 503 375

useCorporate details:

ASX Code: ADN

Cash (31 Dec 2021): $42.8m

Issued Capital:

personal3,055,402,798 Ordinary Shares 70,300,0000 Unlisted Options

27,833,325 Performance Rights

Direct rs & Officers:

Meli a Holzberger

Acting Non-Executive Chair

James Marsh

Managing Director

Joe Ranford

O erations Director

Andrew Shearer

ForNon-Executive Director

Andrea Betti

Company Secretary

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

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For personal use only

FIGURE 1 : GREAT WHITE KAOLIN PROJECT TENEMENTS AND

PROSPECTS

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

[e-mail] | www.andromet.com.au

New 2012 JORC Mineral Resource Summary

An Indicated Mineral Resource Estimate for the Tiger Deposit of 12.1Mt of kaolinised granite is reported at an ISO brightness (R457) cut-off of 75 in the <45-micron size fraction, Table 1 below.

TABLE 1 - TIGER KAOLIN MINERAL RESOURCE

			PSD		Kaolinite +
	Classification	Mt	<45µm		Halloysite %
	Indicated	12.1	59.9		56.7
	N te that all figures are rounded to reflect appropriate levels of confidence
only

The Resource yields 7.24Mt of High Bright kaolin product (R457 >80 <84) in the <45-micron recovered fraction, with the remaining approximate 43.3% of material being largely residual quartz derived from the w athered granite, Table 2.

TABLE 2 - TIGER KAOLIN MINERAL RESOURCE <45µM

use	Classification	Mt	ISO B	Kaolinite +	Al2O3 %	Fe2O3 %	TiO2 %
Halloysite %
	Indicated	7.2	83.1	94.7	37.2	0.81	0.61
	Note that all figures are rounded to reflect appropriate levels of confidence
personal

Mineral Resource Detail

The 2021 Tiger Resource Estimate is based on sample analyses undertaken by Andromeda on drilling carried out in 2011. Work undertaken prior to 2011 was not sufficiently documented to meet JORC 2012 requirements.

A total 45 aircore drillholes (2132.5 metres), with all holes drilled vertically to intersect the flat-lying mineralisation at right angles, with most holes intersecting the upper (hanging wall) and lower (footwall) contacts to the mineralisation.

Samples were composited and blunged at the Streaky Bay pilot plant in 2011, however they were not analysed at the time and were instead stored safely in a locked shed at the pilot plant. As part of an exploration program Andromeda submitted the processed samples to Bureau Veritas to be analysed by their XRF 4B method to determine elements that include Al2O3, Fe2O3, SiO2 and TiO2. Brightness on the <45µm material was determined by Andromeda staff at an enclosed laboratory room at Bureau Veritas

Forusing the Company's Technidyne Colourtouch CT-PC Spectrophotometer in accordance with Tappi standard T534 om-15. Kaolinite is reported inclusive of halloysite as halloysite in not present in high enough c ncentration to meet Andromeda's overall minimum requirement of +10%. As such kaolin from Tiger is classified as a medium-grade kaolin product suitable for general industrial use. All drillhole data used for the resource estimate is contained in Appendix 1 and Appendix 2 of this report.

The drillhole data was used to define a flat-lying kaolin deposit that lies between 9.0 and 26.0m below the surface with an average depth of 17.0m, see Figure 2. The Resource Estimate covers an area of approximately 1.0km E-W by 0.7km N-S with a kaolin thickness ranging from 2.0m to 32.0m with an average thickness of 14.5m, see Figure 3. Overburden consists of a thin soil layer which overlies a mixed sequence of alluvial clays, sands and gravels. On rare occasions the top of the kaolin is silicified and the base of

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

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silicification marks the top of the kaolin resource whilst the change in weathering intensity to partially decomposed granite marks the base of the kaolin resource.

onlyuse personalFIGURE 2: BLOCK MODEL COLOURED BY ISO BRIGHTNESS, DRILL COLLARS AND COVER DEPTH CONTOURS (GDA 94 MGA 53) For

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

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Minimum Maximum Mean

Assay

Geometric mean

Standard Coeff of

deviation Variation Variance Skewness

(SD) (CV)

3 - TIGER UNIVARIATE STATISTICS FOR

COMPOSITES

onlyuse personalFIGURE 3: BLOCK MODEL COLOURED BY ISO BRIGHTNESS, DRILL COLLARS AND DEPOSIT THICKNESS CONTOURS (GDA 94 MGA 53)

The 2011 aircore drilling was done on a 100m-by-100m square grid. Composite intervals were extracted fr m the drillhole database constrained by the kaolin wireframes. Grade interpolation of the kaolinite was completed for the <45µm recovered material, along with Al2O3, Fe2O3, SiO2, TiO2 and ISO Brightness all obtained on the <45µm fraction. Statistical analysis and variogram modelling were undertaken using Snowden's Supervisor. The analysis shows reasonably well-structured data with low coefficients of variation, all of which resulted in no top cuts being applied. A summary of statistics is presented in Table 3.

TABLE

		Clay (%)	77	99	95	95	3	0	9	-4
		Hinckley
	XRD	Index	0.571	1.436	0.901	0.885	0.173	0.192	0.03	1.907
For
Crystalite
Size	28.7	113.9	58.425	55.933	17.203	0.294	295.927	0.488
	XRF	Al2O3 (%)	29.5	38.7	37.105	37.079	1.339	0.036	1.792	-4.305

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

[e-mail] | www.andromet.com.au