Tin, Tantalum and Lithium Production Update

Strategic Process Update

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to provide an update on the expansion plans for lithium, tin, and tantalum production at the flagship Uis Mine together with an update on the Strategic Process.

HIGHLIGHTS
Tin Production Expansion

• Implementation of an ore sorting circuit underway to increase tin concentrate from 1 500 to 2 600 tpa.
• Procurement of Metso crushing equipment and Tomra ore sorters.
• Ore sorting is fully funded by the Orion Resource Partners facility.
• Ore sorting augments the Continuous Improvement II programme (“CI2”) which is fully funded by the Development Bank of Namibia (“DBN”).
• Expansion is anticipated to increase revenue by up to 75% and continue to reduce the AISC of the mining operations.

Tantalum Production

• Optimisation of the tantalum circuit has been completed.
• The first shipment of concentrate to Afrimet Resources (“Afrimet”) targeted for March 2024.
• Annual production estimated to be approximately 48 tonnes per annum (“tpa”) at current run rate and expected to increase to 83 tpa after the implementation of the ore sorting circuit.
• Tantalum revenue is estimated to be between 3% and 5% of total group revenue at steady state production, with more than 90% of the tantalum revenue captured in the mine EBITDA.

Lithium Production

• The lithium pilot plant has consistently produced technical grade petalite concentrate since the fourth quarter of 2023 (“Q4 2023”).
• The concentrate stockpile is currently accumulating.
  • Initial prospective sales are focussed on the specialty glass and ceramics market that is quoted as a premium to the battery market currently.
  • Further development test work for supplying the lithium battery market is also ongoing.
• The Company has commenced studies to integrate the entire lithium circuit into the current operations.
• Preliminary modelling indicates an initial production of 30 000 tpa (from 1.7 million tonnes per annum (“mtpa”) Run-Of-Mine (“RoM”)) of technical grade petalite concentrate.
• Andrada’s lithium marketing is targeting market share across the entire lithium value chain.

Strategic process
Indicative, non-binding offers for a partnership interest at the Lithium project level have been received and discussions with potential partners are progressing well.

Anthony Viljoen, Chief Executive Officer, commented:
“While Andrada focusses on achieving its ultimate goal of unlocking the scale potential of its deposits, the short-term goal of maximising revenues from current operations remains key to providing free cashflow for the organisation, whilst simultaneously derisking the flow sheet. The expansion of tin production will enable Andrada to align with its royalty obligations, whilst the commercial production of tantalum will fulfil a supply agreement with Afrimet.

I am particularly pleased with the potential offered by the lithium production opportunities. In the short-term, we are targeting initial sales of our Pilot Plant production into the spot glass-ceramics market whilst progressing discussions with potential long-term offtakers across the lithium value chain to access other markets, particularly the battery market. The integration of petalite production will create further value for our shareholders and solidify our position as a key producer in the technology metals industry. Furthermore, we are expediting the metallurgical testwork for converting petalite into battery chemicals for long-term supply opportunities.

Exploration drilling programmes are ongoing across all assets to expand the size and scope of the mineral resources. The collaboration between our exploration and metallurgy teams expedites testwork in order to facilitate the transition of projects from exploration to development and, ultimately, production.

We are pleased to report significant progress on the Strategic Process. Discussions with international organisations from within the lithium value chain are advanced. We are encouraged by the level and quality of interest from interested parties.”

Helga van Lochem, Area Sales Manager TOMRA, commented:
“We are thrilled about teaming up with Andrada Mining at its flagship Uis mine. These sorters should boost precision and efficiency and are the first to incorporate our recently launched OBTAIN™ Deep Learning feature.

At Tomra, we hold partnerships in the highest regard, and our alliance with Andrada reflects our commitment to delivering tailored solutions. The Tomra sorter is not just a product; it represents our dedication to a strategic and fruitful partnership. Together with Andrada, we are positioned to redefine industry standards and achieve notable success in the mining sector.”

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