Development Bank of Namibia financing concluded

5 September 2023

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information will be in the public domain.

Andrada Mining Limited

("Andrada" or the "Company"

and with its subsidiaries, the "Group")

Conclusion of the Development Bank of Namibia financing.

Financing to improve tin recovery up to 69%.

Further to the announcement of 15 August 2023, Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to confirm that the Development Bank of Namibia ("DBN") has served notice confirming that all conditions have been fulfilled or waived and that financial close has occurred. Accordingly, the Group is in the process of requesting the drawdown of the NAD100 million (cUS$5.8m) facility ("the Funds") which are expected to arrive this week. These Funds will be used to expedite the implementation of the Uis Mine Stage II Continuous Improvement Project ("CI2").

HIGHLIGHTS

§ Funding is ring-fenced for the implementation of the Uis Mine CI2.

§ As set out in the announcement of 5 June 2023, the terms are:

-     Term of 10 years ranked as senior secured debt pari passu to the Standard Bank Namibia loan.

-     No interest or capital repayments for the initial 12 months after execution.

-     Interest will accrue at Namibian prime lending rate (currently 11.5%) plus 2.5% per annum.

Anthony Viljoen, Chief Executive Officer, commented:

"The conclusion of the DBN funding is an essential component of the overall funding and development strategy. These proceeds will be used to implement the improvements at Uis Mine which will enhance the plant's productivity and output. The targeted increase in the tin recovery rate should complement the royalty portion of the Orion funding by enabling Andrada to achieve the requisite thresholds of concentrate tonnages. The improvement in cost efficiencies and overall productivity at Uis, lays the foundation for the management of the lithium processing plant and other future operations.

The funding sourced since the successful US$22.8 million equity raise in September 2022, has significantly strengthened Andrada's balance sheet and provides us with optionality on how to   expedite our multi-tech development strategy. Importantly, the DBN and Orion funding (see announcement 15 August 2023) will enable us to implement various strategic initiatives necessary for further production growth and the stabilisation of the Company's assets. Partnering with the DBN and gaining the bank's confidence, will enable the Company to secure additional infrastructure development financing potentially required for our future growth aspirations.

As we continue with the Barclays-led strategic process to identify an appropriate partner for our lithium development strategy, we are simultaneously expanding our resource through an extensive exploration programme and determining the optimal way to become a multi-tech-metals producer through the metallurgy programme."

DBN FINANCING TERM sheet

As announced on 5 July 2023 and 5 July 2022, the loan has a term of 10 years and is ranked as senior secured debt pari passu to the Standard Bank Namibia loan. There are no interest or capital repayments for the initial 12 months after execution and interest will accrue at the Namibian prime lending rate (currently 11.5%) plus 2.5% per annum.

The funding is ring-fenced for the Uis Mine CI2 to complement the expansion project completed in October 2022.

Uis mine continuous improvement

The modular expansion of the crushing and tin concentration circuits during the third quarter of FY 2023, resulted in approximately 70% increased capacity. The primary objective of the expansion was to increase production tonnage to reduce costs through economies of scale. The enhanced plant performance has revealed bottlenecks that need to be eliminated to ensure that the increased output and higher production rates are sustainable. To that effect, the CI2 is expected to improve processing efficiencies to maximise the tin concentrate recovery rate, establish business sustainability through the enhancement of operational support infrastructure and reduce operating costs. Ultimately, the CI2 is targeted to increase the plant throughput to greater than 1Mtpa.

Process improvement efficiency

The objective is to maximise the tin recovery rate up to c69% by improving the visibility of plant operating parameters to operational staff, and by enhancing metal accounting through an increased rate of metallurgical sampling. Furthermore, improvements on the slurry pumps and lines will be implemented by installing appropriately sized equipment with wear resistant parts and the best material type for piping throughout the plant. A third shaking table set will be installed for increased concentrate production and a new belt scale, as well as flow meters will be installed to further improve metal accounting. Finally, the plant laboratory function will be expanded.

Enhancements of the business sustainability support infrastructure

These enhancements will ensure a safe working environment to eliminate the risk of long duration operational disruptions. Major enhancements in terms of support infrastructure will entail the expansion of the main and plant substations to ensure reliable electricity supply in line with the higher production rates. Additional process water supply will be developed to cater for the increased production in the wet plant. An improved stormwater management plan will be implemented including the installation of berm channels, construction of a return water dam and settling pond. For enhanced safety, firefighting protocols will be improved, fences installed, and roads constructed within the whole operational area.

Reduction of operational costs

The key cost reduction initiative is designed to implement efficient supply chain management. Sufficient inventory of critical spares will reduce costs by eliminating emergency procurement. The target is to reduce operational costs by up to 10%.

Conclusion

About Andrada Mining Limited

Andrada Mining Limited, formerly Afritin Mining Limited, is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, production and exploration assets. The Company's flagship asset is the Uis Mine in Namibia, formerly the world's largest hard-rock open cast tin mine.

An exploration drilling programme is currently underway with the aim of expanding the tin resource over the fourteen additional, historically mined pegmatites, all of which occur within a 5 km radius of the current processing plant. The Company has set a mineral resource target of 200 Mt to be delineated within the next 5 years. The existing mine, together with substantial mineral resource potential, allows the Company to consider economies of scale.

Andrada is managed by a board of directors with extensive industry knowledge and a management team with extensive commercial and technical skills. Furthermore, the Company is committed to the sustainable development of its operations and the growth of its business. This is demonstrated by the manner in which the leadership team places significant emphasis on creating value for the wider community, investors, and other key stakeholders. Andrada has established an environmental, social and governance system which has been implemented at all levels of the Company and aligns with international standards. [END]