Lithium Development Update

27 November 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 is now considered to be in the public domain.

Andrada Mining Limited

("Andrada" or the "Company")

Lithium Pilot Plant Produces First Lithium Concentrate

Petalite Off-Take Agreement Discussions Advanced

Andrada Mining Limited (AIM: ATM), an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to provide an update on the commissioning and first production at its lithium (bulk-sampling) pilot plant ("Pilot Plant") along with an update on the Company's lithium strategy.  

Highlights

§ Commissioning of the Pilot Plant completed successfully with the production of 10 tonnes on-specification saleable lithium concentrate.

§ Production ramp up to 250 tonnes per month planned during first quarter of the 2024 calendar year ("Q1 CY2024" and "CY2024").

§ Discussion with glass-ceramics off-taker for supply of high-purity petalite is progressing well.

§ On-going metallurgical testwork for production of battery grade lithium hydroxide.

§ Metallurgical testwork progressing to optimise production from Uis and preliminary investigations on Spodumene Hill and Lithium Ridge.

§ Lithium exploration drilling campaigns for CY2024 have been planned for all mining licence areas.

§ Discussions with Strategic Process participants are progressing. Further updates to be provided in due course.

Anthony Viljoen (CEO) commented

"We believe that our efforts throughout the year have the potential to place Andrada at the forefront of lithium development in Africa. The discovery of additional lithium-within the Company owned Lithium Ridge and Spodumene Hill also underscores the possibility that Namibia's Erongo region could be a key participant in the global lithium landscape, with the potential to host a cluster of significant mines.

The early results from the recently commissioned lithium processing pilot facility have instilled unwavering optimism. We are also pleased by the ongoing negotiations with lithium off-takers that target Andrada's involvement in all downstream lithium markets, and we look forward to providing further details as these negotiations progress. Overall, we consider the pilot plant serves as a crucial de-risking element in the Company's lithium portfolio, further bolstering our confidence in Andrada's lithium strategy."

Lithium Pilot Plant

The Company's Pilot Plant is located adjacent to the main tin processing plant at the Uis Mine. It was successfully commissioned in October 2023 producing approximately 10 tonnes of concentrate during the process. The production rate is expected to increase to 250 tonnes per month by the end of March 2024. The initial objective of the Pilot Plant is to produce sufficient bulk samples of petalite concentrate within specifications for the premium specialist glass and ceramics markets. To that effect, the Directors are pleased with the progress being made on discussions for a petalite off-take agreement. Secondly, the Pilot Plant is producing concentrate for metallurgical testwork to determine appropriate specifications for the lithium battery refinery market. Finally, by the end of February 2024 , the intention is to produce concentrate for initial commercial sales into the spot market which the Directors believe is a realistic prospect for the Company. Early internal estimates suggest that the petalite concentrate from the Pilot Plant could be priced between USD1 600 and USD2 200 per tonne in the current spot market (pricing provided for guidance purposes only).

Lithium Market and Development Strategy

By initially targeting pegmatites with a higher lithium grade, Andrada could produce concentrate for all downstream lithium markets. From January 2024 the Company intends to ramp up its exploration activities and its metallurgical testwork programme, to identify additional mineral - rich pegmatites that will enhance possibilities for additional revenue streams for the Company.

Andrada aims to construct a lithium mining and concentration facility with a minimum production capacity of 15 000 tonnes per annum Lithium Carbonate Equivalent("LCE"), which would require approximately 2.5 to 3.0 million tonnes per annum ("Mtpa") run-of-mine ore. The long-term production capacity targeted is 50 000 tpa LCE or 10 Mtpa run-of-mine ore. This strategy is underpinned by what the Directors believe to be a potentially significant lithium resource within Andrada's mining licences. As previously announced, the Company is also progressing with Strategic Process discussions with parties interested in partnering on its lithium projects, and further updates will be provided in due course, as appropriate.

Lithium Exploration Strategy

The exploration programmes planned for CY2024 are designed to enhance the understanding of the mineralisation on all the Company's mining licences. The exploration team has completed the plans to advance the resource on the mining licences as follows:

§ Uis:  Resource validation drilling over the Northern and Central pegmatites clusters to enhance the current MRE classification of tin, to establish the mineral potential for lithium and other technology metals.

§ Lithium Ridge: implement a high-density drilling campaign at the historical TinTan mine area for the development of a maiden Mineral Resource Estimate and to enhance understanding of the lithium mineralisation within the high priority pegmatites identified.

§ Spodumene Hill: undertake a drill programme to delineate the higher grade spodumene zones within the B1 and C1 pegmatites as well as the mapped satellite bodies surrounding the main mineralised units.

The exploration strategy will remain flexible to enable the Company to investigate any additional mineralisation opportunities they encounter as they implement the planned programmes.

Lithium Metallurgy

The primary lithium minerals at Andrada's three mining licences are petalite and spodumene with their distributions varying across the licence areas. The explored pegmatites on Uis are petalite dominant whilst on Lithium Ridge and Spodumene Hill they are spodumene - dominant. Andrada's lithium development strategy therefore incorporates the production of both petalite and spodumene concentrates which enables multiple off-take options suitable for both the industrial (glass-ceramics) and chemical (battery) concentrate markets. The Company is implementing metallurgical testwork to determine the possibility of producing battery grade lithium hydroxide as well as to determine optimal production from Uis, Spodumene Hill and Lithium Ridge.

The Company confirms that it intends to publish its interim results for 6 months ended 31 August 2023 on or around 29 November 2023.

About Andrada Mining Limited

Notes to editors

Andrada 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. 

Andrada is managed by a board of directors with extensive industry knowledge and management team with deep 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 how 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.

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