Andrada Mining Limited provided 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. 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 USD 1,600 and USD 2,200 per tonne in the current spot market (pricing provided for guidance purposes only).

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.

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. 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.