Andromeda Metals Limited (ASX Code: ADN, Andromeda, the Company) is pleased to report the inaugural Hammerhead Mineral Resource Estimate reported in accordance with the 2012 JORC Code and Guidelines.

The Hammerhead Deposit is located on exploration licence EL 5814 and lies 5kms to the north of the Great White Deposit on the Eyre Peninsula of South Australia and is part of the Great White Kaolin Joint Venture with Minotaur Exploration Limited (ASX: MEP) under which ADN is currently earning a 75% interest. The Company has now received the remaining XRD results for the May 2020 drilling program (refer ADN ASX announcement dated 11 September 2020 titled 'Hammerhead Drill Results and Potential Construction Product Application') allowing a Mineral Resource to now be estimated for the Hammerhead Deposit.

Significantly, some areas within the Hammerhead Deposit show high levels of halloysite (>20%) that is similar to the existing resource reported at the Great White Kaolin Deposit.

Mineral Resource Detail

The 2020 Hammerhead Resource Estimate is based on exploration undertaken by MEP in 2011 and by ADN in 2019 and 2020. Work undertaken prior to 2011 was not sufficiently documented to meet JORC 2012 requirements. MEP drillhole samples were analysed by XRF and XRD by ADN in 2019 and 2020. All drillhole data used for the resource estimate is contained in ADN ASX announcements dated 16 March 2020 titled 'High-Grade Halloysite Zone identified at Condooringie' and 11 September 2020 titled 'Hammerhead Drill Results and Potential Construction Product Application' and in Appendix 1 and Appendix 2 of this report.

ADN and MEP have completed 112 rotary air blast (RAB) aircore drilling holes (4,942.4 metres) and 2 diamond holes (99.1m) used for geotech and density measurements only. All 114 drillholes were 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.

ADN's composited samples were wet sieved at Bureau Veritas in Adelaide to determine percentage passing -45-microm, with the recovered material then analysed by Bureau Veritas using their XRF 4B method to determine elements that include Al2O3, Fe2O3, SiO2 and TiO2. Brightness on the minus 45-micron material was determined by ADN staff at an enclosed laboratory room at Bureau Veritas using the Company's Technidyne Colourtouch CT-PC Spectrophotometer in accordance with Tappi standard T534 om-15.

Analysis for halloysite and kaolinite content was undertaken by CSIRO on all samples. This data was used to define a flat-lying kaolin deposit that lies between 7 and 62m below the surface. The Resource Estimate covers an area of approximately 1.0km E-W by 2.9km N-S with a kaolin thickness ranging from 2m to 32m and the thickest part of the deposit open to the south/south west.

The drilling and sampling procedures and analytical methods implemented by ADN were the same used for the Great White Kaolin Deposit at Poochera which had been reviewed by H&S Consultants and assessed as having no obvious issues with the sampling or analysis of the data. Composite intervals were extracted from the drillhole database constrained by the kaolin wireframes. Grade interpolation of the kaolinite and halloysite was completed for the minus 45 micron recovered material, along with Al2O3, Fe2O3, SiO2, TiO2 and R457 all obtained on the minus 45-micron fraction. Statistical analysis of the composite data was undertaken and showed reasonably well-structured data with low coefficients of variation, all of which resulted in no top cuts being applied.

Inverse distance squared (ID2) was chosen as the most appropriate method for the grade interpolation. Maptek's Vulcan software was used for modelling and the grade interpolation which used a single flat lying search domain of 300m by 200m by 5m (long axis orientated to 145 degrees) to reflect the overall consistency in strike and dip of the mineralisation. Block size was 50m by 50m by 5m (X, Y & Z), with 10m by 10m by 1m sub-blocking. Two wireframes were used to define the upper and lower saprolite within the mineralised zone. Other wireframes were used to map out geological boundaries above the mineralised zone but these have no impact on the resource.

Concrete Application Testwork

The concrete application testing work reported earlier this month (refer ADN ASX announcement dated 11 September 2020 titled 'Hammerhead Drill Results and Potential Construction Product Application') has now passed the 28-day milestone and the positive trends with strength gain and bleed reduction have continued.

Compliance testing AS1478.1-2000 Type SN is continuing and on track to provide compliance for concrete industry supplied mix designs by late November. Following completion of this testing the identified highhalloysite material from the Great White Resource will be tested in selected concrete mix designs. A 100kg sample of Hammerhead material equivalent to the potential product already being tested is being prepared for a planned commercial scale trial in underground mine shotcrete that should be completed in Q4 this year.

Contact:

James Marsh

Email: james.marsh@andromet.com.au

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