Andromeda Secures 51% Interest in Eyre Kaolin Joint Venture

Andromeda Metals Limited has achieved a major milestone by securing a 51% interest in the Eyre Kaolin Joint Venture (EKJV). This strategic move comes after Andromeda successfully fulfilled all the requirements outlined in the Stage 1 earn-in agreement. By securing this dominant stake, Andromeda strengthens its position in the project and unlocks the potential to develop a new source of high-quality kaolin. This kaolin, with its specific properties, could be valuable for various industrial applications.

In August 2021, Andromeda entered into a strategic agreement with Peninsula Exploration Pty Ltd (Peninsula) to potentially acquire up to an 80% interest in four tenements held by Peninsula. These tenements are strategically located near The Great White Project (TGWP) and include kaolin prospects that complement the properties at TGWP. By meeting the Stage 1 earn-in requirements, Andromeda has demonstrated its commitment and capability. Over the initial three-year timeframe, Andromeda invested $750,000 in comprehensive exploration and evaluation activities, thereby earning a 51% interest in the tenements. This achievement marks a significant milestone in Andromeda's expansion and resource acquisition strategy.

Drilling conducted on EKJV tenements resulted in the announcement of a combined Inferred Resource of 53.5 million tonnes (Mt) of kaolin in November 2023. This includes 27.0 Mt of Bright White, low titanium kaolinised granite (Chairlift CRM) and 26.5 Mt of rheology modifier kaolin (Chairlift HRM). These significant findings highlight the potential of the EKJV tenements to contribute valuable resources for various industrial applications, reinforcing the strategic importance of the region's mineral assets. The discovery underscores the success of the exploration efforts and the promising prospects for future development and utilization.

The low titanium content of Chairlift CRM, characterized by an average TiO2 of 0.18%, not only aligns with the kaolin from the Great White Deposit but also meets the stringent requirements of the high-quality porcelain ceramics market. Additionally, it presents promising potential as an additive or modifier for the high-end coatings market. These attributes highlight Chairlift CRM's versatility and suitability for diverse industrial applications, positioning it as a valuable resource in meeting market demands for premium-grade materials and specialized formulations.

Chairlift HRM shares equivalent rheological properties with Great White HRM™, emphasizing its suitability for various industrial applications. The Company holds the opportunity to increase its stake in the EKJV by an additional 29%, reaching a total ownership of 80%, contingent upon investing an additional $2 million in exploration activities over a three-year span. This strategic initiative underscores the Company's commitment to further explore and develop the potential of Chairlift HRM, reinforcing its position in the market for rheology modifier kaolin and advancing its overall resource acquisition strategy.