Unaudited Interim Results 6 Months Ended 31/08/23

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the metals and mining company with a portfolio of technology metals mining and exploration assets in Namibia, announces its unaudited interim financial results for the six-months ended 31 August 2023 ("H1 2024").

The company will be hosting an investor presentation at 9am UK time (11am SAST) on Thursday 30 November 2023. Please register for the event at: https://www.investormeetcompany.com/afritin-mining-limited/register-investor.

HIGHLIGHTS

FINANCIAL PERFORMANCE

§ 87% increase in revenue to GBP8.7 million (H1 2023: GBP4.7 million).

§ 19% decrease in cost of sales per tonne of contained tin to GBP17 276 (H1 2023: GBP21 903).

§ > 100% increase in gross profit to GBP1.5 million (H1 2023: loss of GBP1 million).

§ 30% reduction in operating loss to GBP2.5 million (H1 2023: loss of GBP3.5 million).

§ 25% reduction in loss before tax to GBP2.8 million (H1 2023: loss of GBP3.7 million).

§ Average C1¹ operating cash cost per tonne of contained tin produced was USD18 161 (GBP14 324), which is within management guidance.

§ Average C2² operating cost per tonne of contained tin produced was USD20 796 (GBP16 403), which is within management guidance.

§ All-in sustaining cost ("AISC") ³ per tonne of contained tin produced was USD24 662 (GBP19 452) which is below management guidance.

§ GBP7.7 million (c. USD10 million) raised through issuance of unsecured convertible loan notes.

§ Unaudited cash balance on 31 August 2023 was GBP6.7 million (USD8.5 million).

OPERATIONAL PEFORMANCE

§ Successful plant expansion in 2023 resulted in significant improvements in the H1 2024 performance.

§ 67% increase in tin concentrate to 758 tonnes (H1 2023: 455 tonnes).

§ 58% increase in contained tin metal to 454 tonnes (H1 2023: 287 tonnes).

§ 37% increase in the plant processing rate to 136 tonnes per hour (tph) (H1 2023: 99 tph).

§ 10% increase in plant utilisation to 81% (H1 2023: 74%).

§ Improved safety performance to 0.8714 Lost Time Injury Frequency Rate ("LTIFR") at the end of the period compared to 8.02 at the end of H1 2023.

§ Production of initial bulk saleable petalite concentrate at 85% purity and Li₂O grade of 4.16%.

§ Construction and commissioning of the lithium (bulk-sampling) pilot plant ("Pilot Plant") completed.

• Production of lithium concentrate from the Pilot Plant has commenced (see announcement dated 27 November 2023).

§ Construction and commissioning of the tantalum circuit ("the Circuit") completed.

§ In-house test campaigns have commenced to determine how to produce a consistent saleable grade of lithium concentrate.

§ Drilling on Spodumene Hill licence area (ML 129) completed with all holes intersecting mineralised pegmatite

• Inaugural drill results intersected high grade spodumene mineralisation with grades up to 2.32% lithium oxide (Li₂O).

STRATEGIC

§ Appointment of Barclays Bank PLC as a strategic advisor to the Company's lithium development programme.

§ Completed the rebranding from Afritin Mining to Andrada Mining to reflect the Company's expanding lithium, tin, and tantalum resources.

§ Upgraded the OTC listing from pink sheets to the QB tier to enhance access to the North American investor base.

§ Renewal of the Brandberg West exploration license (EPL 5445) for an additional 2 years from 1 August 2023.

POST - PERIOD

Operational

§ Renewal of the Thailand Smelting and Refining Co. Limited ("Thaisarco") tin off-take agreement for three years commencing December 2023.

§ Renewal of the AfriMet Resources AG ("AfriMet") tantalum off-take agreement for 12 months commencing January 2024.

§ Completion and publication of the 2023 Sustainability Report highlighting the Company's contribution of GBP33 million to the Namibian national economy since inception.

Financial

§ On 5 September 2023, the Company finalised the NAD100 million (c. GBP4.2 million OR USD5.3 million) Development Bank of Namibia ("DBN") financing that is ring-fenced for the implementation of the Uis Mine Stage II Continuous Improvement Project ("CI2").

§ Finalisation and receipt of USD25 million Financing Package from Orion Resource Partners ("Orion"). (See announcement dated 15 August 2023 and 16 November 2023).

§ Unaudited cash balance on 27 November 2023 at GBP23 million (USD29 million)

Exploration

§ Reverse Circulation ("RC") drilling programme undertaken on the Lithium Ridge licence area (ML133).

• All holes intersected mineralised pegmatites with significant lithium mineralisation along a 6km strike length with spodumene and petalite identified as the primary lithium minerals.

§ Commencement of an exploration programme on Brandberg West licence area EPL 5445.

• Historically a producer of tin and tungsten with strong indications of copper.

Chief Executive Officer's Statement

The interim period under review has been nothing short of eventful and exhilarating. We kicked off the year with a rebranding initiative to accurately reflect the poly-metallic nature of our extensive resource portfolio in Namibia's mineral-rich Erongo region. We achieved numerous milestones across all the Company's departments with a single-mindedness to expedite the route-to-market for lithium and tantalum. These milestones include the significant lithium discoveries on Lithium Ridge and Spodumene Hill license areas which established Andrada as an emerging, formidable poly-metallic producer. The commentary below further elaborates the various initiatives we have implemented towards the expanded strategic intent to being a renowned poly-metallic producer.

OPERATIONAL AND FINANCIAL OVERVIEW

All the numbers are unaudited

¹C1 operating cash costs refers to operating cash costs per unit of production excluding selling expenses and sustaining capital expenditure associated with Uis Mine.

²C2 operating cash costs are equivalent to the C1 costs including selling expenses (logistics, smelting and royalties).

³All-in sustaining cost (AISC) incorporates all costs are related to sustaining production, capital expenditure associated with developing and maintaining the Uis operation as well as pre-stripping waste mining costs.

Increased tonnage and revenue

Andrada experienced significant growth in H1 2024, driven by a 67% increase in tin concentrate production to 758 tonnes, resulting in a 58% increase in contained tin to 454 tonnes compared to the interim period in the 2023 financial year ("H1 2023"). Consequently, revenue increased to GBP8.7 million (H1 2023: GBP4.7 million), generating a higher gross profit of GBP1.5 million (H1 2023: loss of GBP1 million). This impressive performance is attributed to a 37% increase in plant processing rate and a 10% improvement in capacity utilisation, following the completion of the modular expansion of the crushing and tin concentration circuits in Q3 2023.

The enhanced plant performance revealed bottlenecks that needed to be eliminated to ensure sustainability of the increased output and higher production rates. To that effect, the CI2 is expected to improve processing efficiencies to maximise the tin concentrate recovery rate to approximately 70%, establish business sustainability through the enhancement of operational support infrastructure and to reduce operating costs.

The renewal of the tin off-take with Thaisarco for up to 100% production that was agreed after the period end, should also secure the expanded output resulting from the Orion royalty for another three years to 30 November 2026. (See announcement dated 5 September 2023).

Lower unit cost per tonne

The Company is pleased to report a significant improvement in its financial performance in the first half of 2024. Despite an increase in the cost of sales to GBP7.3 million (H1 2023: GBP5.7 million), the cost per tonne of contained tin decreased by 19% to GBP17 276 (H1 2023: GBP21 903). due to increased production tonnage and economies of scale. At the same time, as set out above, the C1 operating cost and AISC decreased by 10% and 5% respectively due to the higher production tonnage. The increased waste stripping of the mining pit to access ore contributed to the higher costs during the period under review. We are pleased that we have exposed additional ore and the stripping ratios have continued to decrease.

The operating loss decreased by 30% to GBP2.5 million (H1 2023: loss of GBP3.6 million) whilst the loss before tax decreased to GBP2.8 million (H1 2023: loss of GBP3.7 million). The average C1 and C2 cash costs remained within management guidance at USD18 161 (GBP14 324) and USD20 796 (GBP16 403), respectively. We are particularly pleased that the AISC at USD24 662 (GBP19 452) was below management guidance of between USD25 000 (GBP19 719) and USD30 000 (GBP 23 663) per tonne of contained tin. It is important to note that due to the higher stripping ratio and Orion tin royalty, the AISC is expected to increase but remain within our guidance. The CI2 is expected to improve plant efficiency and to reduce operational costs by 10%, with the initial impact expected in Q1 2024.

Improved safety performance

At Andrada we are committed to upholding the highest safety standards at Uis. The concerted effort of supervisors across all functions to instil a culture of safety have resulted in a significant improvement in safety performance. The LTIFR decreased from 8.02 at the end of H1 2023 to 0.87 at the end of H1 2024 and there were no fatalities recorded. Various initiatives, such as quarterly safety audits and training, have been instrumental in promoting the safety culture.

Strengthened the financial position

To support ongoing capital expansion programs related to lithium and tantalum development, the Company issued unsecured convertible loan notes totalling GBP7.7 million (c. USD10 million) in July 2023. These funds were primarily utilised for working capital purposes, to progress the exploration program, and to commence a lithium feasibility study. Additionally, the Company secured a USD25 million funding package from Orion Mining, comprising a USD12.5 million unsecured tin royalty, a USD2.5 million equity subscription, and a USD10 million unsecured convertible loan note (see announcement dated 16 November 2023, for more details of this completed package). This funding should provide sufficient capital to progress the expansion programmes at Uis and to expedite the lithium implementation program. In August 2023, Andrada signed binding documentation for the USD25 million Orion funding and ultimately received the funds in November 2023, after the period under review, following the fulfilment of all precedent conditions. We believe that this funding from Orion strongly endorses Andrada's corporate and broader multi-commodity development strategy. (see announcements dated 18 July 2023 and 16 November 2023).

In September 2023, the Company concluded the NAD100 million (c. GBP4.2 million OR c. USD5.3 million) funding with DBN to expedite the implementation of the CI2. The Directors consider this DBN funding to be an essential component of the overall funding and development strategy. The proceeds will be used to implement improvements at Uis Mine to enhance the plant's productivity and output. The targeted increase in the tin recovery rate will complement the royalty portion of the Orion funding by enabling Andrada to achieve the requisite concentrate tonnages. The improvement in cost efficiencies and overall productivity at Uis resulting from the CI2, should lay the foundation for the management of the lithium processing plant and other future operations. (see announcement dated 5 September 2023).

These capital inflows of almost USD40 million, provide funding for the Company to pursue the development of lithium and tantalum revenue streams whilst expanding tin production. Importantly, the DBN and Orion funding will enable us to implement various strategic initiatives necessary for further production growth and the stabilisation of the Company's assets.

The Directors believe that partnering with the DBN and gaining the bank's confidence, should also enable the Company to secure additional infrastructure development financing potentially required for our future growth aspirations.

LITHIUM & TANTALUM DEVELOPMENT

The production of the initial off- site petalite bulk sample concentrate of saleable grade in May 2023 from the Lithium Ridge project represents a significant step towards establishing Andrada as an emerging lithium producer.

Lithium Pilot Plant production

Testing of bulk samples at the Pilot Plant to determine the optimal processing parameters for lithium extraction from all three mining licences commenced in October 2023. In addition to the bulk testing campaigns, the Pilot Plant is also targeting the production of at least 2 400 tpa comprising a saleable concentrate suitable for glass-ceramics market. To date, the Company, has delivered high purity petalite concentrate samples to several potential customers and progress will be provided as these discussions progress. We believe that our lithium concentrate may potentially be suitable as feedstock for refineries producing lithium carbonate or lithium hydroxide for the battery manufacturing industry and will provide further updates on this as our test work in this area advances. (see announcement 15 and 27 November 2023).

Tantalum Circuit production

After the end of the period under review, the Company renewed its tantalum offtake agreement with AfriMet. This will commence on 1 January 2024 for a period of 12 months and should absorb all the concentrate produced by the Circuit at the Uis Mine. The renewal of the off-take agreement should enable us to realise additional value from a the newly commissioned magnetic separation circuit. Optimisation of the Circuit is on-going, and we foresee commercial production commencing in or around December 2023. (see announcement 15 November 2023).

Spodumene Hill: Mining Licence 129

An initial drill programme over the B1 and C1 pegmatites returned positive results with spodumene mineralisation identified within all holes drilled. The results revealed notable intersections of up to 2.32% Li₂O grade, highlighting the tantalum potential of this area, which further enhances the relevance of the recently constructed Tantalum Circuit. The proximity of Spodumene Hill to the existing operations at Uis provides an immediate opportunity for additional revenues from the licence area by blending material to increase tantalum grades. (see announcement dated 6 July 2023)

Lithium Ridge: Mining Licence 133

Lithium Ridge infill channel sampling programme confirmed the presence of continuous mineralisation at surface over a 6 km strike length along multiple mineralised pegmatites. An initial RC drilling programme investigated the continuation of several pegmatites at depth and found that the mineralisation continues within the pegmatite lithologies. The primary lithium minerals identified through drilling and channel sampling were spodumene and petalite, notable lithium intersections including 9m with grades exceeding 2% Li₂O. (See announcement dated 29 August 2023, 6 September 2023 & 18 September 2023).

Off-site Testing Update

Metallurgical test work to date has focused on the concentration of petalite due to its prevalence within the mining areas. The Lithium processing testwork has therefore focussed on petalite recovery, whilst the feasibility of concentrating other lithium bearing minerals present within the mineralised pegmatites is also being investigated. A substantial metallurgical programme focussing on spodumene production is planned to commence in Q4 2024. Three processing technologies are currently being evaluated to determine the optimal process for the extraction and concentration of petalite. Some test work has indicated that it may be possible to upgrade ore to a saleable concentrate solely through DMS technology.

STRATEGIC OVERVIEW

Resource upgrade

Simultaneously, we upgraded the Uis Mineral Resource Estimate for the V1 and V2 pegmatites, confirming 81 million tonnes (Mt) of ore with an enhanced average tin grade of 0.15% and an updated Lithium Carbonate Equivalent of 1.45Mt at a noteworthy average grade of 0.73% Li₂O. (See announcement dated 6 February 2023 for full details of the MRE).

Enhanced governance

As we embarked on the new financial year commencing in March 2023, we further strengthened the Board's expertise by welcoming Hiten Ooka, our Chief Financial Officer, as an executive director and Ms. Gida Sekandi as a non-executive director. Hiten's appointment bolstered the Board's financial acumen, while Gida's expertise deepened our sustainability knowledge. (See announcement dated 11 May 2023).

Strategic Assessment Process

The Strategic Process is on-going with further updates to be released in due course. (See announcement dated 11 May 2023 and 27 November 2023).

Expansion into the North American capital market

The admission to the OTCQB® Market was a key step in Andrada's strategy to broaden the Company's investor base by increasing accessibility to Andrada shares by North American institutional and retail investors. This investor base is known for its understanding of, and strong appetite, for mining companies with strong growth potential, particularly in lithium equities. (See announcement dated 5 June 2023).

Sustainability focus

Sustainability is one of our foundational pillars and is intricately woven into our business model. Our approach goes beyond the mine as we strive to make a positive impact on the Erongo region in which we operate and on Namibia as a whole. Since inception, we have contributed significantly to the national economy through job creation and procurement. We estimate that we have contributed GBP33 million (NAD690 million) to the Namibian economy through procurement, royalties, and taxes since inception. In the 2023, the Company's procurement outlay was GBP 9.1 million (NAD203 million) through 225 Namibian suppliers of which 107 are situated within the Erongo region where Uis is located. The Company further contributed c. GBP2 million (NAD45 million) in royalties and taxes during the year ending 28 February 2023. As focus shifts globally towards climate-smart economies, there is an increased focus on the natural environment. To that effect, we have concentrated our efforts on the sustainable management of the surrounding resources including biodiversity and water whilst producing minerals that are integral to the green energy transition. We are committed to creating long lasting value for all our stakeholders. (See announcement dated 27 October 2023).

CONCLUSION

As we approach the final quarter of 2024, we look forward to achieving the key milestones regarding the lithium development strategy and tin production in line with the Orion tin royalty. The CI2 will be implemented into 2025 and is instrumental in achieving the tin production targeted volumes and cost efficiencies. We also look forward to providing further updates on the many initiatives.

Glossary of abbreviations

Other comprehensive income/(loss)

Items that will or may be reclassified to profit or loss:

The notes that follow in this report form part of this interim financial information This interim financial information was authorised and approved for issue by the Board of Directors and authorised for issue on 28 November 2023.

ANTHONY VILJOEN

Chief Executive Officer

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL INFORMATION

For the period ended 31 August 2023

Corporate information and principal activities

Andrada Mining Limited ("Andrada") was incorporated and domiciled in Guernsey on 1 September 2017, and admitted to the AIM market in London on 9 November 2017. The company's registered office is PO Box 282, Oak House, Hirzel Street, St Peter Port, Guernsey GY1 3RH and operates from Illovo Edge Office Park, 2nd Floor, Building 3, Corner Harries and Fricker Road, Illovo, Johannesburg, 2116, South Africa. This financial information is for the period ended 31 August 2023 and the comparative figures for the 6-month period ended 31 August 2022 and for the year ended 28 February 2023 are shown.

As at 31 August 2023, the Andrada Group comprised:

1 Held directly by Andrada Mining Limited

2 Held by Greenhills Resources Limited

3 Held by Andrada Mining (Namibia) Pty Limited

4 Held by Mokopane Tin Company Pty Limited

5 Held by Pamish Investments 71 Pty Limited

This financial information presented in Pound Sterling (£) because that is the currency in which the Group has raised funding on the AIM market in the United Kingdom. Furthermore, Pound Sterling (£) is the functional currency of the ultimate holding company, Andrada Mining Limited. The Group's key subsidiaries, Andrada Namibia and UTMC, use the Namibian Dollar (N$) as their functional currency. The period-end spot rate used to translate all Namibian Dollar balances was £1 = N$23.87 and the average rate for the period was £1 = N$23.25.

• SIGNIFICANT ACCOUNTING POLICIES
• Basis of accounting

The Consolidated interim financial information has been prepared in accordance with UK Adopted International Accounting Standards. The Consolidated interim financial information also complies with the AIM Rules for Companies, NSX Listing requirements, OTCQB Listing requirements and the Companies (Guernsey) Law, 2008 and show a true and fair view.

The significant accounting policies applied in preparing this information are set out below. These policies have been consistently applied throughout the period. This information has been prepared under the historical cost convention except as where stated.

The interim financial information for the six months to 31 August 2023 is unaudited and does not constitute statutory financial information. The statutory accounts for the year ended 28 February 2023 are available on the Company's website.

Going concern

These financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes the Group will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. At period end, the Group had cash in the bank of £6.7m and had drawn down £1.5m of the Standard Bank working capital facility.

In September 2023, N$50m (c. £2.1m) of the N$100m (c. £4.2m) funding from the Development Bank of Namibia was received. These funds will be used to expedite the implementation of the Uis Mine Stage II Continuous Improvement Project.

In November 2023, US$25m (c. £19.8m) was received from Orion Resource Partners. This includes US$2.5m (c. £2.0m) equity, a US$10m (c. £7.9m) Convertible Loan Note and a US$12.5m (c. £9.9m) unsecured tin royalty. The equity and loan note will be used to accelerate Andrada's overall strategy of achieving commercial production of its lithium, tin and tantalum revenue streams. The royalty funds will be used for the sole purpose of increasing Andrada's tin production as it ramps up its capital programmes over the next 2 years.

Management has prepared a detailed cash flow forecast for the period to 30 November 2024 and have performed stress tests of these forecasts. The base case forecast demonstrates that the Group will have sufficient funds to meet its liabilities as they fall due. The main estimates considered as part of management's going concern assessment are production profiles, tin, lithium and tantalum prices, exchange rates and committed capital. The production profile is based on the Group's current achieved production post the completion of the expansion project, as well as the additional production on the successful completion of the continuous improvement capital project. The Group also retains the ability to flex its ongoing exploration and metallurgical capital expenditures in line with cash availability as well as macro-economic circumstances.

The forecast revenue and funding raised to date supports the liquidity requirements of the Group and its ability to meet its obligations in the ordinary course of business until February 2025. Accordingly, the Directors have concluded that the going concern basis in the preparation of the financial statements is appropriate and that there are no material uncertainties that would cast doubt on that basis of preparation.

Critical accounting estimates and judgements

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates. Information about significant areas of estimation uncertainty considered by management in preparing the interim financial information is provided below.

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

Going concern and liquidity

Significant estimates were required in forecasting cash flows used in the assessment of going concern including tin, tantalum and lithium prices, the levels of production, operating costs, and capital expenditure requirements. For further details, refer to going concern considerations laid out earlier in Note 2(b).

In determining the amount attributable to the rehabilitation liability, management used a risk-free discount rate of 13% (August 2022: 13% and February 2023: 13%), an inflation rate of 5.3% (August 2022: 7% and February 2023: 5.3%) and an estimated mining period of 12.9 years (August 2022: 16.5 years and February 2023: 13.4 years), being the Phase 1 expansion life of mine. The rates used are in line with the Namibian market rates.

• Impairment indicator assessment for exploration and evaluation assets

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including specific impairment indicators prescribed in IFRS 6: Exploration for and Evaluation of Mineral Resources. If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future tin prices, future capital expenditures, environmental and regulatory restrictions, and the successful renewal of licences. The directors have concluded that there are no indications of impairment in respect of the carrying value of Namibian intangible assets at 28 February 2023 based on planned future development of the Namibian projects, and current and forecast tin prices. Exploration and evaluation assets are disclosed fully in Note 11.

Impairment assessment for property, plant, and equipment

Management have reviewed the Uis mine for indicators of impairment and have considered, among other factors, the operations to date at the Uis Tin Mine, forecast commodity prices, production profile, inflation rate, post-tax real discount rate and market capitalisation of the Group. Management identified the reduction in the tin price as an indicator of impairment. In undertaking the impairment review, management have also reviewed the underlying LoM valuation model for Uis. The LoM valuation model is on a fair value less cost to develop basis and includes assessments of different scenarios associated with capital improvements and expansion opportunities. The impairment testing performed by management did not result in an impairment.

The forecasts require estimates regarding forecast tin, tantalum and lithium prices, ore resources, production, operating and capital costs. Under the base case forecast scenario, management used a forecast tin price of $26 000, tantalum price of $150 000, lithium price of $2 960 dropping to $1 051 in FY2027, a post-tax real discount rate of 8.7%, an inflation rate of 5.5% and a life of mine of 30 years. The forecast indicates sufficient headroom as at 31 August 2023.

The complex judgement in determining the recoverable amount of mining assets is an estimation of the future tin price. The estimation of future tin price is subject to uncertainty considering the volatility of market. Management has therefore compared the forecast tin price with the economic consensus estimates. Furthermore, a sensitivity analysis was performed by lowering the forecast tin prices by 5% which also indicated sufficient headroom as at 31 August 2023.

As an additional test, management performed certain sensitivity calculations. These included raising the discount rate to 9.7% post tax real rate, lowering plant recovery by 5% and increasing operating costs by 5%. In each of these circumstances, the forecast indicated sufficient headroom as at 31 August 2023.

Depreciation

Judgement is applied in making assumptions about the depreciation charge for mining assets when using the unit-of-production method in estimating the ore tonnes held in reserves. The relevant reserves are those included in the current approved LoM plan which relates to the Phase 1 expansion. Judgement is also applied when assessing the estimated useful life of individual assets and residual values. The assumptions are reviewed at least annually by management and the judgement is based on consideration of the LoM plan, as well as the nature of the assets. The reserve assumptions included in the LoM plan are evaluated by management.

Capitalisation and depreciation of waste stripping

The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load & haul of waste material is capitalised until such time that the underlying ore is used in production. These costs are then expensed on a proportional basis. The capitalised costs are included in the mining asset in property, plant & equipment and are expensed back into the statement of comprehensive income as depreciation. Capitalisation of waste stripping requires the Group to make judgements and estimates in determining the amounts to be capitalised. These judgements and estimates include, amongst others, the expected life of mine stripping ratio for each separate open pit, the determination of what defines separate pits, and the expected volumes to be extracted from each component of a pit for which the stripping asset is depreciated.

Determination of ore reserves

The Group estimates its ore reserves and mineral resources based on information, compiled by appropriately qualified persons, relating to geological and technical data on the size, depth, shape, and grade of the ore body and related to suitable production techniques and recovery rates. The estimate of recoverable reserves is based on factors such as tin prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body. There are numerous uncertainties inherent in estimating ore reserves and mineral resources. Consequently, assumptions that are valid at the time of estimation may change significantly if or when new information becomes available.

Valuation of inventories

Judgement is applied in making assumptions about the value of inventories and inventory stockpiles, including tin prices, plant recoveries and processing costs, to determine the extent to which the Group values inventory and inventory stockpiles. The Group uses forecast tin prices to determine the net realisable value of the ROM stockpile and the tin concentrate inventory on hand at period end. Inventory stockpiles are measured using actual mining and processing costs.

Determining the lease term

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise, or not to exercise, an extension option. Extension options are only included in the lease term where the company is reasonably certain that it will extend or will not terminate the lease when the lease expires. For all leases, the most relevant factors include:

§ Historical lease durations.

§ Costs incurred in replacing the leased asset.

§ Possible business disruption due to replacing the leased asset.

§ Likelihood of extension of the lease - if there are significant penalties to terminate, then it's reasonably certain that the Group will extend.

The lease term is reassessed on an ongoing basis, especially when the option to extend becomes exercisable, or on occurrence of a significant event or a significant change in circumstances which affects this assessment, and that is within the control of the Group.

• Determining the incremental borrowing rate to measure lease liabilities

The interest rate implicit in leases is not available, therefore the Group uses the relevant incremental borrowing rate (IBR) to measure its lease liabilities. The IBR is estimated to be the interest rate that the Group would pay to borrow:

§ over a similar term.

§ with similar security.

§ the amount necessary to obtain an asset of a similar value to the right of use asset; and

§ in a similar economic environment.

The IBR, therefore, is the best estimate of the incremental rate and requires management's judgement as there are no observable rates available.

• Determining the fair value of trade receivables classified at fair value through profit or loss

The consideration receivable in respect of certain sales for which performance obligations have been satisfied at period end and for which the Group has received prepayment under the terms of the offtake agreement, remain subject to pricing adjustments with reference to market prices at the date of finalisation. Under the Group's accounting policies, the fair value of the consideration is determined, and the remaining receivable is adjusted to reflect fair value. Management estimated the forward price based on the LME 3-month tin price that is expected when the open shipments will be finalised. As at 31 August 2023, the Group recognised a receivable at fair value through profit or loss of £432 220 (August 2022: receivable of £519 321 and February 2023: receivable of £126 125).

Adoption of new and revised standards

Several new and amended standards and interpretations issued by IASB have become effective for the first time for financial periods beginning on (or after) 1 March 2023 and have been applied by the Group in this interim financial information. None of these new and amended standards and interpretations had a significant effect on the Group because they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.

Accounting standards and interpretations not applied

There are several standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods and which have not been adopted early.

Segmental reporting

The reporting segments are identified by the management steering committee (who are the chief operating decision-makers) by the way that the Group's operations are organised. The Group has previously reported a Namibian and a South African operating segment. In the 2021 financial year, the Group made the decision to impair the full value of the South African mining licences as it chose to focus on developing its Namibian assets and it did not intend to incur any further expenditure on its South African licences. The Group now has a single operating segment, consisting of the Namibian operations.

Revenue

Administrative expenses

The loss for the period has been arrived at after charging:

Other costs are mainly comprised of corporate overheads necessary to run the South African head office and the costs associated with being listed in London.

Finance cost

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Factors affecting tax for the period - The tax assessed for the period at the Guernsey corporation tax charge rate of 0%, as explained below

Accumulated losses in the subsidiary undertakings for which there is an unrecognised deferred tax asset are £9 379 913 (August 2022: £5 131 401 and February 2023: £8 100 173).

Loss per share from continuing operations

The calculation of a basic loss per share of 0.18 pence (February 2022: loss per share of 0.25 pence and February 2023: loss per share of 0.60 pence), is calculated using the total loss for the period attributable to the owners of the Company of £2 755 819 (February 2022: £2 680 820 and February 2023: £7 753 819 and the weighted average number of shares in issue during the period of 1 538 528 155 (August 2022: 1 064 247 295 and February 2023: 1 291 331 804). Due to the loss for the period, the diluted loss per share is the same as the basic loss per share. The number of potentially dilutive ordinary shares, in respect of share options, warrants and shares to be issued as at 31 August 2023 is 76 309 563 (August 2022: 97 310 649 and February 2023: 77 636 918). These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share.

Intangible assets

The additions to the evaluation and exploration asset during the period mainly comprise of expenses capitalised as part of the Phase 2 exploration drilling project, the metallurgical test work programme, environmental studies, and region exploration projects.

Property, plant, and equipment

Additions to the mining asset under construction include capitalised costs and equipment purchased as part of the construction of the Bulk Sample Processing Facility. This includes a Lithium pilot plant, a Tantalum pilot plant and an ore sorting plant. Additions to the mining asset include capitalised costs and equipment purchased as part of the Uis Phase 1 Continuous Improvement project

Inventories

On 18 November 2022, a term loan facility of N$90 000 000 (c.£3 771 000), a VAT facility of N$8 000 000 (c.£335 000) and a working capital facility of N$35 000 000 (c. £1 476 000) was entered into between the Company's subsidiary, Uis Tin Mining Company (Pty) Ltd and Standard Bank Namibia. During the prior year, a vehicle asset financing facility to the value of N$15 000 000 (c. £629 000) was provided.

The maturity date of the term loan facility is November 2026 and the capital balance of the loan together with accrued interest will be repaid in quarterly instalments over the next 5 years. Interest is charged on the outstanding capital balance of the loan at a rate of 3-month JIBAR plus a margin of 4.5%.

The Group is required to meet the following covenants each year on 28 February as part of the term loan facility agreement:

§ EBITDA ÷ total interest must not be lower than 4.5 times

§ Total debt ÷ EBITDA must not exceed 4 times in year 1, 3.5 times in year 2 and 3 times thereafter

§ Free cash flow before Debt Service Cover ÷ Principal and Interest Senior Debt Service Payments must not be lower than 1.3 times

§ Free cash flow before Debt Service Cover + Total Cash Collateral ÷ Principal and Interest Senior Debt Service Payments must not be lower than 2 times

The Group received a covenant waiver from Standard Bank for the year ended 28 February 2023. The next measurement date will be 28 February 2024.

The VAT facility is secured by assessed/audited VAT returns (refunds) which have not been paid by Namibia Inland Revenue. Standard Bank Namibia provides a facility amounting to the unpaid refunds. Any drawdowns against this facility are repaid to the bank upon receipt of cash from Namibia Inland Revenue.

The VAT facility and the working capital facility have no fixed maturity date but are both renewed on an annual basis. Interest accrues on these facilities at the Namibian prime rate less 1%.

Standard Bank Namibia have provided a N$ 5 956 100 (c. £250 000) guarantee to the Namibia Power Corporation Pty Limited in relation to a deposit for the supply of electrical power. As a result of the guarantee provided by Standard Bank, no cash was paid over for the deposit.

On 21 July 2023 the Group issued 77 unsecured convertible loan notes of £100 000 each to new and existing investors. The notes have a term of 3 years, bear interest at a rate of 12% per annum and can be redeemed in cash only at the option of the Group or converted into ordinary shares at a fixed price of 9.45p by mutual agreement between the Group and the note holders. As per IAS 32 and IFRS 9, the convertible loan notes have been classified as a compound financial instrument. The principal amount is classified as equity because, at the election of the Group, they can avoid paying cash by delivering a fixed number of shares. The interest payments are classified as a liability because there is a contractual obligation to either pay cash or to deliver a variable number of the Group's shares. Refer to the Statement of Changes in Equity for the equity portion of this instrument and Note 24 for further details of the transaction.

Trade and other payables

Provision for future environmental rehabilitation and decommissioning costs are made on a progressive basis. Estimates are based on costs that are regularly reviewed and adjusted appropriately for new circumstances. The environmental rehabilitation liability is based on disturbances and the required rehabilitation as at 31 August 2023.

The rehabilitation provision represents the present value of decommissioning costs relating to the dismantling of mechanical equipment and steel structures related to the Phase 1 Pilot Plant, the demolishing of civil platforms and reshaping of earthworks. A provision for this requires estimates and assumptions to be made around the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required closure and rehabilitation activities. In calculating the appropriate provision, cost estimates of the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof are prepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability.

In determining the amount attributable to the rehabilitation liability, management used a discount rate of 13% (August 2022: 13% and February 2023: 13%), an inflation rate of 5.3% (August 2022: 7% and February 2023: 5.3%) and an estimated mining period of 12.9 years, being the Phase 1 expansion life of mine. Actual rehabilitation and decommissioning costs will ultimately depend upon future market prices for the necessary rehabilitation works and timing of when the mine ceases operation.

Lease liability

The Company assessed all rental agreements and concluded that the following rentals fall within the scope of IFRS 16: Leases and therefore a lease liability has been recognised:

The following is the split between the current and the non-current portion of the liability:

Authorised: 1 617 600 762 ordinary shares of no-par value

Allotted, issued, and fully paid: 1 538 955 533 ordinary shares of no-par value

On 16 September 2022, the Group completed an equity fundraising by way of a placing and direct subscription of 222 701 660 ordinary shares of no-par value in the Group at a price of 5 pence per share. A further 173 320 000 660 ordinary shares of no-par value in the Group at a price of 5 pence per share were issued on 10 October 2022 as part of the same capital raise.

On 25 January 2023, warrant holders exercised 20 000 000 warrants at an exercise price of 1.95.

On 11 May 2023, the Group issued 1 092 189 Ordinary Shares ("New Shares") to Directors in lieu of their fees for the financial years ended February 2022 and 2023. This is in accordance with the terms of their contracts.

Warrant reserve

The following warrants were granted during the period ended 31 August 2023:

The warrants in issue during the period are as follows:

On 21 July 2023, 15 400 000 warrants were issued as part of the convertible loan note transaction. Each note holder received 2 warrants for every £1 subscribed for. Each warrant enables the holder to subscribe for one ordinary share at a subscription price of 9.45p. The Warrants are exercisable at any time from the date of issue for a period of two years. Please refer to note 24 for further details.

Share-based payment reserve

Director share options

The following director share options were granted during the period ended 28 February 2023:

The director share options in issue during the period are as follows:

Employee share options

The following employee share options were granted during the period ended 28 February 2023:

The employee share options in issue during the period are as follows:

• Events after balance sheet date
• Funding:

On 5 September 2023, the Development Bank of Namibia ("DBN") served notice confirming that all conditions had been fulfilled or waived and that financial close had occurred. Accordingly, the Group received the 1st drawdown of NAD50 million (c. £2.1m) of a total NAD100 million (c. £4.2m). These Funds are being used to expedite the implementation of the Uis Mine Stage II Continuous Improvement Project

On 14 November 2023, a US$25m (c. £19.8m) funding packing was concluded with Orion Resource Partners. This includes US$2.5m (c. £2.0m) equity, a US$10m (c. £7.9m) Convertible Loan Note and a US$12.5m (c. £9.9m) unsecured tin royalty. The equity and loan note will be used to accelerate Andrada's overall strategy of achieving commercial production of its lithium, tin and tantalum revenue streams. The royalty funds will be used for the sole purpose of increasing Andrada's tin production as it ramps up its capital programmes over the next 2 years.

Exercise of share options:

On 29 September 2023, the Group issued 3 473 684 Ordinary Shares to satisfy the following employee share option exercises:

§ 1 736 842 share options at an exercise price of 3p

§ 868 421 share options at an exercise price of 3.5p

§ 868 421 share options at an exercise price of 4p

On 3 October 2023, the Group issued 7 315 786 Ordinary Shares to satisfy the following employee share option exercises:

§ 3 407 894 share options at an exercise price of 3p

§ 1 953 946 share options at an exercise price of 3.5p

§ 1 953 946 share options at an exercise price of 4p

• reserves within equity
• Share capital
• Convertible loan note reserve

The convertible loan note reserve represents the equity component of the outstanding convertible loan notes.

On 21 July 2023 the Group raised £7.7m through the issue of 77 unsecured convertible loan notes of £100 000 each to new and existing investors. The notes have a term of 3 years, bear interest at a rate of 12% per annum and can be redeemed in cash only at the option of the Group or converted into ordinary shares at a fixed price of 9.45p by mutual agreement between the Group and the note holders. As per IAS 32 and IFRS 9, the convertible loan notes have been classified as a compound financial instrument. The principal amount is classified as equity because, at the election of the Group, they can avoid paying cash by delivering a fixed number of shares. The interest payments are classified as a liability because there is a contractual obligation to either pay cash or to deliver a variable number of the Group's shares (based on the 30-day VWAP share price). Issues costs have been proportionally deducted for the liability and the equity component.

Warrant reserve

The warrant reserve represents the cumulative charge to date in respect of unexercised share warrants at the balance sheet date.

Share-based payment reserve

The share-based payment reserve represents the cumulative charge to date in respect of unexercised share options at the balance sheet date as well as fees/salaries owed to directors/employees to be settled through the issuing of shares.

Retained earnings/accumulated deficit

The retained earnings/accumulated deficit represents the cumulative profit and loss net of distribution to owners.

[END]