ANDROMEDA METALS LIMITED — Capital/Financing Update 2012

Mar 18, 2012

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F I E L D
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PUBLIC RELATIONS

Media Release

Monday 19 March, 2012

NEW COPPER AND GOLD DISCOVERIES FOR

ADELAIDE RESOURCES ON SA’s YORKE PENINSULA

A decision to drill unexplored areas on the northern Yorke Peninsula of SA has yielded new copper and gold mineralisation for Adelaide Resources Limited (ASX: “ADN”).

The Company announced significant copper results today from the Paskeville Prospect, just north of the township of the same name, and positive gold and copper results from the Copper Hill East Prospect, just west of the Paskeville township.

Both prospects are part of the Company’s broader Moonta Project area.

They resulted from recent first pass aircore drilling undertaken by Adelaide Resources in an area on Yorke Peninsula at the southern end of the Olympic Copper Gold Province.

The first drillhole into the Paskeville Prospect, a large previously undrilled target apart from a single unassayed drillhole in 1975, intersected broad zones of copper mineralisation, including two zones with good grade-width characteristics.

The drillhole, PAC001, intersected 10 metres at 1.06% copper from 11 metres downhole, and 9 metres at 1.27% copper (including 2 metres at 4.03% copper) commencing from 58 metres downhole. The hole remained in low grade copper mineralisation at its final depth of 75 metres.

Assays for 19 additional holes from Paskeville are not yet available, but copper-bearing minerals have been visually identified in 15 of these holes indicating that mineralisation is widespread.

At Copper Hill East, analyses from the first 7 of 31 aircore holes drilled at the prospect are also encouraging with one hole intersecting 5 metres at 3.73 g/t gold from 25 metres downhole, and values of up to 0.45% copper present in another hole.

Adelaide Resources’ Managing Director, Mr Chris Drown, said that while these are early stage results, nonetheless the Company considers them to be very positive.

“Both prospects are effectively new discoveries of copper and gold mineralisation in areas around Moonta that have seen little or no historical exploration,” Mr Drown said.

“The visual observation of copper bearing minerals in drillholes now being assayed suggests that both prospects remain open and have potential to have significant dimensions,” he said.

231 South Road, MILE END SA 5031 www.fieldpr.com.au Tel: 08 8234 9555

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“There are more than 600 additional aircore drill samples from each prospect currently being assayed and receipt of these results is anticipated in the next two weeks for Copper Hill East, and the next four weeks for Paskeville.

“Interpretation of these results is expected to significantly improve the Company’s understanding of these new prospects, allowing the design and implementation of follow-up exploration to be undertaken.”

Such is Adelaide Resources’ confidence in the prospects that it has already committed to a second round of drilling on the prospects, to commence in three weeks.

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Mr Drown said the surface geochemical anomaly that defined the Paskeville Prospect, while somewhat patchy, was of a very significant size, with overall dimensions of approximately 4.5 x 2.0 kilometres.

“We are effectively the first company to explore this target, with our 2012 drilling program to date testing only a very small part of the anomalous area. We believe there is considerable scope for the discovery of further mineralisation elsewhere at Paskeville.”

Mr Drown said the geochemical anomaly targeted at the Copper Hill East Prospect boasted individual calcrete samples with some of the highest copper and gold results found in the entire Moonta Project geochemical database. “Limited shallow historical drilling intersected low grade copper and gold lending further support to our confidence in the quality of the target,” he said.

“The grade of gold intersected at the Copper Hill East Prospect is significant when considered along with historical exploration data from the broader Moonta Project and as the intersection was in a 5-metre composite sample, 1-metre resplit samples from this, and other gold anomalous zones from Copper Hill East, will be submitted for assay.”

MEDIA CONTACT:

Chris Drown Adelaide Resources (08) 8271 0600 | 0427 770 653 Kevin Skinner Field Public Relations (08) 8234 9555 | 0414 822 631

231 South Road, MILE END SA 5031 www.fieldpr.com.au Tel: 08 8234 9555

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