ANDROMEDA METALS LIMITED — Capital/Financing Update 2014

Nov 4, 2014

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5 November 2014

RIGHTS ISSUE – NOTIFICATION OF SHORTFALL

Adelaide Resources Limited (ASX: ADN, the Company) is pleased to advise that its 1-for-2 non-renounceable Rights Issue, which closed on Thursday 30 October 2014, received strong support from many of the Company’s shareholders in a difficult market.

Applications were received under the Entitlement Offer for a total of 40,126,122 fully paid ordinary shares (New Shares) of the 114,539,906 shares provided under the Entitlement Offer for a total subscription amount received of $1,203,784. Pursuant to ASX Listing Rule 7.40 and Appendix 7A, the Company hereby gives notice of a shortfall in subscriptions of 74,413,784 shares (Shortfall Shares).

Under the terms of the Entitlement Offer as outlined in section 2.9 of the Prospectus for the Offer, the Directors may issue the shortfall shares at their discretion within 3 months of the Offer close date.

The Company will issue and allot all New Shares applied for under the Entitlement Offer on Friday 7 November 2014 as per the Offer timetable. Under the terms of the Offer, for every 2 new shares issued will also come 1 attaching New Option exercisable at $0.05 and expiring on 30 September 2016.

The funds raised under the Offer (including the placement of the Shortfall) will be principally used to recommence drilling programs at the Company’s exciting existing discoveries and to test a number of earlier stage targets.

The Board of Directors wishes to express its appreciation to all participating shareholders for their strong support of the Entitlement Offer.

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Chris Drown

Managing Director

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