ANDROMEDA METALS LIMITED — Capital/Financing Update 2017

Dec 4, 2017

==> picture [136 x 131] intentionally omitted <==

Andromeda Metals Limited ABN: 75 061 503 375

Corporate details: ASX Code: ADN Cash: $0.498 million (at 30 November 2017) Issued Capital: 570,194,856 ordinary shares 21,369,257 listed options 799,681 unlisted options

Directors:

Rhod Grivas Non-Executive Chairman Chris Drown Managing Director Nick Harding Executive Director and Company Secretary

Andrew Shearer

Non-Executive Director

Contact details:

69 King William Road, Unley, South Australia 5061

PO Box 1210 Unley BC SA 5061 Tel: +61 8 8271 0600 Fax: +61 8 8271 0033 admin@andromet.com.au www.andromet.com.au

==> picture [136 x 55] intentionally omitted <==

==> picture [265 x 35] intentionally omitted <==

==> picture [265 x 35] intentionally omitted <==

ASX announcement

5 December 2017

Rights Issue – Notification of Shortfall

Andromeda Metals Limited (the Company ) wishes to advise that it received valid application monies from Shareholders of $985,630 pursuant to the 1-for-2 non-renounceable Rights Issue announced to the ASX on 9 November 2017 and which closed on 30 November 2017.

Applications were received under the Entitlement Offer ( Offer ) for a total of 197,125,999 fully paid ordinary shares ( New Shares ) of the 285,097,428 shares provided under the Offer. Pursuant to ASX Listing Rule 7.40 and Appendix 7A, the Company hereby gives notice of a shortfall in subscriptions of 87,971,429 shares ( Shortfall Shares ).

Under the terms of the Offer as outlined in section 2.8 of the Prospectus, the Shortfall Shares will be placed with professional and sophisticated investors who have provided firm commitments to take-up the shortfall through lead manager to the offer PAC Partners Pty Ltd.

The Company will issue and allot all New Shares applied for under the Offer on 7 December 2017 as per the Offer timetable. Under the terms of the Offer, for every New Share issued will also come 1 attaching Option exercisable at $0.012 and expiring on 30 November 2020.

The funds raised under the Offer (including the placement of the Shortfall Shares) will be principally used to fund the recommencement of exploration activities on the Company’s wholly owned Drummond Gold Project in north Queensland, complete initial exploration programs on the newly acquired Pilbara tenements in Western Australia and source new project opportunities in addition to meeting ongoing working capital requirements.

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

==> picture [140 x 57] intentionally omitted <==

Nick Harding Executive Director and Company Secretary