ANDROMEDA METALS LIMITED — Capital/Financing Update 2017

May 18, 2017

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Andromeda Metals Limited ABN: 75 061 503 375

Corporate details: ASX Code: ADN

Cash: ~$0.125 million (at 31 March 2017) Issued Capital: 405,767,063 ordinary shares

Directors:

Colin G Jackson Non-Executive Chairman Chris Drown Managing Director Nick Harding Executive Director and Company Secretary

Jonathan Buckley 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

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ASX announcement

19 May 2017

Rights Issue – Notification of Shortfall

Andromeda Metals Limited (the Company ) wishes to advise that it received valid application monies from shareholders of $378,720 pursuant to the 1-for-2 non-renounceable Rights Issue announced to the ASX on 13 April 2017 and which closed on 16 May 2017.

Applications were received under the Entitlement Offer ( Offer ) for a total of 47,340,034 fully paid ordinary shares ( New Shares ) of the 202,883,532 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 155,543,498 shares ( Shortfall Shares ).

Under the terms of the Offer as outlined in section 2.9 of the Prospectus, 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 Offer on 23 May 2017 as per the Offer timetable. Under the terms of the Offer, for every 2 New Shares issued will also come 1 attaching Primary Option exercisable at $0.012 and expiring on 31 March 2018. For every Primary Option exercised before the expiry date, a Secondary Option will be issued having an exercise price of $0.015 and an expiry date of 31 March 2019.

The funds raised under the Offer (including the placement of the Shortfall Shares) will be principally used to fund exploration activities on the Company’s wholly owned projects in South Australia and Queensland 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.

Fact: It takes on average seven years to convert a discovery into an operating mine according to research undertaken by the University of Western Australia.

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Nick Harding Executive Director and Company Secretary