General comments/chat, page-236

Hi Rattle - It's right at the very end of this ANN about the Chinese visit to our site - I read the whole ANN again and I can tell you that I am just so pleased with myself for having a real big crack at ADN - the potential is simply massive but just as importantly we are being driven by a truly sheeeet hot bunch of Directors and having JM in charge is a dead set God-Send IMO. If I had another 6 figures spare to throw at ADN I would without blinking an eyelid

Chinese company representatives and Andromeda directors at T‐Ports Lucky Bay port facility Following the visit, the Chinese company expressed interest to progress discussions with Andromeda for a premium kaolin product as well as collaborating on potential HPA production in China. To further illustrate the opportunity to meet an increasing demand by Chinese customers to source quality kaolin supplies from overseas, effective from 1 June 2019, the Chinese government will be applying a tariff of up to 28% on all imported kaolin from the United States, which is currently a significant supplier into China. USA Dry‐Processing Trials Dry‐processing trials, with Andromeda executive management in attendance, were conducted during the previous week on a 500kg sample of raw ore from Carey’s Well by an American world leader in the design and supply of kaolin plants with the objective to determine optimal plant componentry and operational parameters. Samples from this processing will be freighted back to Australia for analysis before a final optimisation run is undertaken later in the month. All data collated from these trials will be compared with large scale trials already conducted in Australia and China. Additional dry‐processing trials will be conducted with another Chinese company during June to obtain further data for process plant design optimisations. Figure 3: Dry processing trials performed on Carey’s Well ore by USA leader in kaolin plant design Scoping Study Based on discussions held in China with a number of potential customers of halloysite‐kaolin and the positive follow‐up Australian field visit by one of these groups, ADN has decided to fast‐track a study on dry‐processing at Poochera in order to build on the initial encouraging testwork undertaken in Australia and China and which is currently being completed in the USA. The Company is to engage a process engineering consulting group to review dry‐processing plant designs, develop process design flow sheets, mass balance modelling, plant layouts and capital and operating costings for inclusion in the Scoping Study. A positive dry‐processing result would lead to a higher value dry‐processed halloysite‐kaolin product being produced on site, in addition to the current evaluation of the direct shipping ore (DSO) option. As a consequence of this important engineering study, the expanded Scoping Study to consider both DSO and dry‐processing options for Carey’s Well ore is now anticipated to be released during the next quarter.