Ann: Annual Report to shareholders, page-20

Both the Chairman's letter and the MD's letter mention new product opportunities of HPA and nanotechnologies. Neither mention concrete apps which is interesting. Both downplay the scaling back of the plant size as contemplated in the DFS with the Chairman commenting as follows in reference to the scale down in the plant size versus DFS:

'Importantly however, it remains the firm intention of Andromeda’s Board and Management to deliver the Project’s production and financial outcomes, as outlined in the DFS.'

Of course their intention is to ultimately deliver as outlined in the DFS, this is obvious - generally, all businesses want to grow and sell as much as possible. The reality is though that ADN have made the conscious decision to start smaller (in the full knowledge that this would provoke a shareholder backlash), as currently they simply don't have the sales to underpin the original plant size as contemplated in the DFS. And it's not like they haven't been trying to sell product - they have been promoting the products for quite some time now.

Additionally, they tried to deliver the market sensitive news re plant downsizing in a benign announcement primarily about ordering long lead time items, which IMO was completely misleading. When they did this, for me all trust in management was lost.

IMO the MD's position at ADN is untenable - IMO, if you are an MD of a listed entity it is incumbent on you to choose your words very carefully and strive to under promise and over deliver, not the other way around.

Enterprise value of ADN is now approx. $100 million and I don't have an opinion re whether this offers value or not - $100 million is still a very significant Enterprise value. They may surprise and pull a rabbit out of the hat (IMO unlikely but not impossible). For me, I won't invest when I don't believe in the management and I still see more attractive risk versus reward investments elsewhere.

GLTA & DYOR