MEP JV Value with ADN

MEP own 25% of ADN project

It should be 25c + it’s 8.5c

Watching all day

Big buying

ADN

Andromeda’s market capitalisation appreciated markedly (about 250%) during the Quarter1 upon sound project news flow, ending September at ~$270 million,

that suggesting 100% JV project valuation of $360 million.

Whereas MEP Minotaur ‘s 25% proportionate inferred valuation of ~$90 million (allowing for all other assets in either entity being valued at $Nil) shows that relatively Minotaur is clearly undervalued, having a market capitalisation of $35.5 million

Directors believe this differential will progressively narrow as the project moves closer to realisation and firm commitments to product off-take are secured.

For guidance, the Board’s plan for participation in the Great White Kaolin JV is for the Company to maintain its 25% contributing share into production, presently projected to be mid 2022.

The flow-on benefit to Minotaur of significant annual EBITDA revenues of ~$20 million (according to Andromeda’s June 2020 PFS estimate) may position Minotaur as an exploration house cashed-up for growth with the flexibility to distribute profits to shareholders.

Cautionary note: the Board cannot determine a dividend policy unless and until the JV project delivers profitable cash flow.