Annual financial statement
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RNS Number : 5858SAndrada Mining Limited28 August 2026 28 August 2026 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information will be in the public domain. ANDRADA MINING LIMITED ("Andrada" or the "Company") AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2026 NOTICE OF ANNUAL GENERAL MEETING Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a tin producer with a portfolio of critical metals mining andexploration assets in Namibia is pleased to announce its audited financial results for the 12-months ended 28 February 2026 ("FY2026"). HIGHLIGHTS Operational · Ore processed: increased by 8% Year-on-Year ("YoY") to 1 042 299 tonnes (FY2025: 965 058 tonnes). · Tin concentrate: increased 15% YoY to 1 740 tonnes (FY2025: 1 507 tonnes). · Contained tin produced: increased by 13% to 1 036 tonnes (FY2025: 921 tonnes). · Tin recovery: maintained at 72% (FY2025: 72%). · Tin shipments: increased by 7% to 63 (FY2025: 59). Financial · Revenue: increased by 34% to £30.1 million (FY2025: restated £22.4 million). · Realised average tin price per tonne: increased by 20% to US$37 133 (£27 797) (FY2025: US$31 081 (£24 400)). · Gross profit: increased to £7.7m (FY2025: £3.0m) · Operating loss: improved to £2.6 million (FY2025: loss of £3.9 million). · EBITDA*: increased to £3.3m (FY2025: £0.5m) · Operating Cash Flow: increased by £8.7m to £4.7m (FY2025: loss £4.0m) · Importantly, Andrada moved from cash consumption to cash generation * EBITDA refers to earnings before interest, taxation, depreciation and amortisation Strategic · Andrada's long-term tin off-taker Thailand Smelting & Refining Co. Ltd ("Thaisarco") strengthened its supply agreement with the Company's wholly owned subsidiary Uis Tin Mining Company (Proprietary) Limited ("UTMC") by securing exclusivity over all the concentrate produced from the Uis operations. Thaisarco also provided an unsecured US$3m exclusivity payment to be repaid at UTMC's discretion subject to the agreed repayment terms. · Lithium Ridge exploration drilling with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd ("SQM") confirmed high-grade lithium mineralisation alongside substantial tin and tantalum mineralisation, during its initial work programme. · Andrada secured a staged earn-in partnership with BWCAM Limited ("BWCAM") to develop Brandberg West. The partnership is primarily to advance the assessment of tailings recovery potential and to fund ongoing exploration.
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· Andrada secured a cooperation agreement with the European Investment Bank ("EIB") for the latter to provide non- dilutive technical assistance of up to €2m to advance the Uis lithium expansion project towards bankable feasibility. · Andrada converted US$3.1m of debt being the combination of the principal amount of US$2.5m and accrued facility fees of US$0.56m from its largest shareholder, The Orange Trust, into equity. The conversion was at a 15-day volume weighted average price ("VWAP") of 3.85p per share being approximately 1.3% below the 3.90p per share previous closing price. The conversion preserved cash and released the Jig Plant from security obligations related to the debt. · Andrada successfully raised £5m including strategic equity subscription of £4.5m from Talent10 Resources Proprietary Limited ("Talent10") as the anchor investor. Talent10 has highly respected mining acumen, backed by a network of experienced mining investors and industry participants. GLEN PARSONS, CHAIRMAN OF ANDRADA: "During the year, the Board ensured that capital was allocated prudently, governance continued to evolve, operational performance improved, and the Company's portfolio of critical minerals assets was positioned to deliver sustainable long- term shareholder value. The year was characterised by strengthening production at Uis, encouraging progress in exploration at Lithium Ridge under our strategic partnership with SQM, and the introduction of BWCAM as a development partner for Brandberg West. Together, these milestones confirm Andrada's position as a diverse critical minerals company in Namibia, anchored by established tin and tantalum production and supported by significant growth opportunities across lithium, tungsten and copper." ANTHONY VILJOEN, CEO OF ANDRADA: "The 2026 financial year represented an important step in Andrada's evolution from a single-asset tin producer into a diversified, district-scale critical minerals company. The strategy has been deliberate. Andrada has assembled a portfolio of historically significant mining assets across one of Namibia's most prospective mineral districts and systematically worked to understand, consolidate and de-risk them. These assets were not unknown. Uis, Lithium Ridge and Brandberg West all have histories extending back decades. What has changed is the geological understanding, processing technology, commodity environment and, increasingly, the strategic importance of the minerals they contain." Outlook Andrada enters the next phase of its development from a materially stronger position. Uis is in production and demonstrating improving operating leverage. Lithium Ridge is funded and partnered with one of the world's leading lithium companies. Brandberg West is being advanced with external capital and technical support. The broader mineral district is increasingly understood, and the commodities within our asset portfolio, namely tin, lithium, tungsten, tantalum and copper are central to some of the most important long-term changes taking place in the global economy. For much of Andrada's history, the task was to identify the opportunity, secure the assets, establish the operating platform and progressively de-risk the portfolio. That groundwork has been done. ANNUAL REPORT The Annual Report including the Annual Financial Statements for the 2026 financial year ended 28 February 2026 is now available on the Company's website at the following link: https://andradamining.com/media/reports/. Physical copies of the Annual Report will also be posted today to shareholders who elected to receive them. ANNUAL GENERAL MEETING A Notice of Annual General Meeting ("AGM") will be distributed to shareholders today and is now available on the Company's website: https://andradamining.com/media/reports/. The AGM will be held at 11.00am on 30 September 2026, at PO Box 142, Suite 2, Block C, Hirzel Court, St Peter Port, Guernsey GY1 2NN. CONTACT Andrada Mining Limited Anthony Viljoen, CEO Sakhile Ndlovu, Head of Investor Relations +27 (11) 268 6555 NOMINATED ADVISOR & BROKER +44 (0) 20 3829 5000 Zeus Capital Limited Katy Mitchell Andrew de Andrade Harry Ansell
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CORPORATE BROKER & ADVISOR H&P Advisory Limited Andrew Chubb Matt Hasson +44 (0) 20 7907 8500 VSA Capital +44 (0) 20 3005 5000 Andrew Monk Brian Wong FINANCIAL PUBLIC RELATIONS +44 (0) 207 920 3150 Tavistock Emily Moss Josephine Clerkin andrada@tavistock.co.uk CHAIRMAN'S STATEMENT Dear Shareholders, I am pleased to report that FY2026 marked an important transition for Andrada, as the Group progressed from strategic positioning to the focused and disciplined execution of its long-term growth strategy. During the year, the Board ensured that capital was allocated prudently, governance continued to evolve, operational performance improved, and the Company's portfolio of critical minerals assets was positioned to deliver sustainable long-term shareholder value. The year was characterised by strengthening production at Uis, encouraging progress in exploration at Lithium Ridge under our strategic partnership with SQM, and the introduction of BWCAM as a development partner for Brandberg West. Together, these milestones confirm Andrada's position as a diverse critical minerals company in Namibia, anchored by established tin and tantalum production and supported by significant growth opportunities across lithium, tungsten and copper. Governance and Board oversight Strong governance remains fundamental to maintaining the confidence of all stakeholders. Throughout the year, the Board continued to apply the Quoted Companies Alliance ("QCA") Corporate Governance Code, updating the terms of reference of each Board Committee to align with the 2023 edition of the Code and to ensure our governance framework remains appropriate for the Company's evolving scale, complexity and strategic ambitions. Further details of our governance practices are provided in the Corporate Governance Report in the Annual Report. Following changes to the Board after the Annual General Meeting ("AGM") held on 30 September 2025, Gida Nakazibwe Sekandi was appointed Chair of the Remuneration and Nomination Committee ("REM Committee") and Laurence Robb was appointed Chair of the Environmental, Social and Governance Committee ("ESG Committee") ensuring continuity and appropriate governance coverage. As Andrada evolves from a single-asset producer into a broader critical minerals development company, the Board recognises the importance of ensuring that its composition, committee structures and oversight capabilities continue to evolve alongside the business. Maintaining an appropriate balance of technical, financial, governance and jurisdictional expertise remains a key priority. An internal independent skills gap assessment conducted in the prior financial year has informed the broader Board renewal process including independent search for new Directors to fill the skills gaps. Our oversight extended well beyond growth initiatives. Throughout the year, the Board maintained close attention to operational performance, capital allocation, financial resilience, project execution, sustainability, stakeholder engagement and the quality of the Company's external communications. In an increasingly discerning investment environment, effective governance must be prioritised alongside consistent operational delivery. Risk management The Board continued to strengthen the Company's enterprise-wide risk management framework by reviewing and monitoring principal risks across operational, financial, environmental and geopolitical areas. Particular emphasis was placed on balance sheet resilience, production reliability, project execution, cost discipline, stakeholder engagement and ESG performance. The Board also monitored developments within Namibia's regulatory environment including the establishment of the eighth administration and its impact on policy, political and economic factors. While we continue to regard Namibia as
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one of Africa's leading mining jurisdictions, we recognise that maintaining constructive relationships with government, regulators, host communities and other stakeholders is fundamental to the Company's long-term success. Details of our risk management framework are provided in the Directors' Report in the Annual Report. Strategy and portfolio development A significant focus of the Board during the year was ensuring that Andrada's high-quality asset portfolio translates into sustainable shareholder value. Focus remained on sharpening the Company's investment proposition while ensuring that future growth ambitions remain definitive, achievable and supported by appropriate financial and operational capacity. The Board endorsed management's communication strategy to describe Uis as a scalable, cash-generating operation while recognising Lithium Ridge and Brandberg West as distinct development opportunities with independent value potential. Collectively, these assets benefit from Andrada's established regional presence, technical capability and established operating production platform, creating opportunities for long-term value creation through a diversified critical minerals portfolio. Equally important was ensuring that the Company's external messaging accurately reflects operational progress. The key objectives are to enhance investor communications through clearer disclosure of exploration potential, resource development, licence holdings, project execution and growth priorities. Ultimately, investor confidence will continue to be built through disciplined execution and measurable delivery. Operational oversight Operational performance at Uis, as the flagship asset, remained central to the Board's oversight throughout the year. We closely monitored progress against Uis Mine's Continuous Improvement Programme objectives, focusing on production stability, processing efficiencies, cost optimisation and the implementation of key infrastructure upgrades. The Board welcomed the progress achieved through continuous improvement initiatives while continuing to challenge management in areas where execution had fallen behind expectations. We also monitored the advancement of strategic projects, including ore sorting, the Jig Plant and third-party ore supply initiatives, recognising their importance in supporting future production growth and preparing the operation for the integration of lithium production. Capital allocation and strategic partnerships Disciplined capital allocation remains fundamental to unlocking the full value of Andrada's asset portfolio. Throughout the year, the Board maintained rigorous oversight of the Company's funding strategy, assessing the impact of debt, royalties and equity financing on long-term strategic flexibility while supporting management's engagement with lenders, strategic investors and potential funding partners. The Board also remained vigilant regarding related-party transactions, regarding the conversion of The Orange Trust's loan into equity during January 2026 and the subsequent amendment of the convertible loan notes after the reporting period. The Board employed best practice transparency, consulted independent third parties including advisers, and employed additional procedural safeguards. The transaction ultimately strengthened the Company's capital structure and reduced funding risk. The Board believes that strategic partnerships remain one of the most effective mechanisms for accelerating project development while managing funding risk. We are particularly encouraged by the progress achieved with SQM at Lithium Ridge, where exploration advanced from planning into active drilling, providing strong technical validation of the project's potential. Similarly, the introduction of BWCAM at Brandberg West represents an important step in advancing another highly prospective asset within the portfolio. These partnerships demonstrate the quality of Andrada's assets and our ability to attract internationally recognised strategic partners with significant funding. Sustainability oversight Responsible, sustainable mining continues to be integral to the Board's governance framework. Through the ESG Committee, we oversaw the strengthening of the Company's sustainability function and the implementation of a comprehensive environmental and social action plan. We are pleased to retain an exceptionally high rate of local employment, with a workforce that is 98% Namibian, while local procurement exceeded 80%, demonstrating Andrada's meaningful contribution to the national economic development. Although the Group recorded no fatalities during the year, the Board recognises that safety performance requires continuous vigilance. Critical risk management, contractor oversight, fatigue management, Visible Felt Leadership and the timely close-out of high-potential incidents remain key priorities. The Board also maintained oversight of environmental management, including water stewardship, dust control, tailings management and biodiversity
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protection. We were particularly pleased by the successful renewal of the Uis water abstraction licence, securing a three-year licence valid until January 2029. Further details of the Company's sustainability performance are presented in the Annual Report and the Sustainability Report that will be released in September 2026. Acknowledgements On behalf of the Board, I extend my sincere appreciation to Terence Goodlace and Michael Rawlinson for their valuable service, sound judgement and contribution to Andrada's development during their tenure. I also thank my fellow Directors for their hard work, commitment and effective governance oversight throughout the year. The Board has continued to perform its duty to shareholders effectively, challenging assumptions where necessary and ensuring that the Company's strategic direction remains focused on long-term value creation. My thanks also extend to our executive management team, employees, contractors and strategic partners for their professionalism, dedication and commitment during another demanding year. Finally, I thank our shareholders, lenders, host communities and the Government of Namibia for their continued confidence and support. We recognise that the progress achieved during the year must ultimately translate into sustainable financial performance and long-term shareholder value, and the Board remains firmly committed to ensuring the Company delivers against these objectives. Board leadership transition This upcoming AGM on 30 September 2026 will mark an important leadership transition as Laurence and I have advised the Board of our intention to step down as Directors at the conclusion of the AGM. I will effectively be retiring as the Board Chairman with great confidence in the Company's future and in the strength of the remaining Board members that will guide the Company's next phase of growth. At the time of writing this report, two additional Board candidates had been identified and are undergoing due diligence procedures and verification by the NOMAD to maintain a Board makeup of five individuals including the two Executive Directors. It has been a privilege to serve as Chairman during a period in which Andrada has evolved from being a start up, then a single-asset tin producer and now a diversified critical minerals company. I firmly believe that the Company's portfolio of high-quality development assets and strategic partnerships position the business for long-term growth. I am delighted that the Board has appointed Gida Nakazibwe Sekandi to succeed me as Chairman. Gida has served as an Independent Non-Executive Director since 2023 and has made a significant contribution to the Board through her leadership of the REM Committee, her strong governance expertise and extensive Namibian board experience. Her deep understanding of the Company, together with her international experience in governance, finance and the natural resources sector, makes her exceptionally well placed to lead the Board, and the Company, through its next chapter. I thank my fellow Directors, management, employees, shareholders, strategic partners and all our stakeholders for their trust, support and commitment throughout my tenure. I leave the Group confident that Andrada is well positioned to continue creating sustainable long-term value. Looking forward As we enter FY2027, Andrada is better positioned than at any point in its recent history, underpinned by strengthening cash generation from the Uis operation, a diversified portfolio of critical minerals assets, strengthened institutional support and strategic partnerships that provide both technical expertise and development capital. The Board will continue to oversee the expansion of Uis, the advancement of lithium integration studies, ongoing exploration at Lithium Ridge with SQM and the development pathway for Brandberg West with BWCAM. Together, these initiatives provide a clear framework for future growth and reinforce Andrada's ambition to become a leading producer of critical minerals in Namibia. The opportunities ahead are significant. The Board's responsibility is to ensure that they are pursued with disciplined governance, prudent capital allocation and effective oversight, so that Andrada's considerable resource potential is translated into sustainable long-term value for all stakeholders. GLEN PARSONS CHAIRMAN 27 August 2026
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CHIEF EXECUTIVE OFFICER'S REVIEW Building a district: scale critical minerals platform The 2026 financial year represented an important step in Andrada's evolution from a single-asset tin producer into a diversified, district-scale critical minerals company. The strategy has been deliberate. Andrada has assembled a portfolio of historically significant mining assets across one of Namibia's most prospective mineral districts and systematically worked to understand, consolidate and de-risk them. These assets were not unknown. Uis, Lithium Ridge and Brandberg West all have histories extending back decades. What has changed is the geological understanding, processing technology, commodity environment and, increasingly, the strategic importance of the minerals they contain. The opportunity Andrada identified was to bring these assets together within a modern mining company, apply contemporary exploration and processing techniques, establish the infrastructure and operating capability required to develop them and progressively introduce strategic partners and external capital. That strategy is now beginning to mature. The groundwork has largely been done. The assets have been consolidated, the geological understanding has advanced considerably, the operating platform at Uis has strengthened and internationally recognised partners are now helping fund and accelerate the development of the wider portfolio. The next phase is about converting that platform into production, cash generation and shareholder value. A stronger operating platform at UIS Strategic ambition must be supported by operational delivery, and FY2026 demonstrated further progress at Uis. Annual ore processed increased by 8% to approximately 1.04 million tonnes, while tin concentrate production increased by 15% to 1 740 tonnes and contained tin production increased by 13% to 1 036 tonnes. Tin recovery was maintained at 72%, while shipments increased by 7% to 63 during the year. These improvements reflect the benefits of the continuous improvement programme, focused maintenance and the development of operating capability within the Uis team. Importantly, the operational improvement is increasingly translating into stronger financial performance. Revenue increased by 34% to £30.1m, gross profit increased to £7.7m, and EBITDA improved materially to £3.3m, compared with £0.5m in the prior year. This represents an important transition for Andrada. The objective is not simply to produce more tonnes, but to improve the operating leverage of the business and strengthen the cash-generating capacity of Uis. The focus therefore remains on scale and margin. My team continues to evaluate opportunities to increase throughput, improve recoveries, introduce ore sorting and higher-grade feed and, over time, integrate lithium production into the existing operation. The commissioning of the 100 tph Jig Plant during the year represents another step in this modular approach to expansion. The Jig Plant is now being utilised as a pre-concentration stage within the Uis processing circuit. In parallel, Andrada secured funding for the development of the ore-sorting circuit, which has the potential to further improve feed grade, throughput and operating efficiency. The objective remains straightforward: increase production, reduce unit costs and extract more value from every tonne mined. Polymetallic production: extracting more value from UIS The polymetallic nature of the Uis orebody remains one of Andrada's most important strategic advantages. Tin remains the principal revenue generator, while tantalum provides an established secondary product. Lithium represents the next significant opportunity. The long-term development model at Uis is therefore not based on establishing a separate mine and infrastructure base for every critical mineral. The opportunity is to progressively recover multiple valuable minerals from the same mineralised system and, wherever possible, utilise common mining, processing and infrastructure. That is potentially one of the most important sources of future operating leverage within the business. The Company has already demonstrated the ability to produce petalite concentrate through its pilot facility, while the completion of the lithium integration prefeasibility study and the €2m non-dilutive technical assistance agreement with the
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European Investment Bank provide a pathway to further evaluate integration of lithium production into the existing Uis operation. The ability to recover tin, tantalum and lithium from the same mineralised system has the potential to materially strengthen margins and cash generation as Uis develops. Exploration: proving the scale of the district Exploration remains at the centre of Andrada's strategy because each successful programme increases the understanding, scale and development optionality of the portfolio. At Uis, Andrada has identified approximately 180 mineralised pegmatites, while the existing 135 million tonne resource relates to only two of these, V1/V2. In FY2025, the Company completed validation drilling across 13 proximal pegmatites in the northern and central clusters surrounding the existing operation. The programme was designed to validate historic tin mineralisation, assess lithium and tantalum potential and improve resource classification. Initial results confirmed mineralisation across the pegmatites tested, including intersections containing grades of up to 1.13% tin, 1.76% lithium oxide and 281 ppm tantalum. These results are important not simply because of individual grades, but because they demonstrate the broader mineral endowment surrounding the existing operation. The opportunity is to progressively convert this historic district into a modern, defined resource base capable of supporting a substantially larger and more diversified mining operation. Lithium Ridge: from historic occurrence to strategic lithium asset Lithium Ridge is perhaps the clearest demonstration of Andrada's ability to identify a historic opportunity and systematically de-risk it. What began as an underexplored mineralised area has developed into an increasingly significant lithium project. The introduction of SQM as a strategic partner materially changed the risk profile of the asset. Rather than funding an extensive exploration and development programme entirely from Andrada's balance sheet, the Company secured the participation of one of the world's leading lithium producers. The partnership brings funding, technical expertise and, importantly, independent validation of the potential Andrada identified at Lithium Ridge. Exploration has continued to demonstrate continuity and scale across the mineralised system, with drilling confirming high-grade lithium mineralisation together with meaningful tin and tantalum. Results reported to date have included lithium grades of up to 3.46% Li₂O. The objective is to progressively convert that geological potential into a defined resource and establish the optimal development route for the asset. Andrada has therefore moved from having lithium optionality within its portfolio to having a funded and strategically partnered lithium growth asset. That is an important distinction. Brandberg West: rediscovering a strategic mine Brandberg West provides another example of the same strategy in action. The mine historically produced tin and tungsten before operations ceased during the collapse in commodity prices in the 1980s. Andrada's geological work demonstrated that the mineralised system had not been exhausted. Drilling confirmed significant high-grade tin, tungsten and copper mineralisation, including reported grades of up to 10.55% tin, 3.53% tungsten and 1.95% copper. These results materially changed the understanding of Brandberg West and reinforced the view that a historically important mine may contain a much larger modern development opportunity. The subsequent introduction of BWCAM as a strategic development partner represents the next stage of de-risking. The partnership provides capital and technical support to accelerate exploration, metallurgy and development studies while allowing Andrada to retain meaningful exposure to the value of the asset. The timing is particularly compelling. Tungsten has emerged as one of the world's most strategically important and supply- constrained metals, with applications across defence, aerospace, advanced manufacturing and technology. Tin and copper are similarly benefiting from increasing demand associated with electrification, digital infrastructure and the expansion of computing capacity. Brandberg West therefore represents more than the revival of a historic mine. It provides Andrada with exposure to a strategically important group of commodities at precisely the time that security of supply is becoming a global priority. Strategic partnerships: validation and capital One of the most important developments in Andrada's evolution has been the ability to attract strategic partners to individual assets. This is deliberate. The scale of Andrada's portfolio is significantly greater than the Company's own balance
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sheet. The objective has therefore been to retain meaningful exposure to the assets while bringing in partners with the capital, technical expertise and strategic capability required to accelerate their development. SQM at Lithium Ridge and BWCAM at Brandberg West are the clearest examples of this approach. Across these partnerships, Andrada has secured access to substantial staged partner funding while retaining exposure to the upside created as the projects are progressively de-risked. This external capital materially changes the development profile of the Company. It allows multiple assets to advance simultaneously without requiring Andrada shareholders to fund every stage of development directly. The strengthening of the long-standing relationship with Thaisarco provides further commercial validation. During the year, Thaisarco secured exclusivity over concentrate produced from Uis and provided an unsecured US$3m exclusivity payment. Alongside SQM, BWCAM, the EIB and the strategic investment led by Talent10, this demonstrates the increasing willingness of industry participants and institutions to commit capital to Andrada and its assets. Building through difficult markets The journey to this point has not been linear. Andrada has had to navigate difficult capital markets, commodity cycles and periods in which preserving cash required difficult decisions. At times, capital-intensive projects were deliberately slowed or deferred to protect the financial position of the Company. Those experiences have ultimately helped shape the more disciplined, partnership led development model being implemented today. The result is a business with a stronger operating foundation, multiple development options and substantially greater external participation in funding the next phase of growth. Namibia - building something that lasts The Company has an equally important responsibility to ensure that the development of these mineral assets creates lasting value for Namibia and for the communities in which Andrada operates. Namibia is central to Andrada's identity. The country provides the geological endowment, infrastructure, institutional stability and skilled workforce that have enabled the Company to build this critical minerals platform. In return, Andrada is committed to ensuring that the expansion of the business translates into employment, skills development, local procurement and broader economic participation. I am particularly proud of the Namibian men and women who have built Andrada alongside my management team. Today, 98% of Andrada's workforce is Namibian and 88% of senior management is Namibian, while local procurement continues to exceed 80%. These figures matter because the objective is not simply to create jobs. It is to create skills, careers and opportunities that remain in Namibia. The economic impact of Andrada extends well beyond the mine gate, supporting contractors, suppliers, families and businesses throughout the wider economy. As the district-scale strategy develops, this impact has the potential to increase considerably. New mines require people. Expanded processing requires people. Exploration programmes require geologists, drillers and technicians. Infrastructure requires contractors and suppliers. Every asset Andrada successfully advances has the potential to create another layer of economic activity within Namibia. The global competition for critical minerals is intensifying, but the countries that host these resources are increasingly and rightfully expecting to participate substantively in the value created from them. Andrada supports that principle. My ambition is that the success of Andrada is increasingly regarded not simply as the success of a listed mining company operating in Namibia, but as a Namibian mining success story that is built with Namibian people to develop Namibian resources and to create opportunities for future generations of proud Namibian citizens. Safety, people and responsible mining Responsible mining must underpin that ambition. Safety remains deeply personal to me and to the leadership team. During FY2026, Andrada recorded no fatalities and achieved a material improvement in its total recordable injury frequency rate, which reduced to 3.61, below the Company's internal target of 6.1. Incident severity and the number of high-potential incidents also reduced. Initiatives including Focus to
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Live, increased visible leadership, proactive fatigue management, in-vehicle drowsiness monitoring and employee wellness support are helping embed a culture in which every person should return home safely after every shift. The culture of the organisation is equally important. I am encouraged by the strong confidence our people continue to demonstrate in Andrada's leadership. The most recent leadership culture survey recorded particularly strong confidence in the Company's ethical standards, while also identifying areas in which we can continue to improve communication, collaboration and leadership visibility. Environmental stewardship remains fundamental, particularly responsible water management in the arid Erongo region. During the year, Uis secured a new three-year water abstraction licence valid until January 2029, while the installation of a filter press has increased water recovery and recycling within the processing operation. Security of supply is increasingly about more than geology. Customers, governments and strategic partners want critical minerals that are responsibly produced, traceable and sourced from stable jurisdictions. Namibia provides Andrada with an important advantage in this regard. Acknowledgements These milestones would not have been possible without the continued support and commitment of our shareholders, lenders, employees, strategic partners, government and the communities located adjacent to our operations. I would also like to thank the Board for its continued guidance and support, and in particular our outgoing Directors, Glen and Laurence, for their significant contribution to Andrada's growth and development. As they retire from the Board, we extend our sincere appreciation for their leadership, experience and commitment, and wish them well in their future endeavours. Their stewardship has helped position Andrada for its next phase of growth. We also look forward to working with our new Directors as the Company enters a period increasingly defined by execution across the portfolio. I am particularly proud of the men and women in Uis, Windhoek and Johannesburg who have continued to build Andrada through a challenging and transformational period. As the Group has grown, so too has the depth of operational, geological, technical and management capability within our Namibian workforce. Their commitment, ingenuity and resilience are what convert geological potential into operating mines and long-term value. On behalf of the management team, I extend my sincere appreciation to all our stakeholders for their continued confidence and support as we move into this next chapter of delivery. Outlook: from de-risking to delivery Andrada enters the next phase of its development from a materially stronger position. Uis is in production and demonstrating improving operating leverage. Lithium Ridge is funded and partnered with one of the world's leading lithium companies. Brandberg West is being advanced with external capital and technical support. The broader mineral district is increasingly understood, and the commodities within our asset portfolio, namely tin, lithium, tungsten, tantalum and copper are central to some of the most important long-term changes taking place in the global economy. For much of Andrada's history, the task was to identify the opportunity, secure the assets, establish the operating platform and progressively de-risk the portfolio. That groundwork has been done. The focus now moves increasingly towards execution: growing tin production and margins at Uis, advancing ore sorting and lithium integration, defining the scale of Lithium Ridge and progressing Brandberg West towards redevelopment. Our objective is clear - to convert this platform into increased production, stronger cash generation and sustainable long-term value for shareholders, employees, communities and Namibia. The opportunity ahead is considerably larger than the Company Andrada is today. My team and I remain focused on converting that opportunity into sustainable production, cash generation and long-term value for our shareholders and for Namibia. The assets have been consolidated. The projects have been de-risked. The partners and capital are increasingly in place. The next chapter is about delivery. ANTHONY VILJOEN CHIEF EXECUTIVE OFFICER 27 August 2026
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CHIEF FINANCIAL OFFICER'S REVIEW This review provides an overview of the Group's financial performance, financial position and cash flows for the year ended 28 February 2026 and should be read together with the Annual Financial Statements ("AFS") and accompanying notes. As set out below, certain FY2025 comparative figures have been restated; the nature of each restatement and its impact are explained ahead of the commentary on the current year's results. Restatement of FY2025 comparatives The current year financials include a disclosure based restatement in order to comply with the technical interpretations of the accounting standards. Both amendments do not affect the statement of comprehensive income, total liabilities, total equity, net assets or the statement of cash flows. Reallocation of treatment charges: alignment to IFRS 15 The FY2025 comparative revenue and cost of sales figures have been restated to correct the presentation of tin concentrate treatment charges deducted by Thaisarco. Under IFRS 15, revenue should be measured at the amount of consideration the Group is entitled to receive from the customer. Because the treatment charges are deducted from the invoice amount payable by Thaisarco, they should reduce revenue rather than be recorded as part of cost of sales, as previously presented. The restatement does not affect gross profit, loss for the year, total comprehensive loss, basic and diluted loss per share, the statement of financial position or the statement of cash flows. The restatement is therefore presentational and improves the accuracy of revenue and cost of sales classification without changing the underlying FY2025 result. Details of the restatement is in Note 34 in the AFS. Reclassification of Orion Convertible Loan Notes: alignment to IAS 1 The FY2025 comparative statement of financial position has also been restated to amend the classification of the Orion convertible loan notes. In the FY2025 financial statements, the loan notes were split between current and non-current liabilities based on their contractual maturity profile. However, because the noteholders could require settlement through the issue of the Group's own shares at any time, the Group did not have an unconditional right at 28 February 2025 to defer settlement for at least 12 months. Initial recognition of these loan notes in FY2024 was disclosed correctly, the restatement is as a result of the amendments to IAS 1 that became effective in FY2025. The amendment does not affect the statement of comprehensive income, total liabilities, total equity, net assets or the statement of cash flows. The restatement only impacts the split between current and non-current liabilities in the statement of financial position as at 28 February 2025. Details of the restatement is in Note 34 in the AFS. Profit or loss statement The 2026 financial year reflected an improvement in Andrada's operating performance, with revenue increasing by 34% to £30.1m (FY2025 restated: £22.4m) and gross profit increasing by over 100% to £7.7m (FY2025: £3.0m). The Group reflected an improved operating loss of £2.6m compared with the operating loss of £3.9m in the comparative period. FY2026 FY2025 % Movement Revenue £30.1m £22.4m 34% increase Cost of sales (£22.4m) (£19.4m) 15% increase Gross profit £7.7m £3.0m >100% increase Gross profit margin 25.7% 13.2% 12.5% increase Administrative expenses (£13.7m) (£9.5m) 45% increase - Loss on commodity swap transactions (Unrealised) (£5.2m) - >100% increase - Impairment loss on receivable (£0.7m) - >100% increase - Other administrative expenses (£7.8m) (£9.5m) 17% decrease
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Other income £3.4m £1.0m >100% increase Operating loss (£2.6m) (£3.9m) 34% improvement Finance expenses (£6.9m) (£6.3m) 11% increase Loss before tax (£9.4m) (£8.5m) 11% higher loss Tax expense (£1.3m) (£1.3m) 2% increase Loss for the year (£10.7m) (£9.8m) 9% higher loss EBITDA £3.3m £0.5m >100% increase Adjusted EBITDA (Excludes unrealised loss on swap transaction and impairment loss on receivable) £8.4m £0.5m >100% increase 1 All amounts are presented in Pound Sterling (£) and rounded to the nearest £0.1m unless otherwise stated. Percentage movements are calculated from the updated Annual Financial Statements for the year ended 28 February 2026 and the restated FY2025 comparatives The revenue increase was driven principally by a 13% increase in contained tin sales volume to 1 036 tonnes for the year. Revenue comprised £28.8m from tin, £0.7m from tantalum and an immaterial contribution from lithium. It also included a £0.6m fair value movement on customer contract receivables under the offtake agreement. For additional information on revenue recognition, please refer to Note 2 in the AFS. Cost of sales increased by 15% to £22.4m, reflecting the production cost base associated with higher activity levels. Gross profit increased to £7.7m (FY2025: £3.0m), and the gross profit margin improved to 25.7% (FY2025: 13.2%). Administrative expenses increased by 45% to £13.7m. The movement includes a £5.2m of loss on commodity swap transactions, comprising £0.8m realised losses on closed contracts and £4.4m unrealised losses on open contracts at year end. The movement also includes a £0.7m impairment loss on the liquidity facility advanced to Goantagab Mining. Further details of these two adjustments are given below. Other general admin expenses decreased by 17% to £7.8m (FY2025: £9.5m). Other income increased to £3.4m, supported primarily by foreign exchange gains of £2.5m and income from associate of £0.5m. Finance expenses increased by 11% to £6.9m reflecting the Group's funding structure and fair value movements on financing-related instruments, including the royalty debt, embedded derivative and put option liability. After finance income of £0.2m and tax expense of £1.3m, the Group reported a loss for the year of £10.7m. The Group's EBITDA improved to £3.3m (FY2025: £0.5m) reflecting higher revenue. FY2026 EBITDA was calculated by adding back the depreciation and amortisation charges of approximately £5.9m to the operating loss of approximately £2.6m disclosed in the cash flow statement and the statement of comprehensive income respectively. FY2025 EBITDA of £0.5m was based on an operating loss of approximately £3.9m and addition of £4.4m depreciation and amortisation charges. An adjusted EBITDA of £8.4m (FY2025: £0.5m) has been calculated by adding back £4.4m in unrealised losses on open commodity swap transactions at year end and the impairment loss of £0.7m raised on the Goantagab receivable. Derivative financial liability and tin hedge During FY2026, the Group continued to use fixed‑for‑floating commodity swap contracts to manage exposure to tin price volatility. These arrangements were entered into to provide greater cash flow certainty by fixing the price received on a portion of forecast tin concentrate sales. The previous Standard Bank Namibia contract, which fixed 20 tonnes per month at US$33 000 per tonne from June 2024 to May 2025, expired during the year and was replaced with similar Bank Windhoek arrangements. Under the Bank Windhoek contracts, the Group fixed 20 tonnes per month at US$34 400 per tonne from June 2025 to May 2026. A further contract fixed 20 tonnes per month at US$42 000 per tonne from December 2025 to May 2026, increasing to 40 tonnes per month from June 2026 to November 2026. Gains or losses on these contracts are settled monthly in cash and recognised in profit or loss. At year end, the Group recognised a derivative financial liability for the open contracts. This liability reflects the difference between the fixed prices under the hedge contracts as noted above and the estimated forward tin prices applicable to future settlement dates. An average forward price over the remaining hedge period of US$57 200 was used in this calculation. Essentially, realising that the market price of tin is likely to be higher than the fixed hedge price on the open contracts, the Group has recognised a liability for the mark-to-market value of that difference.
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At 28 February 2026, the Group recognised a £4.8m derivative financial liability in the statement of financial position in respect of open commodity swap contracts that had not yet settled at year end. It must be noted that this liability and the corresponding loss is recognised during the current financial year and as a result will set-off against the realised losses that will occur in the upcoming financial year as the contracts are closed out. Furthermore, the Group elected to early settle certain of the open contracts in March 2026 at a price lower than the prevailing market price, further reducing the loss that will be recognised in FY2027. Because the hedge remains in effect until November 2026, the liability will continue to be remeasured and settled through profit or loss and cash settlements as the contracts mature. Goantagab Mining update and impairment of liquidity facility To expand processing capacity at Uis, the Group established an Ore Supply and Profit-Sharing Agreement with Goantagab Mining for the supply of up to 240 000 tonnes per year of high-grade ore averaging 1.5% tin. As disclosed in June 2025, legislative environmental concerns were raised in connection with the Goantagab mining claims resulting in the suspension of mining activity pending a court decision. The relevant court hearing has been postponed several times, with the latest hearing date now scheduled for September 2026. The Group continues to engage constructively with Goantagab Mining and relevant stakeholders, with the objective of supporting an orderly resolution that balances conservation, responsible mining and local employment creation. The Group advanced a liquidity facility to Goantagab Mining for working capital requirements and mine establishment costs in relation to the Ore Supply Agreement. The recoverability of this loan was assessed at yearend. Due to ongoing litigation matters delaying the commencement of mining on the Goantagab licence, management elected to be prudent and have provided for the full balance of this facility and the related interest until a final court ruling is received. Financial position statement Financial position statement summary FY2026 FY2025 % Movement Total assets £88.2m £69.6m 27% increase Non-current assets £65.8m £54.6m 21% increase Property, plant and equipment £51.1m £41.6m 23% increase Intangible assets £13.3m £11.4m 17% increase Current assets £22.4m £15.0m 49% increase Cash and cash equivalents £8.9m £2.7m >100% increase Total equity £25.5m £23.7m 8% increase Total non-current liabilities £28.1m £24.4m 15% increase Total current liabilities £34.7m £21.5m 61% increase Borrowings £19.8m £21.7m 8% decrease Other financial liabilities £29.5m £13.9m >100% increase Total assets increased by 21% to approximately £88.2m with non-current assets increasing by 21% to £65.8m, primarily due to the continued investment in the Group's asset base. Property, plant and equipment ("PPE") increased by 23% to £51.1m, while intangible assets increased by 17% to £13.3m. Increases in PPE included equipment upgrades and additions to the existing plant including XRT ore sorters, filter press, thickener and shaking tables as part of the Continuous Improvement Programme (CI2). Current assets increased by 49% to £22.4m, mainly due to higher inventories and a materially stronger year-end cash balance that increased to £8.9m from £2.7m. The year-end cash balance included £1.1m held in debt service reserve accounts and £7.4m received from BWCAM under the Earn-in Agreement, which is restricted for the exploration and development of the Brandberg West prospecting licence. In terms of liabilities, total borrowings decreased by 8% to £19.8m, reflecting the settlement of the Orange Trust short-term loan of approximately £2m through the issue of shares and other movements in the Group's borrowing facilities. Other financial liabilities increased by £15.6m to £29.5m, principally reflecting the recognition of the BWCAM put option liability, the commodity swap derivative liability, the Thaisarco exclusivity payment, and fair value movements on tin royalty debt. Total equity increased by 8% to £25.5m mainly due to a significant increase in share capital of £8.5m following the issuance of 282 302 479 ordinary shares during the financial year. Cashflow statement FY2026 FY2025 Movement Net cash generated/(used) in operating activities £4.7m (£4.0m) £8.7m improvement
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Net cash used in investing activities (£7.9m) (£12.9m) 39% lower outflow Net cash generated from financing activities £10.1m £4.3m >100% increase Net increase/(decrease) in cash and cash equivalents £6.8m (£12.6m) £19.4m improvement Cash and cash equivalents at end of year, net of overdraft £8.5m £1.8m >100% increase Net cash generated from operating activities was £4.7m, compared with net cash used in operating activities of approximately £4.0m in FY2025. This represents a £8.7m improvement and reflects the stronger operating result, non-cash adjustments and working-capital movements during the year. Net cash used in investing activities decreased to £7.9m from £12.9m in FY2025. Investment remained focused on the Group's operating and development asset base, including the Uis plant upgrades and intangible assets. Net cash generated from financing activities increased to £10.1m from £4.3m in FY2025. Financing inflows included net proceeds from share issues of £5.5m, proceeds from other financial liabilities £2.2m and the BWCAM investment of £7.4m, partly offset by interest paid, lease payments, bank repayments and share issue costs. Cash and cash equivalents at the end of the year increased to £8.5m from £1.8m. Funding, liquidity and capital structure The Group continued to manage liquidity against an active capital-investment programme and broader strategic growth agenda. Cash forecasting, covenant compliance, working-capital management and disciplined capital allocation remained core areas of financial management during the year. All applicable covenants were met at 28 February 2026. In assessing going concern, the Directors prepared forecasts to February 2028 and considered production profiles, tin and tantalum prices, exchange rates, operating costs and committed capital. The assessment also reflected post-period funding actions, including the April 2026 private placement and the August 2026 bank funding secured to support the ore sorter project and secondary crusher replacements. Based on the forecasts, available funding and progress made in securing additional financing, the Directors concluded that there is no material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. The Directors have therefore adopted the going concern basis in preparing the consolidated financial statements. Outlook The financial priorities for FY2027 are to convert the operational improvements at Uis Mine into stronger cash generation, manage finance costs and liquidity vigilantly, and allocate capital judiciously to initiatives that support near-term production growth and long-term value creation. Management will continue to prioritise plant stability, throughput improvement, disciplined capital allocation, covenant compliance and balance sheet resilience. HITEN OOKA CHIEF FINANCIAL OFFICER 27 August 2026 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANDRADA MINING LIMITED REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion In our opinion: · the financial statements give a true and fair view of the state of the Group's affairs as at 28 February 2026 and of its loss and its cash flows for the year then ended;
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· the financial statements have been properly prepared in accordance with UK adopted international accounting standards; and · the financial statements have been prepared in accordance with the requirements of the Companies (Guernsey) Law 2008. We have audited the financial statements of Andrada Mining Limited and its subsidiaries (the 'Group') for the year ended 28 February 2026 which comprise of the following: Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes 1 to 35 to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and UK adopted international accounting standards. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remain independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. The assessment of the Group's ability to continue as a going concern involved significant auditor judgement due to the estimation uncertainty inherent in management's cash flow forecasts to February 2028 (the "assessment period"). Management concluded that no additional funding will be required during the assessment period, based on assumptions relating to forecast production levels, commodity prices, operating costs, capital expenditure, debt covenant compliance, and increased production expected from the ore sorter project and planned installation of additional secondary crushers. Given the Group's history of operating cash outflows, existing borrowings and forecast of the successful delivery of these operational improvement projects, significant audit judgement was required to assess the reasonableness of management's forecasts and liquidity position. Accordingly, due to the significance of the judgements and estimates involved as mentioned above going concern was determined to be a matter of most significance in the audit and was therefore considered a Key Audit Matter. Refer to Note 2 for disclosures relating to Going Concern and Note 2 for the significant judgement disclosures. Our evaluation of the Directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting and in response to the Key Audit Matter included the following: · We discussed with the Directors their assessment of the potential risks and uncertainties, forecast commodity prices and production levels, and the availability of financing relevant to the Group's business model and operations to assess the
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going concern assumption. We formed our own assessment of risks and uncertainties based on our understanding of the business and mining sector. · We assessed the latest board-approved budgets and cash flow forecasts for the Group through February 2028. We challenged the Directors' assumptions regarding production profiles, forecast tin and tantalum prices, operating costs and committed capital. In doing so, we considered factors such as the Group's operational performance, recent cost profile, and market analyst commentary on forecast commodity prices. · We have performed our own sensitivity analysis on the cash flow forecast to consider the available headroom under different reasonably possible scenarios as well as the validity of mitigating factors available to the Group; · We recalculated the forecast covenant compliance calculations to assess their arithmetical accuracy and evaluated the consistency of such calculations with the ratios stated in the relevant lender agreements. · We evaluated management's funding plans and assessed the availability and timing of financing required to support the Group's development plans and working capital requirements. We inspected financing agreements, verified funding received after the reporting date, and assessed the extent to which these arrangements supported the cash flow forecasts used in management's going concern assessment. · We considered and assessed the adequacy of the disclosures related to the Directors' assessment of the going concern basis of preparation within the notes to the financial statements, against the requirements of the financial reporting framework, our understanding of the business and the Directors' going concern assessment. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group's ability to continue as a going concern. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. Overview Key audit matters 2026 2025 Carrying value of mining assets ü ü Going concern ü ü Materiality Group financial statements as a whole £800,000 (2025: £674,000) based on 1% (2025: 1%) of total assets) An overview of the scope of our audit Our Group audit was scoped by obtaining an understanding of the Group and its environment, the applicable financial reporting framework and the Group's system of internal control. We identified and assessed the risks of material misstatement of the Group financial statements including with respect to the consolidation process. We then applied professional judgement to focus our audit procedures on the areas that posed the greatest risks to the group financial statements. We continually assessed risks throughout our audit, revising the risks where necessary, with the aim of reducing the group risk of material misstatement to an acceptable level, in order to provide a basis for our opinion. Components in scope From our risk assessment and planning procedures, we determined which of the Group's components were likely to include risks of material misstatement relevant to the Group's financial statements. We then determined the type of procedures to be performed at these components, and the extent to which component auditors were required to be involved. The total number of components within the scope of our work was as follows:
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Number of components Number of components 2026 2025 Scope 1 - Audit and procedures on the entire financial information of the component 2 2 Scope 2 - Audit procedures on one or more classes of transactions, account balances or disclosures 5 3 As part of performing our Group audit, we have determined the components in scope as follows: Scope 1: Comprise the Group's principal operating subsidiaries in Namibia (Uis Tin Mining Company Pty Ltd and Andrada Mining Namibia Pty Ltd) Scope 2: Comprise the Parent Company in Guernsey (Andrada Mining Limited) and Group's subsidiaries (Andrada Mining Pty Ltd South Africa, Grace Timon Investments (Pty) Ltd, Andrada Mining (Mauritius) Ltd, Andrada Investments (Mauritius) Ltd. In determining components, we have considered how components are organized within the Group, the commonality of control environments, legal and regulatory frameworks, and the level of aggregation associated with individual entities. Whilst there is relative commonality of controls across the Group, differences in jurisdictional risk, and the legal and regulatory frameworks under which the entities operate, prevent further amalgamation of components. For components in scope, we used a combination of risk assessment procedures and further audit procedures to obtain sufficient appropriate evidence. These further audit procedures included: · procedures on the entire financial information of the component, including performing substantive procedures · procedures on one or more classes of transactions, account balances or disclosures. Procedures performed at the component level We performed procedures to respond to group risks of material misstatement at the component level that included the following. Scope 1 & 2 - the audit procedures on these components were performed by a combination of a component auditor and the Group engagement team. Locations The Group's principal operations are located in Namibia. In accordance with ISA (UK) 600, a member of the Group audit team visited the Namibian operations, including the mine site, and were involved in the planning, supervision and performance of audit procedures undertaken by auditors at component level. In addition, the Group Engagement Team worked remotely, holding calls and video conferences with Andrada Mining Limited, and with digital information obtained from Andrada Mining Limited. Changes from the prior year The scope of the Group audit remained substantially consistent with the prior year, except for the inclusion of additional components in the current year, in respect of which audit procedures were performed on selected classes of transactions, account balances and disclosures. Working with other auditors As Group auditor, we determined the components at which audit work was performed, together with the resources needed to perform this work. These resources included component auditors, who formed part of the group engagement team. As Group auditor we are solely responsible for expressing an opinion on the financial statements. In working with these component auditors, we held discussions with component audit teams on the significant areas of the group audit relevant to the components based on our assessment of the group risks of material misstatement. We issued our
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group audit instructions to component auditors on the nature and extent of their participation and role in the group audit, and on the group risks of material misstatement. We directed, supervised and reviewed the component auditors' work. This included holding meetings and calls during various phases of the audit, reviewing component auditor documentation remotely and evaluating the appropriateness of the audit procedures performed and the results thereof. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Conclusions relating to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report: Key audit matter How the scope of our audit addressed the key audit matter Carrying value of mining assets (Refer to Note 2 - Material Accounting Policies, subsection " (iv) Impairment Assessment for Property, Plant and Equipment" within section "Critical accounting estimates and judgements" and "Mining Asset" with in Note 14 - Property, Plant and Equipment for further details). As disclosed in Note 2 - subsection (iv) of Critical accounting estimates and judgements, management reviewed the Uis Mine for indicators of impairment. Among other factors, they considered the operations to date at Uis Mine, including production from tin and tantalum, forecast commodity prices, production profile, inflation rate, post-tax real discount rate and market capitalisation of the Group. As set out in Note 2, management identified the volatility in the tin price and sensitivity of production ramp up as an indicator of impairment. In undertaking the impairment review, management also reviewed the underlying Life of Mine ("LoM") valuation model for Uis. The LoM valuation model is on value in use basis and includes assessments of different scenarios associated with capital improvements and expansion opportunities. The impairment testing performed by management did not result in an impairment. The assessment of the recoverable value of the Uis mining assets requires significant judgement and estimates to be made by management - in particular regarding the inputs applied in the model, including future tin and tantalum prices, ore production and reserves, operating and development costs and discount rates. The estimation of future tin price is subject to uncertainty given the volatility of market. The carrying value of the Uis mining assets is therefore considered a significant risk and a key audit matter given the level of judgement and estimation involved. We reviewed and challenged management's impairment indicator assessment and testing performed on the underlying LoM valuation model for the Uis mining assets, which was carried out in accordance with the relevant accounting standards. Our audit procedures in this regard included: · Reviewing the Competent Person's Report to support the mineral reserves and resources estimates and performed an assessment of the independence and competence of management's expert. · Critically reviewing LoM forecast by making enquiries of operational management, evaluating it against our understanding of the operations and historic performance, and evaluating the consistency of available reserves with the Competent Person's Report. · Obtaining management's LoM valuation model to check whether sufficient headroom existed over the asset carrying value as part of our assessment of potential impairment indicators. · Checking the mathematical accuracy of management's LoM valuation model. · Challenging the significant inputs and assumptions used in the management's LoM valuation model and assessing whether these were indicative of potential bias. This included comparing forecast commodity prices to a range of third-party independent market outlook reports and historical actual data, comparing forecast production to third-party feasibility and resource studies, and comparing forecast costs against expected production profiles in the mine plans and recent historical performance. · Recalculating the discount rate and engaging auditor's experts to assist us in assessing management's discount rate by recalculating it in reference to external data. · Reviewing management's sensitivity analysis and performing our own sensitivity analysis over individual key inputs, including tin prices, discount rate and plant recovery.
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Key observation: Based on the procedures performed, we found that the key judgements and estimates applied by management in their LoM valuation model were within an acceptable range, and we concluded that their determination that there was no impairment as of 28 February 2026 was reasonable. Our application of materiality We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements. In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows: Group financial statements 2026 2025 Materiality £800,000 £674,000 Basis for determining materiality 1% of total assets Rationale for the benchmark applied We consider total assets to be the most significant determinant of the Group's financial performance used by members given the nature of Group. The Group has invested significant sums on its production and non-production mining assets, and these are considered to be the key value driver for the Group as its assets are an indicator of future value to shareholders. Performance materiality £500,000 £505,000 Basis for determining performance materiality 62.5% of the above materiality level 75% of the above materiality level Rationale for the percentage applied for performance materiality We considered several factors, including the expected total value of known and likely misstatements, and management's attitude towards proposed adjustments and our knowledge of the Group's internal controls. Component performance materiality For the purposes of our Group audit opinion, we set performance materiality for each component of the Group, based on a percentage of between 40% and 90% (2025: 40% and 90% ) of Group performance materiality dependent on a number of factors including the size of the component and our assessment of the risk of material misstatement of those components. Component performance materiality ranged from £200,000 to £450,000 (2025: £200,000 to £454,500). Reporting threshold We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £40,000 (2025: £33,000). We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds. Other information The Directors are responsible for the other information. The other information comprises the information included in the Director's report and Statement of Directors' responsibilities other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
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explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Other Companies (Guernsey) Law, 2008 reporting We have nothing to report in respect of the following matters where the Companies (Guernsey) Law, 2008 requires us to report to you if, in our opinion: · proper accounting records have not been kept by the Parent Company; or · the financial statements are not in agreement with the accounting records; or · we have not received all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposes of our audit. Responsibilities of Directors As explained more fully in the Statement of Directors' responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Group and management. Extent to which the audit was capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Non-compliance with laws and regulations Based on: · Our understanding of the Group and the industry in which it operates; · Obtaining an understanding of the Group's policies and procedures regarding compliance with laws and regulations; and · Discussion with management and those charged with governance, the Audit Committee and the Component Auditors;
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We considered the significant laws and regulations to be the UK adopted international accounting standards, the listing rules of AIM, Namibian Stock Exchange (NSX) and OTCQB Venture Market, the various Mining Regulations in Namibia, the terms and conditions included in the Group's exploration, the evaluation licenses and the mining licences. The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be Environmental and health and safety legislation, Anti-bribery legislation, Electronic Communications and Transactions Act, 2002, Environment Conservation Act, 1989, Compensation for Occupation Injuries and Disease Act, 1993, Labour Relations Act, 1995, Skills Development Act, 1998, Environment Protection Act, 2002, Companies Act 28 of 2004 (Namibia), Occupational Health and Safety Act 85 of 1993, Labour Act 11 of 2007 (Namibia), Employment legislation (local South African employment legislation), Minerals Act 33 of 1992 (amended in 2008). Our procedures in respect of the above included: · Enquiries with management and the Group's legal team to determine whether any actual or potential litigation, claims, or legal proceedings existed during the period; · Review of RNS announcements and minutes of meetings of those charged with governance for any instances of non- compliance with laws and regulations; · Review of management's correspondences with regulatory and tax authorities for any instances of non-compliance with laws and regulations; · Holding discussions with Management and the Audit Committee to consider any known or suspected instances of non- compliance with laws and regulations, or fraud; · Review of financial statement disclosures and agreeing to supporting documentation; and · Review of legal expenditure accounts to understand the nature of expenditure incurred; Fraud We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included: · Enquiry with management and those charged with governance regarding any known or suspected instances of fraud; · Obtaining an understanding of the Group's policies and procedures relating to: o Detecting and responding to the risks of fraud; and o Internal controls established to mitigate risks related to fraud. · Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud; · Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; · Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these; and Based on our risk assessment, we considered the area's most susceptible to fraud to be year-end cut off in revenue recognition, and Management override of controls. Our procedures in respect of the above included: · Addressing the fraud risk in relation to revenue recognition tracing revenue transactions to supporting documentation, including testing that revenue was recorded in the correct period by testing revenue transactions in the period proceeding and preceding year end; · Engaging BDO specialist to assist with the fraud risk assessment, including assisting the audit team to determine the risk criteria for journals testing and sufficiency of the audit procedures to address the risk of fraud; · Performing a detailed review of the Group's year end adjusting entries and investigated any that appear unusual as to nature or amount and agreeing to supporting documentation; · For a sample of journals entries throughout the year that met the defined risk criteria, we obtained supporting documentation and evidence for the business rationale of these transactions and the sources of financial resources supporting the transactions;
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· Identifying areas at risk of management bias and reviewed significant estimates and judgements applied by management in the financial statements to assess their appropriateness; and · Agreeing the financial statement disclosures to underlying supporting documentation, review of correspondence with regulators, review of correspondence with legal advisers, enquiries of management, and review of component auditors' working papers in so far as they related to the financial statements. · Performing revenue cut-off testing around the year end to assess whether revenue had been recognised in the appropriate accounting period. For shipments occurring at or near the reporting date, agreeing revenue recognised to supporting shipping documentation, customer invoices, and subsequent cash receipts as evidenced by bank statements. No material exceptions were identified from the procedures performed. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including component auditors who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. For component auditors, we also reviewed the result of their work performed in this regard. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Parent Company's members, as a body, in accordance with Section 262 of the Companies (Guernsey) Law, 2008. Our audit work has been undertaken so that we might state to the Parent Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Jack Draycott (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK 27 August 2026 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). About Andrada Mining Limited Andrada Mining Limited, listed on the London Stock Exchange's AIM market, is a tin producer with a portfolio of critical metal mining and exploration assets in Namibia, a premier investment destination in Africa. The Company's strategy focuses on unlocking Namibia's abundant mineral resources through best-in-class strategic partnerships across its resource base. Andrada has evolved from a tin producer into a diversified critical minerals company with three distinct but complementary value centres, namely Uis, the producing foundation of the Company, Lithium Ridge, an increasingly significant lithium opportunity being advanced with SQM, and Brandberg West, a historically producing tin and tungsten asset with significant tungsten, tin and copper potential being developed in partnership with BWCAM. Across the portfolio, Andrada has exposure to tin, lithium, tungsten, copper and tantalum, metals that are becoming increasingly important to global energy security, advanced technology, artificial intelligence infrastructure, electrification and defence.
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FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 28 February 2026 Notes Year ended 28 February 2026 £ Year ended 28 February 2025 Restated £ Revenue 5 30 087 643 22 386 575 Cost of Sales 6 (22 362 007) (19 428 461) Gross profit 7 725 636 2 958 114 Administrative expenses 7 (13 735 386) (9 492 562) Other income 9 3 439 477 991 026 Gain on loss of control 28 - 1 629 200 Operating loss (2 570 273) (3 914 222) Finance income 10 150 152 1 719 376 Finance expenses 10 (6 937 318) (6 271 921) Loss before tax (9 357 439) (8 466 767) Tax expense 11 (1 342 205) (1 322 356) Loss for the year (10 699 644) (9 789 123) Other comprehensive income/(loss) Items that will or may be reclassified to profit or loss: Exchange differences on translation of share-based payment reserve - 180 Exchange differences on translation of foreign operations 2 406 460 1 393 588 Exchange differences on non-controlling interest - (24 909) Other comprehensive income/(loss) for the year 2 406 460 1 368 859 Total comprehensive loss for the year (8 293 184) (8 420 264) Loss for the year attributable to: Owners of the parent (10 696 409) (9 771 306) Non-controlling interests (3 235) (17 817) (10 699 644) (9 789 123) Total comprehensive loss for the year attributable to: Owners of the parent (8 289 949) (8 377 538) Non-controlling interests (3 235) (42 726) (8 293 184) (8 420 264) Loss per ordinary share Basic/diluted loss per share (in pence) 12 (0.69) (0.63) The notes form an integral part of these financial statements. CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 28 February 2026
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Notes 28 February 2026 £ 28 February 2025 Restated £ ASSETS NON-CURRENT ASSETS Intangible assets 13 13 342 881 11 396 487 Property, plant and equipment 14 51 064 645 41 648 446 Investment in associate 28 1 427 774 1 527 352 TOTAL NON-CURRENT ASSETS 65 835 300 54 572 285 CURRENT ASSETS Inventories 15 6 355 852 4 211 113 Trade and other receivables 16 7 115 948 7 986 117 Cash and cash equivalents 17 8 922 977 2 701 260 Derivative financial asset 27 - 101 313 TOTAL CURRENT ASSETS 22 394 777 14 999 803 TOTAL ASSETS 88 230 077 69 572 088 EQUITY AND LIABILITIES EQUITY Share capital 24 70 593 429 62 057 736 Accumulated deficit (50 294 132) (39 752 673) Warrant reserve - 482 199 Share-based payment reserve 1 930 052 1 546 239 Convertible loan note reserve 4 868 023 4 579 427 Transactions with NCI 32 5 180 000 - Put option granted to NCI 32 (6 172 125) - Foreign currency translation reserve (2 796 372) (5 202 832) Equity attributable to the owners of the parent 23 308 875 23 710 096 Non-controlling interests 32 2 216 765 - TOTAL EQUITY 25 525 640 23 710 096 NON-CURRENT LIABILITIES Environmental rehabilitation provision 21 2 192 091 1 604 389 Borrowings 18 8 137 796 9 334 835 Other financial liabilities 19 15 230 653 12 031 516 Lease liability 22 119 884 283 835 Deferred tax liability 11 2 372 553 1 135 702 TOTAL NON-CURRENT LIABILITIES 28 052 977 24 390 277 CURRENT LIABILITIES Trade and other payables 20 7 752 749 6 801 695 Borrowings 18 11 678 545 12 321 976 Other financial liabilities 19 14 310 162 1 897 929 Lease liability 22 384 258 264 518 Income tax liability 11 525 746 185 597 TOTAL CURRENT LIABILITIES 34 651 460 21 471 715 TOTAL EQUITY AND LIABILITIES 88 230 077 69 572 088 The notes form an integral part of these financial statements. The financial statements were authorised and approved for issue by the Board of Directors on 27 August 2026. Glen Parsons Hiten Ooka Board Chairman and Non-Executive Director Chief Financial Officer and Executive Director
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 28 February 2026 Share capital £ Convertible loan reserve £ Accumulated deficit £ Warrant reserve £ Share-based payment reserve £ Transactions with NCI £ Put Option Granted to NCI £ Foreign currency translation reserve £ Total £ Non- controlling interests £ Total equity £ Total equity at 29 February 2024 59 247 558 4 579 427 (26 623 617) 482 199 1 831 764 - - (6 907 976) 32 609 355 (554 739) 32 054 616 Loss for the period - - (9 771 306) - - - - - (9 771 306) (17 817) (9 789 123) Other comprehensive income/loss - - - - 180 - - 1 393 588 1 393 768 (24 909) 1 368 859 Transactions with owners: Issue of shares 2 786 178 - - - - - - - 2 786 178 - 2 786 178 Share-based payments - - - - - - - - - - - Share option charge in the year - - - - 340 752 - - - 340 752 - 340 752 Share options exercised in the year 24 000 - 11 823 - (11 823) - - - 24 000 - 24 000 Share options lapsed during the year - - 610 131 - (614 634) - - - (4 503) - (4 503) Acquisition of non- controlling interests - - (3 667 918) - - - - - (3 667 918) 600 925 (3 066 993) Reclassification of foreign currency differences on disposal of subsidiaries - - (311 786) - - - - 311 556 (230) (3 460) (3 690) Total Equity at 28 February 2025 62 057 736 4 579 427 (39 752 673) 482 199 1 546 239 - - (5 202 832) 23 710 096 - 23 710 096 Loss for the period - - (10 696 409) - - - - - (10 696 409) (3 235) (10 699 644) Other comprehensive income/loss - - - - - - - 2 406 460 2 406 460 - 2 406 460 Transactions with owners: Issue of shares 8 951 014 - - - - - - - 8 951 014 - 8 951 014 Share issue costs (415 321) - - - - - - - (415 321) - (415 321) Share option charge in the year - - - - 488 456 - - - 488 456 - 488 456 Share options forfeited during the year - - 104 643 - (104 643) - - - - - - Warrants expired during the year - 288 596 50 307 (482 199) - - - - (143 296) - (143 296) Put option granted to NCI - - - - - - (6 172 125) - (6 172 125) - (6 172 125) NCI investment in subsidiary (Note 32) - - - - - 5 180 000 - - 5 180 000 2 220 000 7 400 000 Total Equity at 28 February 2026 70 593 429 4 868 023 (50 294 132) - 1 930 052 5 180 000 (6 172 125) (2 796 372) 23 308 875 2 216 765 25 525 640 The notes form an integral part of these financial statements. CONSOLIDATED STATEMENT OF CASHFLOWS As at 28 February 2026 Notes Year ended 28 February 2026 £ Year ended 28 February 2025 £ CASH FLOWS FROM OPERATING ACTIVITIES Loss before taxation (9 357 439) (8 466 767) Adjustments for: Fair value adjustment to receivables 5 (598 967) (16 475) Depreciation of property, plant and equipment 14 5 862 713 4 401 859 Amortisation of intangible assets 13 22 064 33 322 Share-based payments 435 181 255 276
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Fair value loss/(gain) on open commodity swap transactions 4 462 762 (101 313) Loss on scrapping of assets 23 252 623 204 Impairment loss on receivable 675 973 Foreign exchange differences (2 472 934) - Gain on loss of control 28 - (1 629 200) Finance income 10 (150 152) (1 719 376) Finance expenses 10 6 937 318 6 271 921 Changes in working capital: Decrease/(Increase) in receivables 186 250 (3 016 834) (Increase) in inventory (1 633 176) (1 134 265) Increase in payables 311 802 499 400 Net cash generated/(used) in operating activities 4 704 647 (3 999 248) Cash flows from investing activities Purchase of intangible assets (1 127 214) (3 407 818) Purchase of property, plant and equipment (6 941 662) (11 509 537) Interest received 10 150 152 423 275 Consideration received on loss of control 28 - 1 629 200 Net cash used in investing activities (7 918 724) (12 864 880) Cash flows from financing activities Interest paid (1 909 143) (1 312 789) Lease payments 22 (2 653 222) (256 339) Share-based payments - 24 000 Net proceeds from issue of shares 5 535 406 - Share issue costs (259 727) - Proceeds from bank borrowings 18 691 433 6 170 428 Repayment of bank borrowings 18 (964 595) (373 721) Proceeds from other financial liabilities 19 2 222 491 - Repayment of other financial liabilities 19 (7 799) (453) Proceeds from transactions with NCI 7 400 000 - Net cash generated from financing activities 10 054 844 4 251 126 Net increase/(decrease) in cash and cash equivalents 6 840 767 (12 613 002) Cash and cash equivalents at the beginning of the year 1 815 943 14 505 800 Foreign exchange differences (145 289) (76 855) Cash and cash equivalents at the end of the year 17 8 511 421 1 815 943 The notes form an integral part of these financial statements. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2026 1. CORPORATE INFORMATION AND PRINCIPAL ACTIVITIES Andrada Mining Limited ("Andrada") was incorporated and domiciled in Guernsey on 1 September 2017 and admitted to the AIM market in London on 9 November 2017. The Company's registered office is PO Box 142, Suite 2, Block 2, Hirzel Court, St Peter Port, Guernsey GY1 2NN, and it operates from Illovo Edge Office Park, Ground Floor, Building 3, 5 Harries Road, Illovo, Johannesburg, 2116, South Africa. These financial statements are for the year ended 28 February 2026 and the comparative figures are for the year ended 28 February 2026. The Andrada Group comprises Andrada Mining Limited, and its subsidiaries as noted below. Andrada Mining Limited ("AML") is an investment holding company and holds 100% of Guernsey subsidiary, Greenhills Resources Limited ("GRL"), 100% of South African subsidiary, Andrada Mining (Pty) Ltd ("Andrada South Africa"), 100% of 2 Namibian subsidiaries, Uis Toll Mining Company (Pty) Ltd and Tantalum Investment (Pty) Ltd, 100% Andrada Mining (Mauritius) Ltd ("AMM") and 70% of Andrada Investments (Mauritius) Ltd ("AIM"). GRL is an investment holding company that holds investments in resource-based tin, tantalum, lithium, tungsten and copper exploration companies in Namibia and Rwanda. GRL holds 100% of Namibian subsidiary, Andrada Mining (Namibia) (Pty) Ltd ("Andrada Namibia") and 100% of Rwandan subsidiary, Andrada Mining Rwanda Ltd, ("AMR").
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Andrada Namibia owns an 100% equity interest in Uis Tin Mining Company (Pty) Ltd ("UTMC"). AIM holds 100% of Namibian subsidiary, Grace Timon Investments (Pty) Ltd ("GTI"). As at 28 February 2026, the Andrada Group comprised: Company Equity holding and voting rights 28 February 2026 Equity holding and voting rights 28 February 2025 Country of incorporation Nature of activities Andrada Mining Ltd N/A N/A Guernsey Ultimate holding company Greenhills Resources Ltd1 100% 100% Guernsey Holding company Andrada Mining (Pty) Ltd1 100% 100% South Africa Group support services Tantalum Investment (Pty) Ltd1 100% 100% Namibia Tin & tantalum exploration Uis Toll Mining Company (Pty) Ltd1 100% 100% Namibia Holding company Andrada Mining (Mauritius) Ltd1 100% 100% Mauritius Holding company Andrada Investments (Mauritius)1 70% 100% Mauritius Holding company Andrada Mining (Namibia) (Pty) Ltd2 100% 100% Namibia Tin, tantalum & lithium operations Andrada Mining Rwanda Ltd2 100% 100% Rwanda Tin & tantalum exploration Uis Tin Mining Company (Pty) Ltd3 100% 100% Namibia Tin, tantalum & lithium operations Grace Timon Investments (Pty) Ltd4 100% 100% Namibia Tin & tantalum exploration 1 Held directly by Andrada Mining Ltd 2 Held by Greenhills Resources Ltd 3 Held by Andrada Mining (Namibia) (Pty) Ltd 4 Held by Andrada Investments (Mauritius) Ltd These financial statements are presented in Pound Sterling (£) because that is the currency in which the Group has raised funding on the AIM market in the United Kingdom. Furthermore, Pound Sterling (£) is the functional currency of the ultimate holding company, Andrada Mining Limited. The Group's key subsidiaries, Andrada Namibia and UTMC, use the Namibian Dollar (N$) as their functional currency. The year- end spot rate used to translate all Namibian Dollar balances was £1 = N$21.45 and the average rate for the financial year was £1 = N$23.37. 2. MATERIAL ACCOUNTING POLICIES BASIS OF ACCOUNTING The consolidated financial statements have been prepared in accordance with UK Adopted International Accounting Standards. The consolidated financial statements also comply with the AIM Rules for Companies, NSX Listing Requirements and the Companies (Guernsey) Law, 2008 and show a true and fair view. The material accounting policies applied in preparing these consolidated financial statements are set out below. These policies have been consistently applied throughout the period. The consolidated financial statements have been prepared under the historical cost convention except as where stated. GOING CONCERN The Group closely monitors and manages its liquidity risk and day-to-day working capital requirements. Cash forecasts are regularly produced, considering the global logistical challenges around sales to ensure that there is sufficient cash within the Group to meet its obligations. The Group runs sensitivities for different scenarios, including but not limited to changes in commodity prices and exchange rates. The Group also routinely monitors the covenants associated with the borrowing facilities and proactively engages with Bank Windhoek and the Development Bank of Namibia, the lenders, where there is any risk. All covenants were met on 28 February 2026 and based on the year-to date production profile and latest forecast; the Group will be able to meet its covenant obligations for the testing period to February 2028. For the purpose of assessing going concern, the Directors have prepared forecasts to February 2028.
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The main estimates considered as part of management's going concern assessment are production profiles, tin and tantalum prices, exchange rates, operating costs and committed capital. The capital commitments include expenditure relating to the ore sorter project, crusher replacement, and exploration investments at Brandberg West and Lithium Ridge. The production profile is based on the Group's production post the completion of the ore sorter project, as well as the additional production on the successful completion of the secondary crushers replacements, which will ramp up in quarter 1 of FY2028. In August 2026, Management secured bank funding of £4.4 million to support the implementation of these projects. Of the total funding secured, £3.3 million had been received into the Group's bank account, with the remaining £1.1 million expected to be received in September 2026. In addition, the Group successfully raised £7m through a private placement with strategic investors in April 2026. This further supports the liquidity requirements of the Group and its ability to meet its obligations in the ordinary course of business until August 2027. The Group also retains the ability to flex its ongoing exploration and metallurgical capital expenditures in line with cash availability as well as macro-economic circumstances. Based on the forecasts, the Group anticipates that no additional funding will be required within the next 12 months to support envisaged capital and exploration projects. Management acknowledges that the Group has incurred net operating cash outflows in each of the past two financial years, primarily due to higher input costs and continued investment in growth initiatives. These cash outflows, together with the Group's level of borrowings, are actively monitored by management and lenders. Debt covenants and repayment obligations are being carefully managed through ongoing engagement with lenders, regular compliance monitoring, and the implementation of targeted cash flow improvement measures. The Group has developed and commenced the execution of initiatives aimed at enhancing operating cash generation, including cost optimization, improved working capital management, and targeted revenue growth strategies. These actions are expected to support the Group's liquidity position and ensure the continued servicing of its debt obligations. In assessing the Group's ability to continue as a going concern, management has considered a range of downside sensitivities and scenarios over the forecast period to 28 February 2028. The sensitivity analysis included, among other factors, sensitivities to commodity prices, production volumes and operating costs. The key assumptions were sensitized by applying appropriate downside adjustments to the underlying forecast assumptions, including 10% reductions in commodity prices and production volumes combined, as well as 10% increases in operating costs. The scenarios considered were designed to assess the resilience of the Group's liquidity position and its ability to comply with the applicable financial covenants under a range of reasonably possible adverse circumstances. Management's assessment considered the impact of each scenario on forecast cash balances, available liquidity and forecast covenant compliance throughout the entire going concern assessment period to 28 February 2028. Based on the sensitivity analyses and scenarios performed, management concluded that, under the scenarios considered, the Group maintains sufficient cash and available liquidity to meet its obligations as they fall due throughout the forecast period and remains compliant with its applicable financial covenants. The Group's forecast cash flows and covenant headroom remain adequate after giving effect to the downside sensitivities considered. Management will continue to monitor actual performance against these assumptions and the Group's liquidity and covenant position on an ongoing basis and will take further mitigating actions, where required, to preserve liquidity and covenant compliance. Having considered the forecasts, available funding options, and progress made in securing additional financing, the Directors are satisfied that there is no material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. Accordingly, the Directors have a reasonable expectation that Andrada Mining Limited will continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing these consolidated financial statements. BASIS OF CONSOLIDATION Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains/losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies. Non-controlling interests Non-controlling interests in subsidiaries are identified separately from the Group's equity therein. Those interests of non- controlling shareholders that present ownership interests entitling their holders to a proportionate share of the net assets upon liquidation are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests' share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non- controlling interests having a deficit balance. During the prior year, the Group purchased the 15% minority interest in UTMC from the Small Miners of Uis (refer to Note 23) and disposed of its South African entities for c. £20 000 which had minority shareholders.
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Following Initial Investment Completion on 4 February 2026, BWCAM Limited subscribed for equity in AIM for cash consideration of US$10 million. As a result, a non-controlling interest was recognised in respect of the investor's 30% equity interest. The Group retained control of the entity and continues to consolidate its financial results. The non-controlling interest represents the investor's proportionate share of the net assets and results of the subsidiary. The transaction has been accounted for as an equity transaction with non-controlling interests, with no gain or loss recognised in profit or loss as control is retained. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. Any excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognized in equity of the parent in transactions where the non-controlling interests are acquired or sold without loss of control. The Group has elected to recognize this effect in retained earnings. Investment in associate An associate is an entity over which the Group has significant influence, but not control or joint control. The Group accounts for its investments in associate using the equity method of accounting. Under the equity method, the investment is initially recognized at fair value, and the carrying amount is increased or decreased to recognize the investor's share of the profit or loss of the investee after the date of acquisition. The Group's share of post- acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income, with a corresponding adjustment to the carrying amount of the investment. The investment in an associate is derecognized when the Group ceases to have significant influence. Upon disposal, the difference between the carrying amount of the investment and the proceeds from disposal is recognized in profit or loss. SEGMENT REPORTING Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision- makers. The chief operating decision-makers, who are responsible for allocating resources and assessing performance of the operating segments, has been identified as the management steering committee that makes strategic decisions. The reporting segments are identified according to the way that the Group's operations are organised and considering the revenue generating operations of the entity. As at 28 February 2026, the Group operated a single operating segment, namely its tin, tantalum and lithium operations in Namibia. Other exploration and corporate activities throughout the rest of the world (including South Africa, Guernsey, Mauritius and Rwanda) do not meet the definition of an operating segment. FOREIGN CURRENCIES Functional and presentation currency The individual financial statements of each Group company are prepared in the currency of the primary economic environment in which that company operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group company are expressed in Pound Sterling, which is the functional currency of the Group, and the presentation currency for the consolidated financial statements. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation date where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. REVENUE RECOGNITION IFRS 15 Revenue from Contracts with Customers establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. The core principle is that an entity recognises revenue to depict the transfer of promised goods and services to the customer of an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group generates revenue from its primary activity, the sale of tin concentrate, and it generated immaterial revenue from the sale of tantalum and lithium. The Group produces and sells tin concentrate from its Uis Tin Mine in Namibia. Once concentrate has been produced at the Uis plant, it is sampled, bagged and loaded into containers for transportation to the port in Walvis Bay for shipment. The Group currently has an offtake agreement with its customer, Thailand Smelting and Refining Company ("Thaisarco"), which was signed on 1 August 2019. This contract was renewed on 1 December 2023 for a further 3 years. As per the contract, Thaisarco pays the Group on the basis of actual tin content in the concentrate per Thaisarco's analysis, at the London Metal Exchange price less treatment charges, unit deductions and impurity charges. The Group can elect for the sale of each shipment to occur under the following terms: Option 1: Standard provisional payment Thaisarco shall pay 90% provisional payment on the basis of actual tin content as per their own analysis. Payment is to be made within 10 working days after the arrival of concentrate at Thaisarco's works. Title shall pass to Thaisarco when the concentrate arrives at the Songkhla Port in Thailand.
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Option 2: Provisional payment option against warehouse holding certificate Thaisarco shall pay 80% provisional payment on the basis of provisional tin content per UTMC's analysis. The provisional payment shall be done against presentation of a provisional invoice and an original warehouse holding certificate. Thaisarco shall pay an additional 10% provisional payment upon presentation of the sea waybill. Title shall pass to Thaisarco when UTMC receives the 80% provisional payment. Option 3: Provisional payment option against sea waybill Thaisarco shall pay 90% provisional payment on the basis of provisional tin content per UTMC's analysis. The provisional payment shall be done against presentation of a provisional invoice and a sea waybill. Title shall pass to Thaisarco when UTMC receives the 90% provisional payment. During the financial year, the Group concluded all sales under Option 2. Revenue is recognised at a point in time when title and control of the goods has transferred to the customer, which is when the concentrate arrives at Songkhla Port in Thailand under Option 1 or when provisional payment is received by UTMC under Option 2 and Option 3. There is limited judgement needed to identify the point at which control passes: once physical delivery of the products to the agreed location has occurred, the Group no longer has physical possession of the products. At this point, the Group will have a present right to payment and retains none of the significant risks and rewards of the goods in question. Pricing for the provisional payment is determined by the published tin price on the date that title and control passes. Pricing for the final payment shall be declared within 20 market days after arrival at Thaisarco's works. The lower of the four LME cash official bid and offer prices and the LME 3-months official bid and offer prices on the agreed date is used in these calculations. Variable consideration relating to final assay results is constrained in estimating revenue unless it is highly probable that there will not be a future reversal in the amount of revenue recognised when the final assay has been determined. TAXATION The tax expense represents the sum of the tax currently payable and deferred tax. The tax charge is based on taxable profit for the period. The Group's liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the "balance sheet liability" method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that are expected to apply to the year when the asset is realised, or the liability is settled based upon rates enacted and substantively enacted at the reporting date. Deferred tax is charged or credited to profit or loss, except when it relates to items credited or charged to other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income. EXPLORATION AND EVALUATION ASSETS All costs associated with mineral exploration and evaluation are capitalised as intangible exploration and evaluation assets and subsequently measured at cost. These include the costs of: acquiring prospecting licences; mineral production licences and annual licence fees; rights to explore; topographical, geological, geochemical and geophysical studies; and exploratory drilling, trenching, sampling and other activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource. If an exploration project is successful, the related expenditures will be transferred at cost to property, plant and equipment and depreciated over the estimated life of the commercial ore reserves on a unit of production basis (with this charge being taken through profit or loss). Where capitalised costs relate to both development projects and exploration projects, the Group reclassifies a portion of the costs which are considered attributable to near-term production based on a percentage of the ore resource expected to be mined in the relevant phase. Where a project does not lead to the discovery of commercially viable quantities of mineral resources and is relinquished, abandoned, or is considered to be of no further commercial value to the Group, the related costs are recognised in the income statement. The recoverability of deferred exploration costs is dependent upon the discovery of economically viable ore reserves, the ability of the Group to obtain necessary financing to complete the development of ore reserves and future profitable production or proceeds from the extraction or disposal thereof. In 2023, the Group completed the construction of its on-site pilot plant that enables the mine to expedite bulk pilot test work and increase pilot production of lithium concentrate. Both the pilot plant and day to day running costs have been accounted for in accordance with IFRS 6. IMPAIRMENT OF EXPLORATION AND EVALUATION ASSETS
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Intangible exploration and evaluation assets are reviewed regularly for indicators of impairment following the guidance in IFRS 6 Exploration for and Evaluation of Mineral Resources and tested for impairment where such indicators exist. In accordance with IFRS 6, the Group considers the following facts and circumstances in their assessment of whether the Group's exploration assets may be impaired: · whether the period for which the Group has the right to explore in a specific area has expired during the period or will expire in the near future, and is not expected to be renewed; or · whether substantive expenditure on further exploration for and evaluation of mineral resources in a specific area is neither budgeted for nor planned for; or · whether exploration for and evaluation of mineral resources in a specific area have not led to the discovery of commercially viable deposits and the Group has decided to discontinue such activities in the specific area; or · whether sufficient data exists to indicate that although a development in a specific area is likely to proceed, the carrying amount of the exploration and evaluation assets is unlikely to be recovered in full from successful development or by sale. If any such facts or circumstances are noted, the Group, as a next step, performs an impairment test in accordance with the provisions of IAS 36 Impairment of Assets. In such circumstances, the aggregate carrying value of the mining exploration and evaluation assets is compared to the expected recoverable amount of the cash-generating unit. The recoverable amount is the higher of value in use and the fair value less costs to sell. SHARE CAPITAL AND RESERVES i) Warrant reserve The warrants issued by the Group are recorded at fair value on initial recognition net of transaction costs. The fair value of warrants granted is recognised as share issue costs or as convertible loan note issue costs based on their nature, with a corresponding increase in equity. The fair value of the warrants granted is measured using the Black Scholes valuation model, taking into account the terms and conditions under which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of warrants that vest. During the year, all issued warrants reached their respective expiration dates. ii) Share-based payment reserve Where equity-settled share options are awarded to Directors or employees, the fair value of the options at the date of grant is charged to the statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-vesting condition is not satisfied. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is charged to the statement of comprehensive income over the remaining vesting period. Where equity instruments are granted to persons other than employees, the statement of comprehensive income is charged with the fair value of goods and services received. iii) STIP and LTIP Equity Schemes The Group operates a short-term incentive plan ("STIP") scheme which runs a financial year basis, with employees receiving either cash or shares, according to their level of grading, subsequent to year end based on their performance during the year. An option pricing model is used to measure the value of the scheme at each reporting date, taking into account the terms and conditions on which the bonus is awarded and the extent to which employees have rendered their service. Movement in the value of the scheme is recognised in the consolidated statement of comprehensive income. The LTIP scheme is a share based scheme that applies to permanent employees at Global 13 and above. The scheme comprises both retention rights and performance rights and the intention is to focus management's effort on the achievement of long-term value creation. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less the estimated residual value of each asset over its expected useful economic life. The applicable rates are: · The mining assets are depreciated using the units of production method from the point that commercial production was achieved. This reflects the production activity in the period as a proportion of the total mining reserve. Where the units of production method is used, the assets are depreciated based on a rate determined by the tonnes of ore processed divided by the estimate of the mineral reserve. · Short-lived assets which are used in the mining and processing plant are depreciated over a period of between one and ten years. · Right-of-use assets are depreciated over the period of the lease contract. · Computer equipment is depreciated over three years.
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· Furniture is depreciated over five years. · Vehicles are depreciated over four years. · Mobile equipment is depreciated over ten years. · Buildings are depreciated over twenty years. Land and mining assets under construction are not depreciated. The estimated useful lives, residual values and depreciation methods are reviewed at each year end and adjusted if necessary. Gains or losses on disposal are included in Profit or Loss. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. MINING ASSET - STRIPPING In open pit mining operations, it is necessary to incur costs to remove overburden and other mine waste materials in order to access the ore body ("stripping costs"). During the development of a mine, stripping costs are capitalised and included in the carrying amount of the related mining property. During the production phase of a mine, stripping costs will be recognised as an asset only if the following conditions are met: · it is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the entity; · the entity can identify the component of the ore body (mining phases) for which access has been improved; and · the costs relating to the stripping activity associated with that component can be measured reliably. Stripping costs incurred and capitalised during the development and production phase are depreciated through Profit or Loss using the unit-of-production method over the reserves and, in some cases, a portion of resources of the area that directly benefit from the specific stripping activity. Costs incurred for regular waste removal that do not give rise to future economic benefits are considered as costs of sales. RIGHT-OF-USE ASSET At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: · the contract involves the use of an identified asset. The asset may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; · the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and · the Group has the right to direct the use of the asset. The Group has the right when it has the decision-making rights that are most relevant to changing how and for what purposes the asset is used. In rare cases where the decision about how and for what purposes the assets is used is predetermined, the Group has the right to direct the use of the asset if either: o the Group has the right to operate the asset; or o the Group designed the asset in a way that predetermines how and for what purposes it will be used. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone price. The right-of-use asset is initially measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the right-of-use asset is annually assessed for impairment and will be adjusted for certain re- measurements of the lease liability. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT At each statement of financial position date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where there has been a change in economic conditions that indicate a possible impairment in a cash-generating unit, the recoverability of the net book value relating to that unit is assessed by comparison with the estimated discounted future cash flows based on management's expectations of future commodity prices and future costs.
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In accordance with IAS 36 Impairment of Assets, the recoverable amount of an asset or cash-generating unit is the higher of its value in use and its fair value less costs of disposal. Management has determined the recoverable amount on the basis of a value in use model, as permitted under IAS 36. In assessing the recoverable amount, the expected future post-tax cash flows from the asset are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The future cash flows are based on budgets approved by the Board and the Life of Mine ("LoM") plan is the approved management plan at the reporting date for ore extraction and its associated capital expenditure. The ore tonnes included in the LoM plan are those as per the Resource Statement, which management considers economically viable. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease to the extent that it reverses gains previously recognised in other comprehensive income. Where conditions giving rise to impairment subsequently reverse, the effect of the impairment charge is also reversed as a credit to the income statement, net of any depreciation that would have been charged since the impairment. INVENTORIES Inventory consists of tin concentrate on hand, the run of mine stockpile, and consumable items. The tin concentrate is carried at the lower of cost or net realisable value. The cost of the concentrate includes direct materials, direct labour, depreciation, and overhead costs relating to processing and engineering activities. Net realisable value is the estimated selling price net of any estimated selling costs in the ordinary course of business. The run of mine stockpile is carried at the lower of cost or net realisable value. The cost of the stockpile includes direct materials, direct labour, depreciation and overhead costs relating to mining activities. Net realisable value is the estimated selling price net of necessary processing costs and any estimated selling costs in the ordinary course of business, including both government and Orion royalties. Consumables are valued at the lower of cost (determined on the weighted average basis) and net realisable value. Cost comprises all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. Replacement cost is used as the best available measure of net realisable value. FINANCIAL INSTRUMENTS Financial instruments are recognised in the Group's statement of financial position when the Group becomes a party to the contractual provisions of the instrument. FINANCIAL ASSETS The Group has the following financial assets: · Trade and other receivables · Cash and cash equivalents · Derivative financial asset The classification depends on the Group's business model for managing the financial assets and the contractual terms of the cash flows. Financial assets are classified as at amortised cost only if the asset is held to collect the contractual cash flows and the contractual terms of the asset give rise to cash flows that are solely payments of principal and interest. At subsequent reporting dates, financial assets at amortised cost are measured at amortised cost less any impairment losses. For assets measured at fair value, gains and losses will be recorded in profit or loss. Derivative financial assets During the period the Group entered into a deed of option granting it a call option to acquire the entire issued share capital of Goantagab Mining (Pty) Ltd. The option is a derivative financial instrument as its value changes in response to the value of the underlying equity interest, it required a smaller net initial investment than a direct acquisition of that interest, and it is settled at a future date. The option is recognised as a derivative financial asset from the date on which the Group obtains the contractual option right. It is initially measured at fair value and is subsequently measured at fair value through profit or loss. The option does not give rise to contractual cash flows that are solely payments of principal and interest, and it is not a non-trading equity investment; it is therefore not eligible for measurement at amortised cost or at fair value through other comprehensive income. Changes in the fair value of the option are recognised in profit or loss in the period in which they arise. Directly attributable transaction costs are expensed as incurred. The option is derecognised when it is exercised, lapses, expires or is terminated. IMPAIRMENT OF FINANCIAL ASSETS
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The Group assesses on a forward-looking basis the expected credit loss, defined as the difference between the contractual cash flows and the cash flows that are expected to be received, associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the simplified approach permitted by IFRS 9 Financial Instruments is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Losses are recognised in the income statement. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the income statement. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of 24 months before 28 February 2026 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of our customer to settle the receivables balance. FINANCIAL LIABILITIES Financial liabilities include trade and other payables, borrowings and other financial liabilities classified into one of the following categories: · Fair value through profit or loss ("FVTPL"): The liabilities are carried in the statement of financial position at fair value with changes in fair value recognised in the income statement. · Financial liabilities carried at amortised cost. Borrowings and other financial liabilities are classified as either financial liabilities or as equity in accordance with the substance of the contractual agreement. Financial liabilities at FVTPL Financial liabilities are classified as at FVTPL when the financial liability is: (i) a contingent consideration that may be paid by an acquirer as part of a business combination; (ii) held for trading; or (iii) designated as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains and losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the fair value adjustment line item in the statement of comprehensive income. The derivative financial liability is measured at fair value as the group is hedging against the risk of changes in the fair value of its forecasted sales due to fluctuations in the tin price. Financial liabilities at amortised cost After initial recognition at fair value, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest ("EIR") method. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs. Borrowings Interest-bearing debt is initially recorded at fair value less transaction costs, and is subsequently measured at amortised cost, calculated using the effective interest method. Borrowing costs are expensed as incurred except where they relate to the financing of construction or development of qualifying assets in which case they are capitalised up to the date when the qualifying asset is ready for its intended use. Compound debt Upon issuance, the fair value of the compound financial instrument is established. The liability component is assessed at the fair value of a comparable liability that lacks an equity conversion feature. The equity component is calculated as the remaining amount after subtracting the fair value of the liability component from the total fair value of the instrument. Any transaction costs are distributed between the liability and equity components based on their respective fair values. The liability component is subsequently evaluated at amortised cost using the effective interest method. The equity component remains unchanged after initial recognition. Hybrid debt The proceeds received on the issue of the Group's convertible debt are allocated to their debt and derivative liability components. The amount initially attributable to debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that does not include as option to convert. Subsequently, the debt component is accounted for as a financial liability measured at amortised cost until extinguished on conversion or maturity of the debt. The remainder of the proceeds is allocated to the conversion option and recognised as a derivative liability. Thaisarco exclusivity payment This financial liability is initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, in accordance with IFRS 9. In the current arrangement, in the absence of sufficient observable market inputs and given the commercial terms, the transaction price is considered a reasonable approximation of fair value at initial recognition.
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Accordingly, no separate component has been recognised on initial recognition as there is no difference between the transaction price and the fair value. Management assessed whether this arrangement fell under IFRS 15 Revenue Recognition. IFRS 15.106 requires recognition of a contract liability when consideration is received before the transfer of goods or services. This requires an enforceable obligation to transfer such goods or services. As per the agreement, the Group will settle the amount in cash rather than through the delivery of goods. The agreement does not impose a minimum supply obligation specifically linked to the funds received and Thaisarco does not have the right to compel delivery of goods. Accordingly, the exclusivity payment does not represent consideration received in exchange for goods or services, and the amount received does not fall within the scope of IFRS 15. Put option liability The liability is initially recognised at the present value of the amount that could be required to be paid in accordance with IAS 32.23 at the date the Group becomes party to the contract. Changes in the measurement of the gross obligation due to the unwinding of the discount or changes in the amount that could be required to be paid are recognised in profit or loss. DERECOGNITION A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when: · the rights to receive cash flows from the asset have expired; or · the Group has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party, and either: o the Group has transferred substantially all the risks and rewards of the asset; or o the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. A financial liability (in whole or in part) is derecognised when the Group has extinguished its contractual obligations, it expires, or it is cancelled. Any gain or loss on derecognition is taken to the profit or loss. REHABILITATION PROVISION The net present value of estimated future rehabilitation costs is provided for in the financial statements and capitalised within property, plant and equipment on initial recognition. Rehabilitation will generally occur on or after closure of a mine. Initial recognition is at the time that the construction or disturbance occurs, and thereafter as and when additional construction or disturbances take place. The estimates are reviewed annually to take into account the effects of inflation and changes in the estimated cost of the rehabilitation works and are discounted using rates that reflect the time value of money. Annual increases in the provision due to the unwinding of the discount are recognised in the statement of comprehensive income as a finance cost. The present value of additional disturbances and changes in the estimate of the rehabilitation liability are recorded to mining assets against an increase/decrease in the rehabilitation provision. The rehabilitation asset is amortised over the life of the mine once commercial production commences using the straight-line method. Rehabilitation projects undertaken, included in the estimates, are charged to the provision as incurred. Environmental liabilities, other than rehabilitation costs, which relate to liabilities arising from specific events, are expensed when they are known, probable and may be reasonably estimated. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Information about significant areas of estimation uncertainty considered by management in preparing the financial statements is provided below. Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years. i) Going concern and liquidity Significant estimates were required in forecasting cash flows used in the assessment of going concern including tin and tantalum prices, the levels of production, operating costs, and capital expenditure requirements. For further details, refer to going concern considerations laid out earlier in Note 2. ii) Decommissioning and rehabilitation obligations
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Estimating the future costs of environmental and rehabilitation obligations is complex and requires management to make estimates and judgements, as most of the obligations will be fulfilled in the future and contracts and laws are often not clear regarding what is required. The resulting provisions (see Note 21) are further influenced by changing technologies, and by political, environmental, safety, business, and statutory considerations. The Group's rehabilitation provision is based on the net present value of management's best estimates of future rehabilitation costs. Judgement is required in establishing the disturbance and associated rehabilitation costs at period end, timing of costs, discount rates, and inflation. In forming estimates of the cost of rehabilitation which are risk adjusted, the Group assessed the Environmental Management Plan and reports provided by internal and external experts. Actual costs incurred in future periods could differ materially from the estimates, and changes to environmental laws and regulations, life of mine estimates, inflation rates, and discount rates could affect the carrying amount of the provision. The carrying amount of the rehabilitation obligations for the Group at 28 February 2026 was £2 192 091 (FY 2025: £1 604 389). In determining the amount attributable to the rehabilitation liability, management used a discount rate of 9.65% (FY 2025: 11.02%), an inflation rate of 3.5% (FY 2025: 4.0%) and an estimated mining period of 10.46 years (FY 2025: 11.65 years), being the Phase 1 expansion life of mine. A 1% increase or decrease in the inflation rate used would result in a £231 889 difference in the liability. A 2% increase or decrease in the discount rate used would result in a £377 565 difference in the liability. An 5 year increase in the mining period would decrease the liability by £549 266 and a 10 year increase would decrease the liability by £960 898. iii) Impairment indicator assessment for exploration and evaluation assets Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including specific impairment indicators prescribed in IFRS 6 Exploration for and Evaluation of Mineral Resources. If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future tin prices, future capital expenditures, environmental and regulatory restrictions, and the successful renewal of licences. The Directors have concluded that there are no indications of impairment in respect of the carrying value of Namibian intangible assets at 28 February 2026 based on planned future development of the Namibian projects, and current and forecast tin and tantalum prices. Exploration and evaluation assets are disclosed fully in Note 13. iv) Impairment assessment for property, plant and equipment Management have reviewed the Uis mine for indicators of impairment and have considered, among other factors, the operations to date at the Uis Tin Mine, forecast commodity prices, production profile, inflation rate, post- tax discount rate and market capitalisation of the Group. In undertaking the impairment review, management have also reviewed the underlying LoM valuation model for Uis. The LoM valuation model represents a value in use model and includes assessments of different scenarios associated with capital improvements and expansion opportunities. The impairment testing performed by management did not identify indicators of impairment and, therefore, did not result in an impairment being raised. The forecasts require estimates regarding forecast tin, tantalum and lithium prices, ore resources, production, operating and capital costs. Under the base case forecast scenario, management used a forecast tin price of $42 000 per tonne, tantalum price of $175 000 per tonne, a discount rate of 11.2% post tax real rate (12.6% pre-tax real rate). The forecast indicates sufficient headroom as at 28 February 2026. IAS 36 outlines both external and internal indicators that may suggest an asset is impaired. As part of this review, management has considered these indicators in relation to the Uis mining asset. Based on IAS 36, no immediate indicators of impairment have been identified. However, management acknowledges that the recoverability of the mining asset is sensitive to the following key assumptions: · Volatility in tin prices, which directly impacts revenue projections. The estimation of future tin price is subject to uncertainty considering the volatility of the market. Management has therefore compared the forecast tin price with the economic consensus estimates. · Ramp-up of tin production anticipated from FY2028 onwards, following the completion of the ore sorters expansion project. Management's forecasts are dependent on tin production increasing by 63% to 2 900 tonnes of tin concentrate within the next 3 years, therefore, the Group's upcoming focus will be to deliver on its expansion projects. Management has considered these indicators and tested the recoverability of the net book value of the mining asset against the estimated discounted future cash flows based on expectations of future commodity prices and future costs. As an additional test, management has performed the following sensitivity analyses: · lowering the forecast tin prices by 4%, · raising the discount rate to 14% post tax real rate, · lowering plant recovery by 4% and · increasing operating costs by 7%. In each of these circumstances, the forecast indicated sufficient headroom as at 28 February 2026. If the tin price decreased by more than 4%, this would result in an impairment of the asset, however, current year-to-date market prices have been higher than the forecast price used in management's calculations.
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v) Depreciation Judgement is applied in making assumptions about the depreciation charge for mining assets when using the unit- of-production method in estimating the ore tonnes held in reserves. The relevant reserves are those included in the current approved LoM plan which relates to the Phase 1 expansion. Judgement is also applied when assessing the estimated useful life of individual assets and residual values. The assumptions are reviewed at least annually by management and the judgement is based on consideration of the LoM plan, as well as the nature of the assets. The reserve assumptions included in the LoM plan are evaluated by management. vi) Capitalisation and depreciation of waste stripping The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load and haul of waste material is capitalised until such time that the underlying ore is used in production. These costs are then expensed on a proportional basis. The capitalised costs are included in the mining asset in property, plant and equipment and are expensed back into the statement of comprehensive income as depreciation. Capitalisation of waste stripping requires the Group to make judgements and estimates in determining the amounts to be capitalised. These judgements and estimates include, amongst others, the expected life of mine stripping ratio for each separate open pit, the determination of what defines separate pits, and the expected volumes to be extracted from each component of a pit for which the stripping asset is depreciated. vii) Determination of ore reserves The estimation of ore reserves primarily impacts the depreciation charge of evaluated mining assets, which are depreciated based on the quantity of ore reserves. Reserve volumes are also used in calculating whether an impairment charge should be recorded where an impairment indicator exists. The Group estimates its ore reserves and mineral resources based on information, compiled by appropriately qualified persons, relating to geological and technical data on the size, depth, shape, and grade of the ore body and related to suitable production techniques and recovery rates. The estimate of recoverable reserves is based on factors such as tin prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body. There are numerous uncertainties inherent in estimating ore reserves and mineral resources. Consequently, assumptions that are valid at the time of estimation may change significantly if or when new information becomes available. viii) Valuation of inventories Judgement is applied in making assumptions about the value of inventories and inventory stockpiles, including tin prices, plant recoveries and processing costs, to determine the extent to which the Group values inventory and inventory stockpiles. The Group uses forecast tin prices to determine the net realisable value of the ROM stockpile and the tin concentrate inventory on hand at year end. Inventory stockpiles are measured using actual mining and processing costs. ix) Determining the fair value of royalty debt The Group entered into a royalty agreement during the prior financial year. The measurement of the royalty obligation factored in numerous key inputs and the use of a technical expert. These inputs include the forecast of the tin production and price over a period of 40 years, the risk-free rate and the credit spread. The tin price forecast was based on estimates made by the Group as of 28 February 2026. The tin price estimate used in the royalty valuation is consistent with the price used in the impairment assessment. The risk-free rate was based on the United States Constant Maturity Treasury rates commensurate with the terms as of the valuation date, as reported on the Federal Reserve website. The Group used a credit spread of 10.58% computed by backsolving the convertible notes to par and further adjusted down 3.5% to account for the lower risk factor as a result of the ongoing operations at the Uis Tin Mining Company (operating subsidiary). The operating subsidiary attracts a lower risk factor due to it being closely aligned to the underlying Tin mining operation and its performance since commissioned, relative to the holding company, which is implicitly subordinated. The credit spread has remained consistent since inception of the royalty. This was assessed by an independent expert who used a credit risk model to confirm that the Group's overall credit risk profile has not materially changed and that retaining the credit spread applied in prior years remains appropriate. The royalty obligation is measured at fair value through profit and loss. x) Assessment of Control and Classification of Investment in Grace Simba Investments (Pty) Ltd ("GSI") as an Associate The Group exercises judgement in assessing whether it has control, joint control, or significant influence over another entity. In accordance with the requirements of IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, the determination of control involves evaluating whether the Group has: · Power over the investee, · Exposure or rights to variable returns from its involvement with the investee, and · The ability to use its power to affect the amount of the investor's returns. In the current reporting period, the Group holds 100% of the equity interest in GSI, along with representation on the board of directors and participation in key operating decisions. However, after evaluating the relevant facts and circumstances, including decision-making rights, and contractual arrangements, management concluded that the Group does not have control over GSI, but has significant influence over its financial and operating policies. Accordingly, the investment in GSI has been accounted for using the equity method, in accordance with IAS 28.
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This assessment required significant judgement, as despite having majority shareholding, Andrada cannot unilaterally direct relevant activities due to the other party holding substantive governance rights and holding the casting vote with board decisions. Management will review such relationships periodically to assess whether any changes in facts or circumstances require a reassessment of control or influence. xi) Classification and Measurement of Thaisarco exclusivity payment and Determination of Effective Interest Rate Management assessed the classification of the US$ 3 million exclusivity payment received from Thaisarco and concluded that it meets the definition of a financial liability under IFRS 9. This judgment was based on: · The existence of contractual cash settlement mechanisms; and · The absence of an enforceable obligation to deliver goods to extinguish the liability. Accordingly, the instrument is not recognised as a contract liability under IFRS 15. Management exercises judgement in classifying the instrument between current and non-current liabilities under IAS 1.69. Based on UTMC's discretion over the timing of repayment, UTMC has the contractual ability to defer repayment of this amount beyond 12 months. As this exclusivity payment is not contractually due within the next 12 months, the instrument is classified as a non-current financial liability at the reporting date. The classification is reassessed at each reporting date, taking into account any change in the Group's ability to defer settlement, the occurrence (or expected occurrence) of mandatory redemption events, and the remaining period to settlement. The effective interest rate was determined in accordance with IFRS 9 and is based on expected future cash flows, including marketing fees payable over the life of the arrangement. The rate is considered to reflect a market-related financing return for an instrument of this term and risk profile. In reaching this conclusion, management assessed the effective interest rate against the financing terms that would be expected for a comparable arrangement, having regard to its term, redemption profile and associated credit risk, and considers the rate to fall within a market-related range. On that basis, management concluded that the pricing of the arrangement is consistent with market terms and that the transaction price is a reasonable approximation of the fair value of the liability at initial recognition. This was corroborated by discounting the expected cash flows under the arrangement, including the marketing fees, at a market-related rate, which produced an amount approximating the transaction price. Because the financing return is delivered through the marketing fees rather than a stated coupon, no off-market adjustment arises on initial recognition. No Day 1 difference between transaction price and fair value is recognised, and accordingly no separate component in respect of the broader commercial arrangement is recognised. The liability is initially recognised at the transaction price and subsequently measured at amortised cost using the effective interest rate. Refer to Note 19 for further details. xii) BWCAM Earn-in Transaction During the year, the Group entered into a partnership with BWCAM to accelerate the exploration and development of the Brandberg West prospecting licence. The transaction is governed by an Earn-In Agreement with AIM and an Equity Investment Agreement and a Put Option Agreement with AML. Management exercised significant judgement in determining the appropriate accounting treatment for this transaction. Although the transaction is documented through multiple legal agreements, management concluded that the agreements are economically interdependent and form a single composite transaction. This conclusion is based on the fact that the rights and obligations under each agreement are conditional upon and derived from the Earn-In Agreement, consistent with the principle of substance over form. Management further assessed whether the transaction resulted in a loss of control in accordance with IFRS 10. Based on the governance framework and decision-making rights set out in the agreements, management concluded that the Group retains control of AIM, as it continues to have the ability to direct the relevant activities and is exposed to variable returns. Accordingly, the entity continues to be consolidated, with a non-controlling interest recognised for the investor's shareholding. The put option, if exercised at the election of the holder, BWCAM, will require the Group to buy BWCAM's initial investment shares (30% shareholding in AIM) for US$11 million (c. £8 million) in cash or the equivalent in shares in the Group. The settlement method of either cash or shares will be elected by Andrada. If settlement in shares is elected, the issue price will be the lower of 3 pence or the 30-day VWAP at the date BWCAM exercises the option. The put option would be exercisable in the event that: · The Namibian Competition Commission approval is not granted or · Andrada does not complete the pre-determined milestones including assessment of the mineral content and volume, assaying of exploration drillholes and development of a business plan for the follow-on investment or · BWCAM does not choose to make the follow-on investment. Management applied judgement in assessing the classification of the Put Option granted to the investor. Based on the contractual terms, including the potential for cash settlement or settlement in a variable number of shares, the instrument was
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classified as a financial liability in accordance with IAS 32. The present value of the redemption amount at the grant date is determined using valuation techniques that incorporate significant unobservable inputs including the expected volatility, the risk free rate and the expected share price. Refer to Note 19 for further details. xiii) Goantagab Call Option Management concluded that the deed of option and related arrangements create a stand-alone contractual call option right that exists at the reporting date. This judgement is based on the Group's unilateral right to decide whether to exercise the option during the option term, the pre-agreed and contractually binding pricing and acquisition terms, and the restrictions preventing the existing Goantagab shareholders from dealing with third parties during the option period. Management distinguished between conditions that affect the existence of the option right and conditions that affect the Group's ability to exercise it. Conditions affecting exercise, including project, legal, environmental, licence, ore-delivery and access conditions, have been reflected in the fair value measurement of the option rather than treated as deferring recognition. The Goantagab option is measured at fair value using significant unobservable inputs (a Level 3 measurement). There is no quoted market for the bespoke, privately negotiated option, and its fair value depends on unobservable inputs including the estimated enterprise value of the underlying Goantagab interest, the probability and expected timing of exercise, and risk adjustments reflecting mineral prospectivity, licence and legal/environmental status, exploration and project-execution risk, and the availability of technical and financial information. At the reporting date the underlying interest has no declared mineral resource or reserve, drilling and technical data are incomplete, and licence, legal and environmental matters remain unresolved. Applying market-participant assumptions, management concluded that a market participant would not pay a positive price to acquire the option at the measurement date, and the fair value of the option has been assessed as nil. This conclusion is the outcome of a valuation assessment; it is not a conclusion that the option cannot be measured. 3. ADOPTION OF NEW AND REVISED STANDARDS The following amendments to standards and interpretations were adopted by the group from 1 March 2025: Lack of Exchangeability (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates) On 15 August 2023, the IASB issued Lack of Exchangeability which amended IAS 21 The Effects of Changes in Foreign Exchange Rates (the Amendments). The Amendments arose as a result of a submission received by the IFRS Interpretations Committee (the Committee) about the determination of the exchange rate when there is a long-term lack of exchangeability. IAS 21, prior to the Amendments, did not include explicit requirements for the determination of the exchange rate when a currency is not exchangeable into another currency, which led to diversity in practice. The Amendments introduce requirements to assess when a currency is exchangeable into another currency and when it is not. The Amendments require an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable into another currency. The Amendments are mandatorily effective for reporting periods beginning on or after 1 March 2025. These amendments had no effect on the consolidated financial statements of the Group. ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET APPLIED The following standards, interpretations and amendments are effective for the period beginning 1 March 2026: · Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments Disclosures). Effective 1 January 2026. · Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments Disclosures). Effective 1 January 2026. · IFRS 18 Presentation and Disclosure in Financial Statements. Effective 1 January 2027. · IFRS 19 Subsidiaries without Public Accountability: Disclosures. Effective 1 January 2027. · IAS 21 Translation to a Hyperinflationary Presentation Currency. Effective 1 January 2027. Management is in the process of assessing the impact of the updated standards, interpretations and amendments. The most significant impact is expected due to the updates of IFRS 9, IFRS 7 and IFRS 18. 4. SEGMENTAL REPORTING The reporting segments are identified by the management steering committee according to the way that the Group's operations are organised and considering the revenue generating operations of the entity. As at 28 February 2026, the Group operated a single operating segment, namely its tin, tantalum and lithium operations in Namibia. Other exploration and corporate activities throughout the rest of the world (including South Africa, Guernsey, Mauritius and Rwanda) do not meet the definition of an operating segment. All revenue was derived in the Namibia operating segment, primarily through sales of tin concentrate with the Thailand Smelting and Refining Co. Ltd. Segment Results The following is an analysis of the group's results:
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Year ended 28 February 2026 Namibia £ Rest of the world £ Total £ Revenue 30 087 643 - 30 087 643 Associated costs (31 749 725) (4 347 668) (36 097 393) Other income 2 315 308 1 124 169 3 439 477 Finance income 141 452 8 700 150 152 Finance cost (4 378 615) (2 558 703) (6 937 318) Loss before tax (3 583 937) (5 773 502) (9 357 439) Year ended 28 February 2025 Namibia £ Rest of the world £ Total £ Revenue 22 386 575 - 22 386 575 Associated costs (23 140 767) (5 780 256) (28 921 023) Other income 760 028 1 860 198 2 620 226 Finance income 372 225 1 347 151 1 719 376 Finance cost (4 706 438) (1 565 483) (6 271 921) Loss before tax (4 328 377) (4 138 390) (8 466 767) Year ended 28 February 2026 Namibia £ Rest of the world £ Total £ Non-current assets 59 086 129 6 749 171 65 835 300 Current assets 14 131 369 8 263 408 22 394 777 Non-current liabilities (27 974 974) (78 003) (28 052 977) Current liabilities (17 510 836) (17 140 624) (34 651 460) Total consolidated net assets/(liabilities) 27 731 688 (2 206 048) 25 525 640 Year ended 28 February 2025 Namibia £ Rest of the world £ Total £ Non-current assets 47 263 623 7 308 662 54 572 285 Current assets 11 867 317 3 132 486 14 999 803 Non-current liabilities (23 280 171) (1 110 106) (24 390 277) Current liabilities (9 736 402) (11 735 313) (21 471 715) Total consolidated net assets/(liabilities) 26 114 367 (2 404 271) 23 710 096 5. REVENUE Recognised in the statement of comprehensive income: Year ended 28 February 2026 £ Year ended 28 February 2025 Restated £ Revenue from the sale of tin 28 768 241 21 881 376 Revenue from the sale of tantalum 713 444 485 547 Revenue from the sale of lithium 6 991 3 177 Total revenue from customers 29 488 676 22 370 100 Revenue - change in fair value of customer contract 598 967 16 475 Total revenue 30 087 643 22 386 575 The revenue from the sale of tin, tantalum and lithium is recognised at the point in time at which control transfers. Other revenue relates to the change in the fair value of amounts receivable under the offtake agreement between the date of initial recognition and the period end resulting from forecast market prices at the estimated final pricing date. Refer to Note 2 for further details. Refer to Note 34 for details of the prior year restatement. 6. COST OF SALES Recognised in the statement of comprehensive income: Year ended 28 February 2026 Year ended 28 February 2025
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£ Restated £ Costs of production 19 043 871 17 344 601 Logistics costs 238 594 187 338 Government royalties 893 077 652 270 Orion royalties 2 186 465 1 244 252 22 362 007 19 428 461 Refer to Note 34 for details of the prior year restatement. 7. ADMINISTRATIVE EXPENSES Recognised in the statement of comprehensive income: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Staff costs 3 766 118 3 491 421 Depreciation of property, plant & equipment 533 092 573 444 Professional fees 853 145 1 627 792 Travelling expenses 200 649 337 577 Uis administration expenses 407 450 477 362 Loss on scrapping of assets 23 252 623 204 Transport expenses 297 084 332 331 Staff welfare costs 126 524 184 602 Security expenses 238 940 248 264 Insurance expenses 158 292 179 911 Water and electricity 79 361 72 662 Safety equipment 35 417 71 370 Disposal of dormant entities - 16 345 Auditor's remuneration 292 700 298 203 Foreign exchange losses 274 603 - IT costs 305 012 448 581 Listing costs 288 926 457 812 Losses on derivative liability - commodity swap transactions 5 161 909 - Impairment loss on receivable 675 973 - Other costs 16 939 51 681 13 735 386 9 492 562 8. STAFF COSTS Year ended 28 February 2026 £ Year ended 28 February 2025 £ Staff costs capitalised under property, plant and equipment 131 688 765 631 Staff costs capitalised under intangible assets 265 394 524 585 Staff costs recognised as administrative expenses 3 629 051 3 236 145 Staff costs included in cost of sales 3 334 387 2 893 639 Share-based payment charge capitalised under property, plant and equipment 30 609 56 208 Share-based payment charge capitalised under intangible assets 22 667 29 267 Share-based payment charge recognised as administrative expenses 137 067 255 276 7 550 863 7 760 751 Key management personnel have been identified as the Board of Directors, Frans van Daalen (Chief Strategy Officer of the Group) and Chris Smith (Chief Operating Officer of the Group). Details of key management remuneration are shown in Note 31. 9. OTHER INCOME Recognised in the statement of comprehensive income: Year ended 28 February 2026 Year ended 28 February 2025
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£ £ Foreign exchange gains 2 505 988 298 155 Gain on sale of diesel 248 814 119 477 Income from associate 457 800 - Other income 226 875 219 269 Fair value gain on derivative financial assets - 354 125 3 439 477 991 026 10. FINANCE INCOME & EXPENSE Recognised in the statement of comprehensive income: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Finance expense Interest on lease liability (refer to Note 22) 176 683 75 420 Interest on environmental rehabilitation provision (refer to Note 21) 176 412 148 117 Interest on bank overdraft and loan facilities (refer to Note 18) 1 362 676 773 769 Interest on convertible loan note (refer to Note 18) 1 473 663 1 510 320 Interest on short-term financing (refer to Note 18) 411 206 - Fair value loss on royalty debt (refer to Note 19) 2 430 603 3 493 971 Fair value loss on embedded derivative (refer to Note 19) 513 524 - Fair value loss on put option (refer to Note 19) 128 675 Other Interest 263 876 270 324 Total finance expense 6 937 318 6 271 921 Finance income Fair value gain on derivative liability - held at fair value through profit or loss - 1 296 101 Interest on bank deposit 150 152 423 275 Total finance income 150 152 1 719 376 The above financial income and expense include the following in respect of assets/ (liabilities) not at fair value through profit or loss: Total interest income on financial assets 150 152 423 275 Total interest expense on financial liabilities 3 511 421 2 554 413 11. TAXATION The tax expense represents the sum of the tax currently payable and deferred tax. Tax expense Year ended 28 February 2026 £ Year ended 28 February 2025 £ Major components of the tax expense: Current tax Income tax for the current period 297 421 185 746 Deferred tax Origination and reversal of temporary differences 906 292 3 232 147 Utilisation of estimated tax loss - (2 608 981) Prior year under provision of deferred tax 138 492 513 444 Deferred tax for the current period 1 044 784 1 136 610 Total tax expense 1 342 205 1 322 356 Reconciliation of the tax expense Year ended 28 February 2026 £ Year ended 28 February 2025 £ Reconciliation between accounting profit and tax expense Loss before tax (9 357 439) (8 466 767) Tax at the applicable rate of 37.5% (3 509 040) (3 175 037)
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Reconciling items Effect of tax rates in difference jurisdictions* 1 291 278 526 775 Deferred tax assets not recognised 1 531 965 2 396 468 Unrealised foreign exchange losses (754 336) 23 005 Movement on rehabilitation liability 112 702 86 850 Fair value loss on derivative financial liability 911 476 1 310 239 Orion royalties expense 819 925 466 595 Other disallowed expenses 799 743 72 786 Prior year under provision of deferred tax 138 492 513 444 Utilisation of assessed losses - (898 769) Total reconciling items 4 851 245 4 497 393 Total tax expense 1 342 205 1 322 356 The applicable tax rate to Uis Tin Mining Company of 37.5% has been used as this is the Group's primary operating entity. * Andrada Mining Limited operates in Guernsey which has a 0% tax rate and Andrada Mining South Africa operates in South Africa which has a 27% tax rate. The Company has been granted exemption from Guernsey taxation and has paid an annual exemption fee for the year of £1 600 (2025: £1 600). The deferred tax liability represents the amount of income tax payable in future periods in respect of taxable temporary differences. Deferred tax liability Year ended 28 February 2026 £ Year ended 28 February 2025 £ Reconciliation of deferred tax Originating temporary differences on property, plant and equipment 5 469 772 5 324 185 Originating temporary differences on intangible assets 3 203 366 2 910 853 Originating temporary differences on inventory 1 849 793 1 215 534 Originating temporary differences on lease liability (23 277) (62 017) Originating temporary difference on unrealised foreign exchange losses 39 883 - Originating temporary difference on derivative liabilities (1 781 963) - Originating temporary difference on other balances 14 702 (48 153) Tax losses available for set-off against future taxable income (6 399 723) (8 203 792) Total deferred tax liability 2 372 553 1 136 610 The total assessed losses carried forward in the Group's subsidiaries is £45 781 671 (FY 2025: £45 686 541). The unrecognised deferred tax asset in the Group's subsidiaries is £4 275 049 (FY 2025: £4 769 413). Due to the sizeable assessed losses that have accumulated in these entities, management has decided not to raise the deferred tax asset in the 2026 financial year as the timing of future taxable profits is not certain at this stage. 12. LOSS PER SHARE The calculation of a basic loss per share of 0.69 pence (FY 2025: loss per share of 0.63 pence), is calculated using the total loss for the period of £10 699 644 (FY 2025: £9 789 123) and the weighted average number of shares in issue during the period of 1 807 545 163 (FY 2025: 1 622 728 373). Due to the loss for the period, the diluted loss per share is the same as the basic loss per share. The number of potentially dilutive ordinary shares, in respect of share options, warrants and shares to be issued as at 28 February 2026 is 115 855 575 (FY 2025: 147 490 478). These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share. The following transactions took place after year-end and will have an effect on the number of ordinary shares used in future loss per share calculations: On 3 March 2026, The Group issued 18 595 768 shares pursuant to the terms of its Short-Term Incentive Plan, to the Executive Committee and senior managers in lieu of cash bonuses for performance in the financial year ended 28 February 2025. On 20 April 2026, the Group successfully completed a private placement with strategic investors. The Group raised US$11 million (£8.1 million) before expenses through a placing of 226 337 448 ordinary shares at a price of 3.6 pence per share. 13. INTANGIBLE ASSETS
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Cost Exploration and evaluation assets £ Computer software £ Total £ As at 29 February 2024 10 434 692 138 542 10 573 234 Additions for the year - other expenditure 3 335 321 - 3 335 321 Disposal of ML 129 (1 235 017) - (1 235 017) Deemed disposal of ML 133 on loss of control of Grace Simba Investments (refer to Note 28) (1 526 575) - (1 526 575) Exchange differences 332 383 3 733 336 116 As at 28 February 2025 11 340 804 142 275 11 483 079 Additions for the year - other expenditure 977 943 (6 832) 971 111 Exchange differences 995 102 4 219 999 321 As at 28 February 2026 13 313 849 139 662 13 453 511 Accumulated amortisation Exploration and evaluation assets £ Computer software £ Total £ As at 29 February 2024 - 53 297 53 297 Charge for the period - 33 322 33 322 Exchange differences - (27) (27) As at 28 February 2025 - 86 592 86 592 Charge for the period - 22 064 22 064 Exchange differences - 1 974 1 974 As at 28 February 2026 - 110 630 110 630 Net book value Exploration and evaluation assets £ Computer software £ Total £ As at 28 February 2026 13 313 849 29 032 13 342 881 As at 28 February 2025 11 340 804 55 683 11 396 487 As at 29 February 2024 10 434 692 85 245 10 519 937 Additions to exploration and evaluation assets represents costs incurred on active exploration projects, day to day costs of running the lithium pilot plant, staff costs and share based payments charges (refer to Note 8 for additional details on staff costs and share based payments charges). During the prior year, ownership of ML 129 was transferred to the Small Miners of Uis as part of the consideration for the purchase of their 15% minority interest in UTMC. Please refer to Note 23 for further information on this transaction. During the prior year, Ownership of ML 133 was transferred to Grace Simba Investments. Please refer to Note 28 for further information on this transaction. Each year, management performs a review of intangibles to identify potential impairment triggers in line with IFRS 6. For the years ending 2026 and 2025, no such triggers were identified for exploration and evaluation assets. The Directors have concluded that there are no indicators of impairment in respect of the carrying value of the Namibian exploration and evaluation assets at 28 February 2026. 14. PROPERTY, PLANT AND EQUIPMENT Land Mining asset under construction Mining asset Mining asset - stripping Decom- missioning asset Right-of-use asset Computer equipment Furniture Vehicles Mobile equipment (crane) Buildings Exploration and evaluation Total Cost As at 29 February 2024 10 284 726 08924 901 7346 482 453 1 003 658 1 248 163 355 146 366 204 382 036 398 961 236 643 3 752 12739 863 500 Additions for the year - 6 069 101 2 587 756 3 205 648 254 015 87 538 365 671 14 662 60 267 11 216 428 910 98 580 13 183 364 Disposals for the year (10 745) - (875 139) - - (51 676) (15 228) - - - - - (952 788) Transfer between categories of assets - (1 240 807) 1 240 807 - - - - - - - - - - Foreign exchange differences 461 8 433 1 044 472 281 834 43 753 56 953 15 220 16 003 16 683 17 464 10 021 164 247 1 675 544 As at 28 February 2025 - 5 562 816 28 899 630 9 969 935 1 301 426 1 340 978 720 809 396 869 458 986 427 641 675 574 4 014 954 53 769 619 Additions for the year - 3 197 555 720 483 4 484 596 235 241 2 573 448 17 334 3 441 - - - - 11 232 098
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Disposals for the year - - - - - (238 617) (42 178) - (24 755) - - - (305 550) Transfer between categories of assets - (483 848) 483 848 - - - - - - - - - - Foreign exchange differences - 726 747 2 565 912 1 267 445 133 971 329 872 60 257 34 693 37 605 37 102 58 613 348 337 5 600 554 As at 28 February 2026 - 9 003 270 32 669 873 15 721 976 1 670 638 4 005 681 756 222 435 003 471 836 464 743 734 187 4 363 291 70 296 721 Accumulated depreciation As at 29 February 2024 - - 4 066 794 2 411 871 83 883 543 577 213 198 155 782 133 831 64 807 19 426 - 7 693 169 Charge for the year - - 2 023 889 1 660 744 83 483 279 013 186 978 37 156 66 857 34 780 28 959 - 4 401 859 Disposals for the year - - (249 846) - - (34 431) (14 963) - - - - - (299 240) Foreign exchange differences - - 162 717 104 302 3 607 29 320 9 216 6 777 5 808 2 810 828 - 325 385 As at 28 February 2025 - - 6 003 554 4 176 917 170 973 817 479 394 429 199 715 206 496 102 397 49 213 - 12 121 173 Charge for the year - - 2 354 602 2 663 207 124 127 374 477 162 809 39 296 75 932 34 570 33 693 - 5 862 713 Disposals for the year - - - - - (238 617) (31 946) - (18 566) - - - (289 129) Foreign exchange differences - - 689 868 600 808 25 946 111 600 45 968 20 814 23 051 11 979 7 285 - 1 537 319 As at 28 February 2026 - - 9 048 024 7 440 932 321 046 1 064 939 571 260 259 825 286 913 148 946 90 191 - 19 232 076 Net book value As at 28 February 2026 - 9 003 270 23 621 849 8 281 044 1 349 592 2 940 742 184 962 175 178 184 923 315 797 643 996 4 363 291 51 064 645 As at 28 February 2025 - 5 562 816 22 896 077 5 793 017 1 130 453 523 499 326 379 197 154 252 492 325 244 626 360 4 014 954 41 648 446 As at 29 February 2024 10 284 726 08920 834 940 4 070 582 919 775 704 586 141 948 210 422 248 205 334 154 217 216 3 752 12732 170 329 Additions to the mining asset under construction consisted of the costs incurred to date on the procuring of the XRT ore sorters as well as the replacement of the filter press, thickener and shaking tables as part of the Continuous Improvement project. Additions to explorations and evaluation assets represents costs incurred to construct the lithium pilot plant which is treated as a tangible asset. The lithium pilot plant is accounted for in accordance with IFRS 6. The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load and haul of waste material is capitalised until such time that the underlying ore is used in production. Please refer to Note 22 for further information on the right-of-use asset. The total depreciation charge for the current financial year was split between administrative expenses and cost of sales. £533 092 (FY 2025: £573 444) was included in administrative expenses, while the balance of £5 329 621 (FY 2025: 3 861 736) was included in cost of sales as it was a cost that was incurred for mining and processing purposes. 15. INVENTORIES Year ended 28 February 2026 £ Year ended 28 February 2025 £ Tin concentrate on hand 1 423 071 972 281 Run of mine stockpile 3 073 236 1 741 393 Consumables 1 859 545 1 497 439 6 355 852 4 211 113 16. TRADE AND OTHER RECEIVABLES Year ended 28 February 2026 £ Year ended 28 February 2025 £ Trade receivables 68 003 389 183 Trade receivables at fair value through profit or loss 2 668 563 1 074 555 Other receivables 1 030 042 3 443 847 VAT receivables 3 349 339 3 078 532 7 115 948 7 986 117 The Directors consider that the carrying amount of trade and other receivables approximates to their fair value due to their short-term nature. No allowance for any expected credit losses against any of the trade receivables is provided due to a history without default or non-payment from any of the Group's customers.
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Trade receivables at fair value through profit or loss relates to receivables under the offtake agreement with Thaisarco. The balance consists of the receivables raised at initial recognition plus an adjustment to recognise the change in the fair value of receivables resulting from forecast market prices at the estimated final pricing date. The Group advanced a liquidity facility to Goantagab Mining (Pty) Ltd and Birca Mining Namibia (Pty) Ltd of N$14 million (c. £655 000) and accrued interest of N$1.7 million (c. £81 000). These funds were provided for working capital requirements and mine establishment costs in relation to the Ore Supply Agreement. The recoverability of this loan was assessed at year-end. Due to ongoing litigation matters delaying the commencement of mining on the Goantagab licence, management elected to be prudent and have provided for the full balance of this facility and the related interest until a final court ruling is received. Other receivables primarily consist of prepayments that the Group has made. VAT receivables consist of amounts due from both the Namibian and the South African Revenue Services. At year-end, numerous VAT periods were still under review by the Revenue Services as part of their normal audit procedures. Management expects to recover all outstanding amounts subsequent to year-end. The total trade and other receivables denominated in South African Rand amount to £460 584 (FY 2025: £335 762), denominated in Namibian Dollars amount to £3 928 016 (FY 2025: £4 974 026) and denominated in US Dollars amount to £2 668 563 (FY 2025: £2 296 455). 17. CASH AND CASH EQUIVALENTS Year ended 28 February 2026 £ Year ended 28 February 2025 £ Cash on hand and in bank 8 922 977 2 701 260 Cash and cash equivalents - statement of financial position 8 922 977 2 701 260 Bank overdraft (refer to Note 18) (411 556) (885 317) Cash and cash equivalents (net of bank overdraft) - statement of cash flows 8 511 421 1 815 943 The above balance includes cash of £1 108 066 (FY 2025: £1 104 256) held in the debt service reserve accounts. While the entity can access the cash in the debt service reserve accounts on demand, the cash is restricted and can only be used for the repayment of loan instalments. The above balance includes cash of £7 402 569 (FY 2025: nil) received from BWCAM under the Earn-in Agreement entered into. While the entity can access the cash received from BWCAM, the cash is restricted and can only be used for the exploration and development of the Brandberg West prospecting licence. 18. BORROWINGS Year ended 28 February 2026 £ Year ended 28 February 2025 Restated £ Standard Bank vehicle asset financing facility 177 401 277 518 Development Bank of Namibia term loan facility 4 877 579 4 712 197 Bank Windhoek term loan facility 4 617 729 4 290 000 Bank Windhoek VAT facility 704 012 648 633 Bank Windhoek bank overdraft 411 556 885 317 Convertible loan note debt component 9 028 064 8 866 321 Short-term loan - Orange Trust - 1 976 825 19 816 341 21 656 811 Discounted maturity analysis: Up to 3 months 1 016 825 971 422 Between 3 and 12 months 10 661 720 11 350 554 Between 1 and 2 years 1 282 935 2 016 127 Between 2 and 5 years 4 086 983 3 879 382 Over 5 years 2 767 878 3 439 326 19 816 341 21 656 811 During 2022, a vehicle asset financing facility to the value of N$15 000 000 (c. £699 000) was provided. Interest accrues on this facility at the Namibian prime rate plus 0.5%.
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On 21 July 2023, the Group issued 77 unsecured convertible loan of £100 000 each to new and existing investors. The notes have a term of 3 years, bears interest at a rate of 12% per annum and can be redeemed at the option of the Group or convertible into ordinary shares at a fixed price of 9.45p by mutual agreement between the Group and the note holders. As per IAS 32 and IFRS 9, the fair value of the proceeds of the notes consisted of a liability and an equity component, Refer to the Statement of Changes in Equity for the equity portion of this instruments. On 5 September 2023, the Development Bank of Namibia ("DBN") served notice confirming that all conditions had been fulfilled or waived and that financial close had occurred. Accordingly, the Group received the 1st drawdown of N$50 000 000 (c. £2 331 000) in September 2023 and the 2nd drawdown of the same amount in March 2024, totalling an amount of N$100 000 000 (c. £4 662 000). This loan has a term of 10 years, bears interest at the Namibian prime rate + 2.5% and is repayable in quarterly instalments. These funds were used to expedite the implementation of the Uis Mine Stage II Continuous Improvement Programme. On 22 November 2023, a US$25 000 000 (c. £18 500 000) funding packing was concluded with Orion Resource Partners. This included US$2 500 000 (c. £1 850 000) equity, a US$10 000 000 (c. £7 400 000) Convertible Loan Note and a US$12 500 000 (c. £9 275 000) unsecured tin royalty. One hundred unsecured convertible loan notes of $100 000 each were issued. The loan notes are redeemable in 4 years from the issue date. Written consent from the note holders is required in the event that the loan notes are redeemed prior the maturity date. The interest accrues quarterly at 12% per annum. The noteholders may at any time before the redemption date convert the loan notes into Andrada ordinary shares in tranches of a minimum of US$100 000 at a conversion price of 9.45 pence per share. As the loan notes may be settled through the transfer of the Group's own equity instruments at the option of the holder at any time, the Group did not have the right to defer settlement for at least twelve months after year-end. Accordingly, the full balance of the loan notes has been classified as a current liability. Refer to Note 34 for details of the prior year restatement of the Orion convertible loan notes. On 6 August 2024, Uis Tin Mining Company agreed a N$100 000 000 (c. £4 662 000) term loan with Bank Windhoek. The loan has a term of 6 years and will incur interest at the Namibian prime rate plus a variable margin which is dependent on the prime rate and is repayable in quarterly instalments. Bank Windhoek has provided short-term loan facilities of up to N$15 000 000 (c. £699 000) for use as cash flow against future VAT payments. It is intended that the short-term loan will be provided for 12 months and will incur interest at the Namibian prime rate. The short-term loan will be repaid to the bank upon receipt of refunds from the Namibia Revenue Agency. In addition to the lending facilities, Bank Windhoek has provided Andrada Mining (Namibia) with a N$10 000 000 (c. £466 000) guarantee to the Namibia Power Corporation in relation to a deposit against the right to a supply of electrical power. This guarantee will incur a small fee payable at six-month intervals. The bank overdraft facility held with Bank Windhoek can be drawn down to a maximum of N$50 000 000 (c. £2 331 000). This facility is for 12 months from the date of drawdown and incurs interest at the Namibian prime rate minus 0.5%. This facility was renewed in June 2026 for another 12 month period. On 12 February 2025, Andrada Mining Ltd entered into a US$2 500 000 (c. £2 000 000) secured funding facility from the Orange Trust. The loan term was initially six months but was subsequently extended and was fully settled through the issue of shares on 19 January 2026. While in issue, the loan attracted a facility fee of US$50 000 (c. £40 000) per month. This loan was to fund the construction of a tin processing jig plant at the Uis mine. Loan covenants The Group's right to defer settlement of the DBN and Bank Windhoek term loan facilities for at least twelve months after the reporting date is subject to compliance with financial covenants that are next tested on 31 August 2026 and 28 February 2027. The Group complied with all applicable covenants at the reporting date, and accordingly these facilities have been split between their current and as non-current portions. As at the reporting date there were no facts or circumstances indicating that the Group may have difficulty complying with these covenants at the next or any subsequent testing date. Required Compliant DBN covenants Debt service cover ratio > 1.25 times Yes Bank Windhoek covenants Debt service cover ratio > 1.25 times Yes Adjusted debt service cover ratio > 2.00 times Yes Gearing ratio < 2.00 times Yes Receivables ageing report <= 45 Days Yes Reconciliation of net cash flow to movement in borrowings Balance as at 29 February 2024 13 949 663 Incoming cash flows 7 055 745 Proceeds from DBN term loan facility 2 146 716 Proceeds from Bank Windhoek term loan facility 1 734 922
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Proceeds from Bank Windhoek VAT facility 311 966 Proceeds from Bank Windhoek overdraft facility 885 317 Proceeds from Orange Trust short-term loan 1 976 825 Outgoing cash flows (1 121 312) Repayment of capital balance of Standard Bank term loan (260 889) Repayment of capital balance of Standard Bank vehicle asset financing facility (112 832) Interest paid on all banking facilities (747 590) Non-cash flows 1 772 715 Foreign exchange differences 244 656 Interest raised on all banking facilities 926 368 Additional arrangements entered into under vehicle asset financing facilities 30 771 Interest on July convertible loan notes 146 420 Shares issued to cover interest on July convertible loan notes (939 400) Interest on Orion convertible loan notes 1 363 900 Balance as at 28 February 2025 21 656 811 Incoming cash flows 691 433 Proceeds from Bank Windhoek VAT facility 691 433 Outgoing cash flows (2 938 510) Capital paid on all banking facilities (964 595) Interest paid on all banking facilities (1 468 584) Repayment of bank overdraft (505 331) Non-cash flows 406 607 Foreign exchange differences 237 917 Interest raised on all banking facilities 1 362 676 Interest on July convertible loan notes 88 104 Interest on Orion convertible loan notes 1 385 559 Interest on Orange Trust loan 411 206 Shares issued to cover interest on July convertible loan notes (936 833) Shares issued to settle Orange Trust loan (2 285 318) Expiration of warrants 143 296 Balance as at 28 February 2026 19 816 341 19.OTHER FINANCIAL LIABILITIES Year ended 28 February 2026 £ Year ended 28 February 2025 Restated £ Held at fair value through profit and loss: Derivative liability - convertible loan notes 605 470 104 164 Royalty debt 15 260 290 13 449 521 Put option liability 6 300 800 - Derivative liability - commodity swap transactions 4 751 900 - Held at amortised cost: Deferred consideration 399 864 375 760 Thaisarco exclusivity payment 2 222 491 - 29 540 815 13 929 445 The split between current and non-current is as follows Year ended 28 February 2026 £ Year ended 28 February 2025 Restated £ Non-current liabilities 15 230 653 12 031 516 Current liabilities 14 310 162 1 897 929 Total 29 540 815 13 929 445 Royalty debt & derivative liability - convertible loan notes
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On 22 November 2023, the Group entered into an agreement with Orion Resource Partners (royalty holder) whereby the holder purchased a gross revenue royalty for US$12 500 000 from the Group. In exchange for the gross revenue royalty, the Group is required to make quarterly royalty payments to the holder based on the tin mined and sold by the group. At initial recognition, the royalty transaction was measured at fair value of US$12 560 000 (c. £9 853 674). In determining the fair value at year end, management used a credit spread rate of 10.58% (FY 2025: 10.58%) and a risk-free rate of between 3.21% and 4.05% (FY 2025: between 3.82% and 5.42%). At year end, the fair value of the royalty transaction was £15 260 290 (FY 2025: £13 449 521). The transaction also included the issue of one hundred unsecured convertible loan notes of $100 000 each. The loan notes are redeemable in 4 years from the issue date. Written consent from the note holders is required in the event that the loan notes are redeemed prior the maturity date. The interest accrues quarterly at 12% per annum. The noteholders may at any time before the redemption date convert the loan notes into Andrada ordinary shares in tranches of a minimum of US$100 000 at a conversion price of 9.45 pence per share. As the loan notes may be settled through the transfer of the Group's own equity instruments at the option of the holder at any time, the Group did not have the right to defer settlement for at least twelve months after year-end. Accordingly, the full balance of the loan notes has been classified as a current liability. At initial recognition date, a derivative liability was recognised at a fair value of £2 155 674. The derivative liability was subsequently measured to £605 470 (FY 2025: 104 164). In determining the fair value of the derivative, management used a credit spread of 16.12% (FY 2025: 16.12%). Refer to Note 34 for details of the prior year restatement of the Orion convertible loan notes. Put Option Liability In connection with the Earn-in transaction, the Group has granted a put option to BWCAM. The option provides BWCAM with the right to require the Group to acquire their shares upon the occurrence of specified events, including failure to achieve defined milestones or failure to satisfy regulatory conditions. The option was granted on 4 February 2026 and is valid for the initial investment period which is currently 12 months. The option may be settled in cash or through the issuance of a variable number of equity instruments. Accordingly, the instrument does not meet the definition of an equity instrument under IAS 32 and has been classified as a financial liability. The liability is initially recognised at the present value of the amount that could be required to be paid in accordance with IAS 32.23 at the date the Group becomes party to the contract. Changes in the measurement of the gross obligation due to the unwinding of the discount or changes in the amount that could be required to be paid are recognised in profit or loss. Derivative liability - commodity swap transactions During the prior year, the Group entered into a series of fixed-for-floating commodity swap transactions with Standard Bank Namibia Limited to hedge the variability in cash flows related to tin price fluctuations. Under the contracts, the Group received a fixed price of US$33 000 per tonne of tin concentrate for 20 tonnes of material per month from June 2024 to May 2025. Upon expiration of this contract, the Group entered into a similar transaction with Bank Windhoek. Under these contracts: · The Group received a fixed price of US$34 400 per tonne of tin concentrate for 20 tonnes of material per month from June 2025 to May 2026. · The Group received a fixed price of US$42 000 per tonnes of tin concentrate for 20 tonnes of material per month from December 2025 to May 2026, increasing to 40 tonnes per month from June 2026 to November 2026. The gain or loss made on all of the above contracts was settled monthly in cash and was recognised in Profit or Loss. This derivative liability is classified as a fair value instrument as the Group is protecting against the risk of changes in the fair value of its forecasted sales due to fluctuations in the tin price. A derivative financial liability was raised on all open contracts at year end based on the difference between the estimated forward prices that will apply on settlement date and the fixed price as per the agreement. Year ended 28 February 2026 £ Year ended 28 February 2025 £ Amounts recognised in the Statement of Comprehensive Income Realised (losses)/gains on closed derivative financial liability (included in administrative expenses, FY2025: included in other income) (800 460) 252 812 Unrealised (losses)/gains on open derivative financial liability (included in administrative expenses, FY2025: included in other income) (4 361 449) 101 313 (5 161 909) 354 125 Amounts recognised in the Statement of Financial Position Derivative financial (liability)/asset (4 751 900) 101 313 (4 751 900) 101 313 Deferred consideration
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The deferred consideration refers to the present value of 240 monthly cash payments of N$75 000 (c. £3 200) to be paid by Andrada Namibia to the Small Miners of Uis ("SMU") as part of the purchase price for their minority interest in UTMC. These payments will be made from September 2024 to August 2044. This liability was initially recognised at fair value and subsequently recognised at amortised cost. Please refer to Note 23 for further information on this transaction. Exclusivity payment On 26 February 2026, the Group received an unsecured exclusivity payment of US$ 3 000 000 from Thailand Smelting & Refining Co. Ltd ("Thaisarco") in terms of an amended marketing and offtake exclusivity agreement. The exclusivity payment: · Is contractually interest-free; · Is repayable at the discretion of the Group; and · May be settled by cash repayment (with or without premium) The exclusivity payment is repayable as follows: · Within two years: US$ 3.9 million (including a 30% premium); · On 2nd anniversary or any date thereafter: US$ 3.0 million; and · Mandatory repayment upon specified events (e.g. change of control). While the principal amount remains outstanding, a marketing fee will be due and payable to Thaisarco on each shipment that is finalised under the terms of the Offtake Agreement. This marketing fee is calculated on a sliding scale according to the LME tin price and does not constitute the repayment of any part of the capital balance. The liability is measured at amortised cost considering the expected future marketing fees payable and the effective interest is recognised as a finance cost. Reconciliation of closing balance Derivative liability - convertible loan notes £ Royalty debt £ Deferred consideration £ Put option liability £ Derivative liability - commodity swap transactions Exclusivity payment £ Total £ Balance as at 29 February 2024 1 411 709 9 941 235 - - - - 11 352 944 Additions - - 376 514 - - - 376 514 Repayments - - (16 100) - - - (16 100) Fair value adjustment (1 296 101) 3 493 971 - - - - 2 197 870 Interest expense - - 15 647 - - - 15 647 Foreign exchange differences (11 444) 14 315 (301) - - - 2 570 Balance as at 28 February 2025 104 164 13 449 521 375 760 - - - 13 929 445 Additions - - - 6 172 125 4 361 449 2 222 491 12 756 065 Repayments - - (38 512) - - - (38 512) Fair value adjustment 513 524 2 430 603 - 128 675 - - 3 072 802 Interest expense - - 30 713 - - - 30 713 Foreign exchange differences (12 218) (619 834) 31 903 - 390 451 - (209 698) Balance as at 28 February 2026 605 470 15 260 290 399 864 6 300 800 4 751 900 2 222 491 29 540 815 Sensitivity analysis Assuming that all the variables remain the same in the royalty debt calculation, a 1% decrease in the credit spread would result in the value of the royalty debt increasing by $1 590 791 (FY2025: $1 031 008) and a 1% increase in the credit spread would result in a decrease of $1 400 889 (FY 2025: $932 551). Furthermore, if the estimated tin price or production levels increased by 10%, the royalty debt would increase by $2 135 433 (FY 2025: $1 699 234) and if the tin price or production levels decreased by 10% the royalty debt would decrease by $2 135 433 (FY 2025: $1 699 234). For the convertible loan note, if the Group applies a 10% volatility haircut, the value of the derivative liability would decrease by £109 681 (FY 2025: £23 059). This would also result in the credit spread decreasing from 16.12% to 14.07%. For the put option liability, if the expected volatility increased from 71% to 80%, the value of the option would decrease by £48 111 and if the expected volatility decreased to 60% the value of the option would increase by £55 336. If the credit spread increased from 12.25% to 16%, the value of the option would decrease by £328 981 and if the credit spread decreased to 8.5% the value of the option would increase by £348 054.
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For the derivative liability raised on the commodity swap transactions, a 5% movement in the forecast tin prices would result in a £812 966 movement in the liability and a 10% movement in the prices would result in a £1 625 931 movement in the liability. Fair value hierarchy IFRS 13 sets out a fair value hierarchy under which the inputs to valuation techniques used to measure fair value are categorised into three levels. The three levels of the hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. · Level 3 inputs are unobservable inputs for the asset or liability. Royalty debt The royalty debt is recorded at fair value through profit and loss. The inputs include the following: · Tin production forecast provided by management. · Tin price forecast based on consensus estimates as of February 2026. · Risk-free rate that is based on the United States Constant Maturity Treasury rates commensurate with the term as of the Valuation Date, as reported on the Federal Reserve website. · Implied credit spread was based on the Sterling Overnight Index Average. Based on the above sources of inputs, the instrument is classified as Level 2 within the fair value hierarchy. Derivative liability - convertible loan notes The derivative liability is recorded at fair value through profit and loss. The inputs include the following: · The dividend yield was provided by management. · The expected volatility based on the historical equity volatility of the Group as of the valuation date. · The stock price as of the valuation date was obtained from Capital IQ. The exchange rate was derived as an average of 4 years Bid Ask GBP USD spot Curve. Based on the above sources of inputs, the instrument is classified as Level 2 within the fair value hierarchy. Put option liability The present value of the redemption amount of the liability is determined using valuation techniques that incorporate significant unobservable inputs, including: · Expected volatility: 60% · Risk-free rate: 3.5% · Share price: 3.95p - 4.15p · Expected life: 18 months · Conversion pricing based on the lower of fixed price or VWAP The valuation is highly sensitive to changes in these assumptions. The valuation was performed using Monte Carlo simulation techniques combined with option pricing models. Changes in fair value are recognised in profit or loss. Based on the above sources of inputs, the instrument is classified as Level 3 within the fair value hierarchy. Derivative liability - commodity swap transactions The Group entered into a series of commodity swap transactions to hedge the variability in cash flows related to tin price fluctuations. This liability was designated as a fair value instrument. The liability is categorized at Level 2 as the calculation is based on the expected LME 3-month tin price on the date of settlement of the upcoming contracts, which requires management's estimation. Reconciliation of net cash flow to movement in other financial liabilities £ Balance as at 29 February 2024 11 352 944 Outgoing cash flows (453) Payment to minority interest (16 100) Interest expense on deferred consideration 15 647 Non-cash flows 2 576 954 Fair value loss on royalty debt 3 493 971 Fair value gain on derivative liability (1 296 101) Raising of deferred consideration liability 376 514 Foreign exchange differences 2 570 Balance as at 28 February 2025 13 929 445
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Outgoing cash flows 2 214 692 Payment to minority interest (38 512) Interest expense on deferred consideration 30 713 Thaisarco exclusivity payment received 2 222 491 Non-cash flows 13 396 678 Fair value loss on royalty debt 2 430 603 Fair value gain on derivative liability - convertible loan notes 513 524 Raising of put option liability 6 172 125 Fair value loss on put option liability 128 675 Fair value loss on derivative liability - commodity swap transactions 4 361 449 Foreign exchange differences (209 698) Balance as at 28 February 2026 29 540 815 20. TRADE AND OTHER PAYABLES Year ended 28 February 2026 £ Year ended 28 February 2025 £ Trade payables 5 061 095 3 945 393 Other payables 60 821 301 712 Accruals 2 630 833 2 554 590 7 752 749 6 801 695 Trade payables principally comprise of amounts outstanding for trade purchases and ongoing costs. The Group has financial risk management policies in place to ensure that payables are paid within the pre-arranged credit terms. The Directors consider that the carrying amount of trade and other payables approximates to their fair value. The total trade and other payables denominated in South African Rand amount to £437 682 (FY 2025: £767 411), £6 684 756 (FY 2025: £5 204 883) is denominated in Namibian Dollars and £25 541 (FY 2025: nil) is denominated in US Dollars. 21. ENVIRONMENTAL REHABILITATION PROVISION £ Balance as at 29 February 2024 1 152 121 Increase in provision 254 015 Interest expense 148 117 Foreign exchange differences 50 136 Balance as at 28 February 2025 1 604 389 Increase in provision 235 241 Interest expense 176 412 Foreign exchange differences 176 049 Balance as at 28 February 2026 2 192 091 Provision for future environmental rehabilitation and decommissioning costs are made on a progressive basis. Estimates are based on costs that are regularly reviewed and adjusted appropriately for new circumstances. The environmental rehabilitation liability is based on disturbances and the required rehabilitation as at 28 February 2026. The rehabilitation provision represents the present value of decommissioning costs relating to the dismantling and sale of mechanical equipment and steel structures related to the Phase 1 Plant, the Tantalum Circuit, the Bulk Samples Processing Facility and the demolishing of civil platforms and reshaping of earthworks. A provision for this requires estimates and assumptions to be made around the relevant regulatory framework, the magnitude of the possible disturbance and the timing, extent and costs of the required closure and rehabilitation activities. In calculating the appropriate provision, cost estimates of the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof are prepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability. In determining the amount attributable to the rehabilitation liability, management used a discount rate of 9.65% (FY 2025: 11.02%), an inflation rate of 3.5% (FY 2025: 4.0%) and an estimated mining period of 10.46 years (FY 2025: 11.65 years), being the Phase 1 expansion life of mine. A 1% increase or decrease in the inflation rate used would result in a £231 889 difference in the liability. A 2% increase or decrease in the discount rate used would result in a £377 565 difference in the liability. An 5 year increase in the mining period would decrease the liability by £549 266 and a 10 year increase would decrease the liability by £960 898.
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Actual rehabilitation and decommissioning costs will ultimately depend upon future market prices for the necessary rehabilitation works and timing of when the mine ceases operation. 22. LEASE LIABILITY The Company assessed all rental agreements and concluded that the following rentals fall within the scope of IFRS 16 Leases: Full lease term Average monthly repayment £ Option to extend/terminate Residual value guarantee Office building 5 years 10 560 Option to extend not specified in contract. None Workshop 1 year 3 950 Option to extend not specified in contract. None Housing 6 years 3 940 The lease will continue automatically after the initial period for an open-ended period. Either party must provide written notice if they wish to terminate. None Screening equipment 13 months 207 830 Ownership passes to lessee after the lease period of 13 months. None Vehicles 5 years 1 960 Ownership passes to lessee after the lease period of 5 years. None Solar plant 10 years 560 The lessee has been granted to option to purchase the solar plant after the lease period of 10 years. None A lease liability has been raised on these leases as follows: Office building £ Workshop £ Housing £ Screening Equipment £ Vehicles £ Solar Plant £ Total £ Balance at 29 February 2024 368 699 29 481 202 600 - 112 282 - 713 062 Additions - 45 441 - - - 42 096 87 537 Disposals - - (27 203) - - - (27 203) Interest expense 43 785 2 108 17 753 - 10 367 1 324 75 337 Lease payments (127 399) (47 549) (107 909) - (47 185) (1 717) (331 759) Foreign exchange differences 16 213 1 292 8 966 - 4 948 (40) 31 379 Balance at 28 February 2025 301 298 30 773 94 207 - 80 412 41 663 548 353 Additions - - 2 573 448 - - 2 573 448 Disposals - - (4 476) - - - (4 476) Interest expense 31 630 901 5 093 128 974 6 204 3 881 176 683 Lease payments (134 630) (31 594) (88 622) (2 522 819) (47 028) (5 212) (2 829 905) Foreign exchange differences 16 919 (80) 296 16 089 3 319 3 496 40 039 Balance at 28 February 2026 215 217 - 6 498 195 692 42 907 43 828 504 142 The split between current and non-current is as follows: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Non-current liability 119 884 283 835 Current liability 384 258 264 518 504 142 548 353 Determining the incremental borrowing rate to measure lease liabilities The interest rate implicit in leases is not available, therefore the Group uses the relevant incremental borrowing rate (IBR) to measure its lease liabilities. The IBR is estimated to be the interest rate that the Group would pay to borrow: · over a similar term; · with similar security; · the amount necessary to obtain an asset of a similar value to the right-of-use asset; and · in a similar economic environment.
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The IBR, therefore, is considered to be the best estimate of the incremental rate and requires management's judgement as there are no observable rates available. Reconciliation of net cash flow to movement in leases £ Balance as at 29 February 2024 713 062 Outgoing cash flows (256 422) Lease payments (repayment of capital and interest) (331 759) Interest expense 75 337 Non-cash flows 91 713 Additions 87 537 Disposals (27 203) Foreign exchange differences 31 379 Balance as at 28 February 2025 548 353 Outgoing cash flows (2 653 222) Lease payments (repayment of capital and interest) (2 829 905) Interest expense 176 683 Non-cash flows 2 609 011 Additions 2 573 448 Disposals (4 476) Foreign exchange differences 40 039 Balance as at 28 February 2026 504 142 There are currently no leases that have yet to commence to which the Group has committed as a lease. 23. ACQUISITION OF MINORITY INTEREST On 2 August 2024, the Group acquired an additional 15% interest in the voting shares of its subsidiary, Uis Tin Mining Company, from the Small Miners of Uis ("SMU") and Sinco Investments Five (Pty) Ltd ("Sinco"). This increased the Group's ownership interest from 85% to 100%. The carrying value of the net assets of UTMC on the date of the transaction was £3.86m. The consideration for the acquisition is made up as follows: · The issue of Ordinary Shares in Andrada Mining Ltd o 13 651 560 Ordinary Shares issued to SMU o 31 148 782 Ordinary Shares issued to Sinco · 240 monthly cash payments of N$75 000 to be paid by Andrada Namibia to SMU, resulting in a present value of the deferred consideration of £376 514 on 2 August 2024 (refer to Note 19) · Transfer of Andrada Namibia's 85% interest in ML 129 to SMU Year ended 28 February 2025 £ Issue of Ordinary Shares to SMU 443 676 Issue of Ordinary Shares to Sinco 1 012 335 Present value of cash component of deferred consideration 376 514 Fair value of ML 129 1 235 017 Foreign exchange differences (549) Deemed consideration paid for the acquisition 3 066 993 Derecognition of minority interest 600 925 Difference recognised in retained earnings 3 667 918 24. SHARE CAPITAL Number of ordinary shares of no par value issued and fully paid Share capital £ Balance as at 29 February 2024 1 580 250 758 59 247 558 Shares issued in lieu of interest July CLN - 2 Aug 28 436 506 939 400 Shares issued to SMU - 2 Aug 13 651 560 443 676 Shares issued to Sinco - 2 Aug 31 148 782 1 012 335 Exercising of employee share options - 17 Oct 800 000 24 000 Shares issued to employees - 27 Feb 17 391 447 390 767
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Balance at 28 February 2025 1 671 679 053 62 057 736 Capital raise - 27 Jun 166 666 666 5 000 000 Share issue costs - (415 321) Shares issued in lieu of interest July CLN - 15 Aug 31 981 474 936 833 Settlement of Orange Trust Loan - 19 Jan 59 358 907 2 285 318 BWCAM subscription - 4 Feb 24 295 432 728 863 Balance at 28 February 2026 1 953 981 532 70 593 429 Authorised: 2 032 626 761 ordinary shares of no par value. Allotted, issued and fully paid: 1 953 981 532 ordinary shares of no par value. On 2 August 2024, the Group issued 28 436 506 ordinary shares to the holders of the July convertible loan notes in lieu of a cash payment of interest incurred on the notes. On the same day, 13 651 560 ordinary shares were issued to the Small Miners of Uis and 31 148 782 ordinary shares were issued to Sinco Investments Five (Pty) Ltd as part of the consideration for the purchase of the 15% minority interest in UTMC. On 17 October 2024, the Group received notice from share option holders to exercise 800 000 share options at an exercise price of 3 pence. On 27 February 2025, the Group issued 17 391 447 shares to employees in lieu of a cash bonus. On 27 June 2025, the Group issued 166 666 666 ordinary shares at a price of 3 pence as a result of a strategic subscription and placing. 150 000 000 of these ordinary shares were issued to Talent10 Resources, with the balance of 16 666 666 being issued to institutional and professional investors. On 15 August 2025, the Group issued 31 981 474 ordinary shares to the holders of the July convertible loan notes in lieu of a cash payment of interest incurred on the notes. On 19 January 2026, the Group issued 59 358 907 ordinary shares to settle the US$2 500 000 loan from The Orange Trust and the accrued financing fees. On 4 February 2026, the Group issued 24 295 432 ordinary shares to BWCAM in exchange for a US$1 000 000 equity investment. 25. WARRANTS The following warrants were granted during the year ended 29 February 2024: Date of grant 21 July 2023 2 November 2023 Number granted 15 400 000 16 043 638 Contractual life 2 years 2 years Estimated fair value (pence) 1.874 0.700 Date of grant 21 July 2023 2 November 2023 Share price at grant date (pence) 7.7 5.5 Exercise price (pence) 9.45 9.45 Expected life 2 years 2 years Expected volatility 49.5% 49.5% Expected dividends Nil Nil Risk-free interest rate 4.6 4.7 The warrants in issue during the year are as follows: Outstanding at 29 February 2024 34 056 972 Exercisable at 29 February 2024 34 056 972 Granted during the year - Expired during the year (2 613 334) Exercised during the year - Outstanding at 28 February 2025 31 443 638 Exercisable at 28 February 2025 31 443 638 Granted during the year - Expired during the year (31 443 638)
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Exercised during the year - Outstanding at 28 February 2026 - Exercisable at 28 February 2026 - On 21 July 2023, 15 400 000 warrants were issued as part of the convertible loan note transaction. Each note holder received 2 warrants for every £1 subscribed for. Each warrant enables the holder to subscribe for one ordinary share at a subscription price of 9.45p. The full balance of these warrants expired on 21 July 2025. On 22 November 2023, 16 043 638 warrants were issued as part of the Orion financing transaction. Orion received 2 warrants for every £1 subscribed for. Each warrant enables the holder to subscribe for one ordinary share at a subscription price of 9.45p. The full balance of these warrants expired on 22 November 2025. 26. SHARE-BASED PAYMENT RESERVE Director share options The following Director share options were granted during the year ended 28 February 2023: Date of grant 8 April 2022 8 April 2022 8 April 2022 Number granted 10 200 000 5 100 000 5 100 000 Vesting period 1 year 2 years 3 years Contractual life 4 years 4 years 4 years Estimated fair value per option (pence) 1.9130 2.6510 3.2010 The estimated fair values were calculated by applying the Black Scholes pricing model. The model inputs were: Date of grant 8 April 2022 8 April 2022 8 April 2022 Share price at grant date (pence) 9.35 9.35 9.35 Exercise price (pence) 9.80 10.30 10.80 Date of first exercise 8 April 2023 8 April 2024 8 April 2025 Expiry Date 8 April 2027 8 April 2027 8 April 2027 Expected volatility 53% 53% 53% Expected dividends Nil Nil Nil Risk-free interest rate 3.70% 3.70% 3.70% The following Director share options were granted during the period ended 29 February 2024: Date of grant 1 May 2023 1 May 2023 1 May 2023 Number granted 3 045 780 3 045 780 3 045 780 Vesting period 3 years 3 years 3 years Contractual life 10 years 10 years 10 years Estimated fair value per option (pence) 1.7290 1.4820 1.2800 The estimated fair values were calculated by applying the Black Scholes pricing model. The model inputs were: Date of grant 1 May 2023 1 May 2023 1 May 2023 Share price at grant date (pence) 5.12 5.12 5.12 Exercise price (pence) 7.00 8.00 9.00 Date of first exercise 1 May 2026 1 May 2026 1 May 2026 Expiry Date 1 May 2033 1 May 2033 1 May 2033 Expected volatility 53% 53% 53% Expected dividends Nil Nil Nil Risk-free interest rate 3.93% 3.93% 3.93% The following Director share options were granted during the year ended 28 February 2025: Date of grant 21 February 2025 Number granted 7 154 754
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Vesting period 3 years Contractual life 3 years Estimated fair value per option (pence) 2.20 The Director share options in issue during the year are as follows: Outstanding at 29 February 2024 48 478 724 Exercisable at 29 February 2024 33 650 000 Granted during the year 7 154 754 Forfeited during the year - Transferred from employee share options during the year 6 908 616 Exercised during the year - Expired during the year (25 850 000) Outstanding at 28 February 2025 36 692 094 Exercisable at 28 February 2025 - Granted during the year - Forfeited during the year - Transferred from employee share options during the year - Exercised during the year - Expired during the year - Outstanding at 28 February 2026 36 692 094 Exercisable at 28 February 2026 20 400 000 The Director share options outstanding at year-end have an average exercise price of £0.081, with a weighted average remaining contractual life of 2.59. The Director must remain as a Director of the Company for the share options to vest. In the event that a Director ceases to be a Director during the vesting period, the Board reserves the right to determine whether the share options will be terminated or not. There are no market-based vesting conditions on the share options. Employee share options The following employee share options were granted during the period ended 28 February 2023: Date of grant 8 April 2022 8 April 2022 8 April 2022 Number granted 16 955 000 8 477 500 8 477 500 Vesting period 1 year 2 years 3 years Contractual life 4 years 4 years 4 years Estimated fair value per option (pence) 1.9130 2.6510 3.2010 The estimated fair values were calculated by applying the Black Scholes pricing model. The model inputs were: Date of grant 8 April 2022 8 April 2022 8 April 2022 Share price at grant date (pence) 9.35 9.35 9.35 Exercise price (pence) 9.80 10.30 10.80 Date of first exercise 8 April 2023 8 April 2024 8 April 2025 Expiry date 8 April 2027 8 April 2027 8 April 2027 Expected volatility 53% 53% 53% Expected dividends Nil Nil Nil Risk-free interest rate 3.70% 3.70% 3.70% The following employee share options were granted during the period ended 29 February 2024: Date of grant 1 May 2023 1 May 2023 1 May 2023 Number granted 8 716 355 8 716 355 8 716 355 Vesting period 3 years 3 years 3 years Contractual life 10 years 10 years 10 years Estimated fair value per option (pence) 1.7290 1.4820 1.2800
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The estimated fair values were calculated by applying the Black Scholes pricing model. The model inputs were: Date of grant 1 May 2023 1 May 2023 1 May 2023 Share price at grant date (pence) 5.12 5.12 5.12 Exercise price (pence) 7.00 8.00 9.00 Date of first exercise 1 May 2026 1 May 2026 1 May 2026 Expiry date 1 May 2033 1 May 2033 1 May 2033 Expected volatility 53% 53% 53% Expected dividends Nil Nil Nil Risk-free interest rate 3.93% 3.93% 3.93% The following employee share options were granted during the year ended 28 February 2025: Date of grant 21 February 2025 Number granted 22 330 678 Vesting period 3 years Contractual life 3 years Estimated fair value per option (pence) 2.20 The employee share options in issue during the year are as follows: Outstanding at 29 February 2024 83 549 440 Exercisable at 29 February 2024 35 936 753 Granted during the year 22 330 678 Transferred to Directors share options during the year (6 908 616) Forfeited during the year (3 660 000) Exercised during the year (800 000) Expired during the year (15 781 756) Outstanding at 28 February 2025 78 729 746 Exercisable at 28 February 2025 - Granted during the year - Transferred to Directors share options during the year - Forfeited during the year (7 534 942) Exercised during the year - Expired during the year - Outstanding at 28 February 2026 71 194 804 Exercisable at 28 February 2026 30 250 000 The employee share options outstanding at year-end have an average exercise price of £0.07, with a weighted average remaining contractual life of 2.90 years. The employee must remain in employment with the Company or be noted as a "good-leaver" for the share options to vest. 27. DERIVATIVE FINANCIAL ASSET Goantagab Call Option During the year, the Group entered into a deed of option granting it a call option to acquire 100% of the issued share capital of Goantagab Mining (Pty) Ltd for an exercise consideration of US$15 million, payable either in cash, in shares of the Group, or a combination, exercisable at the Group's discretion over a five-year term. The Group has a unilateral right to decide whether to exercise the option during the option term, the pricing and acquisition arrangements are pre-agreed and contractually binding, and the existing Goantagab shareholders are restricted from dealing with third parties during the option period. These features support the existence of a call option right from a legal and economic perspective. The option is classified as a derivative financial asset within the scope of IFRS 9 and is measured at fair value through profit or loss. It is categorised within Level 3 of the fair value hierarchy because its measurement uses significant unobservable inputs.
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Applying market-participant assumptions and given the absence of a declared resource or reserve, incomplete technical data and unresolved licence, legal and environmental matters, management concluded that no valuation approach supports a positive exit price for the option at the measurement date. The fair value of the option has accordingly been assessed as nil. 28. INVESTMENT IN ASSOCIATE Earn-in Agreement Andrada Mining (Mauritius) ("AMM") entered into an Earn-in Agreement dated 7 September 2024 with SQM Australia ("SQM") relating to Grace Simba Investments ("GSI"), a special purpose vehicle established for the exploration and development activities of Lithium Ridge. GSI operates in Namibia. All conditions precedent were met on 17 February 2025 when the Namibia Competition Commission approval was received. Under the terms of the agreement, SQM may earn up to a 50% equity interest in GSI through staged funding contributions totalling up to US$40 million. The earn-in structure comprises three stages: · Stage 1: 30% interest for US$7 million over 18 months · Stage 2: Additional 10% interest for US$13 million over 24 months · Stage 3: Final 10% interest by free-carrying Andrada to a Definitive Feasibility Study or cumulative expenditure of US$40 million As at financial year-end, completion of Stage 1 had not yet been reached. Therefore, the Group retained 100% shareholding of GSI (FY2025: 100% shareholding). Governance and Control Assessment During the first earn-in period, the governance structure includes equal board representation from Andrada and SQM, with SQM appointing the chairperson who holds a casting vote. Strategic decisions, including share issuances and constitutional amendments, require a shareholder resolution passed by at least 75% of the votes or unanimous written consent. Andrada acts as the Operator of GSI, subject to oversight by a Joint Development Committee ("JDC") with equal representation and a casting vote held by SQM. However, all JDC decisions require board ratification and are subject to reserved matters. The board and the JDC have the decision-making ability over budgets, exploration activities and development plans. Accounting Treatment Initial Recognition: In accordance with IFRS 10 Consolidated Financial Statements, Andrada has assessed its involvement with GSI and has concluded that it does not have control of the entity during the first earn-in period. This conclusion is based on the following: · Andrada does not have unilateral power over GSI's relevant activities. These activities include exploration and drilling programmes. · While Andrada is exposed to variable returns through its shareholding, it lacks the ability to use power to affect those returns. · SQM holds substantive governance rights during the first earn-in period. While the Group does not have control of GSI, it does retain significant influence over the entity due to their shareholding, participation in governance and decision-making dynamics. Andrada accounts for its investment in GSI using the equity method under IAS 28. This includes initial recognition at fair value and subsequent adjustments for its share of profit or loss, OCI, and dividends. Considering that there is no active market for the for the rights within the entity, the method of fair value determination will be the Net Asset Valuation, which is equivalent to the cost of the investment. The investment is presented as a single line item in the non-current assets section of the statement of financial position. Subsequent Recognition: As per the requirements of the equity method under IAS 28, the Group must recognised their share of profit or loss, OCI, and dividends from GSI in each subsequent financial year. During the current year, GSI did not reflect income or expenses in their Profit or Loss as all expenses were capitalised under IFRS 6. The standard allows all costs associated with mineral exploration and evaluation to be capitalised as intangible exploration and evaluation assets for the duration of the project. Management have reviewed the costs incurred in GSI during the financial year and confirmed that they all meet the criteria for capitalization. As there was no profit or loss, OCI or dividends recognised in GSI, the value of the investment in associate recognised by the Group remains unchanged from the prior year in local currency. The small movement seen on the Statement of Financial Position is due to foreign exchange translations.
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At each reporting date, management assesses whether there is objective evidence that the investment in associate requires impairment. No indicators of impairment exist as at 28 February 2026. Summarised Financial Information: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Non-current assets 4 807 311 1 527 352 Current assets 1 145 981 - Non-current liabilities - - Current liabilities (429 487) - Net assets 5 523 805 1 527 352 Revenue - - Profit or loss for the year - - Other comprehensive income - - Total comprehensive income - - Reconciliation of asset held by the Group: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Net assets of associate 5 523 805 1 527 352 Reversal of current year additions to non-current assets (3 281 256) - Reversal of current year additions to current assets (1 145 981) - Reversal of current year raising of current liabilities 429 487 - Foreign exchange differences (98 281) - Value of investment in associate 1 427 774 1 527 352 During the financial year, GSI has changed its year end date from 28 February to 31 December. This is to align with the financial period of SQM and was a requirement included in the Earn-in Agreement. 29. FINANCIAL INSTRUMENTS The Group is exposed to the risks that arise from its use of financial instruments. This note describes the objectives, policies and processes of the Group for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising returns to shareholders. In order to maintain or adjust the capital structure, the Group may issue new shares or arrange debt financing. The capital structure of the Group consists of cash and cash equivalents, borrowings and equity, comprising issued capital and retained losses. The Group is not subject to any externally imposed capital requirements. Significant accounting policies Details of the significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the bases for recognition of income and expenses for each class of financial asset, financial liability, and equity instrument, are disclosed in Note 2. Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: · Trade and other receivables · Cash and cash equivalents · Trade and other payables · Borrowings · Other financial liabilities · Lease liability Categories of financial instruments
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The Group holds the following financial assets: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Measured at amortised cost: Trade and other receivables 951 326 2 027 080 Cash and cash equivalents 8 922 977 2 701 260 Measured at fair value through profit or loss: Trade and other receivables 2 668 563 1 074 555 Derivative financial asset - 101 313 Total financial assets 12 542 866 5 904 208 Under its customer sale arrangement, the Group receives a provisional payment upon satisfaction of its performance obligations based on the spot price at that date. This occurs prior to the final price determination, with the Group then subsequently receiving or paying the difference between the final price and quantity and the provisional payment. As a result of the pricing structure, the instrument is classified at fair value through profit or loss and measured at fair value with resulting changes in fair value recorded as other revenue (refer to Note 5). Trade receivables at fair value through profit or loss fail the criteria for being measured at amortised cost owing to the variability resulting from final pricing adjustments. Financial instruments measured at fair value are presented by level within which the fair value measurement is categorised. The levels of fair value measurement are determined as follows: · Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). · Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Group's contract receivable at 28 February 2026 is recorded at fair value through profit or loss and fair valued based on the estimated forward prices that will apply under the terms of the sales contracts on the product reaching the port of destination. The trade receivables fair value reflects amounts receivable from the customer adjusted for forward prices expected to be realised. The forward price is based on the expected LME 3-month tin price on the date of finalisation. Given the short period to final pricing, the time value of money is not considered to be significant. Fair value of this trade receivable at fair value through profit or loss is categorised at Level 1. During the year there were no transfers between levels of fair value hierarchy. The Group entered into a deed of option granting it a call option to acquire 100% of the issued share capital of Goantagab Mining (Pty) Ltd. This asset was designated as a fair value instrument. The asset is categorized at Level 3 of the fair value hierarchy because its measurement uses significant unobservable inputs. These include uncertainty relating to the enterprise value of the underlying interest and the probability and timing of exercise of the option. A further volatility adjustment has been included in the measurement for exploration, execution and value uncertainty. Applying market-participant assumptions, and given the absence of a declared resource or reserve, incomplete technical data and unresolved licence, legal and environmental matters, management concluded that no valuation approach supports a positive exit price for the option at the measurement date. The fair value of the option has accordingly been assessed as nil. Because the fair value of the option is nil at the reporting date, no downside sensitivity to a lower measurement arises. The measurement is, however, sensitive to changes in significant unobservable inputs. Were market-participant evidence to support a positive enterprise value for the underlying interest available, a higher probability of exercise, or a lower project-risk adjustment, the fair value of the option, and a corresponding gain in profit or loss, could increase from nil in future periods. In the absence of supportable market-participant inputs at the reporting date, management is unable to quantify a reliable range for this sensitivity. The Group holds the following financial liabilities: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Measured at amortised cost: Trade and other payables 7 682 648 6 462 247 Borrowings 19 816 341 21 656 811 Lease liability 504 142 548 353 Other financial liabilities 2 622 354 375 760 Measured at fair value through profit or loss: Other financial liabilities 26 918 460 13 553 685 Total financial liabilities 57 543 945 42 596 856
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General objectives, policies and processes The Board has overall responsibility for the determination of the Group's risk management objectives and policies. The Board receives reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below: Credit risk The Group's principal financial assets are bank balances and trade and other receivables. Credit risk arises principally from the Group's cash and trade and other receivables balances. Credit risk is the risk that the counterparty fails to repay its obligation to the Group in respect of amounts owed. The Group gives careful consideration to which organisations it uses for its banking services in order to minimise credit risk. The concentration of the Group's credit risk is considered by counterparty, geography and by currency. The Group has split its cash reserves across multiple banks in an effort to mitigate credit risk. The Pound Sterling, US Dollar and Rand accounts are held with a bank in South Africa which has a rating of Baa2 (Moody's) and the Namibian Dollar account is held with a bank in Namibia with a rating of AA+ (GCR). The banks chosen remain stable and do not present any further risks. The concentration of credit risk was as follows: Currency Year ended 28 February 2026 £ Year ended 28 February 2025 £ Pound Sterling 80 161 278 404 US Dollars 10 341 234 3 369 817 South African Rands 276 158 240 398 Namibian Dollars 1 845 313 2 015 589 12 542 866 5 904 208 Credit risk relating to trade receivables has also been considered. Credit verification procedures are undertaken for all customers with whom we trade on credit. This includes an assessment of the credit quality of the customer, considering its financial position, historical trading behaviour and other factors. The trade account receivables comprise a limited customer base. Ongoing credit evaluation of the financial position of customers is performed and compliance with credit limits by customers is regularly monitored by management. Please refer to Note 16 for the concentration of credit risk relating to trade receivables. At 28 February 2026, the Group held no collateral as security against any financial asset. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Group's maximum exposure to credit risk without taking account of the value of any collateral obtained. The Group applies IFRS 9 to measure expected credit losses for receivables and these are regularly monitored and assessed. Management considers the above measures to be sufficient to control the credit risk exposure. Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligations as they are all due. Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Board manages liquidity risk by regularly reviewing the Group's gearing levels, cash flow projections and associated headroom and ensuring that excess banking facilities are available for future use. An analysis of the Group's liquidity analysis based on undiscounted cash flows is as follows: As at 28 February 2026 Up to 3 months Between 3 and 12 months Between 1 and 2 years Between 2 and 5 years Over 5 years Total Trade and other payables 7 682 648 - - - - 7 682 648 Borrowings and other financial liabilities 3 435 971 18 434 744 17 466 247 14 057 367 45 588 550 98 982 879 Lease liability 254 219 154 338 86 491 21 532 32 733 549 313 11 372 838 18 589 082 17 552 738 14 078 899 45 621 283 107 214 840 As at 28 February 2025 Up to 3 months Between 3 and 12 months Between 1 and 2 years Between 2 and 5 years Over 5 years Total Trade and other payables 6 462 247 - - - - 6 462 247
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Borrowings and other financial liabilities 2 389 476 7 228 759 6 589 670 14 756 954 39 686 198 70 651 057 Lease liability 80 700 231 877 195 881 92 406 37 113 637 977 8 932 423 7 460 636 6 785 551 14 849 360 39 723 311 77 751 281 The Group maintains good relationships with its banks and its cash requirements are anticipated via the budgetary process. At 28 February 2026, the Group had £8 922 977 (FY 2025: £2 701 260) of cash reserves and had drawn down £411 556 (FY 2025: £885 317) of its bank overdraft facility. Market risk The Group's activities expose it primarily to the financial risk of changes in foreign currency exchange rates, interest rates and the commodity prices. Interest rate risk The Group has interest bearing assets in the form of cash and cash equivalents. The Group does not earn significant interest on the cash balances. The Group is exposed to interest rate risk as entities within the Group borrow funds at both fixed and variable interest rates. · Fixed-rate instruments: £9 028 064 (FY 2025: £10 843 146) · Variable-rate instruments: £10 788 278 (FY 2025: £10 813 663) Sensitivity Analysis A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. · Increase of 100 basis points: £107 883 increase in finance costs (FY 2025: £108 137) · Decrease of 100 basis points: £107 883 decrease in finance costs (FY 2025: £108 137) Foreign exchange risk The Group has foreign currency denominated assets and liabilities and is therefore exposed to exchange rate fluctuations. The carrying amounts of the Group's foreign currency denominated monetary assets and liabilities, all in Pound Sterling, are shown below. Year ended 28 February 2026 £ Year ended 28 February 2025 £ Cash and cash equivalents 8 842 816 2 683 488 Trade and other receivables 3 619 889 2 841 003 Derivative financial asset - 101 313 Trade and other payables (7 077 878) (5 768 998) Borrowings (18 902 618) (19 894 357) Other financial liabilities (29 540 815) (13 929 445) (43 058 606) (33 966 996) The Group operates on an international basis therefore, foreign exchange risk exposures arise from transactions denominated in foreign currencies. The Group is exposed to foreign currency risk on fluctuations related to financial instruments that are denominated in Pound Sterling, US Dollars, South African Rand and Namibian Dollars. The Group does not enter into any derivative financial instruments to manage its exposure to foreign currency risk. The following table details the Group's sensitivity to a 10% increase and decrease in the Pound Sterling against the South African Rand and the Namibian Dollar. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonable possible change in foreign currency rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at year end for a 10% change in foreign currency rates. 28 February 2026 Rand denominated monetary items £ Rand currency impact Strengthening £ Rand currency impact Weakening £ Assets 276 158 303 774 248 542 Liabilities (437 682) (481 450) (393 914) (161 524) (177 676) (145 372) Namibian Dollar denominated monetary items Namibian Dollar currency impact Strengthening Namibian Dollar currency impact Weakening
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£ £ £ Assets 1 845 313 2 029 844 1 660 781 Liabilities (17 802 797) (19 583 076) (16 022 517) (15 957 484) (17 553 232) (14 361 736) US Dollar denominated monetary items £ US Dollar currency impact Strengthening £ US Dollar currency impact Weakening £ Assets 10 341 234 11 375 357 9 307 110 Liabilities (37 280 833) (41 008 916) (33 552 749) (26 939 599) (29 633 559) (24 245 639) 28 February 2025 Rand denominated monetary items £ Rand currency impact Strengthening £ Rand currency impact Weakening £ Assets 240 398 264 438 216 359 Liabilities (809 941) (890 935) (728 947) (569 543) (626 497) (512 588) Namibian Dollar denominated monetary items £ Namibian Dollar currency impact Strengthening £ Namibian Dollar currency impact Weakening £ Assets 2 015 589 2 217 148 1 814 030 Liabilities (16 148 480) (17 763 328) (14 533 632) (14 132 891) (15 546 180) (12 719 602) US Dollar denominated monetary items £ US Dollar currency impact Strengthening £ US Dollar currency impact Weakening £ Assets 3 369 817 3 706 798 3 032 835 Liabilities (22 634 379) (24 897 817) (20 370 941) (19 264 562) (21 191 019) (17 338 106) BWCAM Earn-in agreement and put option The Group is exposed to risks arising from the BWCAM transaction, including: • Project execution risk • Regulatory approval risk • Valuation risk relating to the derivative financial liability • Liquidity risk in the event of cash settlement of the put option The timing of exercise of the put option is at the discretion of BWCAM and is dependent on the Namibian Competition Commission granting approval of the Earn-in Agreement. If this approval is not received within 9 months of signing of the Agreement, this being October 2026, the put option is exercisable. Refer to Note 30 for details of receipt of Namibian Competition Commission approval post year-end. Should the holder exercise the option, the Group will consider their liquidity position at that date and determine whether the option will be settled in cash or in shares. If the redemption amount is settled in shares, it will be sensitive to the market share price as settlement will be at the lower of a fixed price and the market-based VWAP. Management monitors these risks on an ongoing basis and applies appropriate governance and risk management processes. Goantagab call option The Group is exposed to price risk through the Goantagab option, whose fair value depends on the value of the underlying Goantagab mining project. The option is measured at fair value through profit or loss. Because its carrying amount is nil at the reporting date, a decrease in the underlying value would have no effect on profit or loss, whereas an increase in the underlying value supported by market-participant evidence could give rise to a gain. The Group is under no obligation to exercise the option and controls whether and when it does so and therefore has no present obligation to deliver cash or shares in respect of the arrangement before exercise. 30. EVENTS AFTER REPORTING DATE Issuing of short-term and long-term incentives in shares On 3 March 2026, The Group issued 18 595 768 shares pursuant to the terms of its Short-Term Incentive Plan, to the Executive Committee and senior managers in lieu of cash bonuses for performance in the financial year ended 28 February 2025. The
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Company has also awarded nil cost share awards over 54 854 811 Ordinary Shares to the Executive Committee, senior managers and employees, subject to performance measures over the next three years pursuant to its Long-Term Incentive Plan and Employee Share Scheme. Repricing of share options On 3 March 2026, the Group repriced 66 380 269 of the historical Share Options over Ordinary Shares held by Directors and current employees. The share options are held in two schemes being, 39 730 000 issued on 8 April 2022 and 26 650 269 issued on 11 May 2023. Strategic equity placement On 20 April 2026, the Group successfully completed a private placement with strategic investors. The Group raised US$11 million (£8.1 million) before expenses through a placing of 226 337 448 ordinary shares at a price of 3.6 pence per share. The proceeds of the fundraise will be used to accelerate production growth at the Uis operation by funding key operational upgrades and expansion initiatives, including the installation of additional crushing capacity to increase throughput, accelerated stripping activities to access ore more quickly, and updates to resource and reserve estimates. Amendment of convertible loan notes and issue of new warrants On 29 April 2026, the Group and investors agreed amendments to the terms of the convertible loan notes originally issued on 18 July 2023. The Group had issued 77 unsecured, Loan Notes of £100 000, with associated warrants, raising £7.7 million. The amendments extend the maturity date of these Loan Notes from 20 July 2026 to 20 July 2027 and revise the conversion price from 9.45 pence per share to 5 pence share. As the original warrants have expired, the Group has agreed to grant new warrants in connection with the revised terms of the Loan Notes, creating 15 400 000 warrants each to subscribe for one ordinary share at a subscription price of 5 pence at any time up to 27 April 2027. Competition Commission approval received on BWCAM On 5 August 2025, the Namibian Competition Commission ("NaCC") unconditionally approved the Earn-in Agreement between AIM and BWCAM. The two key conditions that triggered the initial investment by BWCAM Limited were satisfied on 4 February 2026 with BWCAM investing US$10 million towards the initial development of Brandenberg West for a 30% equity interest in AIM and subscribing for new equity in the Group at the same time. The NaCC approval was a condition subsequent to the initial investment under the Agreement. Financial close and execution of the strategic funding for Uis Mine ore-sorting expansion On 5 August 2026, UTMC executed definitive agreements for loan facilities totalling N$98 million (c. £4.4 million) with Bank Windhoek Limited and the Development Bank of Namibia Limited. The Loan Facilities comprise two equal N$49 million (c. £2.2 million) tranches. On 13 August 2026, UTMC received confirmation that all conditions precedent governing loan disbursement had been met to the satisfaction of both lenders. On 14 August 2026, UTMC received the full amount due from Bank Windhoek and half the total loan amount from the Development Bank of Namibia, with the second drawdown expected in September 2026. The Loan Facilities complete UTMC's funding requirements for the planned operational upgrades at the Uis Mine and enable the Group to progress the ore-sorting expansion into execution. 31.RELATED-PARTY TRANSACTIONS Balances and transactions between the Group and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Key management Personnel The remuneration of the key management personnel of the Group, which includes the Directors, and the senior management (C- suite) is set out below and in the remuneration implementation report in the Annual Report. 28 February 2026 (£) Share option charge Shares to be issued in relation to Director fees/salary Board fees/ salary Bonus payment & accruals Other fees Total Non-Executive Directors Glen Parsons (Chairman) 4 888 - 55 000 - - 59 888 Gida Nakazibwe Sekandi1 4 205 - 40 000 - - 44 205 Laurence Robb 4 888 - 35 000 - 24 0003 63 888 Michael Rawlinson5 4 888 - 26 250 - - 31 138 Terence Goodlace5 4 888 - 33 333 - - 38 221 Executive Director Anthony Viljoen (CEO) 59 509⁴ - 173 652 - - 233 161
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Hiten Ooka (CFO) 46 797⁴ - 138 891 - - 185 688 Other key management personnel Frans van Daalen (Chief Strategy Officer)2 40 978 - 153 888 - - 194 866 Christoffel Smith (Chief Operations Officer)2 37 778 - 138 508 - - 176 286 Total 208 819 - 794 522 - 24 000 1 027 341 28 February 2025 (£) Share option charge Shares to be issued in relation to Director fees/salary Board fees/ salary Bonus payment & accruals Other fees Total Non-Executive Directors Glen Parsons (Chairman) 11 489 - 55 000 - - 66 489 Gida Nakazibwe Sekandi1 4 205 - 40 000 - - 44 205 Laurence Robb 11 489 - 35 000 - 24 0003 70 489 Michael Rawlinson 11 489 - 45 000 - - 56 489 Terence Goodlace 11 489 - 50 000 - - 61 489 Executive Director Anthony Viljoen (CEO) 32 227⁴ - 170 612 105 550 - 308 389 Hiten Ooka (CFO) 25 080⁴ - 136 084 62 914 - 224 078 Other key management personnel Frans van Daalen (Chief Strategy Officer)2 25 080 - 151 196 66 144 - 242 420 Christoffel Smith (Chief Operations Officer)2 21 985 - 136 084 63 076 - 221 145 Total 154 533 - 818 976 297 684 24 000 1 295 193 1 Appointed NED on 10 May 2023. 2 Appointed COO & CSO on 1 January 2023. 3 Exploration consulting fees. Laurence Robb is a seasoned geology professor at Oxford University with vast knowledge of pegmatite mineralogy. He has valuable input to the exploration strategy across all assets. 4 Share options vest on 1 May 2026 for a period of seven years. The Executive Directors have a holding period after vesting to 1 May 2028 before exercising subject to additional conditions being satisfied as determined by the Remuneration Committee. 5 Resigned on 30 September 2025. Investment in Associate The Group holds a 100% shareholding in GSI, as associate over which it has significant influence. GSI is considered a related party under IAS 24. The carrying amount of the investment at 28 February 2026 was £1 427 774 (FY 2025: £1 527 352). A gain on the loss of control of the entity of £1 629 200 was recognised in the prior year. During the financial year, Andrada South Africa received £457 800 (FY2025: nil) in management fees and labour recharges from GSI. At year-end, Andrada South Africa had a receivables balance with GSI of £68 003 (FY2025: nil). Refer to Note 28 for further details on this transaction. 32.NON-CONTROLLING INTERESTS Non-controlling interest that is material in the Group relates to BWCAM's 30% shareholding in Andrada Investments Mauritius, which is registered and operates in Mauritius. Amount attributable to all shareholders: Year ended 28 February 2026 £ Loss after tax (10 783) Non-current assets 461 684 Current assets 7 389 227 Total assets 7 850 911 Non-current liabilities -
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Current liabilities 439 795 Total liabilities 439 795 Net assets 7 411 116 Amount attributable to non-controlling interest: Loss after tax (3 235) Net assets 2 216 765 During the year, AIM received US$10 million (c. £7.4 million) from BWCAM under the Earn-in Agreement for the exploration and development of the Brandberg West prospecting licence. The Group's 70% share of this amount (£5.18 million) has been recognised in an equity reserve. As part of the same transaction, the Group granted a put option, providing BWCAM with the right to require the Group to acquire their shares upon the occurrence of specified events, including failure to achieve defined milestones or failure to satisfy regulatory conditions. Refer to Note 19 for further details on the put option liability raised. As this is a transaction with owners, the corresponding debit was recognised as an equity reserve. No dividends were declared or paid to the non-controlling interest during the financial year. 33.CAPITAL COMMITMENTS Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: Year ended 28 February 2026 £ Year ended 28 February 2025 £ Exploration and evaluation projects 156 762 1 514 141 Property, plant and equipment 665 526 1 662 168 822 288 3 176 309 34.CORRECTION OF PRIOR PERIOD ERROR AND RESTATEMENT OF COMPARATIVES Classification of treatment costs During the current year, management identified that treatment charges, which are deducted by the customer from each sales invoice, had been recognised as part of cost of sales in the prior year. In terms of IFRS 15 Revenue from Contracts with Customers, revenue is measured at the transaction price, being the amount of consideration to which the entity is entitled in exchange for transferring goods to a customer. As the smelter charges are deducted by the customer in determining the amount payable to the Group, they represent a reduction in the transaction price and should be set off against revenue rather than presented within cost of sales. The error has been corrected retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, by restating each affected line item for the comparative period presented. The correction reduces revenue and cost of sales by an equal amount. It has no effect on gross profit, loss for the year, total comprehensive loss, basic and diluted loss per share, the statement of financial position or the statement of cash flows for any period presented. Accordingly, a third statement of financial position as at the beginning of the preceding period has not been presented, as the correction has no effect on the opening statement of financial position. The effect on the statement of profit or loss and other comprehensive income for the year ended 28 February 2025 is as follows: As previously reported £ Adjustment £ As restated £ Revenue 23 805 463 (1 418 888) 22 386 575 Cost of sales (20 847 349) 1 418 888 (19 428 461) Gross profit 2 958 114 - 2 958 114 Loss for the year (9 789 123) - (9 789 123) Total comprehensive loss for the year (8 420 264) - (8 420 264) Classification of Orion convertible loan notes The convertible loan notes issued to Orion were presented in the financial statements for the year ended 28 February 2025 partly within non-current liabilities and partly within current liabilities, by reference to the contractual maturity profile of the instrument.
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The amendments to IAS 1 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current, applied to the Group for the first time in the year ended 28 February 2025. Those amendments clarify that: · a liability is classified as current where the entity does not have the right, at the end of the reporting period, to defer settlement of the liability for at least twelve months after the reporting period (IAS 1.69(d)); · settlement, for this purpose, includes the transfer to the counterparty of the entity's own equity instruments (IAS 1.76A); and · terms that could result in settlement by the transfer of the entity's own equity instruments are disregarded in assessing classification only where the conversion option is itself classified as an equity instrument in accordance with IAS 32 Financial Instruments: Presentation (IAS 1.76B). The instrument is classified as a liability as the conversion option does not meet the definition of an equity instrument under IAS 32, therefore, the exception in IAS 1.76B accordingly does not apply. As the loan notes may be settled through the transfer of the Group's own equity instruments at the option of the holder at any time, the Group did not have the right at 28 February 2025 to defer settlement for at least twelve months after that date. The entire loan note balance, comprising both the host liability component and the derivative liability component, should therefore have been classified as a current liability at 28 February 2025. The comparative amounts have been restated to correct this error. The correction affects presentation within the statement of financial position only. There is no effect on the statement of comprehensive income, total equity, net assets or the statement of cash flows. Total liabilities as at 28 February 2025 remains unchanged. The effect on the statement of financial position as at 28 February 2025 is as follows: As previously reported £ Adjustment £ As restated £ Non-current liabilities Borrowings 15 527 065 (6 192 230) 9 334 835 Other financial liabilities 12 135 680 (104 164) 12 031 516 Total non-current liabilities 30 686 671 (6 296 394) 24 390 277 Current liabilities Borrowings 6 129 746 6 192 230 12 321 976 Other financial liabilities 1 793 765 104 164 1 897 929 Total current liabilities 15 175 321 6 296 394 21 471 715 Total equity and liabilities 69 572 088 - 69 572 088 35.RESERVES WITHIN EQUITY Share capital Ordinary shares are classified as equity. Incremental cost directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Retained earnings/accumulated deficit The retained earnings/accumulated deficit represent the cumulative profit and loss net of distribution to owners. Warrant reserve The warrant reserve represents the cumulative charge to date in respect of unexercised share warrants at the reporting date. Share-based payment reserve The share-based payment reserve represents the cumulative charge to date in respect on unexercised share options at the reporting date as well as fees/salaries owed to Directors/employees to be settled through the issuing of shares. Convertible loan note reserve The convertible loan note reserve represents proceeds on issue of convertible loan notes relating to equity component plus accrued interest on the convertible loan notes. These notes were settled in full during the financial year. Transactions with NCI The transactions with NCI reserve represents the Group's share of the investment received from BWCAM for the exploration and development of the Brandberg West polymetallic prospecting licence. Put option granted to NCI
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The put option granted to NCI reserve represents the value of the put option granted to BWCAM as part of the Earn-in Agreement. Foreign currency translation reserve The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of entities with a functional currency other than Pound Sterling. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END