Gold and Copper in Eritrea

June 2017

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Private UK company based in London

Developing VMS copper/gold/zinc and lode gold; in Eritrea

Multiple VMS targets ready for drilling

New VMS discovery at Hoba – 30m thick

Expanding the Yacob Dewar gold project

JORC compliant mineral resource of 940,000 t at 2.8 g/t for 85,000 oz Au

Currently drilling along strike

Potential low cost, near term gold production

Haykota Exploration Licence expanded in 2016

Eritrea highly prospective for polymetallic VMS deposits (e.g The Bisha mine, Debarwa, Asheli)

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Andiamo Exploration Ltd

Mark Parker Non-Executive ChairmanExploration geologist and executive. Previously Founder/Managing Director of African Eagle (AIM) nickel discovery in Tanzania, East Africa. Involved in exploration and development projects in Africa.

Dr Tim Williams CEOMining Geologist with a strong financial background. 30 yrs experience in mining with majors (de Beers, JCI, Gencor) and juniors (Golden Star, MDN). Mining finance background - James Capel, Lehman Brothers, EY. PhD in mining geology.

Dr Seife Berhe Country Manager, EritreaGeologist, expert in Eritrean geology and its mineral deposits, authoring on Eritrean crustal evolution. Specialist in remote sensing applications for identification of economic mineralization. Founder of Global Resources, an environmental consultancy in Eritrea. PhD in geology and remote sensing.

William Fisher PGeo Non-Executive DirectorExecutive with 30 years experience. Chairman of GoldQuest; Previously Chairman of Aurelian Resources (sold to Kinross for $1.2 billion); previously CEO of GlobeStar Mining; and VP Exploration of Boliden.

Anthony Balme Non-Executive DirectorChairman of Ortac Resources Ltd.

Johan Ingwersen Non-Executive DirectorRepresenting NurtureEx (a division of African Minerals Exploration Development) funds. Highly experienced exploration geologist.

Andiamo – Directors

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Directors 20,5%

Ortac 17,4%

>3% holders (2)13,1%

1% to 3% holders (8) 12,6%

Other holders11,4%

NurtureEx25%

Private UK Company• Holds the Haykota Exploration Licence in Eritrea - directly

• Branch office in Asmara, Eritrea

Equity

• 57.6 million shares in issue

• Implied capitalisation $5.7M

• Largest shareholders:

– NurtureEx 25% held by Emerald B.V.

– Ortac Resources 17.4%

• 120 shareholders

• Institutional, individuals and corporate

• Founders all personally invested in Andiamo

Funds raised• US$ 14M 2010-2017

Open Offer following Feb 2017 Placing

• Cash position about $200,000

• Offering up to 20m new shares at US$0.10 for US$2M

• Continue exploration of VMS and gold discoveries

• Advance Yacob Dewar

• New targets

Andiamo – Corporate Profile

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Open Offer - $2m at 10c/share

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Current issued share capital – 57.6 million shares in issue

1.8m options outstanding at 60cents – “ far out of the money”

Implied market value pre-offer - $5.8m

Implied market value post-offer - $7.8m

New shareholders to hold about 25% of the enlarged capital

• E X P L O R A T I O N L T D •

AsmaraProjects

Zara Mine

Bisha Mine

Andiamo

Exploration Licences and Mines in Eritrea 2017

DanakaliPotash

• E X P L O R A T I O N L T D •

Eastern Belt contains Bisha, Harena, etc

Western Belt contains new Ashelli discovery by BishaMining SC and Andiamo discoveries – Hoba, YacobDewar, Frataka, others

Bisha Mining SC: Ashelli drilling:

o Nevsun Inc Press Release April 201644.0m @ 1.97% Cu, 9.13% Zn, 0.36g/t Au, 32g/t Ag

o Nevsun Inc Press Release June 201631.3m @ 1.30% Cu, 13.98% Zn, 0.70g/t Au, 41g/t Ag,

Ashelli discovery(Bisha Mining SC)

Hoba VMS discovery (Andiamo)

Volcanogenic Massive Sulphides

VMS trends in SW Eritrea

Yacob DewarVMS gold discovery

(Andiamo)

Andiamo’s Systematic Exploration of the Haykota Licence

>30 targets located pre-2016 expansion of licence to southCoincident gravity high + e/m conductor = VMS target 9

e/m conductorsGravity survey

Haykota Licence Increased in 2016

• A further 95km² was added to the Haykota EL in 2016

• The area covers the southern continuation of the Asheli/HobaVMS belt

• Many e/m VMS targets have already been generated

• Surface gossans provide visual confirmation of many VMS targets

2016 Extension

airborne e/m targets

• E X P L O R A T I O N L T D •

VMS discovery at Hoba in 2015/16

VMS lens ~30m thick with gold and copper mineralisation above sulphide stringer zone

~3000m drilling completed

Intersection of 0.8% Cu over 28m

20km along strike from Ashelli VMS discovery (of Bisha Mining)

Ashelli drilling highlights:

Nevsun Inc Press Release April 201644.0m @ 1.97% Cu, 9.13% Zn, 0.36g/t Au, 32g/t Ag

Nevsun Inc Press Release June 201631.3m @ 1.30% Cu, 13.98% Zn, 0.70g/t Au, 41g/t Ag

• E X P L O R A T I O N L T D •

HOBA VMS discovery and geophysical modelling

Modelled conductor

Modelled conductor

Gossans

Gossan

• E X P L O R A T I O N L T D •

Gossans

Modelled conductor

Modelled conductor

Gossan

Hoba Discoveries

Zone 4

Zone 4A

Hoba drilling road

• E X P L O R A T I O N L T D •

Drilling Hole 3 on Mt Hoba in July 2015 – and (right) 61 mm diameter HQ core showing massive and “stringer” sulphides

Drilling at Hoba

• E X P L O R A T I O N L T D •

The marked “Zones” are all clear electromagnetic and gravity anomalies presenting targets for VMS deposits

Northern area targets for 2017 drilling

Zone 19

Ber Gebay

Zone 20

VMS gold-copper deposits along >3km strike

Small high-grade surface gold deposit down to 40m

Oxide copper potential

JORC 2012 compliant mineral resource

2017 drilling along strike

Nearby satellite deposits at Ber Gebay – initial drilling underway

Social and Environmental studies well advanced

Confirm size potential of the deposit then evaluate project economics

Anticipate a low capital cost and low operating cost mine

Yacob Dewar Gold

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Yacob Dewar Gold

“Silica-Barite” horizon exposed in stream “Silica-Barite” high

grade gold horizon

2014 trenches: > 1.2km along strike

Copper – oxide

Category tonnes Copper % Contained copper tonnes

Indicated 1,400,000 0.37 5,200

Inferred 3,850,000 0.43 16,700

Yacob Dewar Mineral Resource Estimate (JORC)

Gold - oxide

Category tonnes Gold g/t Contained gold oz

Indicated 880,000 2.82 80,000

Inferred 60,000 2.37 4,500

UK engineers, SRK, to deliver

an independent NI 43-101

resource calculation for the

Jacob Dewar gold and

copper oxides in Q4, 2012

Gold and Copper oxides substantially separate

Good gold grades average +/- 3g/t

Surface deposit – open pit

No environmental problems identified

Process water available

Good infrastructure

Low Capital Cost: High return

Yacob Dewar Oxide Gold and Copper

Massive sulphide

63 m @ 2.4% Copper (oxide)

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Ber Gebay gossan 2.4 km from Yacob Dewar

LODE GOLD Shambotai – Jawkeray regionExtensive artisanal gold workings(both for alluvial and lode gold)Strong gold-in-soil geochemical anomalyGold bearing quartz veins, drill intersected

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Shambotai gold

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Strong gold anomaly

• Main zone 1.5kms x 0.5kms• North zone 0.8kms x 0.5 kms• Very extensive artisan activity• Clear geophysics connection• Drilling 36m @ 0.52 g/t Au

Corporate Strategy

Exploration for VMS in the Haykota Licence

• Target is multi-million tonne massive sulphide Cu/Zn/Au surface deposits

• Strong geophysical and geochemical evidence: nearby discoveries

• Multiple drill ready targets. Drilling has already demonstrated mineralisation

• 91 km2 extension granted in August 2016 – multiple VMS targets

Advance Yacob Dewar and Ber Gebay to a development decision

• Surface gold and copper deposits; open pit; high grade; simple processing

• Potential low capital cost, near term production

• Expand resource with further drilling

• Confirm size and economics then decide whether to develop or joint venture

Exploration for shear hosted gold in Haykota Licence

• Target is multi-million ounce gold deposits at surface

• Extensive artisan mining activity: both valleys and veins

• Drilling has already demonstrated mineralisation

Application for new Exploration Licence in Eritrea

• VMS horizons identified from satellite interpretation

• Artisan gold workings on quartz vein swarm

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Open Offer - Use of Proceeds

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Exploration for VMS deposits in the Haykota Licence

• US$0.8m

• Drilling programs:

• Zone 3; Zone 19; Hoba discovery; Frataka

• Southern extension Mio – mapping and soil sampling

Advance Yacob Dewar and Ber Gebay to a development decision

• US$0.8m

• Drilling at both north and south extensions

• Social and Environmental Studies

• Metallurgical process design (bulk sample) – flowsheet

• Financial analysis

Exploration for shear hosted gold in Haykota Licence

• US$0.4m

• Shambotei, Gurgur, Mio

Wax Chandlers Hall

6 Gresham Street

London EC2V 7AD

UK

+44 20 7600 1888

3rd Floor, Saba Building

Warsay Avenue

Asmara

Eritrea

+291 118 4662

Eritrea

Highly prospective geology, only recently opened up to exploration

• Land area about 120,000km2 ; Red Sea coastline 1,200 kms

• Population; approximately 5 million (UN 2008), plus another 1 million dispersed globally

• Topography: sea level to a fertile plain at about 2,500m. Steep, rugged escarpment

• Climate: Semi Arid: main rains July-Sept, largely in storms

• Culture: nine ethic groups and languages

• Major Language: Tigtinya, Arabic: English widely used in business

• Major Religions: Islam, Christianity

• Government: People’s Front for Democracy and Justice, the successor to EPLF

• Economy: dominated by agriculture, plus minor industries. Mining will dominate in the future.

• Independent following UN supervised referendum held in 1993.

• GNP per capita: approximately US$800 pa

• Capital: Asmara, since 1900; population approximately 500,000

• Ports: Massawa, which supplies Asmara; Assab, traditionally the major port for Ethiopia

• Airports: Asmara, International; potentially Massawa International (not yet), Assab

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Young country actively encouraging its mining industry

1500s Ottoman Empire annexes Eritrea

1890 Italian Colony declared

1941 Allies defeat Italian forces: UK occupation

1952 UN declares federation of Eritrea and Ethiopia

1962 Ethiopia annexes Eritrea: independence struggle starts

1988 Battle of Afabet, turning point victory by Eritrean liberation forces

1990 Port of Massawa recaptured by EPLF

1991 EPLF recaptures Asmara, forms provisional government

1993 UN sponsored referendum; Eritrea becomes independent and joins United Nations

1998 Outbreak of major hostilities between Ethiopia and Eritrea

2000 Algiers agreement between Eritrea and Ethiopia to establish border commission

2003 UN Boundary Commission issues ruling: accepted by Eritrea, not by Ethiopia

2009 Bisha mine fully financed by international institutions and banks

2011 Bisha mine starts commercial production: 2011 379,000 oz Au; 2012 313,000 oz Au.

2012 Zara gold mine sold to China SFECO and ENAMCO for $114m.

2016 Asmara gold and VMS projects sold to Chinese investor and ENAMCO

Eritrea History

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Eritrea Mining Law

Minerals Proclamations (Law) enacted in 1995

• Eritrean Mineral Proclamation 1995 and associated tax proclamations

• Based on law of Australian Northern Territories

• Written in Tigrinya and English

• Allows for:

– Prospecting Licence

• Valid for one year, not renewable, gives exclusive right to apply for Exploration Licence

– Exploration Licence

• Valid for 3 years

• Renewable twice for one year with reduction in area

• In practice, ELs have been renewed on an annual basis if adequate work has been done

– Mining Licence

• Valid for 20 years, renewable

• Taxation

– Royalty (NSR) of 5% on gold and 3.5% on base metals

– Corporate income tax rate of 38%

– 100% Capital allowances, carried forwards

– Nominal import taxes (0.5%) on qualifying imports

– Employees pay Eritrean income tax, expatriates pay 10% withholding tax

– State (ENAMCO) equity free carry 10%

– State additional 30% participating equity interest purchased at agreed price

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