BARYS RESOURCES LIMITED — Capital/Financing Update 2014

Dec 17, 2014

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El Roble Mining Update

ASX ANNOUNCEMENT

18 December 2014

Highlights

• 620 tonnes of San Sebastian stockpiles trucked

• 4.77% Cu average grade of first 460 tonnes reported from processing plant

• Delivered material includes 20.35 tonnes grading 22.70% Cu, 3.05 g/t Au and 14 g/t Ag

• PARAGUAY MINE: Mining preparations commence at fully permitted Paraguay Mine site

Perth-based copper developer Metallum Ltd (ASX: MNE) is pleased to provide an update on mining and trucking activities at the El Roble Copper Project in Chile.

Since taking 100% ownership of the San Sebastian concession (ASX announcement 10 December 2014), the Company has trucked 620 tonnes of copper bearing material, with an average grade reported for the first 460 tonnes delivered and assayed by the ENAMI processing plant of 4.77% Cu. One truck of direct smelter ore (DSO) was also delivered which contained 20.35 tonnes grading 22.70% Cu, 3.05g/t Au and 14g/t Ag.

In addition, after being issued the Paraguay mining permit, preparation for the commencement of mining at the Paraguay Mine site has commenced. As announced on 16 December 2014, the Company has a permit to mine up to 5,000 tonnes per month from the Paraguay mine site.[1 ]

Metallum Managing Director, Mr Zeff Reeves, said: “The first material deliveries to the ENAMI plant from San Sebastian mark another important milestone for the Company in executing its strategy of self-funding through small scale mining of the very high grade copper vein system at El Roble.

“The grades reported from the mill are averaging well above our target grade of 3% copper and the delivery of DSO grading over 20% copper with significant gold and silver credits is a real bonus and we’d expect to see more material like that from San Sebastian. We are currently installing the stope access shafts and the vein is looking very good within those shafts, so it gives a good indication of what to expect once this first stope gets extracted.

“We’ve also been able to commence operations immediately at the Paraguay Mine and have started preparing the first stoping panel with the installation of access shafts and drawpoints, which should produce additional material for the plant over the coming weeks”, Mr Reeves added.

1 Note the permit to mine up to 5,000 tonnes per month is not a production target.

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San Sebastian Mine Trucking

Since taking ownership of the San Sebastian Mine (ASX announcement 10 December 2014) the Company has focused on the trucking of stockpiled material mined from the installation of the 1040 level development drive and stope access shafts within the vein.

Approximately 700 tonnes of material had been stockpiled and as at 17 December, 620 tonnes had been trucked. Of the initial material trucked, the ENAMI processing plant has advised of an average delivery grade of 4.77% Cu for 460 tonnes of that material which has been processed, including 20.35 tonnes of DSO grading 22.70% Cu, 3.05g/t Au and 14g/t Ag. It should be noted that currently all material being delivered to the plant is oxide material. Payment for oxide material is based on the copper content only for material grading below 8% Cu. Material grading above 8% Cu is considered to be DSO and payment is made for Cu, Au and Ag content.

San Sebastian Mine Next Steps

The current shaft installation work at San Sebastian (Figure 2) is producing between 50 tonnes and 80 tonnes per day of copper bearing material, with the shafts scheduled for completion by the end of December 2014. Following completion of the access shafts, blasting of the stoping panel will commence utilising a shrink stope method whereby broken copper bearing material is mined from the bottom up, with the blasted rock used as a platform for workers to mine upwards. Once this part of the stoping process begins, it is anticipated that the available tonnages will gradually increase until the entire stoping panel has been blasted, at which point all the broken material can then be removed as a simple material movement process. It is envisaged to that to get the stope to this stage will take approximately 4-6 weeks.

The Company is also planning earthworks for the installation of an additional mining level below the 1040 level, to provide an additional work front, and begin delineation of another stoping panel for extraction. The San Sebastian Mine has favourable topography with the vein exposed on the side of a hill so additional levels can be established with little or no waste development.

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Figure 1 – Map of the north east sector of the El Roble Project, Chile, showing the location of the San Sebastian, Paraguay and Panga Mines within a strike continuous mineralised corridor where Metallum has mapped over 60km of prospective veins.

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Figure 2- Schematic long section of the San Sebastian mine showing location and access of the first stoping panel currently being prepared between the 1040 level and 1090 level.

Paraguay Mine

The Company was granted a permit to extract up to 5,000 tonnes per month from the Paraguay Mine (ASX announcement 16 December 2014). Since obtaining the permit, the Company has mobilised a work crew to the mine and begun preparatory work to extract the high grade stoping panel (Figure 3) delineated from previously announced sampling results (ASX announcements 18 February 2014 and 14 March 2014).

This preparatory work will consist of the installation of drawpoints and access shafts into the stoping panel utilising the same mining methodology as for the San Sebastian Mine. It is envisaged that this preparatory work will begin to produce material that can be trucked and that will complement the San Sebastian material being delivered to the ENAMI plant before years end.

The focus at Paraguay is to bring the first stoping area on line as quickly as possible.

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Figure 3 – Plan view of the Paraguay mine showing high grade results. Results in red announced to ASX on 18 February 2014, results in blue announced 14 March 2014.

Panga Mine

The Company has scaled back activities at the Panga Mine, making the decision to utilise the available workforce and equipment at San Sebastian and Paraguay which will be the main focus for the Company’s activities into 2015. All available stoping areas have been depleted, with material having been trucked to the ENAMI plant for processing.

Minor development work is planned to continue the 956S tunnel to the south to test for the occurrence of further high grade copper zones suitable for stoping.

Metallum is focused on achieving growth and shareholder value through the development of near-term, small-scale mining operations at El Roble to enable self-funded growth.

For more information visit the Metallum website at www.metallum.com.au or contact:

Zeffron Reeves	Daniel Seeney
Managing Director	Investor Relations
Metallum Limited	NWR Communications
zreeves@metallum.com.au	daniel@nwrcommunications.com.au
P: + 61 8 9322 4328	P: +61417 678 147

About Metallum Limited

Metallum Limited (ASX: MNE) is an Australian-based company that acquires and develops copper and gold projects around the world with a focus on Chile. The Company has an interest in the highly prospective, high grade El Roble Copper Project in Region III of Chile, targeting IOCG-style copper and gold mineralisation. The Company is focused on achieving growth and shareholder value through the development of near-term, small-scale mining operations at El Roble which will enable self-funded growth into the future. El Roble is ideally located 25km from the port of Caldera and within 80km of two copper toll treatment plants within the world class Atacama IOCG region, which has a history of high-grade copper production. The Company has commenced trucking copper-bearing material from the Panga mine at El Roble for processing at a nearby plant.

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Metallum Limited also has an interest in the Comval Copper Project in the Philippines, and its Australian-based project, Teutonic, is prospective for gold and base metals.

Metallum Limited has a strong Board and management team with considerable technical, commercial and corporate experience in the resources sector.

For more information visit the Metallum Limited website at www.metallum.com.au

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), a member of the Australian Institute of Geoscientists. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves is a full time employee and Managing Director of Metallum Limited. The Company confirms that the form and context in which the Exploration Results are presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement.

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