LCL RESOURCES LIMITED — Capital/Financing Update 2016

May 22, 2016

ASX ANNOUNCEMENT

23 May 2016

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SHARE PURCHASE PLAN OFFER RAISES APPROXIMATELY A$1.0 MILLION

Metminco Limited (Metminco or the Company) (ASX: MNC; AIM: MNC ) announces that the share purchase plan offer ( SPP Offer ) acceptances (as previously announced) and subsequent placement of shortfall shares has raised approximately A$1.0 million before costs by issue of 234,535,724 fully paid ordinary shares in the Company ( Share ) at an issue price of A$0.004 (£0.0021) per Share.

As announced on 6 May 2016 the SPP closed on 29 April 2016 with 151,785,724 Shares being issued. Subsequently a number of investors applied for Shares under the shortfall provisions of the SPP Offer and the Board has now placed a further 82,750,000 Shares ( Shortfall Shares ) on the same terms and conditions as the SPP Offer.

The Company also received notices of exercise of 6,582,125 Rights Issue Options ( Option Shares ) granted in 2015 at an issue price of A$0.005 (£0.0026) per Share, prior to expiry, raising a total of A$32,910. Of the Rights Issue Options granted in 2015, 54,654,492 have been exercised raising $273,272 with the remaining 510,977,194 Rights Issue Options lapsing.

Funds raised from the SPP Offer and exercise of the Rights Issue Options will be applied to the acquisition of Minera Seafield SAS ( Minera Seafield ) from RMB Australia Holdings Limited and the development of Minera Seafield’s wholly owned Quinchia Gold Project, and working capital.

The Company is on track to assume ownership of the Quinchia Gold Project which includes:

• the potential near term cash flow at Miraflores which contains an estimated NI 43-101 mineral resource of 2.8 million ounces of gold; and,

• the highly prospective Tesorito gold exploration target.

The Company has scheduled on site meetings with independent experts engaged to complete the Miraflores feasibility study and is also currently planning a drilling program to test the Tesorito target.

Mr William Howe, Managing Director, commented: “A review of independent expert work completed to date indicates that there is significant potential opportunity to optimise the Miraflores project economics and to facilitate its development into a gold producing asset in the short term. A successful drilling program at Tesorito, adjacent to the Miraflores deposit, would further enhance the economics of a potential development.

Negotiations on equity funding for the Company’s Los Calatos copper-molybdenum project are well advanced. Securing funding for the Los Calatos Project would progress the project through to completion of a feasibility study and thereafter potential development of Los Calatos into a relatively low cost mine producing 50,0000 tonnes of copper in concentrate per annum for some 22 years.

.

Metminco Limited ABN 43 119 759 349	Level 6, 122 Walker Street, North Sydney, NSW, 2060
ASX Code: MNC.AX; AIM Code: MNC.L	Tel: +61 (0) 2 9460 1856; Fax: +61 (0) 2 9460 1857
	www.metminco.com.au

ASX ANNOUNCEMENT

METMINCO LIMITED

23 May 2016

The effect of the SPP Offer shortfall, shares issued in lieu of retainer fees and exercise of the Rights Issue Options on the Issued Capital of the Company is set out in the table below:

Issued Capital	Shares On Issue	Options on Issue
Shares currently on Issue	3,438,081,550
Option exercisable on or before 15 May 2016 (estimated) @A$0.005 (£0.0026) per Share		517,559,319
Option exercisable on or before 1 August 2017 @A$0.0302 per Share		5,000,000
Securities on Issue as at 22 May 2016	3,438,081,550	522,559,319
Shares issued under the SPP Offer shortfall	82,750,000
Shares issued in lieu of retainer fees	1,639,872
Exercise of option expiring 15 May 2016 @A$0.005 (£0.0026) per Share	6,582,125	(6,582,125)
Expiry of option expiring 15 May 2016 @A$0.005 (£0.0026) per Share		(510,977,194)
Total Securities on Issue on or about 23 May 2016	3,529,053,547	5,000,000

The Company will apply for quotation of the New Shares, the Option Shares and the Shares issued in lieu of retainer fees to be traded on the ASX and AIM. It is expected that quotation will take place and trading will commence on the ASX on or around 24 May 2016, and on AIM on or around 27 May 2016.

Following this announcement, the Directors will hold securities in the Company to the extent as summarised in Table 1 and Table 2 below:

Table 1: Shares

Table 1: Shares
Director	Direct and Indirect Interest	Increase	Holding	% Interest
William Howe	Indirect (136,641,533)	0	136,641,533	3.9
Francisco Vergara	Direct (10,140,000) and Indirect (53,750,000)	0	63,890,000	1.8
Phillip Wing	Indirect (29,229,109)	0	29,229,109	0.8
Tim Read	Indirect (28,400,000)	3,492,308	28,400,000	0.8
Roger Higgins	Direct (8,653,848) and Indirect (4,534,464)	0	13,188,464	0.4
Steve Tainton	Indirect (5,843,594)	0	5,843,594	0.2
Total		3,492,308	277,192,700	7.9

Table 2 - Options Expiring 15 May 2016 @A$0.005 (£0.0026) per Share

Director	Prior to 23 May 2016	Expired	Exercised	As at 23 May 2016
Tim Read	3,507,692	(15,384)	3,492,308	0
Phillip Wing	6,044,106	(6,044,106)		0
Francisco Vergara	2,500,000	(2,500,000)		0
Roger Higgins	184,616	(184,616)		0
Total	12,236,414	(8,744,106)	3,492,308	0

ASX ANNOUNCEMENT

METMINCO LIMITED

23 May 2016

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William Howe

Managing Director

For further information contact:

METMINCO LIMITED

Stephen Tainton / Phil Killen Office: +61 (0) 2 9460 1856

NOMINATED ADVISOR AND BROKER

RFC Ambrian

Australia Will Souter/ Nathan Forsyth Office: +61 (0) 2 9250 0000

United Kingdom Charlie Cryer Office: +44 (0) 20 3440 6800

JOINT BROKER

SP Angel Corporate Finance LLP (UK) Ewan Leggat Office: +44 (0) 20 3470 0470