LCL RESOURCES LIMITED — Capital/Financing Update 2019

Oct 22, 2019

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ASX Announcement

23 October 2019

Non-Binding Term Sheet for Sale of Non-Core Chile Assets for ~A$1.5 Million*

* Based on consideration of USD$1.0 million and 1USD = $0.68 as at 18 October 2019

Metminco Limited (ASX: MNC) (“Metminco” or “the Company”) is pleased to announce that it has negotiated key commercial terms, and executed a non-binding term sheet ( Term Sheet ) for the sale of its legacy and non-core Mollacas asset in Chile to a Chilean company (“ Acquiror” ).

Metminco and the Acquiror have been negotiating the sale of the Mollacas assets which comprise mineral title, surface title and water rights. This has culminated in an offer to Metminco of USD $1.0 million (approximately A$1.5 million), subject to satisfaction of due diligence by the Acquiror.

The Term Sheet has agreed a settlement date of 1 December 2019, subject to a valid Deed of Release under Chilean Laws.

Metminco’s Managing Director, Mr Jason Stirbinskis commented;

“This is a very sensible deal for both Metminco shareholders and for the Acquiror, with both groups working diligently for a timely close to the transaction.

The recently reformed Metminco business is solely focused on our expansive and highly prospective position in Colombia, and this non-dilutive capital injection of about A$1.5 million will assist to drive our exploration push which has recently commenced with diamond drilling now underway at our Chuscal gold target.”

The parties are working towards completion of a Binding Sale and Purchase Agreement to reflect the Term Sheet, in parallel with completion of due diligence. Given the conditionality of the Term Sheet, including the need for completion of due diligence and signing of a Binding Sale and Purchase Agreement, there is no guarantee the asset sale will complete. As the transaction progresses the Company will provide updates to the market as and when appropriate.

For further enquiries contact:

Jason Stirbinskis

Managing Director Metminco Limited jstirbinskis@metminco.com.au

FORWARD LOOKING STATEMENTS This document contains forward looking statements concerning Metminco. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Metminco’s beliefs, opinions and estimates of Metminco as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or

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achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forwardlooking statements in this presentation will actually occur.

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