METALS AUSTRALIA LTD - AGM Information 2006

1st Floor, 8 Parliament Place West Perth WA 6005 PO Box 1618 West Perth WA 6872 Tel: (08) 9481-7833 Fax: (08) 9481-7835 Email: [email protected] Website: www.metalsaustralia.com.au

23 November 2006

The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

Presentation at Annual General Meeting

Attached herewith is a copy of a presentation made today at the Company's Annual General Meeting to update shareholders on the present status of the Manindi project.

Yours faithfully Metals Australia Ltd Norman Grafton Company Secretary

Exploration & Development of the Manindi Zinc Deposits, South Murchison, WA.

Overview - Manindi Zinc Project

$\cdot$ The Manindi project has a global resource of 1.05 Mt $@$ 7.64% Zn (at a 1% Zn cutoff) and includes the Kultarr deposit at $603.130$ t $\omega$ 7.66% Zn.
* Resource has a strong potential for significant upgrades to the resource tonnage through further drilling.
☆ DHEM has identified a number of new targets surrounding the existing resources.
* Zinc price at record highs and smelter charges have dramatically declined.
☆ Resource has a total in ground value of over A\$450 Million.
☆ Each incremental resource tonne has an in ground value of around \$450 (equivalent value of approx 16 grams per tonne gold).
☆ Development options are currently indicating a 'self sufficient' mining and processing operation, with low capex and high returns.
* Existing resources can be economically mined & processed at current base metal prices.

Zinc - Prices Up Due to Supply Constraints

The zinc price is at record highs and the outlook is for a sustained price through to at least 2008. Zinc is also projected to outperform other metals.

LME Zinc stockpiles continue. to dwindle and are projected to reach critical levels in the first quarter of 2007. The current draw down rate on the stockpile $i$ s >30,000 t/ mth.

*LME Stockpile @ 89450 tonnes at 22 Nov 2006

METALS

MLS - WA Project Locations

Manindi Zinc Project

∜ Established Resource Positions.

☆ Active Exploration & Resource Definition Program.

❖ Mining & Processing options being assessed.

Sherlock Bay Extended - Ni, Cu & Au

☆ Surrounds the Sherlock Bay Nickel Deposits.

❖ Project contains both Gold & Base Metal targets.

Manindi Zinc Project - Overview (1)

$\triangle$ 500 km NE of Perth.

❖ 120 km NE of Pavnes Find.

☆ Accessed via Great Northern Hwy & Sandstone Road, then pastoral and exploration tracks.

❖ Established & Granted tenure covering over 1580 hectares.

❖ Project covers a portion of the western side of the Youanmi greenstone belt in the South Murchison.

❖ The project is located less than 20 kilometres to the southwest of the 'mothballed' Youanmi gold mine.

☆ Established resource positions.

Manindi Zinc Project - Overview

$\div$ The Manindi Zinc Deposits are Volcanogenic Massive Sulphides, similar to those found at: Oxiana's 'Golden Grove' & Jabiru Metals

'Jaquar-Teutonic Bore' Projects.

❖ MLS owns over six kilometres of prospective stratigraphy.

♦ Current resource base of: 1.05 Mt @ 7.64% Zn at a 1 % Zn Cut-Off

❖ Resources contained within four zones; Warabi (Zone A), Mulgara (Zone B), Kowari (Zone D Sth) & Kultarr (Zone D Nth)

❖ A number of grade modelling & DHEM targets remain untested by drilling.

❖ Definitive resource drilling to begin in comina months.

Manindi Zinc - Warabi & Mulgara (Zones A & B)

❖ Warabi (Zone A), to the south of Mulgara, has a resource of: 119,350 tonnes @ 8.42% Zinc.

❖ Recent MLS drilling at Warabi includes results of: MNRC 008 $\,$ 5m $\odot$ 11.80% Zn from 44m MNRC 014 18m @ 14.96% Zn from 43m

∜Mulgara (Zone B) is the second largest overall resource position. with a resource of: 218,240 tonnes @ 7.77% Zinc.

Example 2 Second MLS drilling at Mulgara includes results of: MNRC 012 5m @ 7.40% Zn from 23m MNRC 013 3m @ 16.90% Zn from 89m

❖ Mineable through open pit methods.

$\mathbf{\hat{y}}$ Excellent potential for significant resource upgrades at both depth & along strike.

METALS

AUSTRALIA LIMITED

Manindi Zinc - Kowari & Kultarr (Zone D)

❖ Kowari (Zone D South) has a resource of: 111,930 tonnes @ 6.43% Zinc.

☆ Kultarr (Zone D North) is the largest existing resource position, and stands at: 603,130 tonnes @ 7.66% Zinc.

☆ Mineable through a combination of both underground & open pit methods.

❖ Excellent potential for significant resource upgrades at both depth & along strike.

☆ Recent MLS drilling at Kultarr includes results of:

MND 005

ML 10.22m @ 12.60% Zn from 172.36m $2.4$ m @ 12.75% Zn from 163.52m FW

Manindi Zinc Project - Treatment Options

Primary Treatment Option On Site Processing ☆ Involves the combination of a number of proven technologies to maximise the cost benefit to MLS.

☆ Ore will be mined and put through a crushing circuit prior to being placed on a leach pad and undergoing bacterial leaching.

☆ The produced liquor would then undergo Ferric Reduction and Ion Exchange to produce a pure zinc sulphate solution.

☆ The zinc sulphate solution would then be processed via an electro-winning circuit to produce a zinc cathode or powder, prior to being sold into the market.

Other Treatment Options

❖ Mining and processing on site to produce a concentrate for shipping & sale.

❖ Mining and toll treatment to produce a concentrate for shipping & sale.

☆ Mining and then sale of the ore to a third party for processing.

MLS - Investment Summary

❖ Strong fundamentals for zinc.

❖ Significant value in the existing Manindi resources, with resource increases targeted in the near term.

❖ Low capex & potentially short lead time for project start up.

❖ Utilisation of an innovative mixed of proven technologies for processing.

❖ Excellent 'blue sky' exposure to zinc, gold, nickel, uranium & copper through other project areas.

MLS - Important Notice

This presentation has been prepared by Metals Australia Ltd ("MLS") as a summary of its Manindi Zinc Project and is for general information purposes only.

The presentation is not, and should not, be considered as an offer or invitation to subscribe for, or purchase any securities in MLS, or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in MLS will be entered into on the basis of this presentation.

This presentation contains certain forward looking statements which have not been based solely. on historical facts but, rather, on MLS's current expectations about future events and on a number of assumptions which are subject to significant uncertainties and contingencies many of which are outside the control of MLS and its directors, officers and advisers.

Due care and attention has been taken in the preparation of this presentation. However, the information contained in this presentation (other than as specifically stated) has not been independently verified for and officers, nor has it been audited. Accordingly, the company does not warrant or represent that the information contained in this presentation is accurate or complete. To the fullest extent permitted by law, no liability, however arising, will be accepted by MLS or its directors, officers or advisers, for the fairness, accuracy or completeness of the information contained in this presentation.