METALS AUSTRALIA LTD — Capital/Financing Update 2013

Aug 26, 2013

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A S X A N N O U N C E M E N T 2 7 A u g u s t 2 0 1 3

MIL E 72 U RANIUM DRIL L PER M ITS FI N ALI S ED

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Drilling Rig a t Mile 72 in Ea r ly 2012. Metal s is set to com m ence an RC pr o gram in Septe m ber targeting primar y uranium mine r alisation

HI G HLIGH T S

• Metals has received the renewal of the environmental permit at Mile 72 uranium project, allowing drilling to proceed

• A drilling contractor has been engaged and final preparations are underway for September drilling commencement at the project

• Metals will conduct a 4,000 m RC drilling program to test a number of priority targets down to approximately 85 m below surface

• The Company has raised $500,000 to fund the current drill program and potential further drill programs.

Metals Au s tralia Ltd ( A BN 38 008 982 4 74) www. m etalsaustrali a .com.au 1[st] Floor, 8 Par l iament Place, W e st Perth, WA 60 0 5 ▪ PO Box 161 8 , West Perth, W A 6872 ▪ t: +61 8 9 481 7833 ▪ f: +6 1 9481 7835 ▪ e: m ls@metalsaustr a lia.com.au

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DRILLING TO C OMMENCE AT MILE 7 2

Met a ls intends to comme n ce an inital 4,0 0 0 m RC d rilling pro g ram at th e Co m pany’s Mil e 72 Projec t in Namibi a Fig u re 1). It has finalised a number o f prio r ity targets f o r drill testi n g. Forty drill hol e s are planned to test u p to a dept h of approximat e ly 85 m below th e surf a ce. The d r illing will target primar y Rössing-style, a laskite-hos t ed uraniu m min e ralisation.

Recent geoph y sical, radi o metric an d geo c hemical ex p loration ha s allowed th e co m pany to refine the geological inte r pretation o f the Mile 72 area. A larg e area of th e licence is i n terpreted t o be u nderlain b y the poten t ial uranium - bea r ing target sequence o f Damara n schists, granites and alaskit e s. The Mile 72 pro j ect lies within Namibia’ s ala s kite provinc e , which al s o hosts th e Rössing and H usab urani u m deposit s (Figure 2). Ur a nium mineralisation o n surf a ce at Mile 7 2 occurs a s secondar y car n otite wit h in gypc r ete, an d imp o rtantly, as carnotite in the alaskit e unit s .

EN V IRONMENTAL PERMI T RE N EWAL

The company h a s now received renewa l of t he environ m ental per m it require d bef o re drilling can com m ence. Th e per m it is valid for a peri o d of thre e yea r s.

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Figure 1 – Location of th e Mile 72 urani u m project, Na m ibia.

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Figure 2 – Areas exhibiti n g prime geolo g ical condition s for the g e nesis of ala s kites. Mile 7 2 has the s a me conditi o ns as those e x perienced at H usab, Rossing and Valen c ia. (Red = pe a k conditions i d eal for genesi s of alaskit e . Pink = pe a k conditions e xceeded required conditi o ns but area still hosts potenti a l for alaskites.)

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PL A NNED DRI L LING

The Company p lans to com m ence a 4, 0 00 m drillin g program at Mile 72 this month. A d r illing con t ractor has b een engage d and is exp e cted to be o n site in mi d -Septembe r . The progr a m is des i gned to tes t several ta r get areas p reviously id e ntified in t h e south of t he Kudu-I m pala pro s pect area ( S ee Figure 3).

CO R PORATE

On Monday, 19 August, Metals announ c ed that it had agreed t o raise A$5 0 0,000 thro u gh a pla c ement to a s ophisticate d investor u n der ASX Li s ting Rule 7.1. The mon e y will be us e d to fun d the current drill progra m , potential f u ture programs and also to provide a dditional working cap i tal.

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Figure 3 – Several t arget areas ha v e been define d in a broad zone in the south of the licence ( white, cross-h a tched). The targets a re defined on numerous crit e ria, including geology, and magnetic and radiometric re s ponse. Shown on the licence area are surface geoc h emical results and high-resol u tion radiometri c s.

For further information please contact:

Vin c ent Algar or Matthew P a inter +61 8 948 1 7833 Or consult our website: w ww.metals a ustralia.co m .au

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Competent Person Declaration

The i n formation in this release relating to the geology an d exploration res u lts of the project s owned by Metalls Australia Ltd is based on in f ormation compil e d by Dr Matthew Painter, who is a consultant to M etals Australia. D r Painter is a meember of The Au s tralian Instit u te of Geoscienti s ts, a Recognised Professional O rganisation by t h e Australasian Joint Ore Reservees Committee, a n d has sufficient experience r e levant to the styl e of mineralisatio n and types of de p osits under consideration and to thhe activity which i s being unde r taken to qualify a s a Competent P erson as define d in the 2004 Edi t ion of the “Austr a lasian Code for RReporting of Exploration Results, Mineral Resources and Ore R eserves”. Dr Pa i nter consents to the inclusion in this report of thee matters based on his infor m ation in the form and context in w h ich it appears.

Forward-Looking Statements This d ocument may i n clude forward-looking statement s . Forward-lookin g statements include, but are nott limited to, stat e ments conc e rning Metals Aus t ralia Ltd’s plann e d exploration pro g ramme and oth e r statements that are not historical facts. When use d in this docu m ent, the words s uch as "could," "plan," "estimate," "expect," "intend," "may”, "potenti a l," "should," and similar expressi o ns are forwa r d-looking statem e nts. Although M e tals Australia Lt d believes that its expectations refl e cted in these forwward-looking stat e ments are r e asonable, such s tatements involv e risks and uncer t ainties and no a s surance can be g iven that actual rresults will be co n sistent with t h ese forward-loo k ing statements.

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