METALS AUSTRALIA LTD — Capital/Financing Update 2013

Apr 8, 2013

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A S X A N N O U N C E M E N T 9 A p r i l 2 0 1 3

S URVEY YIELDS TAR G ETS A T MILE 7 2

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HI G HLIGH T S

• Interpretation of new high-resolution geophysical surveys at the Mile 72 uranium project has been completed,

• This new data indicates a strong correlation between existing uranium anomalism and newly identified magnetic and radiometric features,

• Data shows a strong correlation with existing geochemical, drilling, radon cup and new radiometric airborne data,

• A series of target zones have been identified in the Kudu-Impala Corridor,

• A field assessment of the candidate target areas will commence in the coming weeks and will include sampling, mapping, and siting of drill-hole locations,

• Following final field reviews, a deep drilling program will be initiated to test the alaskite-hosted primary uranium mineralisation.

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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NE W GEOPH Y SICS PROV I DE DRILL T ARGETS

Met a ls Australi a is please d to annou n ce that the inte r pretation of the high-resolution airb o rne magnetic sur v ey at its M ile 72 Proj e ct has be e n completed (Figure 1). The Mile 72 project lies wit h in Namibia’s ala s kite provinc e which als o hosts the Rossing and Husab uranium d eposits (Fi g ure 2). Thi s high-resolution surv e y was c o nducted a t 50 m etre line s pacing and flown at a n altitude o f 30 m etres, cov e ring 3,655.5 line kil o metres. The sur v ey has pr o vided the C ompany w ith excelle n t hig h -resolution m agnetic and radiometr i c imagery o f the subsurface geology at M ile 72. Thi s will provide the Company w ith excellen t targeting i n formation f o r a pl a nned deep e r drilling program to te s t for prima r y Rössing-style u r anium mine r alisation.

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Figure 1 – Location of the Mile 72 uranium project, Namibia.

The survey ha s provided the Compan y with highly det a iled suppor t ing data to complemen t the existing geo c hemical, ra d iometric (r a don cup), tr e nching and

shallow drilling sampli n g data already obtained al o ng the Kud u -Impala Zo n e at the Mile 72 Project.

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The new geophysica l data pro v ides strong additional s u pport for the mineralisation mode l . The highresolution m agnetic sig n ature (magnetic lows corre s ponding to p otential al a skite units, Figures 3 & 4 ) and air b orne radiometric signature ( total signal and uranium o n ly signal, Figure 5) s how direct spatial correlation with the known hig h -grade min e ralised zon e s at Mile 72, i n areas of outcroppin g or subcroppin g schists, granites and alaskites, and in some c ases in areas of thin basalti c cover.

Uranium m ineralisatio n on surfa c e at Mile 72 oc c urs as se c ondary car n otite within gypc r ete.

Figure 2 – Areas e xhibiting prim e geological c o nditions for the genesis of alas k ites. Mile 72 h a ve the same c o nditions as thos e experienced a t Husab, Ros s ing and Valencia. (Red = peak conditions id e al for genesis of alaskite. P ink = peak conditions exceede d required con d itions but are a still hosts pote n tial for alaskites.)

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KE Y FINDING S AT MILE 7 2

• The area has an equival e nt propens i ty to gene r ate alaskit e s (the hos t s to ura n ium mineralisation) as the “Alaskit e Alley” are a that cont a ins Rössing and Husab (Figure 2).

• The current inte r pretation of the geology from the ne w geophysi c s data (Figure 3) con f irms a larg e area of th e licence being underlai n by the tar g et sequenc e s of Da m aran schist s , granites a n d alaskites (Figure 2).

• Nu m erous area s of magne t ic lows have been ide n tified throu g hout the licence are a (Figure 4 ) . Some m a gnetic low s , which ar e thought t o correspo n d to ala s kites in the subsurface, show a direct correlation with areas of surface mineralisation . These lows are, howev e r, far more extensive t h an the presently kno w n extents o f outcroppi n g mineralis a tion, followi n g and exte n ding beyon d the bro a d subsurface anomalie s defined by t he Compan y ’s earlier ra d on cup sur v ey.

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Figure 3 – Interpreted geology sho w ing the distri b ution of units t hroughout the Mile 72 Projec t area, overlaid by the surface u ranium assay results. Geological and magn e tic units includ e : Etendeka ba s alts (green s h ades), Damar a n schists, gra n ite and alaskit e (buff), dolerit e dykes (green linework) and m agnetic lows ( red, cross-hat c hed). The dist r ibutions of these units, in conj u nction with ot h er data sets li k e the radiome t rics, are being used to define t argets for the f o rthcoming drilling.

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• Ma n y lows are cross-cut b y a magnetically strong, northwest - oriented dolerite dyk e swarm, w hich tends to mask t h e full exte n ts of the l ows. Susp e cted ext e nsions will need to be checked i n the field to confirm t h e extent o f the pot e ntial alaskit e units.

• Ura n ium conce n trated at s urface at K udu-Impala must be s o urced fro m the bas e ment sequ e nce within t h e licence a r ea, and has not been tr a nsported in from els e where. This is illustrate d by the ur a nium radio m etrics whic h clearly sh o w U hig h s associate d with base m ent outcro p s, cross-cut by drainag e channels w ith a ver y low signature. (Figure 5 ).

• Sev e ral targets have been i d entified. All will require physical ex a mination pr i or to the c ommence m ent of the d e eper drillin g program.

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Figure 4 – Aeromagnetics (analytic a l signal) showi n g the high lev e l of detail pro v ided by the ne w geophysical data. This an d many other m anipulations o f the geophysi c al data have b een used to d etermine the d istributions of various magn e tic units show n in the geological interpretati o n in Figure 3.

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Figure 5 – Radiomet r ics (uranium c h annel) over the Mile 72 licence area. Area s of high response (yellows, re d s and white) c orrespond dire c tly with outcro p of schist, gra n ite and alaskit e . River chann e ls are depicte d as wavy radiometric lows (e. g . channel indi c ated by arrow) that indicate l o w uranium co n tent. Uranium is therefore limited to areas o f schistgranite-alaskite outcr o p, consistent w ith a Rossing - style model fo r mineralisation at Mile 72.

PL A NNED AC T IVITIES

The Company h as develop e d a series of immedia t e targets fr o m the inte r pretation. These con s ist of areas where dee p er drilling c a n test the D amaran sc h ist-granite- a laskite sequence wh e re this correlates with o u r best surfa c e and radiometric results.

The Company w ill mobilise a review t e am to the s ite in April and May 2 0 13, and fi n alise drilling plans f o r a 2,000- 4 ,000m dee p drill progr a m to take place as soon as po s sible ther e after to tes t the anomalies identifie d by the Co m pany.

EX P LORATION LICENCE U PDATE

In a c cordance w ith Namibia n law, the C o mpany has submitted t h e required d ocumentati o n to the Namibian Ministry of Mi n es and En e rgy for the r enewal of t h e Mile 72 li c ence, EPL 3 308. The Ministry h a s acknowl e dged the C ompany’s e arly submission of th e applicatio n for ren e wal and will advise further in due c ourse. In the Company’s view, Met a ls Australi a has met or exceede d all require m ents for on g oing explor a tion of the licence area, and forese e s no imp e diments to t he renewal of the explo r ation licenc e .

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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

w ww.metals a ustralia.co m .au

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 Recognise d Professional O rganisation by t h e Australasian Joint Ore Reservees Committee, w h o 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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