METALS AUSTRALIA LTD — Capital/Financing Update 2014

May 7, 2014

A S X A N N O U N C E M E N T 0 8 M a y 2 0 1 4

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DRILL P ROGRAM CO M MENCES A T M I LE 7 2 U RANIUM, NA M IBIA

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Mile 72

HI G HLIGH T S

 Drilling underway on 4,000m, 80 hole follow-up program

 High priority uranium targets on radon cup anomalies to be tested

Met a ls is pleas e d to annou n ce that a f u rther round of RC drilli n g has com m enced at i t s prospecti v e Mil e 72 Uranium project loca t ed north of S wakopmund, in the world-class Na m ibian Urani u m Province.

A d r illing progra m complete d in Novemb e r 2013 ide n tified multip l e strike-per s istent peg m atitic horizo n s con t aining ano m alous urani u m minerali s ation. The p resence of a relatively s h allow cove r of blanketi n g san d s hides th e anomalou s uranium h orizons an d has led t o the gener a tion of multiple untest e d targ e ts. In places, these hid d en areas c o rrelate with a reas of rad o n cup ano m alism at Mil e 72.

The 4,000m, 80 hole drilling program currently underway is targ e ting the bu r ied radon c u p anomalis m , and aims to ide n tify significant additiona l opportuniti e s to expand the explora t ion succes s at the proj e ct (Figure1). The program will c ontinue thr o ugh May 2014.

Metals Austr a lia Ltd (ABN 38 008 982 474) www.met a lsaustralia.c o 1 [s] t Floor, 8 Parliament Place, West P erth, WA 6005 ▪ PO Box 1618, W e st Perth, WA 68 7 2 ▪ t: +61 8 948 1 7833 ▪ f: +61 94 8 1 7835 ▪ e: mls @ metalsaustralia. c

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Figure 1 EPL 3308 showing historical drilling, areas o f radon cup a n omalism and areas to be test e d in follow up d rilling program.

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 Competent Person Declaration

The i n formation in this release relating t o the geology an d exploration resu l ts of the projects owned by Metals Australia Ltd is b ased on informat i on comp i led by Dr Matth e w Painter, who i s a consultant to Metals Australia. Dr Painter is a m ember of The AAustralian Institut e of Geoscientists, a Reco g nised Professio n al Organisation b y the Australasi a n Joint Ore Res e rves Committee, and has sufficiennt experience rel e vant to the style of mineralisation and typ e s of deposits under consideration a nd to the activity which is being u n dertaken to qualiffy as a Compete n t Person as defi n ed in the 2012 Edition of t he Joint Ore Re s erves Committe e (JORC). Dr Pai n ter consents to the inclusion in th is report of the m atters based on h is infor m ation in the form and context in w h ich it appears.

Forward-Looking Statements

This d ocument may in c lude forward-loo k ing statements. F orward-looking s tatements includ e , but are not limitted to, statement s concerning Met a ls Austr a lia Ltd’s planned exploration prog r amme and other statements that a re not historical f acts. When used in this documen t , the words such as "coul d ," "plan," "estimate," "expect," "int e nd," "may”, "pot e ntial," "should," a nd similar expressions are forwardd-looking stateme n ts. Although Met a ls Austr a lia Ltd believes that its expecta t ions reflected in these forward-l o oking statement s are reasonable,, such statements involve risks a nd uncer t ainties and no a s surance can be g iven that actual r e sults will be con s istent with these f orward-looking sttatements.

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