METALS AUSTRALIA LTD — Capital/Financing Update 2016

Dec 21, 2016

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ASX Announcemen

22 Dec e mber 2016

Metals Australia Completes Acquisition of Quebec Lithium Limited Quebec Lithium and Graphite Projects

Diversified metals e xploration c ompany, M etals Austr a lia Ltd (AS X : MLS ) is p leased to announce that the Company h as completed the acq u isition of Q u ebec Lithi u m Limited ( QLL ). As announced to the A SX on 20 O ctober 20 1 6, QLL is t h e 100% re g istered ow n er of the L ac La Motte, Lac La Corne and Lacourciere-Darvea u Lithium P r ojects and L ac Rainy Nord Graphit e Project, all located in Quebec, Canada.

The co m pletion of t his acquisi t ion allows M LS to pro g ress with its planned e xploration a ctivities, initially f ocused on t he Lac La M otte Lithiu m Project a n d the Lac Rainy Nord G raphite Pro j ect. MLS has en g aged expe r ienced Can a dian cons u lting geologists, Dahr o uge Geolo g ical Consultants, to design p hase A ex p loration programs at e ach of the s e high pri o rity project s . Explorati o n at the Lac La M otte Lithiu m Project a n d the Lac R ainy Nord G raphite Pr o ject is sch e duled to c o mmence during e arly 2017.

As prev i ously anno u nced, MLS is also und e rtaking a d iamond dri l ling progra m at the hi g h-grade Manind i Zinc Proje c t which is s c heduled to commence in early January 2017.

Pursuant to the terms of the a cquisition a greement, t he Compa n y will mak e a cash pa y ment of A$70,0 0 0 to the S hareholder s of QLL a n d issue 1 5 0,000,000 f ully paid o rdinary sh a res and 150,000 , 000 option s , each with an exercis e price of $0.003 per sh a re and exp i ring on 1 December 2019, t o the Shareholders of Q L L. Commenting on t h e Settlement of the a c quisition o f QLL, Cha i rman of MLS, Mr Sol Majteles stated:

“The S e ttlement o f the acquis i tion of QL L allows th e Company to firmly f o cus its att e ntion on explori n g these ex c iting proje c ts, all loca t ed in the m ining frie n dly jurisdic t ion of Qu e bec. QLL offers t h e Compan y the oppo r tunity to b e a part of t he lithium a nd graphi te revolutio n and repositio n s MLS stra t egically to t ake advan t age of this dynamic s e ctor. We a r e excited a bout our future a nd look for w ard to get t ing on gro u nd and co m mencing o u r planned e xploration. ”

MLS is continuing to evaluate further ex p loration p r oject opportunities in the compl e mentary zinc, lit h ium and gr a phite sect o r.

The Co m pany would like to th a nk Shareh o lders for t h eir continu e d support and look f o rward to providi n g updates in the future about the o utcomes o f our explor a tion.

For mor e informat ion, please	For mor e informat ion, please	For mor e informat ion, please	contact:
Sol Majt eles				James Mose s
Chairma n				Media andI nvestor Rela tions
MetalsA ustralia Ltd				Mandate Co rporate
				M: +61 420 991 574
				E: james@m andatecorp orate.com.a u