METALS AUSTRALIA LTD — Capital/Financing Update 2016

Dec 14, 2016

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ASX Announcemen

15 Dec e mber 2016

Metals Australia Completes Tranche 2 Placement Exploration to Commence at Manindi Zinc and 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 Tranche 2 of the Sh a re Placement as appro v ed by Sha r eholders at the C o mpany’s AGM on 30 N ovember 2 0 16.

The Co m pany has raised a furt h er $475,00 0 under Tranche 2 at a n issue pric e of $0.003 p er share via the issue of 1 58,333,334 fully paid ordinary s h ares ( Placement ). Su b scribers u n der the Placem e nt were also granted a free attac h ing option on a 1 for 4 basis with an exercis e price of $0.003 p er share and expiring o n 1 Decem b er 2019.

This bri n gs the total funds rais e d to $950,0 0 0.

Sanlam Private Wealth Pty Lt d ( Sanlam ) acted as L e ad Manag e r to the Placement. F ollowing comple t ion of the T ranche 1 a n d Tranche 2 Placemen t , Sanlam has been issu e d 9,000,00 0 options each with an exer c ise price of $0.003 p e r share ex p iring 1 December 20 1 9. Sanlam will also receive b rokerage f e es of 6.0% (plus GST) o f the funds raised und e r the Place m ent.

The Pla c ement wa s subscribe d by sophis t icated and profession a l investors , none of w hich are related p arties of t h e Company.

The Co m pany will commenc e exploration activities at the exi s ting high g rade Manindi zinc deposit as well as a dvancing e xploration a t the Lac L a Motte Lithium Proje c t and the L ac Rainy Nord G r aphite Proj e ct.

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.

For more information, please contact:

Norma n Grafton James Mos e s Compa n y Secretary Media and I nvestor Rel a tions Metals A ustralia Lt d Mandate C o rporate Phone: + 61 8 9481 7833 M: +61 420 991 574 E: james@ m andatecor p orate.com. a u