METALS AUSTRALIA LTD — Capital/Financing Update 2019

Mar 21, 2019

ASX Announcement

22 March 2019

Drilling Equipment and Technical Crews Mobilised to Site at Lac Rainy Graphite Project

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Highlights:

• Drilling equipment, field crew and technical crews successfully mobilised to site at the Lac Rainy Graphite Project ahead of the maiden diamond drilling campaign – pad clearing for initial drill holes and set up of the diamond drill rig underway with the first drill hole expected to commence in the next few days

• Maiden diamond drill program of up to 2,800m (program will initially consist of 2,000m diamond drilling with scope to increase) will test the down dip / plunge extensions of the graphite mineralisation – advanced metallurgical testwork to be undertaken on split drill-core samples

• Continued engagement with North American end-user / development partners for the highgrade Lac Rainy graphite concentrate – North American groups can offer a simpler logistics pathway for Lac Rainy graphite concentrate

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Graphite exploration and development company Metals Australia Ltd (ASX: MLS ) is pleased to provide shareholders with an update on the maiden diamond drilling program at the Lac Rainy Graphite Project, located in Quebec, Canada.

The Company has recently been advised by Magnor that the drilling equipment, field crew and technical crews have been successfully mobilised to site at the Lac Rainy Graphite Project ahead of the maiden diamond drilling program. It is anticipated that the diamond drill rig will be set up over this coming weekend and the pads for the initial drill holes will be cleared at the same time. Drilling of the first hole is expected to commence in the next few days.

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Figure 1: Snowplough being loaded for mobilisation to site at the Lac Rainy Graphite Project

Geological teams have completed the assessment of the results from the channel sampling program and all drilling holes and targets have been finalised at Lac Rainy. The Company will advise shareholders as soon as drilling has commenced and provide regular updates as the program progresses.

Commenting on the recent activity ahead of the diamond drilling program at Lac Rainy, Director of Metals Australia Ltd, Mr Gino D’Anna, stated:

“Although our program was delayed by weather, we are now in full swing with all of the drill equipment, field crew and technical crews mobilised to site at Lac Rainy ahead of the diamond drilling campaign. We expect to be drilling our first hole in the next few days and are excited by what we will encounter. We believe that Lac Rainy is host to a potentially world-class high-grade natural flake graphite deposit and recent metallurgical testing has demonstrated its ability to produce a high purity, large flake and high carbon graphite concentrate ideal for high-end technical applications.

We look forward to providing shareholders with further updates in what will be a busy 2019 for our Company.”

For more information, please contact:

Gino D’Anna Director Metals Australia Ltd Phone: +61 400 408 878

Martin Stein Company Secretary Metals Australia Ltd Phone: +61 8 9481 7833

Caution Regarding Forward-Looking Information

This document contains forward-looking statements concerning Metals Australia Ltd. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of Metals Australia Ltd as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.