METALS AUSTRALIA LTD — Capital/Financing Update 2019

Mar 12, 2019

ASX Announcement

13 March 2019

Update on Timing of Maiden Diamond Drilling Program at Lac Rainy Graphite Project

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Highlights:

• Snow removal, pad clearance and site preparation at Lac Rainy ongoing with drill rigs and drill crew to be mobilised to site within the next five days – drilling delayed due to adverse weather conditions in Northern Quebec – the Company will inform shareholders as soon as drilling has commenced

• Maiden diamond drill program of up to 2,800m 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 planned maiden diamond drilling program at the Lac Rainy Graphite Project, located in Quebec, Canada.

The Company has recently been advised that although snow removal, pad clearance and site preparation are ongoing, Magnor will be mobilising the drill crew and the drill rigs to Lac Rainy in the next five (5) days. Unfortunately, the northern parts of Quebec have been hampered by severe cold weather and adverse conditions which has delayed the start date of the drilling campaign and has required the Company to undertake additional site preparation and snow removal.

Geological teams have continued to assess the results of the channel sampling program and further refined the drilling targets 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 receipt of the final Lac Rainy drilling permits, Director of Metals Australia, Mr Gino D’Anna stated:

“Unfortunately, drilling has been delayed due to adverse weather conditions, and although it continues to snow at Lac Rainy, the Company is rapidly progressing with the mobilisation of the drill crew and the drill rigs. Snow removal is just an everyday event when exploring in Quebec in the winter. We believe that Lac Rainy is host to a potentially world-class highgrade 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. 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 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.