METALS AUSTRALIA LTD — Capital/Financing Update 2020

Aug 3, 2020

ASX Announcement

4 August 2020

Metals Australia Successful in $180K Junior Minerals Exploration Incentive Application for Eligible Investors in 2020/2021

Metals Australia Ltd (ASX: MLS) advises that it has been successful in its application for participation in the Australia Federal Government’s Junior Minerals Exploration Incentive (“JMEI”) scheme for the 2020/21 income year. Metals Australia has received an allocation of $180,000 in tax credits that can be distributed to eligible investors.

The JMEI scheme encourages investment in exploration companies undertaking greenfields mineral exploration in Australia by creating exploration credits using tax losses from eligible exploration expenditure and distributing these exploration credits to investors who contribute new equity. The exploration company’s carry forward tax losses are reduced proportionately to reflect the amounts of exploration credits created and distributed to shareholders.

Eligible investors must be Australian resident shareholders that apply for and are issued new shares in Metals Australia’s capital raising activities between 9 July 2020 and 30 June 2021. JMEI credits will be distributed to eligible shareholders. The precise amount of credit per share issued will be determined after 30 June 2021 and is based on capital raised during the period 9 July 2020 to 30 June 2021, together with the amount of eligible exploration expenditure and tax losses for the year.

Australian resident shareholders that are issued with JMEI credits will be entitled to a refundable tax offset or franking credit.

The JMEI credits will apply to the 2020/21 tax year and can be issued by Metals Australia after lodgement of its income tax return for the year ended 30 June 2021. Eligible shareholders will be notified of any JMEI credit entitlement in the approved form once Metals Australia has lodged its income tax return, and the JMEI credits will apply to the shareholder’s income tax assessment for the year ended 30 June 2021.

This announcement was authorised for release by the Board of Directors.

Sincerely.

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