METALS AUSTRALIA LTD — Capital/Financing Update 2020

Apr 19, 2020

ASX Announcement

20 April 2020

Prospecting Program Identifies New High-Grade Graphite Zone Parallel to the High-Grade Carheil Graphitic Trend

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Highlights:

• Prospecting program at the Lac Rainy Graphite Project has identified a new high-grade graphite zone located parallel to the existing high-grade Carheil Graphitic Trend where previous diamond drilling was focused – new zone known as the West Carheil Graphitic Trend

• The West Carheil Graphitic Trend has a minimum strike length of 900m and remains open in both directions – highlights the potential for significant additional high-grade tonnage to be discovered through additional exploration and diamond drilling

• Sampling along the West Carheil Graphitic Trend has identified a number of high-grade graphitic outcrops – samples collected are outside of the existing defined drilled area and outside the channel sampled zones, highlighting the significant exploration upside that exists at the Lac Rainy Project

• High-grade sample results from the West Carheil Graphitic Trend include:

• 26.2% Cg within rock sample ID: 66002

• 22.4% Cg within rock sample ID: 66008

• 25.6% Cg within rock sample ID: 66009

• 28.5% Cg within rock sample ID: 66015

• 25.0% Cg within rock sample ID: 66022

• Out of 51 samples collected there were eleven (11) rock samples which returned assay grades in excess of 20.0% Cg and a further ten (10) rock samples which returned assay grades in excess of 15.0% Cg

• A south-east extension of the high-grade Carheil Graphitic Trend was also identified – this new zone was mapped for an additional 750m (approximately) along strike from the historic high-grade Lac Carheil Prospect – the south-east extension identified numerous high-grade occurrences confirming a continuation of the high-grade graphite which was intersected in previous diamond drilling such as DDH LR19-09 which intersected 70.0m at an average grade of 17.1% Cg from 9.0m*

• Prospecting was also undertaken along the north-west extension of the high-grade Carheil Graphitic Trend – the conductors identified multiple zones of graphite flake mineralisation over a strike length of approximately 700 m with high priority zones also identified

• Strike length along the Main Carheil Graphitic Trend including the recently discovered SE and NW extensions total approximately 4km

• A follow up exploration campaign has been designed on the newly discovered West Carheil Graphitic Trend to consist of trenching, channel sampling and diamond drilling

• JORC (2012) Mineral Resource estimate for the Lac Rainy Project is progressing well

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* Refer to ASX announcement dated 3 July 2019 and titled “Exceptionally Wide High-Grade Graphite Zones Intersected in Diamond Drilling at the Lac Rainy Graphite Project”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the announcement dated 3 July 2019.

Metals Australia Ltd (ASX: MLS ) ( Metals Australia or the Company ) is pleased to announce the results of the prospecting program which was completed at the Company’s 100%-owned Lac Rainy Graphite Project, located in Quebec, Canada. The prospecting program was carried out using the technical team and field geologists of Magnor Exploration Inc. ( Magnor ) and was considered highly successful in identifying and outlining additional zones of high-grade graphite mineralisation.

Together with Magnor, the Company has identified several new zones of graphite mineralisation, including a south-east and north-west extension of the high-grade Carheil Graphitic Trend where diamond drilling was previously undertaken (known as the Main Carheil Graphitic Trend ).

The strike length of the south-east extension is 750m while the strike length of the north-west extension is 700m. As a result of these new discoveries, the total strike length of the Main Carheil Graphitic Trend has now been expanded to approximately 4km as a result of this successful field exploration prospecting program.

In addition to mapping and sampling the recently discovered NW and SE strike extensions of the Main Carheil Graphitic Trend, the Company has also identified, mapped and sampled a previously undiscovered parallel high-grade graphite zone to the west of the Main Carheil Graphitic Trend, known as the West Carheil Graphitic Trend .

Multiple samples were collected along the strike length of the West Carheil Graphitic Trend with assay results identifying several high-grade graphite occurrences. Importantly, the samples collected are outside of the area drilled and channel sampled. The strike length of the recently discovered West Carheil Graphitic Trend is approximately 900m (minimum) and remains open in both directions. This highlights the potential for significant additional high-grade tonnage to be discovered through additional exploration and diamond drilling.

Commenting on the success of the field exploration prospecting program, Director of Metals Australia, Mr Gino D’Anna stated:

“We are particularly encouraged by the results of the prospecting program. The delineation of the southeast and north-west extensions of the Main Carheil Graphitic Trend underpins the potential size and scale of the Lac Rainy project and highlights the significant exploration upside that exists. The exploration completed throughout 2018 and 2019 continues to demonstrate the pedigree of this project, which hosts high-grade graphite mineralisation starting at surface and encountered across significant widths. The identification of the West Carheil Graphitic Trend has demonstrated that the full scale of this project is yet to be identified. Our Lac Rainy project covers in excess of 4,600Ha and we have only just started to scratch the surface.

We continue to be busy building on the success of the prospecting program and are currently advancing the planning and permitting for the next stage of exploration at Lac Rainy. The JORC (2012) Mineral Resource estimate is progressing nearer to completion, and the advanced metallurgical and mineralogical test work with SGS is ongoing.

The Company is navigating challenging times in the graphite sector and the junior resource industry generally, however, Lac Rainy is an outstanding project with high-grade graphite mineralisation at surface, located within a jurisdiction that provides a safe operating environment and first-class infrastructure to benefit our project.”

Lac Rainy Field Exploration Program

During the previous quarter, the Company and Magnor conducted a field prospecting and exploration program on the Lac Rainy Graphite Project. The aim of this field work was to prospect the project generally to map and identify any additional mineralised structures, to prospect the Main Carheil Graphitic Trend in the north-west direction and to follow up the south-east extensions of the Main Carheil Graphite Trend that was channelled in 2018 and drilled during winter 2019.

The Company also assessed the potential of graphite mineralisation of a new area where heavily mineralised boulders were identified during summer 2018 when the Company completed previous field work along the Lac Carheil main access trail located 1.2 km south-west of the Lac Carheil Graphite Showing (known as the West Carheil Graphitic Trend ).

An investigation was also carried out on marble and calc-silicate outcrops located outside the Lac Rainy mineral claims in order to locate pure marble outcrops that could be used as additives for metallurgical processing of graphite ore.

The Company also used a Beepmat supplied by GDD Instruments Co. ( Beepmat ) to detect either highmagnetic or electromagnetic (MAG-EM) conductors at surface (<1.2 m deep). A total of 51 samples were taken for geochemical analysis for graphitic carbon (Cg), sulphur (S) or a package of multielements.

The location of the prospected sites visited during the field prospecting and exploration campaign is outlined in Figure 1 below.

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Figure 1: Location of prospecting sites, Lac Rainy Graphite Project, Quebec (Canada)

Discussion of Program Outcomes

The following section provides a summary and discussion of the results from the prospecting program at the Lac Rainy Project. A complete summary of the assay results and the geospatial location of the samples is provided in Annexure A of this announcement.

South-East Extension of the Main Carheil Graphitic Trend

The prospecting campaign carried out on the south-east extension of Main Carheil Graphitic Trend is considered highly successful, resulting in identification of numerous new graphitic outcrops, rock floats and boulders. These discoveries add to the numerous other graphitic rock occurrences that were located during the summer 2018 program (refer to Figure 2 and Figure 3).

In addition, several ground conductors were detected with Beepmat which have been hand stripped and sampled. The Beepmat allowed the Company to delineate several conductive horizons over distances varying from 5m to 40m in width and >50m in length. Following the 2018 and 2019 discoveries, the Company was able to confirm the south-east extension of Main Carheil Graphitic Trend from the location of trench TR18-13 over an additional 600m strike length.

The south-east extension of the Main Carheil Graphitic Trend is interpreted as a graphite horizon, possibly repeated by folding, initially traceable over a strike length of 745m and measuring between 40m and 110m in width. A potential extension also exists that could reach up to 1.5km in length by up to 175m in width.

Most of the graphitic rocks collected during the recent prospecting program contained between 10% and 60% graphite flakes (1-3mm and less) with <10% sulphides (a portion is oxidised due to weathering). Graphite flakes and sulphides are within biotite-bearing paragneiss with locally minor muscovite, identical to graphitic paragneisses observed in trenches and drill-hole cores from Main Carheil Graphitic Trend. A total of twenty-three (23) grab samples were taken for geochemical analysis during prospecting along the south-east extension.

The location of the prospected sites and the ground traverses as well as the location of the grab samples taken during the field exploration program along the south-east extension of the Main Carheil Graphitic Trend is outlined in Figure 2 and Figure 3 below.

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Figure 2: Location of the visited sites and ground traverses within the south-east extension of the Main Carheil Graphitic Trend

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Figure 3: Location of the grab samples collected along the south-east extension of the Main Carheil Graphitic Trend

North-West Extension of the Main Carheil Graphitic Trend

The field exploration and prospecting campaign carried out on north-west extension of the Main Carheil Graphitic Trend identified numerous new conductors, measuring more than 35m long but less than 5m wide. These conductors were typically associated with graphite mineralisation, however, the graphite content was commonly lower than 10% mineralised[1] (refer to Figure 4 and Figure 5).

As a result, the Company concluded that the north-west extension of the Main Carheil Graphitic Trend showed a lower potential for outlining additional areas of high-grade graphite mineralisation than that which was identified in the south-east extension.

The Company identified high priority follow-up targets along the north-west extension, however, Magnor limited the number of grab samples collected to three (3) samples which were sent for geochemical analysis.

The location of the prospected sites and the ground traverses as well as the location of the grab samples taken during the field exploration program along the north-west extension of the Main Carheil Graphitic Trend is outlined in Figure 4 and Figure 5 below.

1 Due to the surface oxidation effects, the sulphide minerals are partly or fully oxidized, which reduces the visual appreciation of the percentage content of sulphides in the surface rocks, so it is possible that there are more sulphides in rocks observed than what has been evaluated in the field.

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Figure 4: Location of the visited sites and ground traverses within the north-west extension of the Main Carheil Graphitic Trend

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Figure 5: Location of the grab samples collected along the north-west extension of the Main Carheil Graphitic Trend

West Carheil Graphitic Trend

The field exploration and prospecting campaign completed at the Lac Rainy Project also identified a parallel zone of graphite mineralisation located to the west of the Main Carheil Graphitic Trend, outside of the main drilled zone and the zones which were previously channel sampled and trenched during the 2018 and 2019 exploration programs. This new zone of high-grade graphite mineralisation is known as the West Carheil Graphitic Trend. The Company successfully located and sampled several new graphitic rock occurrences from outcrops and numerous angular rock floats or boulders along the strike length of the West Carheil Graphitic Trend. These new discoveries add to the many graphitic angular boulders previously found in 2018 (but not sampled) along a gravel road over a strike length of 450m (refer to Figure 6 and Figure 7 below).

Five new outcrops of graphitic rock were discovered over an additional strike length of 350m which are coincident with airborne TDEM anomalies referred to as Anomaly G3. The mineralised rock is paragneiss with disseminated and semi-massive to massive graphite flakes with various contents of sulphides (< 10%; refer footnote 1 on previous page). These new discoveries at the West Carheil Graphitic Trend have the potential to host significant high-grade graphite mineralisation, with a total minimum of 900m strike length identified running parallel to the access road built in 2018. Mineralisation is still open in both strike directions. A total of twenty (20) graphitic rock samples were taken for geochemical analysis.

A new semi-massive sulphide occurrence was found along the West Carheil Graphitic Trend (see Figure 6 and Figure 7). Several outcrops observed presented fractured to brecciated semi-massive sulphide comprising of pyrite, pyrrhotite and minor chalcopyrite associated with strong chlorite and silica alteration in the paragneisses. The massive sulphides have been observed outcropping over more than 15m in width and is also open in both directions along strike. A further four (4) mineralised samples were taken for geochemical analysis. The location of the prospected sites and the ground traverses, as well as the location of the grab samples taken during the field exploration program along the West Carheil Graphitic Trend, are outlined in Figure 6 and Figure 7 below.

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Figure 6: Location of the visited sites and ground traverses within the West Carheil Graphitic Trend

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Figure 7: Location of the grab samples collected along the West Carheil Graphitic Trend

Calc-Silicate and Marble Occurrences

Outcrops of marble and calc-silicate rock units, originally identified during regional geological mapping by the Ministère de l’Énergie et des Ressources naturelles ( MERN ), were also investigated during the field exploration campaign (refer to sample site 27 and sample site 77 on Figure 8). The marble and calc-silicate rocks form wide layers (>50m in thickness). One sample of a 2m-wide, biotite-diopsidegrunerite-magnetite-kyanite bearing calc-silicate rock with disseminated sulphides was taken for geochemical analysis.

The location of the prospected sites and the ground traverses as well as the location of the grab samples taken during the field exploration program on the calc-silicate and marble occurrences is outlined in Figure 8 below.

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Figure 8: Location of the visited sites, ground traverses and grab samples collected as part of the investigation of the calc-silicate and marble occurrences

Discussion of Results

The field exploration mapping and prospecting program is considered highly successful and resulted in the identification of significant extensions to the Main Carheil Graphitic Trend, both in the north-west and south-east directions. The mineralisation along the south-east extension is believed to be highgrade in nature and is expected to have similar grade and continuity of mineralisation to that which was encountered during the 2019 diamond drilling program, where mineralisation was intersected close to surface across broad down-hole and vertical widths.

High-grade sample results from the prospecting program include:

• 26.2% Cg within rock sample ID: 66002

• 22.4% Cg within rock sample ID: 66008

• 25.6% Cg within rock sample ID: 66009

• 28.5% Cg within rock sample ID: 66015

• 25.0% Cg within rock sample ID: 66022

Importantly, out of 51 samples collected, there were eleven (11) rock samples which returned assay grades in excess of 20.0% Cg and a further ten (10) rock samples which returned assay grades in excess of 15.0% Cg.

The full set of assay results is contained within Annexure A of this announcement.

Based on new high-grade graphitic occurrences encountered at surface, as well as interpreted mineralised trends associated with airborne TDEM anomalies, the Lac Rainy Project at the Main Carheil Graphitic Trend and the West Carheil Graphitic Trend is considered highly prospective and warrant further surface exploration work.

The Company is now preparing a follow-up exploration program to include detailed prospecting, geological mapping, mechanical trenching, channel sampling and drilling on the south-east extension of the Main Carheil Graphitic Trend and on the West Carheil Graphitic Trend, including the massive sulphide occurrences for their potential to host precious and base metals.

This follow-up exploration work will also include:

• (i) detailed prospecting and geological mapping with Beepmat of the entire project area at a more regional scale, representing a systematic approach to exploration of areas with untested airborne TDEM anomalies; and

• (ii) tightly spaced ground magnetic and electromagnetic (MAG-EM) geophysical survey of specific areas including the south-east extension of the Main Carheil Graphitic Trend. This area was not covered by the previous airborne MAG-EM survey which was carried out on the rest of the property. The surveys will also cover areas where the overburden is too thick and obscuring the bedrock.

The images below illustrate a selection of the typical sample sites where mineralised graphite and sulphide samples were collected, as well as a photo of one of the calc-silicate and marble occurrence sites that were investigated by the Company during the program.

Refer to Image 1 through 3 (inclusive).

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Image 1: Angular float of graphite-rich rock located on a gravel road (sample #66043), West Carheil Graphitic Trend. Note the strong chlorite and silica alteration with high-grade graphite containing sulphide.

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Image 2: Highly silicified, brecciated semi-massive sulphides composed of pyrite, pyrrhotite and minor chalcopyrite (sample #66034), West Carheil Graphitic Trend

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Image 3: Site of laminated marble with thin calc-silicate layers, sites 27 and 77 (Refer to Figure 8)

The Company is progressing towards completion of the JORC (2012) Mineral Resource estimate for Lac Rainy and acknowledges that the report has taken longer than anticipated. Delays have been experienced due to factors outside of the control of MLS, however, these have now largely been overcome and the Company is working towards completing the report as soon as possible. In addition, the Company continues to work with SGS (Canada) Inc. for the completion of the metallurgical and mineralogical testwork.

The Company looks forward to providing shareholders with further updates.

About the Lac Rainy Graphite Project

The Lac Rainy Graphite Project is located in one of the premier graphite geological regions of Quebec. It sits approximately 22km south-west of the historic mining town of Fermont and 260km north-northeast of the city of Sept-Îles. The Lac Rainy Graphite Project is approximately 15km east of Route 389, a paved highway which travels north to Fermont. These road networks link the Lac Rainy Graphite Project with the major ports along the St Lawrence River in Quebec, offering the Company a route to the seaborne market as well as the North American and South American markets.

The Lac Rainy Graphite Project covers an area of more than 4,600 hectares representing 88 mineral claims and is contiguous with Focus Graphite’s Property to the southwest, which hosts the Lac Knife Graphite Deposit, containing a Measured and Indicated Resource of 9.576 Mt @ 14.77% Cg and an Inferred Resource of 3.102 Mt @ 13.25% Cg at a 3.0% Cg cut-off.

The global transition to renewable energy and adoption of lithium-ion batteries as a means of energy storage places significant focus on high-value raw materials, such as graphite, lithium, cobalt, nickel, copper and manganese. In the long term, Roskill (an independent research organization) is of the opinion that the continuing closure of processing plants in China and increasing demand for high-quality graphite concentrates will place upward pressure on graphite prices.

ENDS

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.

Competent Person Declaration

The information in this announcement that relates to Exploration Results is based on information compiled by Mr. Jean-Paul Barrette P.Geo, B.Sc. Mr Barrette is Project Geologist with Magnor Exploration Inc. and a consultant to Metals Australia Limited. Mr Barrette and is a member of the Ordre des Géologues du Québec (OGQ) with member number OGQ #619. Mr. Barrette has sufficient experience (35 years) that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Barrette consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Appendix A: Sample Coordinates and Cg % Assay Results

Appendix	: Sample C	oordinat	es and Cg % Assay Results
Sample ID	Cg %	S %	Description	Dimension	Zone	East	North	Altitude
66001	0.46	0.13	Fine-grained(1-2mm)disseminatedgraphite	<1 x 1 m	19U	632129	5828958	646
66002	26.20	6.32	1 m-thick layer of massive graphite (2-3mm) with 3-5% of pyrite (2-5 mm) in <1 cm clusters (equivalent to #264257)	2.5 m x 1.5 m	19U	632136	5828960	647
66003	3.15	0.48	Disseminatedgraphite(1-2mm),	<1 x 1 m	19U	632141	5828952	647
66004	11.95	0.33	<1 m-thick layer of semi-massive graphite (2-3 mm) with 1-2% of disseminated microcrystalline sulphides (pyrite)	<1 x 1 m	19U	632134	5828954	648
66005	15.90	5.74	Semi-massivegraphite(1-2 mm)	<1 x 1 m	19U	632204	5829041	663
66006	22.00	3.67	Semi-massive graphite (1-2 mm) with clusters of pyrite (<3 mm)	Boulder (>1 m2)	19U	631878	5829112	656
66007	17.65	3.62	Massive graphite (1-2 mm) with disseminated pyrite (<1 mm). Cross-cutting quartz vein (<2 cm) oblique to the foliation		19U	631881	5829107	656
66008	22.40	9.95	Massive graphite (2-3 mm) with disseminated fine-grained pyrite (<1 mm).		19U	631886	5829103	655
66009	25.60	15.25	Semi-massive to massive graphite layer (<50 cm) with foliation parallel lenticular chert and fine-grained pyrite clusters (<3 cm)		19U	631964	5829107	661
66010	18.35	8.90	Massivegraphite(1mm)layer(<1 m-thick)	Boulder	19U	632029	5829092	662
66011	15.05	4.25	Vein(>50 cm-thick)of massivegraphite(1mm)	Boulder(>1 m2)	19U	632067	5829086	658
66012	2.53	6.56	Disseminated graphite (<1 mm) and pyrite (<1 mm) in the core of the conductor (<1-2 m-wide)	<1 x 1 m	19U	632125	5829072	659
66013	13.30	0.56	Disseminated graphite (<1 mm) and pyrite (<1 mm) in the core of the conductor (<1-2 m-wide) at a 2 m distance to NW of A0066012	<1 x 1 m	19U	632123	5829071	658
66015	28.50	17.15	Massive graphite (<1 mm) with disseminated pyrite (<1 mm) in the core a conductor (>5 m-wide) at intersection N320-N290 branches (Stn AB19-002)	<1 x 1 m	19U	632184	5829075	655
66014	18.55	16.30	Massive graphite (<1 mm) with pyrite (<1 mm) along southern border of a conductor (>5 m-wide) and oriented N320 (Stn AB19-002)	<1 x 1 m	19U	632199	5829050	655
66016	0.17	0.10	Layer of calc-silicates composed of biotitie, diopside altered in grunerite and <5 cm-long kyanite crystals. The matrix is weakly magnetic containing (1-2%) disseminated and microcrystalline magnetite and sulphides		19U	633525	5826174	651
66017	20.50	12.85	Semi-massive to massive graphite (<1 mm) with disseminated pyrite (1-2 mm) associated to a strong conductor (<4-5 m- wide)	10 x 5 m	19U	632318	5829060	661

Sample ID	Cg %	S %	Description	Dimension	Zone	East	North	Altitude
66018	20.20	2.19	Disseminated to semi-massive graphite (2-3 mm) with disseminated pyrite (<1 mm) associated to a moderate conductor(<5m-wide)	0.5 x 0.5 m	19U	632416	5829044	649
66019	16.95	0.42	Disseminatedgraphite(<1 mm)andpyrite(<1 mm)		19U	632323	5828990	647
66020	7.24	1.69	Disseminated graphite (<1 mm) and pyrite (<1 mm) with late injectionofquartz vein		19U	632313	5829014	653
66021	6.28	0.20	Disseminated graphite (<1 mm) and pyrite (<1 mm) in the core of a 1-3 m-wide conductor	1 m x 1 m	19U	632291	5829043	657
66022	25.00	2.99	Disseminated graphite (<1 mm) and pyrite (<1 mm) – North- eastern contact of a 10-15 m-wide conductor		19U	632291	5829067	659
66023	23.10	0.27	Disseminated graphite (<1 mm) and pyrite (<1 mm) – North- eastern contact of a 10-15 m-wide conductor		19U	632280	5829070	661
66024	11.80	10.10	Semi-massive (1-2 mm) with disseminated pyrite (1-2 mm) in the core of a 10-15 m-wide conductor		19U	632279	5829064	661
66025	6.13	0.11	Disseminated graphite (<1 mm) and microcrystalline sulphides		19U	630032	5830056	653
66026	7.36	0.90	Disseminatedgraphite(1-2 mm)and microcrystalline sulphide		19U	630080	5830165	642
66027	11.90	0.87	Disseminatedgraphite(1 mm)and microcrystalline sulphide	0.5 x 0.5 m	19U	629907	5830475	624
66028	0.05	0.21		Angular boulder (1.5 x 1.5 m)	19U	630914	5828846	655
66029	5.93	1.34	Semi-massive graphite (2-3 mm) with disseminated sulphides	Angular boulder (0.5x0.5m)	19U	630909	5828825	659
66030	2.25	0.73	Disseminated graphite (1-2 mm) and sulphides	Angular boulder (0.5 x 0.5 m)	19U	630908	5828825	663
66031	0.80	0.12	Disseminated graphite (1 mm)	2 angular boulders (2 x 1,5 m)	19U	630798	5828947	655
66032	3.32	1.00	Disseminated graphite (1 mm) and sulphides (1 mm)	Pop-up outcrop in 5 x 15 m	19U	630827	5829027	648
66033	0.55	19.30	Semi-massive sulphides dominated by pyrite with less pyrrhotite and minor chalcopyrite	2 x 1 m in 5 x 15 m	19U	630831	5829031	651
66034	0.06	21.70	Brecciated, semi-massive sulphides dominated by pyrite with pyrrhotite and minor chalcopyrite	2 x 1 m in 5 x 15 m	19U	630830	5829036	653
66035	13.35	0.47	Disseminated graphite (<1 mm) and sulphides (<1 mm)	Angular boulder (0.5 x 0.5 m)	19U	630833	5829038	652
66036	16.95	6.62	Disseminated to semi-massive graphite (1-2 mm) and sulphides (2-3mm)	Angular boulder (0.5x0.5m)	19U	630748	5829002	659

Sample ID	Cg %	S %	Description	Dimension	Zone	East	North	Altitude
66037	2.41	0.61	Disseminated graphite (2-3 mm)	2 angular boulders (0.5 x 0.5m)	19U	630738	5829010	657
66038	1.28	16.20	Chloritized and silicified breccia with pyrite (<1 mm) in stockwork and remobilized graphite (<1 mm)	Angular boulder (1 x 1m)	19U	630551	5829089	658
66039	7.55	9.28	Silicified and chloritized breccia with pyrite (<1 mm) in stockwork and remobilized graphite (<1 mm)	Angular boulder (1.5 x 1m)	19U	630512	5829111	661
66040	8.34	0.24	Disseminatedgraphite(2-3 mm)and sulphides(1-2 mm)	Outcrop1 m x 1 m	19U	630509	5829113	662
66041	6.99	0.11	Disseminatedgraphite(2-3 mm)and sulphides(1-2 mm)	Outcrop1 m x 1 m	19U	630510	5829113	662
66042	15.90	6.76	Highly altered in chlorite and silica, brecciated with semi- massive graphite (<1 mm) and disseminated sulphides (<1 mm)	Angular boulder (1 x 1m)	19U	630470	5829129	658
66043	19.25	17.80	Highly altered in chlorite and silica, brecciated with semi- massive graphite (<1 mm) and disseminated sulphides (2-3 mm)	Angular boulder (1 x 1m)	19U	630446	5829149	669
66044	23.00	13.30	Highly altered in chlorite and silica, brecciated with semi- massive graphite (<1 mm) and sulphides (2-5 mm) disseminated, in clusters or veinlets	Angular boulder (1 x 0.5m)	19U	630428	5829163	667
66045	5.38	0.39	Migmatitic paragneiss with disseminated graphite (1-2 mm) and sulphides (<1 mm)	Outcrop 1.5 m x 1 m	19U	630408	5829173	669
66046	8.74	0.62	Light grey paragneiss with disseminated to semi-massive graphite (1-2 mm) and disseminated sulphides (<1 mm)	Outcrop 1 m x 1 m	19U	630348	5829245	662
66047	8.87	0.14	Light grey paragneiss with semi-massive graphite (2-3 mm) and disseminated sulphides (<1 mm)	Outcrop 4 m x 2 m	19U	630335	5829273	656
66048	12.60	6.92	Brownish paragneiss moderately altered in chlorite with disseminated graphite (1-2 mm) and sulphides (1-2 mm)	Angular boulder (1 x 1m)	19U	630319	5829311	658
66049	17.35	2.96	Light grey paragneiss with disseminated graphite (1-2 mm) and disseminated sulphides (<1 mm)	Outcrop 4 m x 2 m	19U	630298	5829389	638
66050	2.10	1.08	Light grey paragneiss with disseminated graphite (1-2 mm) and disseminated sulphides (<1 mm)	Angular boulder (0.5 x 0.5 m)	19U	630299	5829394	643
66051	20.90	3.63	Light grey paragneiss with massive graphite (1-2 mm) and disseminated sulphides (<1 mm)	Angular boulder (0.25x0.25m)	19U	630296	5829393	644

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised	Only limited drilling has been completed to date by the Company. Assays are still pending
techniques	industry standard measurement tools appropriate to the minerals under investigation,	and samples are currently being prepared for assay by the laboratory. Sufficient QA/QC
	such as down hole gamma sondes, or handheld XRF instruments, etc). These	procedures are being followed with industry standard blanks and duplicate samples being
	examples should not be taken as limiting the broad meaning of sampling.	created.
	• Include reference to measures taken to ensure sample representivity and the
	appropriate calibration of any measurement tools or systems used.	Diamond Core Sampling: The sections of the core that are selected for assaying are
	• Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was	marked up and then recorded on a sample sheet for cutting and sampling at the certified assay laboratory. Samples of HQ core are cut just to the right of the orientation line where available using a diamond core saw, with half core sampled lengthways for assay.
	pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Diamond Core Sampling: For diamond core samples, certified sample standards were added as every 25th sample. Core recovery calculations are made through a reconciliation of the actual core and the driller’s records. Downhole surveys of dip and
		azimuth were conducted using a single shot camera every 30m to detect deviations of the
		hole from the planned dip and azimuth. The drill‐hole collar locations are recorded using a
		hand‐held GPS, which has an accuracy of +/‐5m. All drill-hole collars will be surveyed to a
		greater degree of accuracy using a certified surveyor at a later date.
		Rock samples are comprised of grabs and thus represent point locations defined by a small
		area typically less than 0.5m2. A best effort was made to collect as much fresh material as
		practical and avoid or minimize the inclusion of weathered material in the sample. Hand
		tools were used to clear the sampling site and remove weathered material as practical
		before sampling.
		Channels were cut of the freshest material practical and are considered more
		representative than the grab samples for that particular location.
		Samples are considered representative of the site targeted, followed best industry practises
		as described above, with sufficient material collected per sample.
		Samples submitted for assay typically weigh 2-3 kg or more. Channel samples may be
		considered more representative than grab samples as more fresh material may be
		collected, they report an interval and not a point, and are larger samples. Channel samples
		are typically several times larger in size that grab samples, adding to their more
		representative nature.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,	Only limited drilling has been completed to date. The drilling program being completed by
techniques	Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of	the Company is Diamond.
	diamond tails, face-sampling bit or other type, whether core is oriented and ifso, by

Criteria	JORC Code explanation	Commentary
	_what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries and results	Diamond core recoveries are during drilling and reconciled during the core processing and
recovery	assessed.	geological logging. The core	length recovered is measured for each run and recorded
	• Measures taken to maximise sample recovery and ensure representative nature of the	which is used to calculate core recovery as a percentage.
	samples.
	• Whether a relationship exists between sample recovery and grade and whether sample
	bias may have occurred due to preferential loss/gainof fine/coarse material.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a	All rock and channel samples were described to industry standard levels with rock type,
	level of detail to support appropriate Mineral Resource estimation, mining studies and	modal mineralogy, grain size, and other pertinent observations noted. Descriptions are
	metallurgical studies.	qualitative in nature.
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)
	photography.	Geological logging is carried	out on all drill holes with lithology, alteration, mineralisation,
	• _The total length and percentage of the relevant intersections logged. _	structure and veining recorded.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core taken.	Sample preparation follows industry best practice standards and is conducted by
techniques and	• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or	internationally recognised laboratories - ALS Laboratories Ltd in Val d’Or, Quebec. Code
sample	dry.	RX1-graphite was completed as preparation. Samples are crushed to 80% passing 10
preparation	• For all sample types, the nature, quality and appropriateness of the sample preparation	mesh, riffle split (250 g), and pulverized to 95% passing 105 micron.
	technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material	Analysis used ALS packages Code 4F-C,S, and 4F-C-Graphite using a graphite specific preparation (RX1- Graphite). Total carbon as well as graphitic carbon are the primary deliverables.
	collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	Sampling techniques utilized, as described above, ensure adequate representativeness and sample size. As is early exploration, industry standard sampling techniques were
		followed with fresh material targeted for collection as practical
		No blanks or standards were submitted by the company with laboratory blanks, standards,
		and duplicates relied upon, with results reviewed by the companies consultants and found
		to be satisfactory with no material concerns.
		Sample size (2-3 kg) accepted as general industry standard for grab samples and is
		sufficient to provide arepresentative sample sizeforthelocationbeing sampled.
Quality of assay	• The nature, quality and appropriateness of the assaying and laboratory procedures	Internal laboratory QAQC relied upon with laboratory blanks, standards, and duplicates
data and	used and whether the technique is considered partial or total.	relied upon, with results reviewed by the companies consultants and found to be
laboratory tests	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters	satisfactory with no material	concern.
	used in determining the analysis including instrument make and model, reading times,
	calibrations factors applied and their derivation, etc.	No company blanks, standards, or duplicates submitted for analysis
	• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external
	laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and
	_precision have been established. _

Criteria	JORC Code explanation	Commentary
Verification of	• The verification of significant intersections by either independent or alternative company	Assay data is reported as received with no data adjustment. Data is verified by the
sampling and	personnel.	Company’s consultants prior to disclosure.
assaying	• The use of twinned holes.
	• Documentation of primary data, data entry procedures, data verification, data storage
	(physical and electronic) protocols.
	• Discuss any adjustment to assay data.
Location of data	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole	Handheld GPS used for location of sample points using local UTM grid, Zone 19. Such
points	surveys), trenches, mine workings and other locations used in Mineral Resource	methods have a typically accuracy of 1-3 m.
	estimation.
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.
Data spacing and	• Data spacing for reporting of Exploration Results.	Only individual sample data reported as received by laboratory for grab samples, with
distribution	• Whether the data spacing and distribution is sufficient to establish the degree of	channel samples reported individually via Appendix A, as well as composites in the
	geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	highlight section of the NR.
	estimation procedure(s) and classifications applied.
	• Whether sample compositing has been applied.	Insufficient data to establish resources
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of possible structures	Grab samples reflective of point locations with sufficient samples collected along strike to
data in relation to	and the extent to which this is known, considering the deposit type.	assist with interpretation of area and potential. Channel samples attempt to give an
geological	• If the relationship between the drilling orientation and the orientation of key mineralised	indication of grade over width.
structure	structures is considered to have introduced a sampling bias, this should be assessed
	and reported if material.	Onlylimited drillinghas been completed to date.
Sample security	• The measures taken to ensure sample security.	Industry standard chain of custody followed, with samples dropped off at shipping company
		by field manager, shipping with tracking number, and received direct by the lab, with
		notificationof receipt the day samplesreceived.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	None completed by third parties. The Company’s consultants vetted the database
		internally.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement	• Type, reference name/number, location and ownership including agreements or material	Metals Australia Limited is the 100% owner of the Lac Rainy Graphite Project, pursuant to
and land tenure	issues with third parties such as joint ventures, partnerships, overriding royalties, native	the binding acquisition agreement.
status	title interests, historical sites, wilderness or national park and environmental settings.
	• The security of the tenure held at the time of reporting along with any known	There are no other material issues affecting the tenements.
	impediments to obtaining a licence to operate in the area.
		Quebec Lithium Limited, a wholly owned subsidiary of Metals Australia, is the owner of
		100% of the abovementioned graphite project and ownership of the individual CDC claims
		is with Quebec Lithium Limited.
		All tenements are in good standing and have been legally validated by a Quebec lawyer
		specialisinginthefield.
Exploration done	• Acknowledgment and appraisal of exploration by other parties.	No modern exploration has been conducted by other parties.
by other parties
		Government mapping records multiple graphitic carbon bearing zones within the project
		areas butno otherdatais available.
Geology	• Deposit type, geological setting and style of mineralisation.	Lac Rainy Graphite Project
		The Lac Rainy graphite project is located within close proximity to Focus Graphite’s Lac
		Knife Project, which is considered a good analogue for mineralization style at Lac Rainy
		with the same general rock types present.
		The Lac Rainy and Lac Carheil graphite prospects were first discovered in 1989 and has
		been subject to some exploration over that time, however previous exploration was not
		conducted in a systematic manner and was focused more on the iron potential of the region
		which has meant that the true mineralisation and potential of the Lac Rainy Est graphite
		project has not been fully established.
		The Lac Rainy graphite project is contiguous with the Lac Knife Graphite Project which is
		owned by Focus Graphite. The Lac Knife Project hosts the Lac Knife Deposit.
		The Lac Knife Graphite Deposit owned by Focus Graphite (which is located less than 4 km
		south-west of the Project border) and hosts a Measured and Indicated Resource of 9.576
		Mt @ 14.77% Cg and an Inferred Resource of 3.102 Mt @ 13.25% Cg at a 3.0% Cg cut-off.
		(Note: Inferred Resources are considered too geologically speculative to have mining and
		economic considerations applied to them and to be categorized as Mineral Reserves)
		The Feasibility Study completed by Met-Chem Canada Inc. (released on 8 August 2014) on
		the Lac Knife Graphite Deposit indicates that the Lac Knife Graphite Deposit has the
		potential to become one of the lowest-cost, highest-margin producers of graphite in the
		world.
		Refertohttp://www.focusgraphite.com/wp-content/uploads/largeReport/Lac-Knife-

Criteria	JORC Code explanation		Commentary
			Feasibility-Study-Technical-Report-August-2014.pdf for further information in relation to the
			Feasibility Study at the Lac Knife graphite project.
			Graphite mineralisation is set in migmatized biotite-bearing quartz-feldspar gneiss
			belonging to the Nault Formation of the lower Proterozoic Gagnon Group.
			According to the Quebec Ministry of Natural Resources, where this gneissic unit is sheared,
			brecciated and silicified, coarse graphite flakes and associated sulphide minerals make up
			5% to 10% of the rock, with up to 20% or more in the more brecciated zones.
			Fuchsite and other iron-rich micas accompany the graphite and sulphide mineralization in
			themore silicifiedhorizons.
Drill hole	•	A summary of all information material to the understanding of the exploration results	Not Applicable
Information		including a tabulation of the following information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill
		hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
	•	If the exclusion of this information is justified on the basis that the information is not
		Material and this exclusion does not detract from the understanding of the report, the
		_Competent Person should clearly explain why this is the case. _
Data aggregation	•	In reporting Exploration Results, weighting averaging techniques, maximum and/or	No data aggregation with grab samples reported as point location data. Weighted
methods		minimum grade truncations (eg cutting of high grades) and cut-off grades are usually	compositing methods applied to channels
		Material and should be stated.
	•	Where aggregate intercepts incorporate short lengths of high grade results and longer	No metal equivalents reported
		lengths of low grade results, the procedure used for such aggregation should be stated
		and some typical examples of such aggregations should be shown in detail.	No intercepts reported
	•	The assumptions used for any reporting of metal equivalent values should be clearly
		_stated. _
Relationship	•	These relationships are particularly important in the reporting of Exploration Results.	Not Applicable with grab samples representing surface point locations. Channels samples
between	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its	by nature report grade over width with best efforts to cross strike of unit. True widths not
mineralisation		nature should be reported.	known.
widths and intercept lengths	•	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be	Several maps included in body of news release
		included for any significant discovery being reported These should include, but not be
		_limited to a plan view of drill hole collar locations and appropriate sectional views. _
Balanced	•	Where comprehensive reporting of all Exploration Results is not practicable,	Results for all sampling submitted for assay are listed in Appendix A attached to the body
reporting	representative reporting of both low and high grades and/or widths should be practiced to		of this report.
	avoid misleading reporting of Exploration Results.

Criteria	JORC Code explanation		Commentary
Other substantive	•	Other exploration data, if meaningful and material, should be reported including	All meaningful and material data is reported.
exploration data	(but	not limited to): geological observations; geophysical survey results; geochemical
	survey results; bulk samples – size and method of treatment; metallurgical test results; bulk
	density, groundwater, geotechnical and rock characteristics; potential deleterious or
	_contaminating substances. _
Further work	•	The nature and scale of planned further work (eg tests for lateral extensions or depth	Detailed geochemistry and geology mapping to determine trends of known mineralised
		extensions or large-scale step-out drilling).	zones and to delineate other Cg anomalies.
	•	Diagrams clearly highlighting the areas of possible extensions, including the main
		geological interpretations and future drilling areas, provided this information is not	Drilling.
		_commercially sensitive. _