METALS AUSTRALIA LTD — Capital/Financing Update 2021

Mar 2, 2021

ASX Announcement

3 March 2021

Metals Australia to Acquire Nepean South Nickel Project, Western Australia

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Highlights:

• Binding agreement signed to acquire 100% of the Nepean South Nickel Project located near Coolgardie in Western Australia – a Kambalda style nickel sulphide project

• Historic shallow RAB drilling was completed by Mincor Resources NL ( Mincor ) with significant drilling results including:

• NRB042: 3m @ 2.34g/t Au from 57m

• NRB048: 12m @ 1.29% Ni from 15m including NRB048: 6m @ 1.84% Ni and 0.02% Cu from 18m

• NRB067: 3m @ 0.78% Ni from 33m and 3m @ 0.76% Ni from 48m (6537270mN, 315560mE)

• NRB055: 9m @ 0.54% Ni from 21m

• NRB077: 3m @ 0.69% Ni from 24m (6536970mN, 315600mE)

• Nepean South Nickel Project is considered both highly prospective and underexplored for both gold and nickel , with historic RAB drilling completed to very shallow depths on average only 42m from surface, with many holes drilled at even shallower depths

• An EM conductor on a basal ultramafic contact 100-200m below surface is located at the northern tenement boundary of the Nepean South project and is interpreted to continue south along strike into the Nepean South licence

• Nepean South Nickel Project is located south of and along strike of the historic Nepean nickel sulphide mine, currently 80% owned by Auroch Minerals Limited ( Auroch ) (ASX: AOU), which produced 1,108,457 tonnes of nickel ore at an average recovered grade of 2.99% Ni for 32,303t of nickel metal between 1970 and 1987[1]

• Auroch is currently drilling along the southern extent of the Nepean Project, located directly north of the Nepean South Nickel Project (presently being acquired by Metals Australia) , and has intersected high-grade nickel, including[2] :

• 3m @ 3.70% Ni and 0.33% Cu from 91m

• including 2m @ 5.09% Ni and 0.47% Cu from 91m (NPRC031)

• 1m @ 5.57% Ni and 0.25% Cu from 60m (NPRC032)

• 2m @ 3.02% Ni and 0.30% Cu from 55m (NPRC034)

• 3m @1.35% Ni and 0.10% Cu from 40m ,

• within a broader zone of 18m @ 0.76% Ni and 0.02% Cu from 25m (NPRC033)

• Initial exploration program for Metals Australia at the Nepean South Nickel Project will consist of an airborne EM survey across the entire strike length of the prospective ultramafic sequence, followed by a drilling campaign

• Nickel price fast approaching US$20,000/t – record high nickel prices makes this acquisition value accretive for shareholders

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1 Refer to ASX announcement dated 11 November 2020 and released on the MAP by Auroch Minerals Limited (ASX: AOU) and titled “Auroch to Acquire High-Grade Nepean Nickel Project”.

2Refer to ASX announcement dated 15 February 2021 and released on the MAP by Auroch Minerals Limited (ASX: AOU) and titled “Intersections over 5% Ni Extend High-Grade Mineralisation at Nepean”.

Metals Australia Ltd ( ASX: MLS ) ( MLS or the Company ) is pleased to announce it has entered into a binding agreement to acquire 100% of the Nepean South Nickel Mine ( Nepean South ) located approximately 30km south of Coolgardie, Western Australia.

The Nepean South project is located directly south and along strike of the historic Nepean nickel sulphide mine ( Nepean mine ), currently 80% owned by Auroch Minerals Limited ( ASX: AOU ) ( Auroch ), which was the second producing nickel mine in Australia, producing 1,108,457t of ore between 1970 and 1987 for 32,202t of nickel metal at an average recovered grade of 2.99% Ni[1] . The ore was treated by Western Mining Corporation (WMC, now BHP Group Ltd) at their Kambalda processing facilities. The Nepean mine closed in 1987 due to low nickel prices.

The nickel sulphide mineralisation around the Nepean South project is typically massive to semimassive sulphide with a high nickel tenor located on ultramafic-mafic contacts. Historic shallow RAB drilling was completed by Mincor Resources NL ( Mincor ) with significant drilling results including:

• NRB042: 3m @ 2.34g/t Au from 57m

• NRB048: 12m @ 1.29% Ni from 15m

including NRB048: 6m @ 1.84% Ni and 0.02% Cu from 18m

• NRB067: 3m @ 0.78% Ni from 33m and 3m @ 0.76% Ni from 48m (6537270mN, 315560mE)

• NRB055: 9m @ 0.54% Ni from 21m

• NRB077: 3m @ 0.69% Ni from 24m

The Nepean South project is considered both highly prospective and underexplored for both gold and nickel, with historic RAB drilling completed to very shallow depths on average only 42m from surface, with many holes drilled at even shallower depths.

Previous exploration identified an EM target conductor on a basal ultramafic contact 100-200m below surface located at the northern tenement boundary of the Nepean South project which is interpreted to continue south along strike into the Nepean South licence. This is a high priority target for the Company.

An initial exploration program has been planned at the Nepean South project comprising of an airborne EM survey across the entire strike length of the prospective ultramafic sequence. This will be followed by a drilling campaign. The Company is currently securing a contractor for the airborne EM survey and data interpretation and will update shareholders in due course.

Commenting on the acquisition of the Nepean South Nickel Project, Director of Metals Australia, Mr Gino D’Anna stated:

“We are very pleased to have acquired the Nepean South Nickel Project. The Nepean South project is a typical Kambalda style nickel sulphide project which is strategically located along strike and south of the historic Nepean sulphide nickel mine, owned 80% by Auroch Minerals Limited. Auroch Minerals is currently drilling at the Nepean mine and has intersected shallow nickel sulphides.

The acquisition of the Nepean South project compliments our existing asset portfolio which is levered to the battery metals sector, with nickel sulphate playing a vital role in the electrification transition. Historic exploration at the Nepean South project undertaken by Mincor in 2007 has demonstrated both the grade of the mineralisation and the shallow nature of the nickel sulphides.

1 Refer to ASX announcement dated 11 November 2020 and released on the MAP by Auroch Minerals Limited (ASX: AOU) and titled “Auroch to Acquire High-Grade Nepean Nickel Project”.

We are also continuing the development of our high-grade Lac Rainy Graphite Project in Quebec and will soon be commencing an advanced stage of metallurgical testwork designed to improve the economics of the Stage I Scoping Study through better defining the sizing fractions of the graphite concentrate produced at Lac Rainy and improving the yield and recovery at processing through an optimised and Lac Rainy specific production flowsheet. We will update shareholders in due course.”

TENURE AND LOCATION

The Nepean South Nickel Project is located approximately 30km south of the township of Coolgardie in the Goldfields region of Western Australia. The tenement package consists of a single granted exploration licence (EL15/1702) covering a total area of 35.22km[2] and is located in a highly fertile region for both nickel and gold mineralisation. The project is accessed by maintained bitumen roads, leading directly to the project area with numerous exploration tracks providing access across the tenement package, facilitating easy exploration access.

GEOLOGY

The tenement incorporates approximately 10km of strike of Kambalda-syle komatiites, flanked by granites, with significant nickel sulphide mineralisation potential. The mineralisation present at the Nepean South project is interpreted to be similar to the Kambalda style, with nickel sulphides dominantly associated with the basal unit of komatiite flows in the stratigraphic package.

The Nepean South project is located in the boundary of the Southern Cross Platform and the Eastern Goldfields Platform in Yilgarn Craton. This area is separated by the Ida Fault which is the tectonic boundary of Southern Cross and Eastern Goldfields Granite-Greenstone Terranes. The Ida Fault is interpreted to be a crustal-scale extensional fault.

The Nepean South project geology is illustrated in Figure 1 below:

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Figure 1: Nepean South Nickel Project interpreted geology

MINERALISATION

The nickel mineralisation identified in the Kambalda area are volcanic peridotite associated deposits which are best developed at or near the base of ultramafic flows (komatiite). The ultramafic flows occur at a low stratigraphic level in the Kambalda greenstone succession.

The bulk of the mineralisation in these komatiite flows is at the flow base, within depressions in the underlying units. The Nepean South project is prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits.

HISTORICAL EXPLORATION

Exploration at the Nepean South Nickel Project had been historically undertaken over the period from 2006 to 2012. In 2012, Mincor Resources NL ( Mincor ) conducted an exploration campaign on the Nepean South project.

Mincor drilled a total of 23 RAB holes for 1,342 metres that were aimed to infill the area surrounding previously drilled RAB hole NRB042, which returned an intersection of 3m @ 2.34 g/t Au from 57m (Wamex Report A97027).

Significant drilling results include:

• NRB042: 3m @ 2.34g/t Au from 57m

• NRB048: 6m @ 1.84% Ni from 18m

• NRB067: 3m @ 0.78% Ni from 33m and 3m @ 0.76% Ni from 48m (6537270mN, 315560mE)

• NRB077: 3m @ 0.69% Ni from 24m (6536970mN, 315600mE)

The historic hole (NRB042) was part of a wide spaced reconnaissance program testing a magnetic high believed to be an extension of the Nepean ultramafic. This program identified a broad corridor of 100 ppb gold in basement lithologies and follow up work was recommended. The intersection was hosted in low MgO amphibole-rich foliated ultramafic lithology associated with minor ironstone and volcaniclastics.

To the north of the drilled area and located at the northern tenement boundary there is an untested TEM conductor from a 2010 geophysical survey along the interpreted basal contact with an estimated depth to top of conductor of 100-200m.

EXPLORATION UPSIDE

In addition to following up the historical shallow RAB drilling completed by Mincor, the Nepean South project also hosts significant exploration upside. The Nepean South project has been underexplored and much of the ultramafic strike remains untested and very little deep drilling and exploration has been completed.

The Company believes that there is great potential to identify additional mineralisation at depth beneath the historical drilling as well as discover new mineralisation along strike of those previously drill tested areas.

WORK PROGRAMME

The Company has commenced the planning for an initial airborne EM survey across the entire strike length of the prospective ultramafic sequence covering the Nepean South project. This data will then be interpreted and examined to enable the Company to identify high priority targets which will be followed up in the field with an RC drilling program.

KEY COMMERCIAL TERMS

The Company has entered into a binding term sheet with the Vendor to acquire 100% of the Nepean South Nickel Project (the Acquisition ).

Consideration for the Acquisition will comprise the following:

• a cash payment of A$25,000 to be paid within five (5) business days from the Company completing its due diligence investigations to its absolute satisfaction; and

• the issue of such number of fully paid ordinary shares in the capital of the Company that is the equivalent of A$75,000 (Share Consideration), at a deemed issue price equal to the higher of $0.002 or the 5-day VWAP of the Company immediately prior to the date on which the Share Consideration is proposed to be issued. The Share Consideration shall be escrowed for 6 months from the date of issue. These shares will be issued by the Company pursuant to ASX Listing Rule 7.1.

Completion of the Acquisition is expected to occur on or about 5 March 2021. The Share Consideration is expected to be issued on or about the same date, with the cash consideration also being paid on or about the same date.

The Acquisition is subject to, and conditional upon, the satisfaction of the Company with its due diligence on the assets. The Company notes that its legal due diligence has been completed and technical due diligence is due for sign off imminently.

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

ENDS

For more information, please contact:

Gino D’Anna Martin Stein Director Company Secretary Metals Australia Ltd Metals Australia Ltd Phone: +61 400 408 878 Phone: +61 8 9481 7833

Caution Regarding Forward-Looking Information

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Metals Australia Limited’s planned exploration program and other statements that are not historical facts. When used in this document, words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although Metals Australia Limited believes that its expectations reflected in these forwardlooking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Competent Person Declaration

The information that relates to exploration results for the Nepean South Nickel Project was reported by Mincor Resources NL in 2012. The exploration results are not reported in accordance with the JORC Code 2012 and a Competent Person (as defined in the JORC Code 2012) has not done sufficient work to classify the Exploration Results in accordance with JORC Code 2012. The information in this report that relates to Exploration Results is based on information compiled by Mr Martin Bennett and represents an accurate representation of the available data and studies for the project. Mr. Martin Bennett is a consultant to Metals Australia Ltd, and a member of The Australasian Institute of Mining and Metallurgy. Mr. Bennett has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr. Bennett consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Appendix 1: Collar Locations of Mincor Resources NL RAB Drill Holes

Hole ID	Hole Type	Max Depth	Grid ID	Easting	Northing	RL	Drill Code	Drill Type	Report
NRB001	RAB	23	MGA94_51	315800	6542525	400	RAB	Rotary Air Bore	078327
NRB002	RAB	19	MGA94_51	315720	6542525	400	RAB	Rotary Air Bore	078327
NRB003	RAB	47	MGA94_51	315640	6542525	400	RAB	Rotary Air Bore	078327
NRB004	RAB	11	MGA94_51	315560	6542525	400	RAB	Rotary Air Bore	078327
NRB005	RAB	5	MGA94_51	315800	6542100	400	RAB	Rotary Air Bore	078327
NRB005R	RAB	44	MGA94_51	315800	6542100	400	RAB	Rotary Air Bore	078327
NRB006	RAB	25	MGA94_51	315800	6541300	400	RAB	Rotary Air Bore	078327
NRB006R	RAB	27	MGA94_51	315800	6541300	400	RAB	Rotary Air Bore	078327
NRB007	RAB	16	MGA94_51	315720	6541300	400	RAB	Rotary Air Bore	078327
NRB007R	RAB	32	MGA94_51	315720	6541300	400	RAB	Rotary Air Bore	078327
NRB008	RAB	11	MGA94_51	315640	6541300	400	RAB	Rotary Air Bore	078327
NRB008R	RAB	44	MGA94_51	315640	6541300	400	RAB	Rotary Air Bore	078327
NRB009	RAB	23	MGA94_51	315560	6541300	400	RAB	Rotary Air Bore	078327
NRB010	RAB	38	MGA94_51	315480	6541300	400	RAB	Rotary Air Bore	078327
NRB011	RAB	10	MGA94_51	315400	6541300	400	RAB	Rotary Air Bore	078327
NRB012	RAB	22	MGA94_51	315320	6541300	400	RAB	Rotary Air Bore	078327
NRB013	RAB	6	MGA94_51	315880	6539740	400	RAB	Rotary Air Bore	078327
NRB014	RAB	5	MGA94_51	315800	6539740	400	RAB	Rotary Air Bore	078327
NRB015	RAB	25	MGA94_51	315720	6539740	400	RAB	Rotary Air Bore	078327
NRB015R	RAB	26	MGA94_51	315720	6539740	400	RAB	Rotary Air Bore	078327
NRB016	RAB	8	MGA94_51	315640	6539740	400	RAB	Rotary Air Bore	078327
NRB016R	RAB	61	MGA94_51	315640	6539740	400	RAB	Rotary Air Bore	078327
NRB017	RAB	66	MGA94_51	315560	6539740	400	RAB	Rotary Air Bore	078327
NRB018	RAB	57	MGA94_51	315480	6539740	400	RAB	Rotary Air Bore	078327
NRB019	RAB	49	MGA94_51	315400	6539740	400	RAB	Rotary Air Bore	078327
NRB019R	RAB	45	MGA94_51	315400	6539740	400	RAB	Rotary Air Bore	078327
NRB020	RAB	52	MGA94_51	315680	6538150	400	RAB	Rotary Air Bore	078327
NRB021	RAB	55	MGA94_51	315600	6538150	400	RAB	Rotary Air Bore	078327
NRB022	RAB	37	MGA94_51	315420	6538150	400	RAB	Rotary Air Bore	078327
NRB023	RAB	25	MGA94_51	315340	6538150	400	RAB	Rotary Air Bore	078327
NRB024	RAB	44	MGA94_51	315720	6542100	400	RAB	Rotary Air Bore	078327
NRB025	RAB	41	MGA94_51	315640	6542100	400	RAB	Rotary Air Bore	078327
NRB026	RAB	34	MGA94_51	315560	6542100	400	RAB	Rotary Air Bore	078327
NRB027	RAB	41	MGA94_51	315480	6542100	400	RAB	Rotary Air Bore	078327

NRB028	RAB	41	MGA94_51	315400	6542100	400	RAB	Rotary Air Bore	078327
NRB029	RAB	60	MGA94_51	315320	6542100	400	RAB	Rotary Air Bore	078327
NRB030	RAB	41	MGA94_51	315960	6537600	400	RAB	Rotary Air Bore	078327
NRB031	RAB	41	MGA94_51	315880	6537600	400	RAB	Rotary Air Bore	078327
NRB032	RAB	50	MGA94_51	315800	6537600	400	RAB	Rotary Air Bore	078327
NRB033	RAB	60	MGA94_51	315720	6537600	400	RAB	Rotary Air Bore	078327
NRB034	RAB	64	MGA94_51	315640	6537600	400	RAB	Rotary Air Bore	078327
NRB035	RAB	58	MGA94_51	315560	6537600	400	RAB	Rotary Air Bore	078327
NRB036	RAB	41	MGA94_51	315480	6537600	400	RAB	Rotary Air Bore	078327
NRB037	RAB	64	MGA94_51	315400	6537600	400	RAB	Rotary Air Bore	078327
NRB038	RAB	49	MGA94_51	315880	6536970	400	RAB	Rotary Air Bore	078327
NRB039	RAB	81	MGA94_51	315800	6536970	400	RAB	Rotary Air Bore	078327
NRB040	RAB	69	MGA94_51	315720	6536970	400	RAB	Rotary Air Bore	078327
NRB041	RAB	42	MGA94_51	315640	6536970	400	RAB	Rotary Air Bore	078327
NRB042	RAB	75	MGA94_51	315560	6536970	400	RAB	Rotary Air Bore	078327
NRB043	RAB	76	MGA94_51	315480	6536970	400	RAB	Rotary Air Bore	078327
NRB044	RAB	41	MGA94_51	315400	6536970	400	RAB	Rotary Air Bore	078327
NRB045	RAB	41	MGA94_51	316720	6534550	400	RAB	Rotary Air Bore	078327
NRB046	RAB	41	MGA94_51	316640	6534550	400	RAB	Rotary Air Bore	078327
NRB047	RAB	41	MGA94_51	316560	6534550	400	RAB	Rotary Air Bore	078327
NRB048	RAB	52	MGA94_51	316480	6534550	400	RAB	Rotary Air Bore	078327
NRB049	RAB	43	MGA94_51	316400	6534550	400	RAB	Rotary Air Bore	078327
NRB050	RAB	48	MGA94_51	316320	6534550	400	RAB	Rotary Air Bore	078327
NRB051	RAB	54	MGA94_51	316240	6534550	400	RAB	Rotary Air Bore	078327
NRB052	RAB	41	MGA94_51	316160	6534550	400	RAB	Rotary Air Bore	078327
NRB053	RAB	30	MGA94_51	316520	6534550	400	RAB	Rotary Air Bore	078327
NRB054	RAB	56	MGA94_51	315900	6536970	400	RAB	Rotary Air Bore	078327
NRB055	RAB	66	MGA94_51	315680	6537600	400	RAB	Rotary Air Bore	078327
NRB056	RAB	62	MGA94_51	315640	6538150	400	RAB	Rotary Air Bore	078327
NRB057	RAB	47	MGA94_51	315460	6538150	400	RAB	Rotary Air Bore	078327
NRB058	RAB	34	MGA94_51	315440	6538150	400	RAB	Rotary Air Bore	078327
NRB059	RAB	8	MGA94_51	315880	6540580	400	RAB	Rotary Air Bore	078327
NRB060	RAB	20	MGA94_51	315800	6540580	400	RAB	Rotary Air Bore	078327
NRB060R	RAB	26	MGA94_51	315800	6540580	400	RAB	Rotary Air Bore	078327
NRB061	RAB	72	MGA94_51	315720	6540580	400	RAB	Rotary Air Bore	078327

NRB062	RAB	63	MGA94_51	315640	6540580	400	RAB	Rotary Air Bore	078327
NRB063	RAB	42	MGA94_51	315560	6540580	400	RAB	Rotary Air Bore	078327
NRB064	RAB	44	MGA94_51	315480	6540580	400	RAB	Rotary Air Bore	078327
NRB065	RAB	54	MGA94_51	315400	6540580	400	RAB	Rotary Air Bore	078327
NRB066	RAB	84	MGA94_51	315420	6539740	400	RAB	Rotary Air Bore	078327
NRB067	RAB	56	MGA94_51	315560	6537270	400	RAB	Rotary Air Bore	078327
NRB077	RAB	32	MGA94_51	315600	6536970	400	RAB	Rotary Air Bore	078327

Appendix 2: Full table of significant nickel intersections drilled by Mincor Resources NL

Hole ID	Drill Type	Easting (m)	Northing (m)	RL	Final Depth	Significant Intersection	Significant Intersection
NRB001	RAB	315800	6542525	400	23		NSI
NRB002	RAB	315720	6542525	400	19		NSI
NRB003	RAB	315640	6542525	400	47		NSI
NRB004	RAB	315560	6542525	400	11		NSI
NRB005R	RAB	315800	6542100	400	44		NSI
NRB006	RAB	315800	6541300	400	25		NSI
NRB006R	RAB	315800	6541300	400	27		NSI
NRB007	RAB	315720	6541300	400	16		NSI
NRB007R	RAB	315720	6541300	400	32		NSI
NRB008	RAB	315640	6541300	400	11		NSI
NRB008R	RAB	315640	6541300	400	44		NSI
NRB009	RAB	315560	6541300	400	23		NSI
NRB010	RAB	315480	6541300	400	38		NSI
NRB011	RAB	315400	6541300	400	10		NSI
NRB012	RAB	315320	6541300	400	22		NSI
NRB013	RAB	315880	6539740	400	6		NSI
NRB014	RAB	315800	6539740	400	5		NSI
NRB015	RAB	315720	6539740	400	25		NSI
NRB015R	RAB	315720	6539740	400	26	3m @	0.15 g/t Au and 0.12% Ni
NRB016R	RAB	315640	6539740	400	61		NSI
NRB017	RAB	315560	6539740	400	66		3m @ 0.44% Ni
NRB017	RAB	315560	6539740	400	66		6m @ 0.33% Ni
NRB018	RAB	315480	6539740	400	57		NSI
NRB019	RAB	315400	6539740	400	49		3m @ 0.21 g/t Au
NRB020	RAB	315680	6538150	400	52		NSI
NRB021	RAB	315600	6538150	400	55		40m @ 0.30% Ni
NRB021	RAB	315600	6538150	400	55		3m @ 0.62% Ni
NRB021	RAB	315600	6538150	400	55		3m @ 0.57% Ni
NRB022	RAB	315420	6538150	400	37		NSI
NRB023	RAB	315340	6538150	400	25		NSI

NRB024	RAB	315720	6542100	400	44	NSI
NRB025	RAB	315640	6542100	400	41	NSI
NRB026	RAB	315560	6542100	400	34	NSI
NRB027	RAB	315480	6542100	400	41	NSI
NRB028	RAB	315400	6542100	400	41	NSI
NRB029	RAB	315320	6542100	400	60	NSI
NRB030	RAB	315960	6537600	400	41	NSI
NRB031	RAB	315880	6537600	400	41	NSI
NRB032	RAB	315800	6537600	400	50	NSI
NRB033	RAB	315720	6537600	400	60	NSI
NRB034	RAB	315640	6537600	400	64	6m @ 0.57% Ni
NRB034	RAB	315640	6537600	400	64	3m @ 0.62% Ni
NRB035	RAB	315560	6537600	400	58	3m @ 0.44% Ni
NRB036	RAB	315480	6537600	400	41	NSI
NRB037	RAB	315400	6537600	400	64	NSI
NRB038	RAB	315880	6536970	400	49	6m @ 0.53% Ni
NRB039	RAB	315800	6536970	400	81	3m @ 0.53% Ni
NRB040	RAB	315720	6536970	400	69	NSI
NRB041	RAB	315640	6536970	400	42	3m @ 0.35 g/t Au
NRB042	RAB	315560	6536970	400	75	3m @ 2.34 g/t Au
NRB043	RAB	315480	6536970	400	76	NSI
NRB044	RAB	315400	6536970	400	41	NSI
NRB045	RAB	316720	6534550	400	41	NSI
NRB046	RAB	316640	6534550	400	41	NSI
NRB047	RAB	316560	6534550	400	41	NSI
NRB048	RAB	316480	6534550	400	52	3m @ 1.79% Ni
NRB048	RAB	316480	6534550	400	52	3m @ 1.89% Ni
NRB048	RAB	316480	6534550	400	52	15m @ 1.12% Ni
NRB048	RAB	316480	6534550	400	52	12m @ 1.29% Ni
NRB048	RAB	316480	6534550	400	52	30m @ 0.70% Ni
NRB049	RAB	316400	6534550	400	43	6m @ 0.59% Ni
NRB050	RAB	316320	6534550	400	48	NSI
NRB051	RAB	316240	6534550	400	54	NSI
NRB052	RAB	316160	6534550	400	41	NSI

NRB053	RAB	316520	6534550	400	30	NSI
NRB054	RAB	315900	6536970	400	56	18m @ 0.30% Ni
NRB055	RAB	315680	6537600	400	66	9m @ 0.54% Ni
NRB056	RAB	315640	6538150	400	62	6m @ 0.63% Ni
NRB057	RAB	315460	6538150	400	47	NSI
NRB058	RAB	315440	6538150	400	38	NSI
NRB059	RAB	315880	6540580	400	8	NSI
NRB060	RAB	315800	6540580	400	20	NSI
NRB060R	RAB	315800	6540580	400	26	NSI
NRB061	RAB	315720	6540580	400	72	NSI
NRB062	RAB	315640	6540580	400	63	NSI
NRB063	RAB	315560	6540580	400	42	NSI
NRB064	RAB	315480	6540580	400	44	NSI
NRB065	RAB	315400	6540580	400	54	NSI
NRB066	RAB	315420	6539740	400	84	NSI
NRB067	RAB	315560	6537270	400	56	3m @ 0.78% Ni
NRB067	RAB	315560	6537270	400	56	3m @ 0.76% Ni
NRB077	RAB	315600	6536970	400	32	3m @ 0.69% Ni

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria			JORC Code explanation	JORC Code explanation	Commentary
Sampling			•	Nature and quality of sampling (eg cut channels, random chips, or specific specialised	Nickel mineralisation at the Nepean South Nickel Project has been sampled from RAB
techniques				industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	1m samples. No diamond core samples are reported in this announcement.
			•	Include reference to measures taken to ensure sample representivity and the
				appropriate calibration of any measurement tools or systems used.
			•	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
				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.
Drilling			•	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,	Drilling completed by Mincor Resources NL is reported. The project has been held by
techniques				Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	various companies with numerous phases of exploration undertaken, the most relevant being the RAB drilling completed by Mincor Resources NL. In total 23 RAB holes were
					drilled by Mincor Resources NL in 2012 at the Nepean South Nickel Project. RAB
					drilling was completed to a very shallow depth, with a maximum depth of 84m in the
					case of NRB066.
Drill	sample		•	Method of recording and assessing core and chip sample recoveries and results	Sample recovery assessment details are not documented by previous operators Mincor
recovery			•	assessed. Measures taken to maximise sample recovery and ensure representative nature of the	Resources NL.
				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	Geological logging data collected to date is sufficiently detailed. At this stage, detailed
			•	level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)	geotechnical logging is not required. Geological logging is intrinsically qualitative.
				photography.	Historic drill holes were geologically logged by previous operators and these data are
			•	The total length and percentage of the relevant intersections logged.	available to Metals Australia Limited.
Sub-sampling			•	If core, whether cut or sawn and whether quarter, half or all core taken.	1m RAB, maximum 1m length core samples, or as close as reasonable within
techniques		and	• •	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation	geological boundaries, are considered appropriate for the style of mineralisation being targeted.
				technique.	Historic drill holes were logged at a level of detail to ensure sufficientgeological

Criteria			JORC Code explanation		Commentary
sample			•	Quality control procedures adopted for all sub-sampling stages to maximise	understanding to allow representative selection of sample intervals.
preparation			•	representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Sampling QAQC measures taken by previous operator and Mincor Resources NL have not been documented.
			•	Whether sample sizes are appropriate to the grain size of the material being sampled.	It is assumed that Mincor Resources NL sample sizes were appropriate for the type,
					style and thickness of	mineralisation tested.
Quality of assay data and laboratory tests			• •	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times,	Mincor Resources NL – ultilise a AD02 ICP (4 Acid Digest) Ni, Cu, Au & Co analysis performed by ALS. It is assumed that industry standard commercial laboratory instruments were used by
				calibrations factors applied and their derivation, etc.	ALS to analyse historic drill samples the Nepean South Nickel Project.
			•	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.	It is assumed that industry best practice was used by previous operators to ensure acceptable assay data accuracy and precision. Historical QAQC procedures are not
					recorded in available documents.
Verification		of	•	The verification of significant intersections by either independent or alternative	All historic drilling data including collar coordinates, hole orientation surveys, total
sampling	and		•	company personnel. The use of twinned holes.	depth, sampling intervals and lithological logging were collated from statutory annual
assaying			•	Documentation of primary data, data entry procedures, data verification, data storage	reports and historic digital data files.
				(physical and electronic) protocols.	No indication of drill holes being twinned by previous workers has been observed or
			•	Discuss any adjustment to assay data.	documented.
					It is assumed that industry best practice was used for collection, verification and
					storage of historic data.
					No adjustments to assay data were undertaken
Location of	data		•	Accuracy and quality of surveys used to locate drill holes (collar and down-hole	Drill hole collars were	surveyed by GPS in GDA94/MGA Zone 51.
points				surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
			•	Specification of the grid system used.
			•	Quality and adequacy of topographic control.
Data spacing and			•	Data spacing for reporting of Exploration Results.	Typically sampled in 1-3 metre intervals, skipping intervals of no interest and increasing
distribution			•	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	the frequency of sampling depending on the geology observed. Insufficient data is available to establish the degree of geological and grade continuity
			•	Whether sample compositing has been applied.	required for estimation of a resource.
					No compositing of data has been applied and assay results are reported as received.
Orientation		of	•	Whether the orientation of sampling achieves unbiased sampling of possible structures	Historical drill holes were oriented, as far as reasonably practical, to intersect the centre
data in relation		to	•	and the extent to which this is known, considering the deposit type. Ifthe relationship between the drilling orientation and the orientation of key mineralised	of the targeted mineralised zone perpendicular to the interpreted strike orientation of

Criteria	JORC Code explanation	JORC Code explanation	Commentary
geological structure		structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	the mineralised zone. The geometry of drill holes relative to the mineralised zones achieves unbiased
			sampling of this deposit type.
			No orientation-based sampling bias has been identified.
Sample security	•	The measures taken to ensure sample security.	It is assumed that due care was taken historically with security of samples during field
			collection, transport and laboratory analysis.
Audits or reviews	•	The results of any audits or reviews of sampling techniques and data.	No independent audit or review has been undertaken.

Section 2 Reporting of Exploration Results

Criteria		JORC Code explanation	JORC Code explanation	Commentary
Mineral tenement		•	Type, reference name/number, location and ownership including agreements or	Metals Australia Limited is the 100% owner of the Nepean South Nickel Project
and land status	tenure		material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	(E15/1702) pursuant to a binding acquisition agreement. There are no other material issues affecting the tenements.
		•	The security of the tenure held at the time of reporting along with any known	No known royalties exist on the leases.
			impediments to obtaining a licence to operate in the area.	There are no material issues with regard to access.
				The tenement is in good standing and no known impediments exist.
Exploration	done	•	Acknowledgment and appraisal of exploration by other parties.	Exploration was previously undertaken by Mincor Resources NL and this has been
by other parties				reviewed by the Company.
Geology		•	Deposit type, geological setting and style of mineralisation.	The Nepean South Nickel Project is regarded as an Archaean komatiite-hosted
				massive nickel sulphide deposit.
Drill	hole	•	A summary of all information material to the understanding of the exploration results	A Drill hole location table has been included in this announcement.
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

Criteria		JORC Code explanation		Commentary
			_Competent Person should clearly explain why this is the case. _
Data aggregation		•	In reporting Exploration Results, weighting averaging techniques, maximum and/or	Exploration Results were reported by using the weighted average of each sample result
methods			minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	by its corresponding interval length, as is industry standard practice.
		•	Where aggregate intercepts incorporate short lengths of high grade results and longer	Grades >0.5% Ni are considered significant for mineralisation purposes.
			lengths of low grade results, the procedure used for such aggregation should be stated	Metal equivalent values have not been used.
			and some typical examples of such aggregations should be shown in detail.
		•	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.	Most drill holes were angled to the West so that intersections are orthogonal to the
between mineralisation		• •	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear	orientation of mineralisation.
widths	and		statement to this effect (eg ‘down hole length, true width not known’).
intercept lengths
Diagrams		•	Appropriate maps and sections (with scales) and tabulations of intercepts should be	Included in body of the announcement.
			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 reporting		•	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Details and results for all samples submitted for assay are listed in Appendix A and B attached to the body of this announcement. All results related to mineralisation at Nepean South have been reported in the
				Significant Intercepts Table.
Other substantive		•	Other exploration data, if meaningful and material, should be reported including (but not	All meaningful and material data is reported.
exploration data			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	Further detailed geological mapping and sampling planned to identify areas of highest
		•	extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not	potential. An immediate airborne EM survey.
			commercially sensitive.	RC drilling, if warranted.