Metals X Limited — Capital/Financing Update 2013

Aug 18, 2013

Press release

19 aUGUsT 2013

MeTals X lIMITeD BUYs rIO OUT OF MUsGraVe raNGes JV TO WHOllY CONTrOl THe WINGellINa laYereD INTrUsIVe COMPleX

Metals X Limited (“Metals X”) (ASX:MLX) is pleased to announce that it has finalised the acquisition of Rio Tinto Exploration Pty Ltd (Rio Tinto) interests in the Mt Davies JV. This acquisition consolidates Metals X’s ownership of the Wingellina layered intrusive complex in the Central Musgrave Ranges.

The tenement (E3932 Mt Davies) is located in South Australia and is encapsulated within Metals X’s 100% owned tenement EL4751. The tenement was previously subject to a farmin agreement with Rio Tinto in which Metals X was earning a 51% interest. The tenement hosted part of the Claude Hill deposit which consists of an Inferred Resource of 33.3 million tonnes grading 0.81% Nickel and 0.07% Cobalt. Claude Hills, which will now be 100% owned by Metals X, is located approximately 25kms to the east of the massive Wingellina deposit which hosts a Total Mineral Resource of 183.2 million tonnes @ 0.98% Nickel and 0.08% Cobalt, containing almost 1.8 million tonnes of Nickel and a Probable Mining Reserve of 167.5 million tonnes at 0.98% Nickel and 0.08% Cobalt (refer to numerous past ASX announcements on Mineral Resources).

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Metals X limited is a diversified group exploring and developing metals and minerals in australia. It is Australia’s largest tin producer and holds a pipeline of assets from exploration to production, including two gold development projects and the world-class Wingellina Nickel Project.

COrPOraTe DIreCTOrY

ASX Code: MlX OTCQX Code: MlXXY

Level 3, 123 Adelaide Tce East Perth WA 6004 Australia

GPO Box 2606 Perth WA 6001 Australia

t: +61 8 9220 5700 f: +61 8 9220 5757

reception@metalsx.com.au www.metalsx.com.au

Metals X previously completed a feasibility study (+/-25%) for the Wingellina project in 2008 using industry experts that concluded a robust project development with a minimum 40 year mine life at an average annual production rate of 40,000 tonnes of nickel and 3,000 tonnes of cobalt at a production cost estimate of US$3.34/lb after cobalt credits. The capital cost estimate for the project was $2.3 billion.

Since the completion of the 2008 study, Metals X has focused on the delivery of approvals to enable the project to be developed and is currently finalising its final submissions for environmental approval.

In July 2010, the company entered into an agreement with the Native Title Holders and their representative bodies allowing Metals X to develop a mining operation at Wingellina.

Claude Hills is only one of a number of known areas where outcropping nickeliferous limonite similar to Wingellina occurs within the tenement holdings. The Limonites at Claude Hills are known to extend over 5kms with widths of 50 to 250m and an ore thickness of 12m to 60m. Reconnaissance works by Metals X on the JV ground has also identified significant additional large areas of outcropping limonite within the region, which remains to be evaluated.

The Wingellina and Claude Hill’s limonite bodies are hosted in a significantly different geological setting to the nickel laterite deposits that have been developed in the eastern goldfields of Western Australia and displays extremely favourable metallurgical characteristics most suitable for HPAL processing. The deposit is best described as a Limonite or “Pure Oxide Tropical Laterite” which is very similar to that of various successful nickel oxide developers which have used HPAL technology, including Moa Bay in Cuba, where Sherritt Gordon developed and has successfully operated High Pressure Acid Leach (HPAL) for over 50 years, the Coral Bay operations in the Philippines and the newly developed and one of the world’s largest nickel laterite projects, Ambatovy in Madagascar.

Metals X believes the consolidation of the tenure in the region gives it an opportunity to significantly extend its known nickeliferous limonite deposits in the region and propel Wingellina to possibly be the largest undeveloped and independently owned nickel deposit in the world.

In the past year, the exploration focus for Metals X in the Musgraves has been on the discovery of Nickel and Copper Sulphides, as there are many known deposits within the world that have been located within similar geological settings. Metals X has recently completed a powerful airborne electro-magnetic survey (Spectrum) covering 5,370 line kilometres and has defined a number of conductors considered to potentially be buried Nickel and/or Copper Sulphides.

The consideration for the acquisition is $500,000 and 870,000 fully paid ordinary shares and is subject to the normal provisions for the transfer of titles, agreements and rights with the SA government and the Anangu Pitjantjatjara Yankunytjatjara.

Metals X’s CEO, Mr Peter Cook, commented

“This acquisition further consolidates the foundations for the Wingellina Project. For the first time for many decades the entire Wingellina Layered intrusive has been consolidated into one entity. Despite the enormous resources that already reside at Wingellina and Claude Hills, the potential for additional resources is significant and so is the potential for a virgin Nickel and/or Copper Sulphide discovery. Although the current nickel price is depressed, these projects are extremely long life and of a magnitude that means they will definitely be developed at some time in the future.”

COMPeTeNT PersON’s sTaTeMeNT

The information in this report that relates to exploration results, mineral resources and ore reserves has been compiled by technical employees of Metals X Limited under the supervision and guidance of Mr Peter Cook BSc (App. Geol), MSc (Min Econ), MAusIMM (111072). Mr Cook is a full time employee and CEO of the Company and has sufficient experience, which is relevant to the styles of mineralisation, type of deposit and activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“the JORC Code”). Mr Cook consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

eNqUIrIes

Peter Cook Warren Hallam Executive Director & CEO Executive Director e: peter.cook@metalsx.com.au e: warren.hallam@metalsx.com.au

METALS X LIMITED BUYS RIO OUT OF MUSGRAVE RANGES JV TO WHOLLY CONTROL THE WINGELLINA LAYERED INTRUSIVE COMPLEX 2

Press release