Metals X Limited — Capital/Financing Update 2021

Dec 15, 2021

16 DECEMBER 2021

Nickel Asset Sale Update

Metals X Limited ( Metals X or the Company ) provides the following update in relation to the sale and spin out of its nickel asset portfolio, which includes the Wingellina Nickel-Cobalt Project located in Western Australia and the Claude Hills Project located in South Australia ( Nickel Assets ), pursuant to the share sale and subscription agreement ( SSA ) executed with NICO Resources Limited ( NICO ).

In-specie Distribution to Metals X Shareholders

Shareholder approval for the capital reduction and in-specie distribution to eligible Metals X shareholders of the 25,000,000 NICO shares ( In-specie Distribution ) to be issued to Metals X at a deemed issue price of $0.20 per share as the sole consideration payable by NICO to Metals X under the SSA for the purchase of the Nickel Assets (equating to $5,000,000) ( Consideration Shares ) was received on 15 December 2021 (refer to ASX Announcement “Results of Meeting” lodged on 15 December 2021).

With shareholder approval, eligible Metals X shareholders as at the In-specie Distribution record date ( Record Date ) will receive an in-specie distribution of the Consideration Shares, which equates to approximately 1 NICO share for every 36.29 Metals X shares held (on the assumption that no further shares are issued by Metals X before the Record Date).

NICO Capital Raising and IPO

NICO lodged a replacement prospectus with the Australian Securities and Investments Commission on 24 November 2021 ( Replacement Prospectus ) in respect of its initial public offer ( IPO ). The offer under the Replacement Prospectus is expected to close on 17 December 2021, and is expected to raise the maximum subscription amount of $12,000,000.

NICO is yet to receive its conditional admission letter from ASX advising that ASX will admit NICO to the official list of ASX, however it hopes to receive correspondence from the ASX in this regard shortly. As a result, a revision to the timetable as disclosed to the ASX in Metals X’s Appendix 3A.5 of 15 November 2021 is necessary, to in effect delay the Record Date from 21 December 2021 to 24 December 2021.

Subject to the receipt of NICO’s conditional admission letter, the timetable with respect to Completion under the SSA and the IPO (as detailed in the Replacement Prospectus) is expected to continue as planned, and NICO will work with ASX to satisfy the conditions to admission with an official quotation date of 11 January 2022.

Updated Appendix 3A.5

An updated Appendix 3A.5 with respect to the In-specie Distribution will be lodged with ASX following this announcement, which will include an updated timetable for the In-specie Distribution.

This announcement has been authorised by the Board of Directors of Metals X Limited

ENQUIRIES

Mr Brett Smith Executive Director E: brett.smith@metalsx.com.au

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----- Start of picture text ----- CORPORATE DIRECTORYLevel 5, 197 St Georges TerracePerth WA 6000 AustraliaASX Code: MLX----- End of picture text -----

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----- Start of picture text ----- T +61 8 9220 5700E reception@metalsx.com.auABN 25 110 150 055----- End of picture text -----

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----- Start of picture text ----- www.metalsx.com.au----- End of picture text -----