METALSTECH LIMITED — Capital/Financing Update 2017

May 16, 2017

ASX Release 17 May 2017

==> picture [289 x 148] intentionally omitted <==

MetalsTech Expands Bay Lake High Grade Cobalt Project

Cobalt and Lithium developer MetalsTech Limited (ASX: MTC) is pleased to announce it has entered into a binding acquisition agreement to acquire a significant package of mineral claims that are contiguous with the Company’s 100% owned Bay Lake High Grade Cobalt Project located in Ontario, Canada.

Highlights:

• Proposed acquisition of 11 contiguous mineral claims increases the Company’s landholding at Bay Lake four-fold to 2,744 hectares within a highly prospective Ag-Co rich geological domain

• Proposed acquisition is in keeping with the Company’s strategy to focus on strategic commodities for the battery market, including cobalt and lithium

• Bay Lake is located 10km SSW of the Historic Silver Mining Camp of Cobalt Township and has assayed up to 15.36% Co in cobalt-rich veins (refer to ASX announcement dated 16 March 2017 and titled “MetalsTech to Acquire Two High Grade Cobalt Projects”)

• The proposed acquisition includes mineral claims that are similarly host to historic exploration shafts and pits, including the Price Prospect where historic sampling of surface “dump” material assayed 2.14% Co, 0.11% Cu, 0.48 g/t Au and 1,740 g/t Ag

• Legal and technical due diligence complete with settlement due in the next few days

• Exploration will commence at Bay Lake next month including ground mapping, mechanised trenching, sampling and drill target identification

Commenting on the new acquisition, Executive Chairman Mr Russell Moran stated:

“We have solidified a strategic holding near the exciting Township of Cobalt which we believe is the jurisdiction with the most potential for new high grade cobalt discoveries outside of the DRC. We are progressing through the community and stakeholder engagement process and we expect to be in a position to commence maiden exploration at Bay Lake next month.”

Bay Lake Extension

The proposed acquisition will extend the Bay Lake High Grade Cobalt Project four fold, by an additional 2,072 hectares. Bay Lake is located 10km SSW of the Historic Silver Mining Camp in the Cobalt Township on the eastern shore of Bay Lake in Coleman Township, Ontario, Canada.

==> picture [97 x 57] intentionally omitted <==

Registered Office Board of Directors Projects Suite 1, 100 Hay Street Executive Chairman - Russell Moran Cancet 100% owned Subiaco WA 6008 Executive Director - Gino D’Anna Adina 100% owned T +61 408 408 878 T +61 415 493 993 Non-Executive Director - Shane Uren Terre Des Montagnes 100% owned E info@metalstech.net Non-Executive Director - Michael Velletta Wells-Lacourciere 100% owned Kapiwak 100% owned Sirmac-Clapier 100% owned Bay Lake 100% owned

==> picture [37 x 36] intentionally omitted <==

The new mineral claims are located approximately 5km NNW of Equator Resources Limited (ASX: EQU), the owner of the Cobalt Camp Project where historical assays have reported cobalt grades up to 12.3% Co (range 0.42% Co to 12.3% Co - average of 5.84% Co) along strike in the same geological structure (refer to ASX announcement dated 28 November 2016 titled “High Grade Cobalt Project Acquisition, Canada”).

The map below illustrates the location of the new mineral claims, relative to the Company’s existing Bay Lake mineral claims, relevant to the prospective cobalt rich trends:

==> picture [466 x 466] intentionally omitted <==

Figure 1: Bay Lake Extension Map

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Bay Lake Location

The map below illustrates the location of Bay Lake:

==> picture [408 x 403] intentionally omitted <==

Figure 2: Bay Lake High Grade Cobalt Project Location

The Bay Lake Prospect

The Bay Lake Prospect is located at the south west end of the project and is the area where historical exploration work was completed. In 1913, the Bay Lake and Montreal River Mining Company constructed six (6) exploration shafts targeting the Nipissing diabase and completed an extensive stripping campaign of the Nipissing diabase-Lorrain sediment contact, at the Bay Lake Prospect.

From 1923 - 1934 Nipissing Mining Company Ltd, trenched and stripped a portion of the Bay Lake Prospect area and completed an unquantifiable amount of subsequent underground development. In 1951, Sadler and La Pierre completed 30m of shaft sinking and 30m of drifting on the 27m level. This drifting exposed a 15cm wide cobaltite-rich vein. Sub-surface rock samples taken from this cobaltite-rich

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

vein on the 27m level produced assays including 15.36% Co, 15.29% Co, 14.31% Co and 15.27% Co (source: geological notes by R. Thompson, 1951, Resident Geologists’ Files, Township of Cobalt). The relevant coordinates for the sub-surface rock samples is noted as Map Sheet 19 and Claim Block 004 (refer to ASX announcement dated 16 March 2017 and titled “MetalsTech to Acquire Two High Grade Cobalt Projects”).

A surface grab sample of dump material at the Bay Lake Prospect (often referred to as “muck” which was left on surface during the silver mining and separation process) with disseminated pyrite, chalcopyrite, malachite and erythrite conducted in 1988 yielded assay values of 2600ppm Cu, 6550 ppm Co, 305 ppb Au and 920 ppm Ni (source: Geoscience Laboratories Section, Ontario Geological Survey, Toronto). The relevant coordinates for the sub-surface rock samples is noted as Map Sheet 19 and Claim Block 004 (refer to ASX announcement dated 16 March 2017 and titled “MetalsTech to Acquire Two High Grade Cobalt Projects”).

The Price Prospect

The Price Prospect is located at the north-western portion of the project, at the tip of Jumbo Point. The Price Prospect was first discovered in 1912 and subsequent surface exploration consisted of at least ten (10) exploration pits and shafts. A shipment of 50 tons of ore grading 1,696 Cu ppm and 12 ounces (340g) per ton Ag was shipped in 1916.

During 1952-59 J. Price initiated mineral exploration on the south shore of Portage Bay east of Jumbo Point. One diamond-drill hole was completed in Nipissing diabase to a total depth of 37 m (122 feet). Notes by R. Thomson (source: Resident Geologist's files, Cobalt) indicate that a chalcopyrite vein exists with an approximate width of 1.5 m (5 feet) exposed in underground workings dating from 1929. The assay results from the single drill hole returned 7.95% Cu and 1.96 ounces Ag per ton (source: Resident Geologist's office, Cobalt).

The next period of local activity was in 1970 by Guardian Mines Limited on what was known as the Sutherland claims. A very low frequency electromagnetic (VLF-EM) ground survey delineated a number of small conductors as well as a large number of small fluctuations. The large conductors were interpreted to represent a possible mineralised fault zone whereas the smaller fluctuations might be vein conductors. A magnetic survey outlined 7 magnetic anomalies.

In 1982, Agnico-Eagle Mines Limited began exploration on a group of claims in the vicinity of Fiddler's and Snake islands on Portage Bay. The claims covered an anomaly detected by a VLF geophysical survey. A single diamond-drill hole totalling 248 m (815 feet) was completed to test the geophysical anomaly. The hole intersected the Nipissing diabase, however the results were not followed up and additional drilling was not undertaken.

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Summary

Historical reports indicate substantial cobalt grades in silver ore however the project’s cobalt potential remains untested – cobalt was used as a tracer for silver mineralisation but not targeted in its own right.

Both the Bay Lake Prospect and the Price Prospect have been exposed to substantial existing underground mine workings related to past operations. The Company believes re-entry following rehabilitation of existing adits will open up a significant amount of strike length of known structures for modern cobalt focused exploration and production. In the project area, several Calcite veins occur within the lowest part of a Nipissing diabase sill near the contact with arkoses of the Lorrain Formation.

Bay Lake Extension Acquisition Terms

MetalsTech has entered into a binding acquisition agreement with Gino Chitaroni (the Vendor ), pursuant to which the Company will acquire a 100% interest in the Bay Lake Extension on the following terms:

• CAD$10,000 non-refundable deposit within 5 business days of the mineral claims being recorded as granted by the MNDM, Ontario (completed)

• MTC granted a 45-day exclusivity period to carry out legal, technical and commercial due diligence (completed)

• Following satisfactory due diligence, Completion Payments to the Vendor to acquire a 100% interest:

  • CAD$20,000 cash

  • 50,000 fully paid ordinary MTC shares (12 months escrow)

• Vendors retain a 1.5% Net Smelter Royalty over the cobalt metal produced - covers the original Bay Lake mineral claims and the expanded Bay Lake mineral claims

• MTC retains the right to buy back half of the global NSR for CAD$500,000 - covers the original Bay Lake mineral claims as well as the expanded Bay Lake mineral claims - payable in any combination of cash or MTC shares at the 10-day VWAP

Initial Exploration Strategy

The Company immediately plans to commence an initial exploration program that will include:

• A comprehensive ground mapping, mechanised trenching, sampling and drill target identification program – to be commenced during June 2017

• Conducting an Airborne EM survey over the key project area – to be commenced during July and August 2017

• Conduct an IP survey

• Complete a drilling program targeted for Q3-2017 following detailed first phase data analysis

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Surface Rights Holders Notification Process

The Company has commenced the process for notifying the relevant stakeholders of its plans to commence exploration activities at Bay Lake. This has involved engaging with the local community stakeholders as well as engaging with local surface rights holders in and around the Bay Lake project area.

The Company has retained a local landowner to undertake the engagement process and the response to date has been very positive. This has allowed the Company to prepare for Phase I exploration which is expected to commence next month.

Geology and Exploration Strategy

The Bay Lake High Grade Cobalt Project is composed of principal ore veins, cross-veins, masses of mineralised Keewatin interflow rocks, and disseminated minerals in the Gowganda Formation, Coleman Member. Only the principal ore veins contain silver ore and they occur primarily in the Coleman Member. The veins also contain cobalt indicator minerals such as arsenides and native silver (principal metal veins). The arsenides, including nickel, cobalt, and iron varieties, occur as massive lenses and disseminated grains in the carbonate veins. Some massive lenses extend across the entire widths of the veins, others present as irregular bodies in the centres of the veins, and still others occur at the edges of the veins.

The distribution of cobalt indicator minerals from top to bottom of the veins are rich in the following elements (i) nickel, (ii) cobalt and (iii) iron. The veins can be classified as Ni-As, Ni-Co-As, Co-Fe-As and Fe-As. Silver grades exhibit a very different zonation implying that previous production has excluded multiple areas of cobalt mineralisation.

Summary of Acquisition Terms

	Bay Lake Extension
Cash Deposit (paid upongrant of mineral claims byMNDM)	CAD$10,000 (paid) 45 days (completed) CAD$20,000 (paid on settlement) 50,000 MTC shares (issued at settlement) 1.5% Global NSR (granted over entire Bay Lake High Grade Cobalt Project – including original mineral claims and additional mineral claims - consistent with previous agreement)
Due Diligence Period
Cash Completion Payment
Shares Completion Payment (12 months escrow)
Vendor Net Smelter Royalty (50% of the global NSR covering both the original mineral claims and the newly acquired mineral claims may be re-purchased by MTC for CAD$500,000)
MetalsTech takes 100% Ownership

Figure 3: Summary of Acquisition Terms – Bay Lake Extension

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Implications for Cobalt Targets

==> picture [306 x 434] intentionally omitted <==

• Cobalt and silver mineralisation occurs in calcite veins in close association

• Cobalt indicator minerals are not correlated to silver grades – high grade zones cross cut indicator mineral zones

• Historical production targeting silver didn’t focus on cobalt mineralisation – low grade silver zones likely to have Co-mineralisation in-situ

• Re-entry of the mine workings considered possible with establishment of drill platforms to follow rehabilitation

• Drill out of interpreted cobalt rich zones to follow

Figure 4: Idealised long section of veins 1 and 2 showing separate zonation of silver and cobalt mineralisation

ENDS

For further information, contact:

Russell Moran Gino D’Anna Rachel Hammett Executive Chairman Executive Director Investor Relations M +61 415 493 993 M +61 400 408 878 M +61 466 281 369 russell@metalstech.net gino@metalstech.net rachel@metalstech.net

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Caution Regarding Forward-Looking Information

This document contains forward-looking statements concerning MetalsTech. 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 forwardlooking 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 MetalsTech 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 Statement

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Neil McCallum, PGeo, is a Competent Person who is a Professional Geologist registered with the Association of Professional Engineers and Geoscientists of Alberta, in Canada. Mr. Neil McCallum, PGeo, is an employee of Dahrouge Geological Consulting Ltd. (Dahrouge). Dahrouge Geological Consulting Ltd. and all competent persons are independent from the issuer of this statement, MetalsTech Limited. Mr. Neil McCallum has sufficient experience 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. Neil McCallum consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Mr. Neil McCallum has reviewed the historical exploration results that are contained in this announcement and has validated the source of the historical information. Mr. Neil McCallum is satisfied with its inclusion in the form and context in which it appears in this announcement.

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Appendix A - Bay Lake Project Geology Map

==> picture [473 x 629] intentionally omitted <==

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

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,	No drilling completed to date.
techniques		random chips, or specific specialised industry
		standard measurement tools appropriate to the	Rock samples comprise multiple chips considered to be
		minerals under investigation, such as down hole	representative of the horizon or outcrop being sampled.
		gamma sondes, or handheld XRF instruments,
		etc). These examples should not be taken as	Samples submitted for assay typically weigh 2-3 kg.
		limiting the broad meaning of sampling.
	•	Include reference to measures taken to ensure	Continuous channel sampling of trenching ensures the samples
		sample representivity and the appropriate	are representative. Entire 2-3 kg sample is submitted for sample
		calibration of any measurement tools or systems	preparation.
		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)
		maywarrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole	No drilling completed.
techniques		hammer, rotary air blast, auger, 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, bywhat method, etc).
Drill sample	•	Method of recording and assessing core and	Not applicable.
recovery		chip sample recoveries and results assessed.
	•	Measures taken to maximise sample recovery
		and ensure representative nature of the
		samples.
	•	Whether a relationship exists between sample
		recovery and grade and whether sample bias
		may have occurred due to preferential loss/gain
		of fine/coarse material.
Logging	•	Whether core and chip samples have been	All trenches sampled are logged continuously from start to finish
		geologically and geotechnically logged to a level	with key geological observations recorded.
		of detail to support appropriate Mineral
		Resource estimation, mining studies and	Logging is quantitative, based on visual field estimates.
		metallurgical studies.
	•	Whether logging is qualitative or quantitative in
		nature. Core (or costean, channel, etc)
		photography.
	•	The total length and percentage of the relevant
		intersections logged.
Sub-sampling	•	If core, whether cut or sawn and whether	Sample preparation follows industry best practice standards and
techniques		quarter, half or all core taken.	is conducted by internationally recognised laboratories, at SGS
and sample	•	If non-core, whether riffled, tube sampled, rotary	Laboratories in Lakefield, Ontario.
preparation		split, etc and whether sampled wet or dry.
	•	For all sample types, the nature, quality and	Oven drying, jaw crushing and pulverising so that 85% passes
		appropriateness of the sample preparation	75 microns.
		technique.
			Blanks have been submitted every 50 samples to ensure there is

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Criteria	JORC Code explanation	JORC Code explanation	Commentary
	•	Quality control procedures adopted for all sub-	no cross contamination from sample preparation.
		sampling stages to maximise representivity of
		samples.	Measures taken include (a) systematic sampling across whole
	•	Measures taken to ensure that the sampling is	outcrop zone where present; (b) comparison of actual assays for
		representative of the in situ material collected,	blanks with theoretical values.
		including for instance results for field
		duplicate/second-half sampling.	Sample size (2-3 kg) accepted as general industry standard.
	•	Whether sample sizes are appropriate to the
		grain size of the material beingsampled.
Quality of	•	The nature, quality and appropriateness of the	Assay and laboratory procedures have been selected following a
assay data		assaying and laboratory procedures used and	review of techniques provided by internationally certified
and laboratory		whether the technique is considered partial or	laboratories. In addition, the sample preparation laboratory in
tests		total.	Ontario is regularly visited to ensure high standards are being
	•	For geophysical tools, spectrometers, handheld	maintained.
		XRF instruments, etc, the parameters used in
		determining the analysis including instrument	Samples are submitted for multi-element analysis by SGS
		make and model, reading times, calibrations	Laboratories. Where results exceeded upper detection limits for
		factors applied and their derivation, etc.	Co, samples are re-assayed.
	•	Nature of quality control procedures adopted (eg
		standards, blanks, duplicates, external	The final techniques used are total.
		laboratory checks) and whether acceptable
		levels of accuracy (ie lack of bias) and precision	None used.
		have been established.
			Barren granitic and calcite material is submitted every 50
			samples as a control.
			Comparison of results indicates good levels of accuracy and
			precision. No external laboratory checks have been used.
Verification of	•	The verification of significant intersections by	None undertaken.
sampling and		either independent or alternative company
assaying		personnel.	Not applicable.
	• • •	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.	All field data is manually collected, entered into excel spreadsheets, validated and loaded into an Access database. Electronic data is stored in Ontario as well as at the site office of MetalsTech in Quebec. Data is exported from Access for processing by a number of different software packages.
			All electronic data is routinely backed up.
			No hard copy data is retained.
			None required.
Location of	•	Accuracy and quality of surveys used to locate	All trench start points and geochemical samples are located
data points		drill holes (collar and down-hole surveys),	using a hand held GPS.
		trenches, mine workings and other locations
		used in Mineral Resource estimation.	Trenches are surveyed using hand held compass and
	•	Specification of the grid system used.	clinometer.
	•	Quality and adequacy of topographic control.	The grid system used is UTM. However, for reporting purposes
			and to maintain confidentiality, local coordinates are used for
			reporting.
			Nominal RL’s based on topographic datasets are used initially,
			however, these will be updated if DGPS coordinates are
			collected.
Data spacing	•	Data spacing for reporting of Exploration	Only reconnaissance trenching and sampling completed –
and		Results.	spacing variable and based on outcrop location and degree of
distribution	•	Whether the data spacing and distribution is	exposure.
		sufficient to establish the degree of geological
		and grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation	Not applicable.

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Criteria	JORC Code explanation	JORC Code explanation	Commentary
		procedure(s) and classifications applied.
	•	Whether sample compositing has been applied.	None undertaken.
Orientation of	•	Whether the orientation of sampling achieves	Sampling completed at right angles to interpreted trend of
data in		unbiased sampling of possible structures and	outcrop mineralised units.
relation to		the extent to which this is known, considering
geological		the deposit type.	None observed.
structure	•	If the relationship between the drilling orientation
		and the orientation of key mineralised structures
		is considered to have introduced a sampling
		bias, this should be assessed and reported if
		material.
Sample	•	The measures taken to ensure sample security.	Geological team supervises all sampling and subsequent
security			storage in the field. The same geological team delivers the
			samples to SGS Laboratories in Lakefield, Ontario and receives
			an official receipt of delivery.
Audits or	•	The results of any audits or reviews of sampling	None completed.
reviews		techniques and data.

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Section 2 Reporting of Exploration Results

Criteria	JORC	JORC	Code explanation	Commentary
Mineral	•	Type, reference name/number, location and		MetalsTech has the right to acquire 100% of the Bay Lake
tenement and		ownership including agreements or material issues		Extension Cobalt project pursuant to the binding
land tenure		with third parties such as joint ventures,		acquisition agreement.
status		partnerships, overriding royalties, native title
		interests, historical sites, wilderness or national park		There are no other material issues affecting the
		and environmental settings.		tenements. Certain surface rights exist on parts of the Bay
	•	The security of the tenure held at the time of		Lake project, but these do not compete with the
		reporting along with any known impediments to		subsurface or mineral rights over the project, which are
		obtaining a licence to operate in the area.		being acquired by MetalsTech.
				Upon the completion of the obligations pursuant to the
				legal agreements, MetalsTech will own 100% of the cobalt
				project and ownership of the individual claims will be
				transferred to MetalsTech.
				All tenements have been legally validated by an
				independent lawyer to provide an opinion as to the good
				standing nature of the claims. The independent lawyer
				selected is a specialist in the field.
Exploration	•	Acknowledgment and appraisal of exploration by		No modern exploration has been conducted.
done by other		other parties.		Historical exploration and government mapping records
parties				multiple cobalt mineralised zones within the project areas
				but no other data is available.
Geology	•	Deposit type, geological setting and style of		The Bay Lake Cobalt project is composed of principal ore
		mineralisation.		veins, cross-veins, masses of mineralised Keewatin
				interflow rocks, and disseminated minerals in the
				Gowganda Formation, Coleman Member. Only the
				principal ore veins contain silver ore and they occur
				primarily in the Coleman Member.
				The veins also contain cobalt indicator minerals such as
				arsenides and native silver (principal metal veins). The
				arsenides, including nickel, cobalt, and iron varieties,
				occur as massive lenses and disseminated grains in the
				carbonate veins. Some massive lenses extend across the
				entire widths of the veins, others present as irregular
				bodies in the centres of the veins, and still others occur at
				the edges of the veins.
				The distribution of cobalt indicator minerals from top to
				bottom of the veins are rich in the following elements (i)
				nickel, (ii) cobalt and (iii) iron. The veins can be classified
				as Ni-As, Ni-Co-As, Co-Fe-As and Fe-As.
				Silver grades exhibit a very different zonation implying that
				previous production has excluded multiple areas of cobalt
				mineralisation.
Drill hole	•	A summary of all information material to the		No drilling exists.
Information		understanding of the exploration results 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 isjustified on the

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net

==> picture [37 x 36] intentionally omitted <==

Criteria	JORC Code explanation	JORC Code explanation	Commentary
		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 whythis is the case.
Data	•	In reporting Exploration Results, weighting averaging	Intercepts are calculated on a per sample basis according
aggregation		techniques, maximum and/or minimum grade	to the results from the laboratory with no bottom cut-off
methods		truncations (eg cutting of high grades) and cut-off	grade and no top cut-off grades.
		grades are usually Material and should be stated.	Short intervals of high grade that have a material impact
	•	Where aggregate intercepts incorporate short	on overall intersection are highlighted separately.
		lengths of high grade results and longer lengths of
		low grade results, the procedure used for such	None reported.
		aggregation should be stated and some typical
		examples of such aggregations should be shown in
		detail.
	•	The assumptions used for any reporting of metal
		equivalent values should be clearlystated.
Relationship	•	These relationships are particularly important in the	The relationship between true widths and the width of
between		reporting of Exploration Results.	mineralised zones intersected in trenching has not yet
mineralisation	•	If the geometry of the mineralisation with respect to	been determined due to lack of structural data (i.e. dip).
widths and		the drill hole angle is known, its nature should be
intercept lengths		reported.
	•	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	None included.
		tabulations of intercepts should be 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 for all sampling completed are listed in the body of
reporting		Results is not practicable, representative reporting of	this report.
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of
		Exploration Results.
Other	•	Other exploration data, if meaningful and material,	All meaningful and material data is reported.
substantive		should be reported including (but not limited to):
exploration data		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
		contaminatingsubstances.
Further work	•	The nature and scale of planned further work (eg	Detailed geochemistry and geology to determine trends of
		tests for lateral extensions or depth extensions or	known mineralised zones and to delineate other Co-Ag
		large-scale step-out drilling).	anomalies.
	•	Diagrams clearly highlighting the areas of possible	Further trenching to determine structural orientation of
		extensions, including the main geological	mineralised zones.
		interpretations and future drilling areas, provided this	Conducting an Airborne EM survey over the two key
		information is not commercially sensitive.	project areas.
			Conduct an IP survey.
			Drilling.

==> picture [37 x 36] intentionally omitted <==

MetalsTech Limited ACN 612 100 464 - Unit 1, 44 Denis Street, Subiaco WA 6008 T +61 400 408 878 | +61 415 493 993 www.metalstech.net