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METALSTECH LIMITED Capital/Financing Update 2018

May 22, 2018

65380_rns_2018-05-22_ec346a97-7b24-4f40-9fa7-cd25b9155bff.pdf

Capital/Financing Update

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ASX Release

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Exploration Commences at High Grade Cobalt Projects

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Sample Number	Easting	Northing	Sample Type	Brief Description
RLRC001	514924	5262417	Rockchip	Quartz-Calcite Vein. Trace sulphides
RLRC002	514905	5262421	Rockchip	Diabase - Plagioclase feldspar andpyroxene
RLRC003	514924	5262425	Rockchip	FeldspathicQuartzite
RLRC004	514906	5262426	Rockchip	Diabase - Plagioclase feldspar andpyroxene
RLRC005	514906	5262426	Rockchip	Quartz-Calcite Vein. Trace copper sulphides
RLRC006	514897	5262423	Rockchip	Calcite-Diabase contact
RLRC007	514894	5262411	Rockchip	Quartz-Calcite Vein. Trace copper,nickel and cobalt sulphides
RLRC008	514878	5262406	Rockchip	Quartz-Calcite Vein. Trace copper,nickel and cobalt sulphides
RLRC009	514854	5262388	Rockchip	Diabase. Trace cobalt and nickel sulphides
RLRC010	514851	5262365	Rockchip	Diabase. Trace cobalt and nickel sulphides

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	Ten rock chip samples were taken from the former Rusty Lake
		minerals under investigation, such as down hole	Mine waste dump stockpile. The rock chip samples therefore
		gamma sondes, or handheld XRF instruments,	were not taken from in-situ outcrop, therefore the width of
		etc). These examples should not be taken as	mineralisation cannot be estimated from the available data.
		limiting the broad meaning of sampling.
	•	Include reference to measures taken to ensure	Ten rock chip grab samples were submitted to ALS for analysis.
		sample representivity and the appropriate	These samples weighed approximately 500 grams to 2 kg.
		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)
		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	Not Applicable. Random grab sampling of ore stockpile dumps.
		geologically and geotechnically logged to a 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)
		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 ALS
and sample	•	If non-core, whether riffled, tube sampled, rotary	Laboratories in North Vancouver, British Columbia.
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

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.
	•	Whether sample sizes are appropriate to the
		grain size of the material beingsampled.
Quality of	•	The nature, quality and appropriateness of the	No new laboratory assay data reported yet. Assay results are
assay data		assaying and laboratory procedures used and	pending.
and laboratory		whether the technique is considered partial or
tests		total.
	•	For geophysical tools, spectrometers, handheld
		XRF instruments, etc, the parameters used in
		determining the analysis including instrument
		make and model, reading times, calibrations
		factors applied and their derivation, etc.
	•	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.
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	All field data is manually collected, entered into excel spreadsheets, validated and loaded into an Access database.
		(physical and electronic) protocols.
	•	Discuss any adjustment to assay data.
			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 rock chip sample location points are located using a hand
data points		drill holes (collar and down-hole surveys),	held GPS.
		trenches, mine workings and other locations
		used in Mineral Resource estimation.
	•	Specification of the grid system used.	The grid system used is UTM.
	•	Quality and adequacy of topographic control.
			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
and distribution	•	Results. Whether the data spacing and distribution is	Not applicable.
		sufficient to establish the degree of geological and grade continuity appropriate for the Mineral	None undertaken.
		Resource and Ore Reserve estimation
		procedure(s) and classifications applied.
	•	Whether sample compositing has been applied.
Orientation of	•	Whether the orientation of sampling achieves	Not Applicable. Adhoc grab sampling of waste dumps.
data in		unbiased sampling of possible structures and
relation to		the extent to which this is known, considering
		the deposit type.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
geological	•	If the relationship between the drilling orientation
structure		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 ALS Laboratories and receives an official receipt of
			delivery.
Audits or	•	The results of any audits or reviews of sampling	None completed.
reviews		techniques and data.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral	•	Type, reference name/number, location and	MetalsTech Limited owns 100% of the Bay Lake Cobalt
tenement and		ownership including agreements or material issues	Project and the Rusty Lake Mine Cobalt project pursuant
land tenure		with third parties such as joint ventures,	to binding acquisition agreements.
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 and the Rusty Lake project, but these do not
		reporting along with any known impediments to	compete with the subsurface or mineral rights over the
		obtaining a licence to operate in the area.	project, which are owned by 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.
parties			Historical exploration and government mapping records
			multiple cobalt mineralised zones within the project areas
			but no other data is available.
Geology	•	Deposit type, geological setting and style of	The Rusty Lake Mine Cobalt Project and the Bay Lake
		mineralisation.	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.
Drill hole	•	A summary of all information material to the	No modern drilling data exists. The Company is in the
Information		understanding of the exploration results including a	process of trying to obtain historical drill logs for the Rusty
		tabulation of the following information for all Material	Lake project (circa 1960’s).
		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

AI assistant

METALSTECH LIMITED Capital/Financing Update 2018

65380_rns_2018-05-22_ec346a97-7b24-4f40-9fa7-cd25b9155bff.pdf

ASX Release

Exploration Commences at High Grade Cobalt Projects

Commenting on the completion of the stakeholder engagement activities and commencement of exploration, Managing Director, Mr David Riekie stated:

ENDS

For further information, contact:

JORC Code, 2012 Edition – Table 1

Criteria	JORC Code explanation	JORC Code explanation	Commentary
		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
aggregation		techniques, maximum and/or minimum grade	None reported.
methods		truncations (eg cutting of high grades) and cut-off
		grades are usually Material and should be stated.
	•	Where aggregate intercepts incorporate short
		lengths of high grade results and longer 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.
	•	The assumptions used for any reporting of metal
		equivalent values should be clearlystated.
Relationship	•	These relationships are particularly important in the	Not Applicable. Random grab sampling of historical waste
between		reporting of Exploration Results.	dumps (samples not in-situ therefore geometry of
mineralisation	•	If the geometry of the mineralisation with respect to	mineralisation is unknown).
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	Not Applicable
reporting		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.
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
		extensions, including the main geological	Further trenching to determine structural orientation of
		interpretations and future drilling areas, provided this	mineralised zones.
		information is not commercially sensitive.	Conducting a geophysical work program to be followed by
			maiden drill program.

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METALSTECH LIMITED — Capital/Financing Update 2018

65380_rns_2018-05-22_ec346a97-7b24-4f40-9fa7-cd25b9155bff.pdf

ASX Release

Exploration Commences at High Grade Cobalt Projects

Commenting on the completion of the stakeholder engagement activities and commencement of exploration, Managing Director, Mr David Riekie stated:

ENDS

For further information, contact:

JORC Code, 2012 Edition – Table 1

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