METALSTECH LIMITED — Capital/Financing Update 2018

Feb 4, 2018

ASX Release 5 February 2018

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Dynavolt Renewable Energy Technology Co Ltd Defaults on Strategic Investment

MetalsTech Limited ( MTC or the Company ) provides the following update regarding the proposed investment by Shenzhen-listed Dynavolt Renewable Energy Technology Co Ltd ( Dynavolt ).

Highlights

• Dynavolt fails to fulfil its obligations under the legally Binding Terms Sheet by 31 January 2018 (refer ASX Release dated 6 December 2017 and 15 January 2018)

• MTC received a Termination Letter from Dynavolt on 1 February 2018 stating “Dynavolt is not satisfied with the outcome of the due diligence on the Company and is of the view that the subscription proposed under the Terms Sheet will not be in conformity with the development strategy of Dynavolt”

• For clarification, the Binding Terms Sheet with Dynavolt was subject to legal, financial, title and regulatory due diligence on the Company and the Projects. MTC and its advisors have not received a clear answer from Dynavolt as to what specific due diligence matters under the Binding Terms Sheet (legal, financial, title, regulatory) have not been satisfied and no indication of outstanding issues had been raised prior to receipt of the Termination Letter which was only provided upon demand by MTC

• MTC is seeking advice as to whether Dynavolt has acted unlawfully, however as it is possible that Dynavolt’s purported termination has been influenced by an adverse change in its own financial and corporate circumstances, from a practical standpoint Dynavolt may not be capable of completing

• While Dynavolt’s default is disappointing, MTC is fully funded for its exploration plans including at the Adina Lithium Project where an approximate 250m x 2km outcropping geological structure with high grade lithium mineralisation at surface will be targeted with mobilisation of a 2,000m diamond core drill program scheduled for 14 February 2018

• Downhole Optical and Acoustic Televiewer survey (OTV-ATV) to commence at Cancet in early March as precursor to recommencement of drilling at the shallow high grade lithium deposit

• Strategic $1.8m funding deal with Wuxi Baichuan Chemical Industrial Co ( BCC ) progressing well with the Government Regulatory Approval Process (China) underway following satisfaction of technical due diligence and completion of the MERN Transfers – for clarity, the End Date under the relevant BCC agreement is defined as “19 February 2018 or such later date as determined by the Company at its sole discretion, provided such date is not later than 15 March 2018”

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Registered Office Unit 1, 44 Denis Street Subiaco WA 6008 T +61 408 408 878 T +61 415 493 993 E info@metalstech.net

Board of Directors Executive Chairman - Russell Moran Executive Director - Gino D’Anna Non-Executive Director - Shane Uren Non-Executive Director - Michael Velletta

Projects Cancet 100% owned Adina 100% owned Terre Des Montagnes 100% owned Wells-Lacourciere 100% owned Kapiwak 100% owned Sirmac-Clapier 100% owned Bay Lake 100% owned

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• MTC’s strategy remains unchanged and discussions with other potential strategic partners continue, with the Directors hosting a strategic investor site visit in late February at its lithium and cobalt projects in Quebec and Ontario respectively

• MTC has $2.1m cash at bank (as at 31 December 2017) and 95,445,404 shares on issue

ENDS

For further information, contact:

Russell Moran	Gino D’Anna	Nathan Ryan
Executive Chairman	Executive Director	Investor Relations
M +61 415 493 993	M +61 400 408 878	M +61 420 582 887
russell@metalstech.net	gino@metalstech.net	nathan.ryan@nwrcommunications.com.au

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.

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