METALSTECH LIMITED — Capital/Financing Update 2018

Jan 21, 2018

ASX Release 22 January 2018

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

Completion of MERN Transfers and Strategic Chinese Investment Update

MetalsTech Limited ( MTC or the Company ) is pleased to announce that the Quebec Government and the Minister of Energy and Natural Resources Quebec ( MERNQ ) have formally completed and registered the transfer of the mining claims into MTC subsidiaries. The finalisation of this process allows for the completion of the $4.8m funding deals with chemical producer Wuxi Baichuan Chemical Industry Co Ltd ( BCC ) and battery manufacturer Dynavolt Renewable Energy Technology Co Ltd ( Dynavolt ).

Highlights

Mining Claims Transfers

• Quebec Government and the MERNQ have formally completed and registered the transfers of the mining claims into MTC subsidiaries pursuant to various acquisition agreements and direct claim staking

• The completion of this key milestone paves the way for strategic investments from BCC and Dynavolt

Dynavolt Strategic Investment

• Dynavolt is one of the largest battery manufacturers globally and a market leader in EV car and motorcycle batteries with a market capitalisation of more than 10 billion CNY

• Dynavolt to subscribe for 10,000,000 MTC shares at a price of $0.30 per share to raise $3,000,000 with 6 months’ escrow, subject to regulatory approval, for which the Company will be seeking shareholder approval

• MTC to facilitate Dynavolt share accumulation strategy by introducing third party shareholders (and advisors) for the acquisition of up to a further 5,000,000 MTC shares through on-market purchases

• If Dynavolt increases its share ownership to >12.5% Dynavolt will earn:

  • a right to participate in placements for 12 months to maintain ownership position

  • a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

• If Dynavolt increases its share ownership to >15% Dynavolt will earn a Board seat

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

Registered Office Board of Directors Unit 1, 44 Denis Street Executive Chairman - Russell Moran Subiaco WA 6008 Executive Director - Gino D’Anna T +61 408 408 878 T +61 415 493 993 Non-Executive Director - Shane Uren E info@metalstech.net Non-Executive Director - Michael Velletta

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

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

BCC Strategic Investment

• BCC to participate in a Cornerstone Placement by subscribing for 10,000,000 MTC shares at a price of $0.18 per share to raise $1,800,000 subject to 12 months’ escrow

• MTC to facilitate BCC share accumulation strategy by introducing third party shareholders (and advisors) for the acquisition of up to a further 5,000,000 MTC shares through on-market and offmarket purchases

• If BCC increases its share ownership to >15% BCC will be entitled to an MTC board seat

• MTC and BCC to work in good faith to negotiate a project-level equity investment at its projects

• MTC, together with BCC and Dynavolt, will work in good faith to negotiate a project-level equity investment at its projects as part of a larger strategy to develop lithium carbonate / hydroxide beneficiation facility in Quebec underpinned by spodumene concentrate feed from MTC projects

Adina Drilling Campaign

• MTC fully funded to complete maiden drill program at the Adina Lithium Project, with preparations currently underway

• Maiden diamond drilling campaign to commence at the Adina Lithium Project in February 2018 designed to test 2km outcropping pegmatite, where surface outcrop has assayed up to 3.12% Li2O

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

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

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

==> 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.

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

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