METRO MINING LIMITED — Capital/Financing Update 2012

Nov 18, 2012

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ACN 117 763 443

ASX ANNOUNCEMENT 19 November 2012

COLUMBOOLA JV – GOOMBI MAIDEN INDICATED RESOURCE

Highlights

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• Resource upgraded to 31.1 Mt Indicated

• Continues to confirm open cut mineable coal at Goombi

• Favourable stripping ratio of between 4:1 and 6:1

• Study progressing to identify a preliminary mine plan and a Probable Reserve Future export through the Port of Brisbane

MetroCoal Limited ( ASX-MTE ) and its Joint Venture (JV) partner, SinoCoal Resources Pty Ltd, recently announced the identification of a potential open cut resource at the Goombi in the Columboola Joint Venture Area in EPC 1165. We are now pleased to announce an open cut Indicated Resource of 31.1 million tonnes with a total open cut resource of 45 million tonnes in the Kogan Seam and Macalister Upper Seam, within the area shown in the attached Figure 1.

The strip ratio for coal seams to a depth of approximately 80 metres in the area of interest has been confirmed between 4:1 and 6:1 with some potential for a resource at 3:1 subject to further investigation of the depth of oxidation.

Detailed washability analysis is underway with preliminary results indicating that we can produce an attractive medium to low ash export thermal coal. More wash results over the potential open pit are expected before end November, which will allow us to finalise reserve work.

The total Columboola resource shown in Table 1 is unchanged at 1.76 billion tonnes with 45 million tonnes of which 31.1 million tonnes is Indicated Resource reallocated from the underground mineable resource to the open cut resource.

The JV remains fully committed to its longer term plan to develop a large modern underground longwall mine. This opencut mining resource presents an exciting opportunity for the Columboola JV to commence production in the near term, ahead of completion of the infrastructure connecting Columboola to the Port of Gladstone and will allow the JV to establish a market base for its Surat Basin coal.

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Figure 1 – Columboola EPC1165

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Table 1 – Resource Summary

					Raw Ash (%) Area (km2)	Raw Ash (%) Area (km2)
			Thickness (m)	Depth (m)			Volume (‘000 m3)	Tonnage (Mt)
Resource Estimate	Polygon	Seam
	Underground area 1	MUWS	4.5 (1.8-5.6)	141 (133-175)	26.6 (22-34)	10.7	46,700	70.9
Indicated Resource
	Underground area 2	MUWS	4.3 (2.3-5.3)	117 (99-143)	27.7 (21-33)	3.8	15,200	23.8
	Open cut Kogan Seam	KO10	3.1 (2.1-3.6)	36 (20-53)	25.4 (21-28)	3.0	9,100	13.6
Indicated Resource
	Open cut Macalister Upper Seam	MUWS	3.7 (1.6-5.2)	59 (34-77)	35.2 (27-37)	3.2	10,700	17.5
							Subtotal Indicated	125.8
	Underground area 1	MUWS	4.4 (1.8-9.5)	224 (35-427)	27.3 (17-34)	205	810,700	1233
	Underground area 2	MUWS	3.8 (1.9-5.7)	158 (62-219)	32.4 (29-35)	23.5	86,400	134
Inferred Resource
	Underground area 3	MUWS	3.6 (2.2-4.7)	381 (253-500)	22.7 (21-26)	20.2	69,900	102
	Underground area 4	MUWS	3.7 (1.8-5.7)	273 (188-348)	30.8 (28-33)	27.3	96,100	149
	Open cut Kogan Seam	KO10	2.5 (1.5-3.1)	43 (25-60)	26.6 (23-31)	1.5	3,800	5.6
Inferred Resource
	Open cut Macalister Upper Seam	MUWS	3.3 (1.6-4.8)	70 (49-80)	35.7 (32-37)	1.5	4,900	8.2
							Subtotal Inferred	1631.8
Total Resources Indicated + Inferred
							1757.6

For further information, please contact: Mr Mike O’Brien Mr Theo Psaros Chief Executive Officer Chief Operating Officer Phone: +61 (7) 3249 3040 Fax: +61 (7) 3249 3041 Email: admin@metrocoal.com.au Postal Address: GPO Box 122, Brisbane QLD 4001

Further information on MetroCoal can be found on our website www.metrocoal.com.au

Competent Person Statement

The information in this statement that relates to in situ coal resources potential is based on information compiled by GeoConsult Pty Ltd and reviewed by Warwick Smyth, who is a member of the Australasian Institute of Mining and Metallurgy (CP) Geology; and the Australian Institute of Geoscientists. Warwick Smyth is a qualified geologist (BSc Geology, Grad Dip AF&I, MAusIMM (CP), MGSA, MAIG), and a Principal Consultant for GeoConsult Pty. Ltd. and has over 19 years of experience which is relevant to the style of mineralisation, the type of deposit under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the Australian Code for Reporting of Coal Resources.

Neither Warwick Smyth nor GeoConsult Pty Ltd has a material interest or entitlement, direct or indirect, in the securities of MetroCoal or the Projects. GeoConsult has been commissioned to provide geological services and geological modelling to MetroCoal since early 2008. Fees for the preparation of this report are on a time and materials basis. Warwick Smyth and GeoConsult Pty Ltd consent to the use of this statement and references to it and extracts from it, in the form and context in which they are included. Apart from the above, neither the whole nor any part of the statement document, nor references thereto, may be included in, or with, or attached to any document, circular, resolution, letter or statement without the prior written consent of Warwick Smyth or GeoConsult Pty Ltd.

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