METRO MINING LIMITED — Capital/Financing Update 2019

Jul 16, 2019

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ASX ANNOUNCEMENT
17 July 2019
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Bauxite Hills Reserve and Resource Update

Highlights

• 18.8% increase in Reserve estimate from 92.2Mt to 109.5Mt

• Potential to extend mine life for an additional 3 years to 2037

• Increase in Reserve largely due to additional conversion of existing Resources

• Current Resource base of 138.2Mt

Metro Mining Limited (ASX:MMI) (“Metro”) is pleased to provide an update with respect to its JORC reserves and resources for the Bauxite Hills mine.

Following its first year of mining at Bauxite Hills, Metro has undertaken an update of its JORC Reserve and Resource. The results are displayed in the table below:

Reserves	Direct Shipping Ore (“DSO”) Wet Tonnes (Mt)	Al2O3%	**SiO2% **
Proved	77.4	49.4	12.4
Probable	32.1	47.7	14.3
Total	109.5	48.9	13.0

Resources	Dry Tonnes (Mt)	Al2O3%	**SiO2% **
Measured	78.1	50.3	12.1
Indicated	39.8	49.1	14.6
Inferred	20.3	45.4	16.7
Total	138.2	49.3	13.4

Note: Refer to JORC Tables in Appendix

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ASX Announcement | 17 July 2019 | Page 1

Reserves

The total Reserve estimate for Bauxite Hills is now 109.5Mt (wet) and takes into account depletion to March 2019 and additional conversion of Resources. The overall increase in Reserves (taking into account depletion by mining) is 17.3Mt or 18.8% from that published in March 2017 (see ASX Announcement 15 March 2017). This has the potential to extend mine life by approximately 3 years to 2037, at the expanded run rate of 6Mtpa (which is subject to Metro Board approval).

The increase in Reserve is largely due to:

• Additional conversion of resources to reserves, particularly from the BH2 area; and

• Change in moisture assumption from 10% to 12%, reflecting actual conditions gained from operating experience.

Resources

The total Resource for Bauxite Hills is now 138.2Mt (dry), representing a decrease of 4.6% from March 2017 (see ASX Announcement 15 March 2017). The decrease is due to:

• Bauxite ore mined to date;

• Application of a more conservative dry bulk density of 1.83, reflecting initial mining reconciliations undertaken in 2018; and

• Small areas of Inferred Resource being removed as a result of in-fill drilling results, offset by a small area of Indicated Resource at the southern end of the BH6 area.

The total Measured Resource is now 78.1Mt (dry), representing a 42.8% increase of the Measured category from that published in March 2017, reflecting greater levels of confidence in the Resource. There has also been a slight improvement in alumina and silica grades.

Metro’s Managing Director and Chief Executive Officer Simon Finnis said:

“We are pleased to report the increase in Reserve, effectively extending the mine life of Bauxite Hills, and the greater level of confidence in the total Resource. There has been strong reconciliation from the results of mining to date and the Resource and Reserve model. The results of this update demonstrate our increased confidence in the project.”

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ASX Announcement | 17 July 2019 | Page 2

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ASX: MMI | ACN 117 763 443

For Further Info: P : +61 (0) 7 3009 8000 | E : info@metromining.com.au | W : www.metromining.com.au Contact: Simon Finnis, MD & CEO | Mitchell Petrie: Company Secretary | Duane Woodbury : CFO Registered Office & Head Office: Lvl 2, 247 Adelaide St, Brisbane | GPO Box 10955, Brisbane Q 4000

Competent Person Statement:

The information in this report that relates to Exploration Results is based on information compiled by Neil McLean who is a consultant to Metro Mining and a Fellow of the Australian Institute of Mining and Metallurgy (F.Ausimm). Mr McLean 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 McLean consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

Competent Person Statement:

The information in this report that relates to Mineral Resources is based on information compiled by Ed Radley who is a consultant to Metro Mining and a Member of the Austral Institute of Mining and Metallurgy (MAusIMM)). Mr Ed Radley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Ed Radley has consented in writing for inclusion in this announcement the matters based on the information in the form and context it appears.

Competent Person Statement:

The information in this report that relates to Metro Reserves is based on information compiled by MEC Mining and reviewed by Edward Bolton, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Edward Bolton is a full-time employee of MEC Mining Pty Ltd. Edward Bolton has sufficient experience that is relevant to the style of mineralization, 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’. Edward Bolton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statement : Statements and material contained in this ASX Release, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro Mining Limited, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Graphs used in the presentation (including data used in the graphs) are sourced from third parties and Metro Mining has not independently verified the information. Metro Mining is at an early development stage and while it does not currently have an operating bauxite mine it is taking early and preliminary steps (such as but not limited to Prefeasibility studies etc.) that are intended to ultimately result in the building and construction of an operating mine at its project areas. Although reasonable care has been taken to ensure that the facts stated in this Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

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ASX Announcement | 17 July 2019 | Page 3

APPENDIX 1 – JORC CODE 2012 EDITION – TABLE 1 REPORT

BAUXITE HILLS MINE – APRIL 2019 MINERAL RESOURCE ESTIMATE

SECTION 1 SAMPLING TECHNIQUES AND DATA

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation - DSO (“Direct Shipping Ore”)
Sampling	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised
Techniques	industry standard measurement tools appropriate to the minerals under investigation, such as
	down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be
	taken as limiting the broad meaning of sampling.
	• Include reference to measures taken to ensure sample representivity and the appropriate
	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 (e.g.
	‘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 (e.g. submarine nodules) may warrant disclosure of detailed information.
	Commentary
	Drilling undertaken by Cape Alumina Limited on its tenements prior to its acquisition by Metro
	Mining Limited.
	BH1, BH2 and BH6 Reverse Circulation (RC) aircore drill hole samples were collected in plastic bags
	over 0.25 m intervals through a cyclone. All the material within the interval was collected. All
	samples were geologically logged at time of collection to determine 1) the type of bauxite
	material, 2) when to stop the hole, 3) which samples to retain for analyses and 4) which samples to
	composite over 0.5 m intervals.
	Samples were composited, at the time of collection, over 0.5 m intervals where the geologically
	logged material was similar. All other samples were collected over 0.25 m samples.
	The entire sample was collected to ensure, as much as possible, the representivity of the drilled
	material. Sample weights were between 2 and 5 kg depending on whether they were composited
	at the time of collection.
	Samples that contained pisolites, in any volume, were assumed to be bauxitic and were retained
	for analyses.
	Drilling undertaken by Gulf Alumina Limited on its tenements prior to its acquisition by Metro Mining
	Limited
	Both sonic and aircore drilling methods were used in several drilling programs between 2005 and
	2017.
	The sampling method employed for the aircore drilling was similar to that adopted by Cape
	Alumina Limited as described above with the exception that samples were not composited over
	0.5 m intervals.
	For the Sonic drilling method sampling was carried out in 0.25 m intervals. Samples were collected
	within a custom designed ‘sausage’ bag that is inserted into the barrel. The sample was retrieved
	after completing the drilling run which varied from 0.5 m to 1.5 m. The ‘sausage’ was laid out on a
	table then the length measured and compared to the actual down hole depth. The sample was
	then divided into equal lengths of 0.25 m, immediately logged then placed into airtight clear
	plastic bags and sealed with cable ties to retain moisture. Bulk density determinations were carried
	out where there was no observable damage to the ‘sausage’ bags. The diameter of the ‘sausage’
	was measured with a Vernier scale and once the sample was placed into airtight plastic bags it
	was weighed with allowance for the weight of the bag. Field measurements of wet bulk density
	were made but most samples were also weighed wet and dry in the laboratory to obtain more
	accurate drybulk densityvalues. Some samples were driedprior to wet weighingand in these

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Criteria	JORC Code explanation - DSO (“Direct Shipping Ore”)
	cases, field measurements have been used.
	Drilling undertaken by Metro Mining in 2018.
	A small program of drilling using the vacuum method was completed in 2018. Samples were
	collected at 0.25 m intervals within the vacuum flask attached to the tractor-mounted drill rig. All
	the material from the interval was collected, geologically logged and bagged. No compositing of
	intervals was undertaken.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka,
Techniques	sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails,
	face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).
	Commentary
	The majority of the resource evaluation drilling was carried out by Wallis Drilling Pty Ltd using a
	Mantis 100 Reverse Circulation aircore drill rig mounted on a light 4x4 truck. Shallow (4-6 m) holes
	were drilled vertically using HQ rods with an aircore drill bit with an outside diameter of 96 mm.
	Drilling to collect samples for bulk density and moisture determinations was undertaken by
	GeoSonic Drilling Pty Ltd using a small trailer-mounted sonic drill rig with an internal bit diameter of
	65 mm.
	Vacuum drilling was undertaken by Yearlong Contracting using a tractor-mounted drill rig. The bit
	diameter was 48 mm.
Drill	• Method of recording and assessing core and chip sample recoveries and results assessed.
Sample	• Measures taken to maximise sample recovery and ensure representative nature of the samples.
Recovery	• 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.
	Commentary
	Reverse Circulation aircore drilling and vacuum drilling were used because of their proven
	reliability in producing high sample recoveries and accurate interval depths in bauxite exploration.
	No formal method of measuring and recording recoveries was adopted.
	To ensure representivity of the material being drilled the entire sample was collected from the drill
	hole.
	The aircore and vacuum drilling methods were used to ensure collection of as representative a
	sample as possible.
	Sonic samples were collected at the rig through an inner plastic ‘sausage’ bag. The entire sample
	was recovered by this method. The sonic drilling method was used to collect samples for bulk
	density determinations as it is a proven method of collecting continuous and intact samples that
	can be measured to determine volumes and weighed to determine densities.
Logging	• Whether core and chip samples have been 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.
	Commentary
	All drilled intervals were geologically logged at 0.25 m intervals. The logging was done in a
	qualitative manner and focused on documenting the amount of pisolitic material, soil, clays and
	ironstone. In the field the bauxitic horizons were defined by the presence of pisolites and the
	absence of ferricrete. Data were recorded on field sheets or on a field portable laptop.
Sub-	• If core, whether cut or sawn and whether quarter, half or all core taken.
Sampling	• If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.
Techniques	• For all sample types, the nature, quality and appropriateness of the sample preparation
and	technique.
Sample	• Quality control procedures adopted for all sub-sampling stages to maximize representivity of
Preparation	samples.
	• Measures taken to ensure that the sampling is representative of the in-situ material collected,

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Criteria

JORC Code explanation - DSO (“Direct Shipping Ore”)

including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

Commentary

No sub-sampling of material was undertaken at the time of collection. The entire sample was collected over 0.25 m intervals directly from the cyclone on the drill rig. The samples did not require any drying prior to bagging.

For the analyses of DSO bauxite two sample preparation protocols were used as follows:

1. For samples from drill holes on a nominal 320 m by 320 m grid that were previously screened (+1. 2 mm) and analysed in 2011:

2. Create a composite sample (or samples) over the bauxite interval in each hole using all the material in unscreened (raw) sample splits retained from the initial analyses of screened (beneficiated) samples (undertaken either under the supervision of the company or at ALS’s Virginia laboratory).

3. Report weight of received sample.

4. Riffle split each sample down to an acceptable size for pulverizing and return split to original bag for storage (undertaken by ALS’s Virginia laboratory in Brisbane).

5. Pulverise the smaller portion of the split to a nominal 85% passing 75 microns (undertaken by ALS’s Virginia laboratory in Brisbane).

6. For samples from in-fill drill holes on nominal 160 m by 160 m and 80 m by 80 m grids that had not been previously prepared or analysed:

7. Report weight of received sample.

8. Riffle split each sample down to an acceptable size for pulverising and return split to original bag for storage (undertaken by ALS’s Virginia laboratory in Brisbane)

9. Pulverise the smaller portion of the split to a nominal 85% passing 75 microns (undertaken by ALS’s Virginia laboratory in Brisbane).

10. Approximately 15% of the samples are composite samples that have been prepared in the laboratory by riffle splitting and combining. The composites do not include more than two samples.

These preparations are regarded as being appropriate for bauxite analyses.

As the entire sample was collected in the field no duplicate sampling was possible or deemed necessary.

Gulf Alumina’s sonic drilling samples were collected in full directly from the ‘sausage’ bag and varied from 0.9 kg to 1.8 kg in weight when collected. Duplicate samples were collected every 20 samples by cone and quarter method in the field at the time of drilling.

• Quality of • The nature, quality and appropriateness of the assaying and laboratory procedures used and Assay Data whether the technique is considered partial or total. & • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in Laboratory determining the analysis including instrument make and model, reading times, calibrations Tests factors applied and their derivation, etc.

• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Commentary

For both Metro Mining and Gulf Alumina sample analyses for total oxides were undertaken by ALS at its Stafford laboratory in Brisbane. Available alumina and reactive silica analyses were undertaken by ALS for Metro Mining and SGS for Gulf Alumina.

The analytical methods applied to the pulverised sample were as follows :

• Total oxides by XRF (ALS code ME-XRF13b). Al2O3, BaO, CaO, Cr2O3, Fe2O3, K2O, MgO, Na2O, P2O5, SiO2, SO3, SrO, TiO2, V2O5, Zn, ZrO20.

• H2O/LOI by TGA furnace (ALS code ME-GRA05)

• Available alumina by ALS method Al-LICP01 (150[0] C) (Metro Mining)

• Reactive silica by ALS method Si-LICP01 (150[0] C) (Metro Mining)

• Available alumina by SGS method ICP05 (148[0] C) (Gulf Alumina)

• Reactive silica by SGS method ICP05 (148[0] C) (Gulf Alumina)

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• Criteria JORC Code explanation - DSO (“Direct Shipping Ore”) Two standard reference samples for bauxite were obtained from Geostats Pty Ltd, renumbered, and provided to the laboratory to insert in each batch. One of each sample was inserted approximately every twenty (20) samples. This was regarded as a measure of the accuracy of the laboratory. The results were all within one standard deviation of the certified values indicating no significant bias between sample batches. No field duplicate samples were collected as the total sample was submitted for analysis. In the laboratory as a Quality Control measure, every 10[th] sample was completed in duplicate and four laboratory standards and one blank were run in conjunction with the samples and data reported to the company.

• Verification • The verification of significant intersections by either independent or alternative company of personnel. Sampling • The use of twinned holes. and • Documentation of primary data, data entry procedures, data verification, data storage Assaying (physical and electronic) protocols. • Discuss any adjustment to assay data.

Commentary

In the laboratory every 10th sample was completed in duplicate as described above.

Analyses from 21 twinned drill holes were undertaken. Duplicate holes had very high correlation coefficients for the total silica, reactive silica, total alumina and available alumina grades that signified no inherent problems in the sampling or laboratory protocol.

Analytical data were provided by the laboratory in csv and pdf formats. The data were compiled by the company into Excel spreadsheets and merged with drill hole location data, geological logs and sample intervals.

The Gulf Alumina data were viewed by S. Border of Geos Mining and W. Zhang of Gulf Alumina. The 2014 drilling programme included some close spaced drilling to determine local variations in bauxite thickness and cementation. Data was entered into one single database from which all estimation work is carried out. There is no duplication of tables. The database was then exported from Access and merged with the Metro Mining BH6 database.

• Location of • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), Data Points trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used.

• Quality and adequacy of topographic control.

Commentary

Metro Mining Limited. RC aircore drill hole collar positions from the 2011 drilling program were surveyed by Fugro Spatial Solutions Pty Ltd using Trimble RTK GPS units. Three units were used; one base station and two rovers. Easting and Northing co-ordinates were quoted to three decimal places based on datum GDA94 using zone 54. Elevation was quoted to two decimal places using an adopted AHD from Ausgeoid’09. Vacuum drill hole collars from the 2018 drilling program were surveyed by the qualified surveyor at the bauxite Hills mine using an RTK GPS unit.

Gulf Alumina Limited. Hole collars were surveyed using a differential GPS with a horizontal accuracy of ± 40 cm. Vertical accuracy is much greater at ~80 cm. Data was collected with reference to the GDA94 datum and recorded as Zone 54 metric coordinates.

In late 2014 LiDAR data was acquired by both companies which provided more accurate elevation data. This data has been used in the resource modelling by registering drill hole collars onto the LiDAR based topography surface.

• Data • Data spacing for reporting of Exploration Results. Spacing & • Whether the data spacing and distribution is sufficient to establish the degree of geological Distribution and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

Commentary

In the BH1 area 1,482 holes were drilled on a nominal 80 m x 80 m north-south, east-west grid. In the BH2 area 142 holes were drilled on a nominal 160 m x 160 m north-south, east-west grid. In the BH6

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Criteria	JORC Code explanation - DSO (“Direct Shipping Ore”)
	area 505 holes were completed on a 160 m x 160 m grid. Gulf Alumina’s drill hole spacing was
	variable being from 80 m x 80 m to 400 m x 400 m. In 2018 Metro Mining drilled an additional 221
	holes in the BH6 area on a 160 m x 160 m grid.
	Samples were submitted for analyses from all drill holes either as individual samples or composites.
	Approximately 15% of the samples from Metro Mining’s 160 m x 160 m drilling were composites
	prepared in the laboratory by riffle splitting and combining a maximum of two samples. All other
	samples were the original 0.25 m or 0.5 m samples.
	In February 2015 the sonic drilling program established a series of holes through the area allowing
	the certainty to assign Measured Resource within 800 m of the dry bulk density analysis.
Orientation	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the
of Data in	extent to which this is known, considering the deposit type.
Relation to	• If the relationship between the drilling orientation and the orientation of key mineralized
Geological	structures is considered to have introduced a sampling bias, this should be assessed and
Structure	reported if material.
	Commentary
	All drill holes are vertical and intersect the mineralisation at an approximate 900angle. The
	mineralisation is known to be near horizontal with a tabular attitude. This is typical of bauxite
	deposits in the Weipa area. There is therefore no sampling bias resulting from the orientation of the
	drilling and that of the mineralised body.
Sample	• The measures taken to ensure sample security.
Security	Commentary
	The samples were collected in large plastic sample bags on site which were secured with industrial
	quality duct tape and then placed, along with other samples from the drill hole, in large
	polyweave bags which were secured with cable ties.
	Due to the nature of bauxite mineralisation there is little opportunity to tamper with or otherwise
	modify the sample.
	The samples used in the DSO bauxite Mineral Resource estimates were stored in secure containers
	in a locked shed in a secured industrial estate in Raceview, Ipswich, Queensland.
Audits or	• The results of any audits or reviews of sampling techniques and data
reviews	Commentary
	No independent audits of the aircore drilling and sampling procedures have been undertaken.
	Geos Mining reviewed the data and modelling methodology and provided recommendations to
	enable sign off as a Competent Person for the Mineral Resources at both BH1 and BH6 deposits in
	2015. The BH2 drilling, including RC and sonic, were carried out in the same manner as part of the
	same programmes that gathered the BH1 and BH6 data.
	A review of the bulk density determinations derived from the sonic drilling program was undertaken
	by Xstract Mining Consultants Pty Ltd. They supported the idea of applying an average Relative
	Density to a block based on the samples. In practice the Relative Density has been modelled to
	improve definition of the estimation.
	With regard to the data generated by Gulf Alumina Geos Mining state that In house auditing of
	QC has shown no irregularities although it is noted that:
	• There is a moderate variability in bauxite thickness (relating to silica abundance)
	• There is a marked variation in recoveries of samples from which assays are measured
	• There is a bias in the measurement of samples for bulk density where cemented material causes
	rupturing of the sample ‘sausage.’

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SECTION 2 REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation – DSO (“Direct Shipping Ore”)
Mineral	• Type, reference name/number, location and ownership including agreements or material issues
Tenement	with third parties such as joint ventures, partnerships, overriding royalties, native title interests,
and Land Tenure Status	historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to
	obtaining a licence to operate in the area.
	Commentary
	The Bauxite Hills Mine Mineral Resources and associated infrastructure are located within the
	following granted tenements:
	• ML 6025 (Gulf Alumina Pty Ltd)
	• ML 20676 (Aldoga Minerals Pty Ltd (99%) and Cape Alumina Pty Ltd (1%))
	• ML 20688 (Aldoga Minerals Pty Ltd (99%) and Cape Alumina Pty Ltd (1%))
	• ML 20689 (Aldoga Minerals Pty Ltd (99%) and Cape Alumina Pty Ltd (1%))
	• ML 40069 (Gulf Alumina Pty Ltd)
	• ML 40082 (Gulf Alumina Pty Ltd)
	• ML 100130 (Aldoga Minerals Pty Ltd (99%) and Cape Alumina Pty Ltd (1%))
	• MDL 423 (Gulf Alumina Pty Ltd (95%) and ACC Ecominerals Pty Ltd (5%))
	• MDL 425 (Gulf Alumina Pty Ltd (95%) and ACC Ecominerals Pty Ltd (5%))
	• EPM 15376 (Cape Alumina Pty Ltd)
	• EPM 16899 (Cape Alumina Pty Ltd)
	• EPM 18242 (Gulf Alumina Pty Ltd (95%) and ACC Ecominerals Pty Ltd (5%))
	• EPM 26198 (Gulf Alumina Pty Ltd)
	With the exception of ACC Ecominerals Pty Ltd all the tenement titleholders are wholly-owned
	subsidiaries of Metro Mining Limited.
	The underlying tenements are in good standing.
	The tenements lie within the Old Mapoon DOGIT with which the company has a Conduct and
	Compensation agreement. The company has an Ancillary Agreement with the Native Title parties
	and the Trustees of the Land.
Exploration	• Acknowledgment and appraisal of exploration by other parties.
Done by Other Parties	Commentary
	An appraisal has been undertaken of previous exploration for bauxite. Although some widespread
	sampling existed there was no evidence of systematic, grid-based drilling. Early exploration of the
	area was undertaken by Comalco for bauxite. Other companies explored to the north of Skardon
	River (Pacminex for bauxite in the early 1970s) or to the south of Mapoon (Shell and Comalco
	explored the Pennefather area for kaolin in the 1980s and early 1990s). There is no documented
	evidence of previous exploration over the area of the Bauxite Hills Mine. The only recorded work
	carried out by Australian Kaolin Limited (AKL) and its predecessor Venture Kaolin outside the area
	of the Mining Leases was five percussion holes drilled in 1986. AKL went into receivership and the
	project was acquired by Queensland Kaolin Limited which subsequently changed its name to
	Australian China Clays Limited (ACC). ACC carried out intermittent kaolin mining and processing
	operations before abandoning work in the early 2000s.
Geology	• Deposit type, geological setting and style of mineralization
	Commentary
	The deposit type is lateritic bauxite derived from the weathering of aluminous sediments in a
	tropical to sub-tropical environment.
	The project area forms part of the Weipa Plateau and is underlain by rocks of the Carpentaria
	Basin. The oldest rocks intersected by drilling in the area are grey-black marine shales, which have
	been assigned to the Cretaceous Rolling Downs Group. This is up to 250 m thick and is underlain by
	sandstones of the Helby Beds. These rocks are a source of artesian water. The bauxite deposits
	generallyconsist of a single bauxite layer,0.5 m – 3 m thick,that is underlain bya kaolin horizon.

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Criteria	JORC Code explanation – DSO (“Direct Shipping Ore”)
	The bauxite deposits are overlain by lateritic overburden and topsoil. Under the bauxite there is
	often a cemented ironstone and a kaolin clay layer. Kaolin, sandy clays and minor quartz sand
	deposits occur beneath the bauxite layer and extend beyond the bauxite areas, beneath the
	Namaleta Creek flood plain.
	Bauxite occurs over the majority of the plateau areas. It is pisolitic in form and is generally covered
	only by a thin layer of soil, but in the western parts of the project area bauxite is sometimes found
	beneath sand dunes at depths of up to 6 m. The bauxite passes down into an iron rich horizon
	(ferricrete) and then into mottled, bleached Bulimba Formation sandy clays. Bauxite pisoliths
	generally form 55-80% of high-quality bauxite, with the remainder being sand, silt and clay. The
	pisoliths are well rounded, and generally 5 to 20 mm in size, although larger pisoliths of up to 30 mm
	do occur in the bauxite horizon. Larger, irregular shaped pisoliths and concretions are typical of the
	underlying ironstone horizon and form a visual marker of the base of the bauxite.
	Most of the bauxite is loose and free flowing although a proportion is cemented. The aircore drilling
	method used for exploration is efficient at drilling through thin layers of cemented bauxite, so from
	the exploration drilling alone it is difficult to make any accurate assessment of the proportion of
	cemented bauxite in this deposit. Mining experience in Weipa and Andoom has demonstrated
	that cemented bauxite is typically a small percentage of the total bauxite in this region.
Drill Hole	• A summary of all information material to the understanding of the exploration results including a
Information	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 drill hole length.
	• If the exclusion of this information is justified on the 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 why this is the case.
	Commentary
	All Metro Mining’s drill hole information, including surveyed collars with easting, northing, elevation
	and depth, geological logs and analytical data are presented in Excel spreadsheets. These data
	were used in the estimation of the Mineral Resources. The data are stored in a cloud-based
	Microsoft Azure database that is managed by Geos Mining for Metro Mining and backed-up in an
	office-based server
	Data sourced from Gulf Alumina were contained within a comprehensive database that has been
	validated.
Data	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum
Aggregation	grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and
Methods	should be stated.
	• Where aggregate intercepts incorporate short lengths of hig- 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 clearly stated.
	Commentary
	For BH1 and BH2 the bauxite intervals are based on a cut-off of ≥45% total Al2O3and ≤15% SiO2. For
	BH6 (including the former Gulf Alumina areas) the bauxite intervals are based on a cut-off of ≥45%
	total Al2O3and ≤20% SiO2. A minimum thickness of 0.5 m was applied and the top 0.25 m was
	considered to be overburden and was not aggregated. Down-hole assays were weighted on the
	basis of both intercept thickness and intercept recovery to determine the weighted average assay
	for the bauxite zone in each drill intercept. No upper cut-off grades were applied.
	Some DSO bauxite samples used in the Mineral Resource estimates were created by compositing
	the splits over the entire bauxite interval, as defined by the cut-offs described above, for each
	hole. The remainder (~80%) are non-composited 0.25 m or 0.5 m samples.
	A number of analyses from the Gulf Alumina drill holes are from screened (>1.2 mm) samples that
	have been converted to DSO analyses using correlation coefficients generated from samples that
	have both screened and DSO analyses.

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ASX Announcement | 17 July 2019 | Page 10

Criteria	JORC Code explanation – DSO (“Direct Shipping Ore”)
Relationship	• These relationships are particularly important in the reporting of Exploration Results.
between	• If the geometry of the mineralization with respect to the drill hole angle is known, its nature
Mineralization	should be reported.
Widths and	• If it is not known and only the down hole lengths are reported, there should be a clear
Intercept	statement to this effect (e.g. ‘down hole length, true width not known’)
Lengths	Commentary
	All drill holes are vertical and intersect the mineralisation at an approximate 900angle. The
	mineralisation is known to be near horizontal with a tabular attitude. Intercept lengths are therefore
	approximately the same as the true widths of the mineralisation. This is typical of bauxite deposits in
	the Weipa area. All but a small number of drill holes penetrated the base of the bauxite horizon
	with the transition to waste occurring in a 0.25 cm sample interval.
Diagrams	• Appropriate maps and sections (with scales) and 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.
	Commentary
	Due to the high density of drilling it is difficult to display the data on a plan.
Balanced	• Where comprehensive reporting of all Exploration Results is not practicable, representative
Reporting	reporting of both low and high grades and/or widths should be practiced to avoid misleading
	reporting of Exploration Results.
	Commentary
	This is not deemed to be Material for the reporting of the Mineral Resources which considers all the
	analytical data. All resource estimation work is based on the entire database.
Other	• Other exploration data, if meaningful and material, should be reported including (but not
Substantive	limited to): geological observations; geophysical survey results; geochemical survey results; bulk
Exploration	samples – size and method of treatment; metallurgical test results; bulk density, groundwater,
Data	geotechnical and rock characteristics; potential deleterious or contaminating substances.
	Commentary
	Apart from the regular samples obtained from the drilling a small number of bulk samples were
	collected over 1 m intervals from the aircore drilling for dispatch to potential customers.
	A combination of RC aircore, sonic and vacuum drilling has been the main exploration method
	used in the drilling programs, apart from very limited backhoe and hand sampling. Samples have
	been analysed mainly by ALS Laboratories in Brisbane.
Further Work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth
	extensions or large-scale step-out drilling).
	• Diagrams clearly highlighting the areas of possible extensions, including the main geological
	interpretations and future drilling areas, provided this information is not commercially sensitive.
	Commentary
	No further in-fill drilling is planned for the resource assessment apart from routine grade-control
	drilling as part of the mine scheduling. A small amount of drilling in areas of Inferred Resources will
	be undertaken as required to improve the confidence of the resource category.

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SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

	Criteria	JORC Code explanation – DSO (“Direct Shipping Ore”)
	Database	• Measures taken to ensure that data has not been corrupted by, for example, transcription or
	Integrity	keying errors, between its initial collection and its use for Mineral Resource estimation purposes.
		Datavalidationprocedures used.
		Commentary
		Analytical data was received from the laboratory in csv format and merged with drill hole
		locational and from-to data in Excel spreadsheets. Checks were run to look for and correct
		duplicated intervals, gaps and typing errors. Vulcan’s database import and compositing routines
		generated validation log files that were all checked in detail. All issues identified were verified,
		checked and corrected.
		Gulf Alumina’s survey data has been directly downloaded from the GPS instrument to the Access
		database. Elevation data has been compiled from LiDAR data. Sampling and logging data has
		similarly been copied directly from the field geologist’s digital logs Assay data has been also
		downloaded directly from ALS csv files. Validation of all data has been undertaken through in-built
		functions of the modelling software (Micromine), together with visual checks by the resource
		geologist.
		Upon combining the model all data has also been validated by importing into Vulcan can
		generating composites. Any horizons out of sequence or over lapping intervals and gaps are
		reported by the software and then checked against source data and corrected.
	Site Visits	• Comment on any site visits undertaken by the Competent Person and the outcome of those
		visits.
		• If no site visits have been undertaken indicate why this is the case.
		Commentary
		The Competent Person for exploration results, Neil McLean, supervised the initial Cape Alumina
		drilling program and was on site a number of times during the program. He has made a number of
		visits to the mine site since mining commenced. The Competent Person for the resource modelling,
		Ed Radley, was not working on the project during the exploration phase and as such could see
		little benefit in a field visit that has not been related in photographs and presentation from others.
		In the case of the data acquired by Gulf Alumina the Competent Person, Jeff Randell, whom
		signed off on the previous resource (2014) visited the site on four occasions; three of which
		involved the supervision of drilling programmes. He viewed surveying methods, geological and
		sample collection procedures on all these occasions.
	Geological	• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral
	Interpretation	deposit.
		• Nature of the data used and of any assumptions made.
		• The effect, if any, of alternative interpretations on Mineral Resource estimation.
		• The use of geology in guiding and controlling Mineral Resource estimation.
		• The factors affecting continuity both of grade and geology.
		Commentary
		The geological interpretation is grade-based using a threshold of ≥45% total Al2O3and ≤15% total
		SiO2for BH1 and BH2 and of ≥45% total Al2O3and ≤20% total SiO2for BH6 (including the old Gulf
		Alumina areas), to define economic bauxite. The continuity of the geological interpretation is
		confirmed with a reasonable degree of confidence. The data points are spaced at 80 m in a
		nominal grid pattern for almost the entire BH1 deposit and at 160 m in a nominal grid pattern over
		the BH2 and BH6 deposits. The data points for the Gulf Alumina area are more variable but
		generally less than 400 m on a nominal grid. Information from other deposits in the Weipa area
		provides additional confidence in the geological model.
		The regional geological setting has been well known since discovery of the Weipa deposits, 80 km
		to the south. The considerable drilling already completed has given confidence in the local
		geological setting although it is noted that the definition of bauxite is essentially a chemical one,
		initially guided by lithological logging.

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The deposit type is lateritic bauxite derived from the weathering of aluminous sediments in a
tropical to sub-tropical environment. The mineralisation within the Bauxite Hills Mine forms part of
the Weipa Plateau, a widespread area of aluminous laterite on the west coast of Cape York
Peninsula that includes Rio Tinto Alcan’s Weipa, Andoom and Amrun bauxite deposits.
The bauxite deposits generally consist of a single flat-lying pisolitic bauxite layer, 0.5 m – 3 m thick,
which is underlain by a kaolin horizon. Within the resource area the average bauxite thickness is 1.6
m. The bauxite deposits are overlain by lateritic overburden and topsoil. Under the bauxite
deposits there is often a ferruginous cemented layer and a kaolin clay layer. Kaolin, sandy clays
and minor quartz sand deposits occur beneath the bauxite layer and extend beyond the bauxite
areas.
Dimensions • The extent and variability of the Mineral Resource expressed as length (along strike or
otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral
Resource.
Commentary
The mineralisation within the bauxite plateaus is flat lying and tabular in form. The Mineral Resource
has the following surface area, average bauxite thickness and average overburden thicknesses.
BH1: Area 6.8 km [2] . Bauxite thickness 1.7 m. Overburden 0.6 m
BH2: Area 3.1 km [2] . Bauxite thickness 1.6 m. Overburden 0.5 m
BH6/Gulf Alumina: Area 39 km [2] . Bauxite thickness 1.4 m. Overburden 0.76 m
Estimation & • The nature and appropriateness of the estimation technique(s) applied and key assumptions,
Modelling including treatment of extreme grade values, domaining, interpolation parameters and
Techniques maximum distance of extrapolation from data points. If a computer assisted estimation method
was chosen include a description of computer software and parameters used.
• The availability of check estimates, previous estimates and/or mine production records and
whether the Mineral Resource estimate takes appropriate account of such data.
• The assumptions made regarding recovery of by-products.
• Estimation of deleterious elements or other non-grade variables of economic significance (e.g.
sulphur for acid mine drainage characterisation).
• In the case of block model interpolation, the block size in relation to the average sample
spacing and the search employed.
• Any assumptions behind modelling of selective mining units.
• Any assumptions about correlation between variables.
• Description of how the geological interpretation was used to control the resource estimates.
• Discussion of basis for using or not using grade cutting or capping.
• The process of validation, the checking process used, the comparison of model data to drill
hole data, and use of reconciliation data if available.
Commentary
A block model was created by constructing a DTM and surface model of the soil, bauxite and
transition zone. The block model was cut to tenement boundaries, environmentally sensitive areas
and bauxitic plateaus then filled with assay and bulk density data using an Ordinary Kriging
algorithm with variograms created for total silica/ alumina, available alumina, reactive silica and
dry bulk density. LOI, Ti2O3 and Fe2O3 were also modelled.
Estimation parameters used included:
• Grid size 40 m x 40 m
• Omnidirectional search ellipse with maximum search distance of 800 m
• Lag intervals 100, 200, 400, 800, 1200 m.
• Nugget, major/ minor ranges determined by best fit variograms
Moisture • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of
determination of the moisture content.
Commentary
The tonnes are quoted on a dry basis. The moisture contents were measured by ALS on the sonic
drill samples. Following drying the samples were re-weighed to provide a weight to use in the bulk
density calculations.
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ASX Announcement | 17 July 2019 | Page 13

Cut-off	• The basis of the adopted cut-off grade(s) or quality parameters applied.
Parameters	Commentary
	Mineralised zones in the BH1 and BH2 portion of the model are defined by grades ≥45% total Al2O3
	and ≤15% SiO2.
	Within the combined BH6 and Gulf Alumina model mineralised zones are defined by grades ≥45%
	total Al2O3and ≤20% total SiO2.
Mining factors	• Assumptions made regarding possible mining methods, minimum mining dimensions and
or	internal (or, if applicable, external) mining dilution. It is always necessary as part of the process
Assumptions	of determining reasonable prospects for eventual economic extraction to consider potential
	mining methods, but the assumptions made regarding mining methods and parameters when
	estimating Mineral Resources may not always be rigorous. Where this is the case, this should be
	reported with an explanation of the basis of the mining assumptions made.
	Commentary
	The mining of bauxite at Bauxite Hills commenced in April 2018. The operation is a conventional
	truck and front-end loader process. No blasting is required. Minor ripping is undertaken where
	cemented pisolitic bauxite is present. Overburden is removed by bull dozers or graders and placed
	in mined-out areas. The learnings from the existing operation have been considered in this
	updated Resource estimate.
Metallurgical	• The basis for assumptions or predictions regarding metallurgical amenability. It is always
Factors or	necessary as part of the process of determining reasonable prospects for eventual economic
Assumptions	extraction to consider potential metallurgical methods, but the assumptions regarding
	metallurgical treatment processes and parameters made when reporting Mineral Resources
	may not always be rigorous. Where this is the case, this should be reported with an explanation
	of the basis of the metallurgical assumptions made.
	Commentary
	THA (trihydrate alumina) and RxSi (reactive silica at 1500C) analyses have been undertaken on a
	routine basis throughout the deposits. A small number of TAA (total available alumina) and RxSi
	(reactive silica at 2500C) analyses have also been generated. CSIRO has undertaken detail
	bauxite characterisation analyses on a small number of bulk samples that have been composited
	from a number of holes within the BH1 and BH6 deposits. The results have shown that the bauxite is
	predominantly a product that suits a high temperature Bayer process plant. A direct shipping
	product (DSO) is mined and shipped without the need for any beneficiation (i.e. wet screening to
	remove fines).
Environmental	• Assumptions made regarding possible waste and process residue disposal options. It is always
Factors or	necessary as part of the process of determining reasonable prospects for eventual economic
Assumptions	extraction to consider the potential environmental impacts of the mining and processing
	operation. While at this stage the determination of potential environmental impacts,
	particularly for a greenfields project, may not always be well advanced, the status of early
	consideration of these potential environmental impacts should be reported. Where these
	aspects have not been considered this should be reported with an explanation of the
	environmental assumptions made.
	Commentary
	There are several small environmentally sensitive areas around the edges of the bauxite deposit
	that have been included in the Resource estimation. Some of these areas may be realised as
	Reserves with additional approvals.
	At present there are no communities on the mining leases. Good relations have been established
	with the Aboriginal Traditional Owners and relevant Queensland Government authorities.
Bulk Density	• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the
	method used, whether wet or dry, the frequency of the measurements, the nature, size and
	representativeness of the samples.
	• The bulk density for bulk material must have been measured by methods that adequately
	account for void spaces (vugs, porosity, etc.), moisture and differences between rock and
	alteration zones within the deposit.
	• Discuss assumptions for bulk density estimates used in the evaluation process of the different
	materials.

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ASX Announcement | 17 July 2019 | Page 14

Commentary

Bulk density data specific to BH1, BH2 and BH6 have been determined from measurements undertaken on 325 samples collected from 34 sonic drill holes completed by Cape Alumina and 144 samples collected by Gulf Alumina from sonic drill holes.

The Metro Mining (Cape Alumina) methods of sample collection, measurement and determination, as well as the results obtained from the measurements, were independently reviewed by Xstract Mining Consultants Pty Ltd in 2016. The dry bulk density analysis was used to build a model using an inverse distance method to generate a surface fit to the composite derived from the samples density values. The sonic drilling method was used to collect core samples for bulk density determinations as it is a proven method of collecting continuous and intact samples that can be measured to determine volumes and weighed to determine densities

A resource-wide average relative density of 1.83 was used for the updated April 2019 Resource estimate. This was generated from composites of the bulk density measurements across all the deposits that were used to generate density grids. This global density is less than that used in the previous 2017 Resource. This follows a review of the original density data and the consideration of limited data from mining reconciliations undertaken in 2018.

During the review the estimation behaviour of composites, including incomplete intervals, was corrected by filling in blank intervals using general defaults based on the histograms of each of the 5 layers modelled.

A top cut of 2.4 and bottom cut of 1.3 was applied to samples contributing to the composites as the modeller had little faith in low values, especially those below 1.0. Heavy samples, over 2.4, were capped at 2.4 so as not to give too much influence to occasional samples that likely had ironstone cement.

Classification

• The basis for the classification of the Mineral Resources into varying confidence categories.

• • Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

• Whether the result appropriately reflects the Competent Person’s view of the deposit.

Commentary

The Mineral Resource has been classified as Measured, Indicated and Inferred. This reflects the density of drill hole sampling that varies from 80 m to 160 m to ~400 m centres, the availability of bulk density data and the modelling method utilised. LiDAR survey covers the entire deposit and adds confidence to the definition of the plateaus and hence helps justify the classification categories. Measured Resource required a bulk density composite value within 800 m and both Indicated and Measured categories required a DSO analysis within 220 m of the point being classified. Simulated DSO grades were applied to all composite samples that had only beneficiated analyses (screened at >1.2 mm) using a correlation coefficient generated from paired DSO and beneficiated analyses. The correlation in simulating these grades was considered strong within the bauxite horizon and as such the zone of influence was relaxed from a 200 m radius used previously to the 220 m radius reflecting more confidence in the data.

In accordance with the classification as Measured Resources, the Competent Person considers that there is moderate confidence in the bulk density of each block represented in the model based on analytical data. Measured Resources were limited to portions of the model within 800 m of sonic drill holes with bulk density data. Significant variability has been noted within the deposits dry bulk density analyses.

In accordance with the classification as Indicated Resources, the Competent Person considers that there is moderate confidence that the total silica and alumina grades in each block are as estimated. This confidence is underpinned by the close spaced (160 m) drill holes, some of which have been assayed, and results of the variography that suggest spatial continuity over distances of up to 3 km. There is however a moderately high nugget that suggests significant local variability in grade that must be considered in further upgrades of Resource classification.

Audits or • The results of any audits or reviews of Mineral Resource estimates. Reviews Commentary

Geos Mining undertook an independent review of the Mineral Resource data and techniques used to estimate the BH1 and BH6 resources in 2015. The techniques used to estimate the BH2 and Gulf Alumina resources are identical in that the same method and systems were used.

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With regard the Gulf Alumina resource Geos Mining has carried out resource estimations since 2008. In 2012 a consultant was commissioned by an international aluminium producer to review the resource. No adverse comments were received.

MEC Mining (MEC) has carried out a review and check of the updated April 2019 iteration of the Bauxite Hills Resource model. MEC has checked data quality, structural overlaps and investigated general variability in the updated model.

• Discussion of • Where appropriate a statement of the relative accuracy and confidence level in the Mineral Relative Resource estimate using an approach or procedure deemed appropriate by the Competent Accuracy/ Person. For example, the application of statistical or geostatistical procedures to quantify the Confidence relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

• The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

• These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Commentary

In accordance with the classification as Indicated Resources, the Competent Person considers that there is moderate confidence in the bulk density of each block represented in the model based on analytical data. Indicated Resources were also limited to portions of the model within 800 m of sonic drill holes with bulk density data.

In accordance with the classification as Measured Resources, the Competent Person considers that there is moderate confidence that the total silica and alumina grades in each block are as estimated. This confidence is underpinned by the close spaced (160 m) drill holes, most of which have been assayed, and results of the variography that suggest spatial continuity over distances of up to 3 kms. There is however a moderately high nugget that suggests significant local variability in grade that must be considered in further upgrades of resource classification.

With regard the Gulf Alumina data confidence in the global Resource is considered high given the extensive drilling completed and assay data available. Limitations on the categorised Resource relate to the lack of raw, unscreened, sample assays in certain areas of the deposit.

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SECTION 4 TABLE 1 ESTIMATION AND REPORTING OF ORE RESOURCES

Criteria	JORC Code explanation	CP Comments
Mineral Resource estimate for conversion to Ore Reserves	• Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. • Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves	• The Ore Reserve estimate is based on the July 2019 Mineral Resource estimate – see below: • The mineral resources in the July 2019 Mineral Resource estimate are inclusive of the ore reserves.
Site visits	• Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken indicate why this is the case.	• Site visit was conducted by the CP on 6thMarch 2017. Areas inspected include the airstrip, BLF area at Skardon River, the major roads on site, mining camp and trench locations through the orebody in BH6. A flyover of the site was completed on approach in the charter plane, giving a good perspective of the site. • The bauxite provides an excellent building material for roads and other civils which gives confidence in the ability to achieve forecast operating hours and rates even during wet weather.
Study status	• The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves. • The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.	• A mine plan has been completed (July 2019) by MEC Mining on the basis of the updated geological model and resource estimate (March 2019). This mine plan included a margin rank, final and pit stage designs and detailed mine production scheduling inclusive of haulage modelling and economic analysis in a detailed financial model. The mine plan demonstrated economic viability of the stated reserves at individual block basis and when assessed as a project. Modifying factors including economic viability, cutoff grades, environmental and infrastructure considerations have been applied. • The Bauxite Hills mine has been operating for more than one full year and actual costs and productivities were used to inform the mine plan.
Cut-off parameters	• The basis of the cut-off grade(s) or quality parameters applied.	• Ore in BH1 is defined by grades ≥45% total Al2O3 and ≤15% SiO2 within the resource model which was carried through into the reserve model. • Ore in BH2 and BH6 is defined by grades ≥45% total Al2O3 and ≤20% total SiO2 within the resource model which was carried through into the reserve model.
Mining factorsor assumptions	• The method and assumptions used as reported in the Pre- Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design). • The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc. • The assumptions made regarding geotechnical parameters (e.g. pit slopes,	• The Margin Rank was completed to determine the extent of economically mineable ore reserves. Each block is evaluated based on the Metro Mining’s base sales price and a price discount factor of US$1 per 1 percent of silica content over 12%. • Bauxite ore is mined using front end loaders as per the existing operation. Waste will be stripped by dozers and placed on the mined-out floor by an excavator and truck fleet to establish rehabilitation. Once the bauxite ore is exposed the FEL will mine the bauxite down to the transition material using kinematic GPS to locate the mining horizon floor. • Shallow deposit – pit slope parameters are to the natural angle of repose. Overburden will be returned to the pit void. • Ore Roof loss = 0.1m; Ore Floor loss = 0.1m. Total loss = 0.2m incorporated in the ROM tonnes

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• stope sizes, etc.), grade control and pre-production drilling.

• • The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).

• The mining dilution factors used.

• • The mining recovery factors used.

• Any minimum mining widths used.

• The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.

• The infrastructure requirements of the selected mining methods.

Mining factors or assumptions

• Ore Roof dilution = 0.05m and Floor dilution = 0.05m incorporated in the ROM tonnes

• 50m minimum mining width is used.

• The infrastructure required for the mining and transshipment method was costed in detail by Wave Engineering and Metro Mining Limited and includes additional items as listed below on top of existing facilities including a workshop, mine infrastructure area, mining accommodation camp, water reticulation, haulroads, product screening, product stockpiling and handling system, barge loading facility and fuel storage facility,

• • Site is operating with initial capital work completed. Additional expansion capital of $48.5 million in 2020 to achieve 6.0Mt of product. The expansion capital is to purchase a floating crane ($35.5m), load out upgrade ($4.8m) and mobile plant increase ($3.8m) to increase transshipment rates and allow ungeared ocean-going vessels to be used.

Category	Cost AUD
Twin Crane	35,466,667
ScreeningPlant	1,800,000
Port Optimisation	3,000,000
Mobilisation	2,000,000
Additional Trailers	1,800,000
Total ex-Contingency	44,066,667
Contingency	4,406,667
Total incl. Contingency	48,473,333

Sustaining capital was allowed (in addition to mobile equipment sustaining capital) at $1.8m per annum.

				Sustaining capital was allowed (in addition to mobile equipment sustaining capital) at $1.8m per annum.
Metallurgical	•	The basis for assumptions or	•	The ore has been considered a DSO (direct shipping ore).
factors or		predictions regarding		Screening is undertaken to remove oversize, however no
assumptions		metallurgical amenability. It is always necessary as part		beneficiation as such is undertaken. The orebody is known to contain a portion of cemented bauxite, estimated to
		of the process of		make up 5% of the total reserve. The cemented bauxite
		determining reasonable		does not break up as easily as the non-cemented bauxite.
		prospects for eventual		Oversize cemented bauxite is crushed and re-fed over the
		economic extraction to		screen until it passes.
		consider potential	•
		metallurgical methods, but
		the assumptions regarding
		metallurgical treatment

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ASX Announcement | 17 July 2019 | Page 18

	processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.
Environmental Factors or Assumptions	• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	• An EIS study was completed by CDM Smith and environmental approvals were granted 29thAugust 2017. • There are several environmentally sensitive areas surrounding the bauxite deposit which have been mapped and declared sensitive areas. While the resource model overlaps environmentally sensitive areas, no resources in these areas have been included within the reserve estimate.
Infrastructure	• The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed.	• The additional infrastructure and transshipping equipment to ramp up to 6Mtpa has been assessed by Metro Mining and Wave Engineering and allowed for in the financial model including a 10% contingency.
Costs	• The derivation of, or assumptions made, regarding projected capital costs in the study. • The methodology used to estimate operating costs. • Allowances made for the content of deleterious elements. • The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products. • The source of exchange	• The projected capital costs are provided by Wave Engineering and Metro Mining based on the infrastructure and project implementation plans (see Mining Factors or Assumptions). • Major operating costs including transshipment, camp operations and maintenance of facilities have been quoted by contractors. MMI management, mining, overheads and incidental costs have been drawn from actual values, quotes or built up from first principles. The average life of mine operating cash cost including royalties FOB is $24.65 per tonne. • The Metro Mining’s sales base price has been advised by CM Group for all products other than Xinfa • AUD 1.00 = USD 0.75 • AUD 1.00=RMB 6.75

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	rates used in the study. • Derivation of transportation charges. • The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. • The allowances made for royalties payable, both Government and private.	• The ore haulage cost is calculated by determining the truck haul hours through a haulage simulation, then multiplying by the truck operating cost rate. Transportation cost from the load out point to the ship is done by barges for which a fixed price contract is in place. • The penalties/bonuses for the ore below/above specification has been incorporated into both the margin and financial modelling • The Government royalties (10% of product) and traditional land owner’s royalty (2.23% below US$45/t, 2.64% between US$45/t & US$55/t, 3.30% between US$55/t & US$65/t, 4.0% >US$65/t) has been accounted for in the model.
Revenue factors	• The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc. The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.	• Price assumptions have been made for the two products Metro plans to sell, being Xinfa spec and Metro Blend spec. • The Xinfa spec is a sales contract linked to the Chinese alumina price. A Chinese alumina price of 3000RMB/t (inclusive of VAT) has been assumed. • The Metro Blend price assumptions are based on price assumptions received from CM Group for the specification of this product • Life of mine product mix is Xinfa spec(BH1) 6.72Mt, Metro Blend 102.8Mt.
Market assessment	• The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future. • A customer and competitor analysis along with the identification of likely market windows for the product. • Price and volume forecasts and the basis for these forecasts. For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.	• The market study completed by CM group for Metro Mining considered product specification options, market demand and global trade. The graph above shows forecast Chinese bauxite demand. Source: CM Group. A detailed customer analysis and marketing plan was developed.
Economic	• The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc. NPV ranges and sensitivity to variations in the significant assumptions and inputs.	• NPV was calculated to be sufficiently positive in order to declare a Reserves estimate • The mine production schedule results were incorporated for revenue/cash flow and the NPV is calculated based on the capital expenditure and sustaining capital expenditure for each monthly period.

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Social	The status of agreements with key stakeholders and matters leading to social licence to operate.	The leases are owned by Metro Mining. Two native title claims have been lodged. The Right to Negotiate (RTN) process has been completed by both Cape Alumina Pty Ltd and Gulf Alumina Ltd resulting in executed Ancillary Agreements with the Traditional Owners. Both agreements are essentially identical and under these agreements, MMI has undertaken to pay royalties as listed in the Revenue Factors section of Table 1, Section 4.
Other	• To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves: • Any identified material naturally occurring risks. • The status of material legal agreements and marketing arrangements. The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.	• The Mine schedule was completed on the 109.5Mt of proved and probable reserve. • Presently this project is an operating mine. • The mine is covered by 7 mining leases, 2 mineral development leases and 4 exploration leases. There is no reason to believe that the leases won’t be granted before mining is scheduled to take place.
Classification	• The basis for the classification of the Ore Reserves into varying confidence categories. • Whether the result appropriately reflects the Competent Person’s view of the deposit. The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).	• The Proved reserves are derived only from Measured resources and no Measured resources were declared Probable reserve. The stated Reserve estimate represents the marketable product tonnes as this is a direct shipping ore, with no beneficiation at ROM moistures
Audits or reviews	• The results of any audits or reviews of Ore Reserve estimates.	• MEC mining conducted internal peer review of the reserve estimate. The calculations were compiled by Grant Malcolm and peer reviewed by Edward Boulton of MEC Mining.
Discussion of relative accuracy/ confidence	• Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For	• At the advanced status of the project, the geological model is considered a mature model. • Sections of the model were sampled as a beneficiated ore (sieved to remove fines before testing) which was converted in the model to an un-beneficiated basis using a calculation. This process introduces some uncertainty, although this ispartlymitigated as the areas are straddled

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	example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. • It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	by model used DSO sampling process providing additional confidence in the model conversion process. • No statistical or geostatistical procedures have been used to estimate the confidence level of the Reserves. • There are no remaining areas of material uncertainty relating to modifying factors that could have an impact on Reserve viability. • The silica content the product rises above the Metro Blend (current product specification) of 12% Si from 2031. A total of 45.4 Mt of product is above 12% Si. While the margin rank model shows these tonnes being profitable after applying price penalties, some uncertainty exists around marketing of a higher silica product.

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