METRO MINING LIMITED — Capital/Financing Update 2022

Oct 30, 2022

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Metro & Xiangsen Aluminium extend Strategic Partnership to 2026 and agree binding terms for 2023 Offtake

Metro Mining Limited (ASX: MMI) (Metro) is pleased to announce that it has extended the Strategic Cooperation Agreement with Xiamen Xiangsen Aluminium Limited (Xiangsen) for 1.5 Million Dry Metric Tonnes per annum by 2 years to 2026. Binding terms for the 2023 offtake component have also been agreed taking total binding offtake to 5 Million Wet Metric Tonnes for 2023.

Highlights

• 1.5 Million Dry Metric Tonnes (approx. 1.7 Million Wet Metric Tonnes) per annum strategic agreement with Xiangsen extended a further two years to 2026

• 2023 offtake component of 1.7 Million WMT converted to binding terms for 2023

• This completes binding offtake contracts for all customers for 2023 of 5.0 Million WMT

On 25[th] November 2021 Metro announced an expanded and extended strategic LOI with Xiangsen Aluminium for the supply of approximately 5 Million Wet Metric Tonnes (WMT) of bauxite for delivery between 2022 and 2024. This has been extended by a further 3.4 Million WMT over two years into 2026. The quality specification continues to be the Metro Blend.

Xiangsen has fulfilled 100% of its offtake commitments under previous and current agreements totaling 1.1 Million WMT in 2021 and 1.7 Million WMT in 2022. Binding terms have now been agreed for 2023. Pricing terms are confidential however comprise of a formula related to the Chinese alumina price within a “floor” and “ceiling” range which ensures that Metro can benefit from improved market conditions.

3.3 Million WMT offtake for 2023 is already contracted with foundation customer Xinfa as disclosed in previous announcements, which takes Metro’s target sales to 5.0 Million WMT. This agreement continues the evolution of the medium-term sales portfolio towards a diverse set of quality specifications, pricing periods and formula to diversify exposure to market trends.

The Bauxite Hills Mine and supply chain are running at full capacity and will do so through 2023 as the elements of the expansion to 7 Mt/a capacity are progressively put in place.

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Metro Mining Managing Director and CEO Mr Simon Wensley said:

“Xiangsen has been a reliable partner for Metro during 2021 and 2022 aiding our strategy of diversifying our customer base and use of large Capesize vessels. The extension of this significant Strategic Offtake Agreement is a sign of the trust and cooperation between the parties and recognises the value of Metro’s low risk environment, consistent quality, contract agility, technical service and large vessel delivery capability. The binding terms for 2023 provide increasing price upside for Metro whilst also giving certainty to the customers.”

Xiamen Xiangsen Aluminium Ltd. Deputy Managing Director Mr Zhou Hailong said:

“Our partner refineries have found the quality of MMI bauxite helps to improve the quality of alumina produced. MMI bauxite with its proximity to the Chinese market, low ocean freight, stable quality, and especially low sulphur, is well suited for our High Temperature plants. I appreciate the continued commercial and technical support and cooperation of the Metro team. Together, we are targeting more refineries with similar bauxite quality requirements across China.”

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