METRO MINING LIMITED — Capital/Financing Update 2023

Jun 1, 2023

2 June 2023

Metro Mining draws A$15 M second tranche of Nebari Partners LLC finance facility

• Metro meets conditions precedent to draw final A$15 M tranche of Nebari A$45 M facility

• Following FID of its 7M wet metric tonnes (WMT) per annum expansion, the facility provides Metro with remaining funds to execute the project

• Excellent start to season on target to meet expected offtake of 4.5 to 5.0M WMT in 2023 underpinned by contracted freight in a firming price environment

• The Nebari Financing Facility is structured to provide optionality in the short-term and provides Metro with flexibility regarding future financing options

Metro Mining Limited (ASX: MMI) ( Metro or the Company ) announces that it has submitted a drawdown notice for the second tranche of funding under the loan facility approved in March (refer to ASX Announcement on 13 March 2023) with Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP (collectively, Nebari ) ( Financing Facility ). The second tranche is US$10 M or A$15.4 M at spot exchange rate and completes the full drawdown of the Financing Facility. This is a result of Metro meeting or Nebari waiving conditions precedent to the second tranche drawdown following an excellent start to the production season.

Proceeds from the Financing Facility allow funding of the expansion of the Company’s 100% owned and operating Bauxite Hills Mine in Western Cape York, Queensland. At the mine, production has commenced successfully and is ahead of scheduled rate, posting a monthly record loaded tonnes with the floating crane barge, TSA Skardon, of 458,822 WMT in May 2023.

As a recap on the Financing Facility, there are no principal repayments for the first 24 months, and Metro has an option to capitalise the first 6 months of interest payments. The maturity date is 4 years from initial draw. The Financing Facility has been structured to maximise flexibility around future financing options, including provisions for entire early repayment, partial prepayment, accommodation of a pari passu senior ranking facility and an allowance for future royalties. Under the Financing Facility, Nebari will also be issued Subscription Warrants in a number equal to the Australian Dollar equivalent of US$1,666,666 divided by a price equal to a 30% premium of the Volume Weighted Average Price for the 10 day trading period proceeding 31 May 2023.

Significant elements of the 7.0M WMT pa expansion flow sheet are complete and the remaining elements progressing. Additional prime mover trucks, trailers and barges will mobilize though the year. The offshore floating terminal, Ikamba, is expected to arrive in Q4 2023 and the wobbler screening line will be commissioned in Q2 2024.

Table 1

Table 1
BMH Flow Sheet Capacity (mt/a)	Q4 ‘22	Q2 ‘23	Q3 ‘23	Q4 ‘23	Q2 ‘24
Mining Equipment	7	7	7	7	7
Prime Movers	4	5	7	7	7
Trailers	4	5	6	7	7
Screens	4	5	5	5	7

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2 June 2023

Barge Loading Facility	4	7	7	7	7
Tugs / Barges	4	4	6	6	7
Transhipping (OFT Ikamba)	4	4	4*	7	7
* Additional geared ships can be loaded in parallel with FCB1

Simon Wensley, CEO & Managing Director of Metro, stated: “I’m pleased to now have all of the Nebari funding drawn, which locks in funding certainty to deliver our transformative expansion plan which will deliver economies of scale to our operations. Production has run at above the 4 MWMT/a rate in May and as the expansion rolls out, we will transition towards the 6 MWMT/a rate through 2023”.

About Bauxite and Metro Mining

Bauxite is the ore used to make aluminium, a critical and strong growth metal in the energy transition. Metro Mining is an independent bauxite producer and explorer, with its 100% owned Bauxite Hills Mine operating on the Weipa bauxite plateau approx. 95 km North of Weipa town, near the coast on the Skardon River. Metro produces a high alumina bauxite shipping direct to customers in very large ore carriers. Metro recognises and has productive agreements with the traditional owners of the land on which it operates and is proud of its high percentage of indigenous employees and the economic impact it has in Cape York and Far North Queensland.

About Nebari

Nebari is a US-based investment manager specialising in privately offered pooled investment vehicles including Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP which are funding the Financing Facility to Metro. The Nebari leadership team has deep experience with leading global mining companies and financial institutions and is known for partnering with motivated and capable management teams focused on achieving clear plan targets.

For more information contact :

CEO & Managing Director Investor Relations Simon Wensley Peter Taylor info@metromining.com.au Peter@nwrcommunications.com.au +61 7 3009 8000 +61 (0)412 036231

ASX: MMI | ACN 117 763 443

Further Info: P : +61 (0) 7 3009 8000 | E : info@metromining.com.au |W: www.metromining.com.au

Contact: Simon Wensley, Managing Director & CEO | Robin Bates , General Counsel & Company Secretary Address: Level 2, 247 Adelaide St, Brisbane | GPO Box 10955, Brisbane Q 4000

This ASX Announcement has been authorised by the Board of Directors.

FORWARD LOOKING STATEMENT This announcement contains certain ‘forward-looking statements’ within the meaning of the securities laws of applicable jurisdictions. Forward- looking statements can generally be identified by the use of forward-looking words such as ‘may,’ ‘should,’ ‘expect,’ ‘anticipate,’ ‘estimate,’ ‘scheduled’ or ‘continue’ or the negative version of them or comparable terminology. Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements.

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