METRO MINING LIMITED — Capital/Financing Update 2024

Jan 29, 2024

Metro Mining Limited ASX Announcement 30 January 2024

FUNDING SECURED TO STRENGTHEN BALANCE SHEET IN THE AFTERMATH OF TROPICAL CYCLONE JASPER

Metro Mining Limited ( ASX:MMI ) (‘ Metro ’, the ‘ Company ’) advises that its Board of Directors have approved a circa AU$20M funding package to support operations during the wet season and enable completion of the expansion project.

The funding package consists of a royalty and a short-term working capital facility, the material terms of which are as follows:

Agreement 1: Mineral Royalty Deed

Buyer	Buyer	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)	Nebari Natural Resources Credit Fund I, LP and Nebari NaturalResources Credit Fund II (‘Nebari’)
		Resour		es Credit Fund	II (‘Nebari’)
P	urchase Price	USD$10		,200,000 (AU$15	,515,000)
R	oyalty	Meansfor a u		the royalty payaarter is calculat	ble to the Buyered as the alic	under the Deeable Roalt Pe	d which,centage
		qmultipli		,ed by the FOB R	ppevenue for that	yyquarter.
R	oyalty Percentage	1.0% fro		m the Effective	Date until (and i	ncluding) 31 Mar	ch 2025.tion has
		2.2% fronot bee		m 1 April 2025n exercised).	if the Call Optio	n or the Put Op
C	all Option	Metro		Mining may call	back the Royalt	y from the Buy	er at anytice and
		time prpaying		or to 31 Marchthe Option Exer	025 by issuingcise Consideratio	Call Option Non.
Put Option		The BuG		yer may, but is nd M	ot obliged to, puMii’ l	t the Royalty bad h
		rantorPercent		s an, at etrage to nil durin	nngs eectg the month of	on, reuce teMarch 2025 by i
		Put OpOption		tion Notice. WitNotice, Metro	hin 10 days of tMining must p	he Buying givinay the Option
Option ExerciseConsideration		Means USD$12,750,000 payable by Metro Mining to the Buyer incash, less the amount of Royalty payments received or to bereceived by the Buyer for sales or other disposals of Productwhich occur during the period from the Effective Date to thedate on which the Buyer receives the Option ExerciseConsideration.
Continuing Obligation		The obligation to pay the Royalty continues, with respect to eachTenement, for the full term of the Tenement and throughout theperiod that any Products can be lawfully extracted andrecovered, unless the Call Option or Put Option is exercised inaccordance with this Deed.
			ent, for the full tethat any Pro		rm of the Tenemducts can be	,ent and throughlawfully extracte
		Tenemperiod
		recoveaccord	red, unless theance with this D		all Option or Peed.	t Option is exer
C	onditions Precedent	Paym	ent of the Purcha		se Price is condit	ional upon Metro		Mining
		satisfy	ng a number of		onditions Prece	dent.

07 3009 8000

www.metromining.com.au

Level 4, 135 Wickham Tce, Brisbane Q 4000 ABN 45 117 763 443

Agreement 2: Short-term Working Capital Facility

Lender	Lender	Lambhill Pty Ltd (‘Lambhill’)	Lambhill Pty Ltd (‘Lambhill’)	Lambhill Pty Ltd (‘Lambhill’)	Lambhill Pty Ltd (‘Lambhill’)
Total Commitment		AU$4,000,000 (exclusive of capitalised interest, fees and costs)available in a First Tranche of AU$2,000,000 and a SecondTranche of AU$2,000,000.
First Tranche		AU$2,000,000 (exclusive of capitalised interest, fees and costs)available 30 January 2024.
		av	,,ailable 30 January 2024.	,
S	econd Tranche	A	U$200000 (exclusive of capi	alised interest fees and cos	s)
		av	,,ailable 15 February 2024.	,
P	urpose	T	e Borrower (Metro Mining)	must only use the Facility f	or
		fu	nding working capital require	ments.
I	terest Rate	18	% per annum accruing dail	and capitalised on a month	ly
		b	,asis.
Repayment Date	epayment Date	T	he date that is 6 months from t	he date that each Tranche is pa
		to	the Borrower by the Lender.

Nebari and Lambhill have also elected to exercise 40% of their Tranche 1 Subscription Warrants at a strike price of $0.012, which will provide the Company with an additional A$2.29M in working capital.

Party	No. of Subscription	Consideration
	Warrants Exercised	Payable (AU$)
Nebari	168,640,000	2,023,680.00
Lambhill	11,443,968	137,327.00
Ingatatus	10,657,741	127,892.00
TOTAL	190,741,709	$2,288,899.00

This announcement has been approved by the Board of Directors.

ENDS.

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

About Bauxite and Metro

Bauxite is the ore used to make aluminium, a critical and strong growth metal in the energy transition. Metro is an independent bauxite producer and explorer, with its 100% owned Bauxite Hills Mine operating on the Weipa bauxite plateau approximately 95km North of Weipa, 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.

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Forward-looking statements

This announcement may contain ‘forward looking statements’ concerning the financial conditions, results of operations and business of the Company. All statements other than statements of fact are or may be deemed to be ‘forward looking statements’. Often, but not always, ‘forward looking statements’ can be identified by the use of forward looking words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘continue’, ‘outlook’, and ‘guidance’ or other similar words, and may include, without limitation, statements regarding plans, strategies and objectives of management, future or anticipated production or construction commencement date and expected costs, resources and reserves, exploration results or production outputs. Forward looking statements are statements of future expectations that are based on management’s current expectations and assumptions, but known and unknown risks and uncertainties could cause the actual results, performance or events to differ materially from those expressed or implied in these statements. These risks include, but are not limited to, price fluctuations, actual demand, currency fluctuations, drilling and production results, resource and reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Disclaimer

To the maximum extent permitted by law, Metro and their respective affiliates, related bodies corporate, officers, employees, partners, agents and advisers make no representation or warranty (express or implied) as to the currency, accuracy, fairness, sufficiency or completeness of the information contained in this announcement and expressly disclaim all responsibility and liability for any loss or damage arising in respect of any reliance of the accuracy, fairness, sufficiency or completeness of the information contained in this announcement, or any opinions or beliefs contained in this document. The Company is under no obligation to update or keep the information contained in this announcement current, or to correct any inaccuracy or omission which may become apparent, or to furnish any person with any further information.

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