METRO MINING LIMITED — Interim / Quarterly Report 2013

Jul 30, 2013

2013 QUARTERLY REPORT June

Corporate details

METROCOAL LIMITED | ABN 45 117 763 443

Quarterly Activities Report For the period ended 30 June 2013

ASX CODE: MTE

Issued Capital (30/06/2013)

208,883,663 shares issued

6,000,000 Unlisted Directors’ Options 4,500,000 Unlisted management and employee options 6,250,000 Other Unlisted options

1,442 Shareholders

Top 20 Shareholders

Hold 76.15% of listed shares

Directors& Management

Mr Stephen Everett - Chairman Mr Andrew Gillies – Non-executive Director Mr Michael Hansel – Non-executive Director Mr John Haley – Alternate Director to Mr. Gillies Mr Lindsay Ward – Non-executive Director Mr Wang Dongping – Non-executive Director Mr Robert Finch – Alternate Director to Mr. Wang

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Mr Mike O’Brien – Chief Executive Officer

Mr Theo Psaros – Company Secretary and Chief Operating Officer Mr Neil Mackenzie-Forbes – Joint Venture General Manager Mr Nicholas Villa – Project Manager Mr Edward Radley – Geology Manager

Largest Shareholders

Metallica Minerals Limited 30.78% Dadi Engineering Development Group 22.62%

Cash Balance

As at 30 June 2013, MTE’s cash balance was approximately $11.5 million

MetroCoal MetroCoal Quarterly ReportQuarterly Report December 2012 June 2013

Highlightsfor the quarter

• Positive progress for 2013 program on MetroCoal’s 100% owned Bundi thermal coal project. The 2013 field program is advancing on time and within budget with 60% of the drilling component completed. The current downturn in the resource sector has also resulted in some cost savings with the team of external contractors on this project. MetroCoal is pleased with this progress and remains on schedule to submit a Mining Lease Application in late 2013.

• Bundi Project EIS is underway. This program is currently concentrating on the installation of Groundwater monitoring equipment. This work will be a major component of the initial data obtained for the EIS program.

• Continued interest in Joint Venture opportunities with Indian and Chinese entities for the Bundi Project. The first of a number of expected visits to the Bundi Project near Wandoan have been held with a significant Chinese group.

• Columboola JV Project continues to assess proposals from a number of consultants in preparation to award a number of work programs for the EIS process and drilling work that will result in the submission of a Mining Lease Application in 2013.

• MetroCoal maintains strong cash balance of $11.5 million at the end of the June quarter.

Resources

MetroCoal Thermal Coal Reserves &Resources

		Resources(Mt*)	Resources(Mt*)	Resources(Mt*)	Reserves (Mt*)
	MTE Ownership
Project
		Indicated	Inferred	Total
Columboola	49%	94.7	1,618	1,712.7
Goombi	49%	4.9	13.8	18.7	26.2
Bundi	100%	246.3	1,315.8	1,562.1
Dalby West	100%		520	520
Juandah	100%	24.4	224	248.4
Norwood	100%		156	156
TOTAL		370.3	3,847.6	4,217.9	26.2

* Mt – Million tonnes

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Bundi Project

MetroCoal has committed approximately $3 million to this program of work for Bundi. The Company has taken the view that progress will continue on the Bundi Project during these tough market conditions. Engaging consultants to work with our field staff and undertake a number of activities clearly differentiates the Bundi Project, particularly to potential investors considering a Joint Venture interest.

The June quarter delivered a very positive start to the 2013 drilling and evaluation program. With 10 bore holes planned (see Figure 2 on page 5), to date 6 have been completed and the results are already with independent laboratories for analysis. The purpose of drilling these 10 holes is to further define the Bundi thermal coal resource including the delivery of data on groundwater, geotechnical, gas desorption and infill drilling.This data will be used in the application for a Mining Lease expected to be lodged in late 2013.

With early work underway for the Environmental Impact Statement (EIS) process, consultation with key stakeholders is also planned. MetroCoalheld a very successful information evening with many landholders from the Bundi Project area on July 23. While at a very early stage of the EIS process, it is very important that the already positive relationships with landholders be maintained through proactive and open communication.

MetroCoal continues to pursue a joint venture partner into our Bundi Project and the first of a new level of interest saw a recent site visit from a large Chinese energy group. This visit, coupled with interest from a number of Indian energy companies has highlighted knowledge and interest in the Surat Basin as a major thermal coal province with the quality of the coal suited for export markets. While all discussions are at a very early stage, MetroCoal is pleased with the level of interest currently being shown. This interest is consistent with current media publications forecasting strong demand for thermal coal in the future.

Figure 1 – Bundi Project Area

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Figure 2 – Bundi Project planned borehole locations 2013 program. Completed holes with white dot centre.

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Columboola Joint Venture

The 2013 Columboola exploration program and the structure of the Environmental Impact Statement has been finalised and work is scheduled to commence in August followinga successful conclusion of the CoDevelopment agreement with Queensland Gas Company (QGC).

The key objective for the 2013 year remains to start the EIS process and progress the resource evaluation to an appropriate level so a Mining Lease application can be made.

Progress continues with the Central Surat Rail Group (CSR) with a number of potential coal shippers considering this project as a solution for future rail infrastructure. The CSR, together with MTE and other Surat Basin coal companies have also been active in seeking a way forward for the infrastructure development in the Surat Basin.

Corporate Activities

MetroCoal continues to evaluate its expenditure commitments and finished the June2013quarter in a strong financial position with $11.5 million cash on hand.

During the June quarter, MetroCoal was pleased to have continued and increased support from Dadi Engineering Development (Group) Co Ltd, who again increased its shareholding in the Company. The purchase of 6,250,000 shares increased Dadi’s interestto 47,250,000 shares resulting in a holding of 22.6% of MetroCoal’s Issued Capital.The increased shareholding resulted from DADI purchasing the 6,250,000 shares in MetroCoal in an off market transaction from Mathews Capital.

During the June quarter, Mr John Haley retired as a Director of MetroCoal and has become an Alternate Director to Mr Andrew Gillies, who represents Metallica Minerals Limited (ASX: MLM) on the MetroCoal Board. This resulted in a reduction in the number of Directors from six to five. Mr Haley also resigned as Company Secretary and this role is now held by MetroCoal’s Chief Operating Officer, Mr Theo Psaros.

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Figure 3 – MetroCoal’s Surat Basin Coal Tenements

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Competent Person Statement

The information in this Announcement that relates to the Compilation of existing data and Exploration Results is based on information compiled by Mr Ed Radley who is a Member of the Australian Institute of Mining and Metallurgy (MAusIMM) (Membership No 300512). Mr Ed Radley is a fulltime employee of MetroCoal Ltd, in the role of Geological Manager, 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 2004 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.

REGISTERED OFFICE

Cnr. Lytton Road and Stafford St, East Brisbane QLD 4169 GPO Box 122 Brisbane QLD 4001

T (07) 3249 3040 F (07) 3249 3041

MetroCoal MetroCoal Quarterly ReportQuarterly Report December 2012 June 2013