METRO MINING LIMITED — Interim / Quarterly Report 2016

Oct 27, 2016

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Name of entity	Name of entity	Name of entity
Metro Mining Limited
ABN			Quarter ended	(“current quarter”)
45 117	763	443	30-Sep-16
Consolidated statement of cash flows			Current quarter $A’000	Year to date (3 months) $A’000
	1	Cash flows from operating activities
	1.1	Receipts from customers	195	195
	1.2	Payments for
		(a) exploration & evaluation	(96)	(96)
		(b) development	(1,238)	(1,238)
		(c) production
		(d) staff costs	(345)	(345)
		(e) administration and corporate costs	(276)	(276)
	1.3	Dividends received (see note 3)
	1.4	Interest received	15	15
	1.5	Interest and other costs of finance paid
	1.6	Income taxes paid
	1.7	Research and development refunds
	1.8	Other (provide details if material)
	1.9	Net cash from / (used in) operating activities	(1,745)	(1,745)
	2	Cash flows from investing activities
	2.1	Payments to acquire:
		(a) property, plant and equipment	(7)	(7)
		(b) tenements (see item 10)
		(c) investments	(8,700)	(8,700)
		(d) other non-current assets
	2.2	Proceeds from the disposal of:
		(a) property, plant and equipment
		(b) tenements (see item 10)	55	55
		(c) investments
		(d) other non-current assets
	2.3	Cash flows from loans to other entities
	2.4	Dividends received (see note 3)
	2.5	Other (provide details if material)
	2.6	Net cash from / (used in) investing activities	(8,652)	(8,652)
	3	Cash flows from financing activities
	3.1	Proceeds from issues of shares	8,946	8,946
	3.2	Proceeds from issue of convertible notes
	3.3	Proceeds from exercise of share options
	3.4	Transaction costs related to issues of shares, convertible notes or options	(564)	(564)
	3.5	Proceeds from borrowings	8,500	8,500
	3.6	Repayment of borrowings
	3.7	Transaction costs related to loans and borrowings
	3.8	Dividends paid
	3.9	Other (provide details if material)
	3.1	Net cash from / (used in) financing activities	16,882	16,882

• See chapter 19 for defined terms

1 September 2016

1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

4	Net increase / (decrease) in cash and cash equivalents for the
4.1	Cash and cash equivalents at beginning of period	2,684	2,684
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(1,745)	(1,745)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(8,652)	(8,652)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	16,882	16,882
4.5	Effect of movement in exchange rates on cash held
4.6	Cash and cash equivalents at end of period	9,170	9,170

	Reconciliation of cash and cash equivalentsat the end of the	Current quarter	Previous quarter
5	quarter (as shown in the consolidated statement of cash flows) to
	the related items in the accounts	$A’000	$A’000
5.1	Bank balances	2,050	1,453
5.2	Call deposits	7,120	1,231
5.3	Bank overdrafts		-
5.4	Other (provide details)		-
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	9,170	2,684
6	Payments to directors of the entity and their associates		Current quarter $A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		82
6.2	Aggregate amount of cash flow from loans to these parties included in item 2.3		-
6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
	Directors fees

• Current quarter

• 7 Payments to related entities of the entity and their associates $A'000

• 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - Include below any explanation necessary to understand the transactions included in items 7.1 and

• 7.3 7.2

• Total facility amount Amount drawn at

• Financing facilities available at quarter end quarter end

• 8 Add notes as necessary for an understanding of the position $A’000 $A’000

• 8.1 Loan facilities 8,500 8,500 8.2 Credit standby arrangements - - 8.3 Other (please specify) - -

• Include below a description of each facility above, including the lender, interest rate and whether it

• 8.4 is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

The loan facility is a short term unsecured loan facility with lender Bafflebox Mining Trust. It has an interest rate of 8% for the first 3 months, rising to 10% after 3 months.

As at 30 September 2016, Metro was in negotiations with other lenders with regards to financing a fully funded bid for Gulf Alumina Ltd. Refer to Metro's ASX announcement dated 25 October 2016.

• See chapter 19 for defined terms 1 September 2016

2

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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9 Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 113
9.2 Development 1,495
9.3 Production
9.4 Staff costs 284
9.5 Administration and corporate costs 859
9.6 Other - Interest and financing costs 1,168
9.7 Total estimated cash outflows 3,919
Changes in tenements Interest at beginning Interest at end
10 Tenement reference and location Nature of interest
(items 2.1(b) and 2.2(b) above) of quarter of quarter
EPC 2234, Surat Basin, Qld 100% 3 sub-blocks nil
EPM 15012, Cape York, QLD () 100% 14 sub-blocks nil
EPM 15077, Cape York, QLD () 100% 15 sub-blocks nil
EPM 15173, Cape York, QLD () 100% 16 sub-blocks nil
Interests in mining tenements and
10.1 petroleum tenements lapsed, EPM 15263, Cape York, QLD () 100% 12 sub-blocks nil
EPM 15269, Cape York, QLD () 100% 55 sub-blocks nil
relinquished or reduced
EPM 15277, Cape York, QLD () 100% 20 sub-blocks nil
EPM 15374, Cape York, QLD () 100% 33 sub-blocks nil
EPM 15375, Cape York, QLD () 100% 53 sub-blocks nil
EPM 25877, Cape York, QLD () 100% nil 50 sub-blocks
EPM 25878, Cape York, QLD () 100% nil 86 sub-blocks
Interests in mining tenements and EPM 25879, Cape York, QLD () 100% nil 82 sub-blocks
10.2 petroleum tenements acquired or
increased
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(*) These tenements were conditionally surrendered in exchange for the 3 new EPMs granted this quarter disclosed in 10.2. The area and number of sub-blocks covered by the conditionally surrendered tenements and those granted in their place are the same.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed. Sign here: .......[Signature on file]............. Date: ......28.October 2016............................ ( ~~Director~~ /Company secretary) Print name: .Scott Waddell........................................................

Notes

• The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past

• 1 quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply

• 2 to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

• Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities,

• 3 depending on the accounting policy of the entity.

• See chapter 19 for defined terms

1 September 2016

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