METRO MINING LIMITED — Investor Presentation 2012

May 23, 2012

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Surat Basin Coal & Energy 2012 Conference

Mike O’Brien - Chief Executive Officer MetroCoal Limited

AN EMERGING COAL BASED ENERGY COMPANY FOCUSED ON THE SURAT BASIN REGION

Disclaimer

• Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of MetroCoal Ltd, industry growth or other trend projections are, or may be, forward looking statements . Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties.

• MetroCoal is at an early exploration stage and although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness.

• Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.

• Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

• Geological and resource information on MetroCoal Limited coal projects in this report had been reviewed by Mr E Radley, MetroCoal Geology Manager. Mr Radley, member of “The Australian Institute of Geoscientists” , has the experience relevant to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves. The resource information in this report has been released to the Australian Stock Exchange. Mr Radley has consented in writing to the inclusion in this presentation of the matters based on the information in the form and context it appears.

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MetroCoal Share Structure

ACN 117 763 443 ASX Code: MTE

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Shareprice 10 May 2012	$0.34
Shares on Issue	209m
Market Cap	$71.1m
Cash on hand*	$18m

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$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12
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• Excludes funds available in SinoCoal Joint Venture.

Substantial Shareholders

• Metallica Minerals Limited 30.8%

• DADI Eng. Dev. Group 19.6%  Mathews Capital 16.3%

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Board and Management

David Barwick (Chairman) A Professional Accountant with extensive experience in the resources industry. Chairman of Metallica Minerals Limited and several other listed companies.

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Mike O’Brien

(Chief Executive Officer) with over 35 years mining experience in both longwall and opencast mines

Michael Hansel (Non-Executive Director) Partner with HopgoodGanim Lawyers specialising in M&A and capital raising

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Theo Psaros (Chief Operating Officer) with extensive experience in valuations, corporate finance and government relations

John Haley (Non-Executive Director/Company Secretary) Company Secretary, Chief financial Officer and Executive Director of Metallica Minerals Limited

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Nicholas Villa (Project Manager) Experienced manager in New South Wales, Queensland and Western Australia

Wang DongPing (Non-Executive Director) Chairman of Dadi Engineering Development Group

Ed Radley (Geology Manager) Experienced in all aspects of mine, resource and exploration geology through to resource definition and exploration programs.

Robert Finch (Alternate Non-Executive Director to Wang DongPing) Managing Director of Aury Australia having worked in Australia and Asia over 25 years

Lindsay Ward (Non-Executive Director) Managing Director of Dart Mining NL with extensive port and infrastructure experience

Neil Mackenzie-Forbes (JV General Manager) More than 17 years experience in coal, oil shale, gold and base metals.

Andrew Gillies (Non-Executive Director) Managing Director of Metallica Minerals Ltd with more than 24 years experience in the mining and exploration industry

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MetroCoal in the Surat Basin

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• MetroCoal holds 7 EPC’s exceeding 3500 km sq.

• Major coal companies active in the Surat.

• Xstrata – Wandoan project

• New Hope Ltd – Elimatta 5Mtpa

• Cockatoo Coal - JV with Mitsui

• Yancoal - Cameby Downs

• Stanmore Coal – The Range

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MetroCoal Resource

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** • Total Resource of 3.8 billion tonnes**

	Juandah (underground) MCU Seam**	Bundi (Underground)**	Norwood (Underground) MCU Seam**	Columboola (Underground) MCU Seam**	Dalby West**	Total (Underground)
Inferred	224Mt	1411Mt	156Mt	1,297Mt***	520Mt	3,608Mt
Indicated	24Mt	150.9Mt				174.9Mt
Total	248Mt	1561.8Mt	156Mt	1,297Mt***	520Mt	3,782.9Mt

Target tonnage in Kogan and Macallister Upper seam only

* _The potential quantity and quality is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource or Ore Reserve and it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.**_

**See ASX – MTE releases – 18 November 2011, 9 December 2011 and 14 December 2011

*MTE JV share + 49%

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MetroCoal Development Strategy

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• To develop a longwall mining operation at Bundi (EPC 1164) with an export coal capacity in excess of 5Mt per year

• Initial development commencing 2015

• Longwall production commencing 2017

• To develop a longwall mining operation at Columboola Joint Venture (EPC 1165) with an export coal capacity in excess of 7Mt per year

• Initial development commencing 2016

• Longwall production commencing 2018

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Surat Basin Coal Seams

• Economic coal seams occur in the Juandah and Taroom coal measures within the Walloon sub-group

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• Exploration program target the Macalister Seam Package, made up of the Macalister Upper, Middle and Lower seams.

• Seams dip between 1[0] and 3[0]

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Underground Mining in the Surat Basin

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Continuous mining section identified in the Macalister Upper Seam

Roof

• Sandstone, siltstone or coal in thick seam areas

• Partings

• MU20 tuffaceous

• MU40 siltstone

• Floor

• Typically Sandstone or siltstone depending on the working section choice.

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Macalister Seam Cross Sections

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MetroCoal Projects Indicative Coal Quality

	Washed	Raw
PROXIMATE ANALYSIS (%ad)
Moisture	8-9	7-9
Ash	9-11	15-25
Volatile Matter	38-42	36-38
Fixed Carbon	38-43	30-42
TOTAL MOISTURE (%Ar)	14-16	12-14
YIELD (%)	75-90
SPECIFIC ENERGY
Gross (MJ/kg.ad)	26.6	21.8- 25.1
Gross (kCal/kg.ad)	6350	5200- 6000
ULTIMATE ANALYSIS (%daf)
Carbon	77.4	75.9
Hydrogen	6.0	6.2
Nitrogen	0.9	1.1
Sulphur	0.4	0.4
Oxygen	15.3	16.3
Sulphur (%ad)	0.30	0.32
HARDGROVE GRINDABILITY INDEX (HGI)	38	40

• Thermal coal suitable for export, at depths amenable to underground mining at all MetroCoal project areas

• Attractive coal quality

• Low ash, low sulphur and low phosphorous.

• Washability data for mining section currently being analysed.

• Clear cut point

• Yield dictated by parting thickness

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Bundi Project - Status

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• 135 part cored holes drilled

• Seismic program scheduled in Q3 2012

• Mining horizon selected in the MU10 – MU50 coal plies

• Underground long wall target mining area identified.

• Seam continuity confirmed

• Concept studies commenced

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• Mining – Mining Consultancy Services (Australia) Pty Ltd

• CHPP – Sedgman Limited

• Environmental Impact Statement (EIS) commenced with agreed Terms of Reference.

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Bundi: A Visual Overview

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Before Mining
and
After Mining
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SinoCoal – MetroCoal Columboola Joint Venture

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• $30 million Joint Venture with SinoCoal Resources on EPC 1165 Columboola (SC 51% - MTE 49%). Signed 2010

• JV is targeting down dip extensions that make up the Cameby Downs thermal deposit being mined by Yancoal

• *

• Inferred resource of 1,297Mt announced in 2011. Substantial increases expected.

• No material effect from SCL legislation

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• See ASX – MTE release 18 November 2011

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Dalby West EPC 1166

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In addition to the Bundi Project and the SinoCoal Joint Venture MetroCoal has an excellent resource base to provide development opportunities well in the future.

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• Dalby West presents an attractive target with well developed coal seams at relatively shallow depths.

• **A maiden Inferred resource of 520Mt has ***

• been established .

• *See ASX – MTE Release 9 December 2011

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Roma North

EPC 1167

• Roma North includes the Norwood area Project

• where 156Mt* inferred resource has already been identified.

• Extensive exploration target exists to the west of Norwood. Further drilling is planned during 2012/13.

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• See ASX – MTE release 12 May 2011

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Surat Basin Rail Capacity

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• Rail to Gladstone Port will be provided by Surat Basin Rail and upgrade of existing rail by QR National.

• Surat Basin Rail construction commences in 2012. Initial capacity 42Mtpa (ultimate capacity understood to be >80Mtpa)

• Rail connections to mine site to be constructed in cooperation with Elimatta and Central Surat Rail (ATEC, Yancoal, Cockatoo and Columboola JV)

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Port Infrastructure - Gladstone

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Wiggins Island

• MetroCoal is a participant in the Stage 2 feasibility study

Tenement to Terminal Limited (3TL)

• 3TL is an unlisted public company

• Terminal site land is freehold

• Yarwun Terminal declared a significant project

• MTE has 20% Equity in 3TL and secured a priority allocation for up to 11.47 Mtpa.

• Stage 1 – 25Mtpa planned to accept coal to stockpile for shipment in 2018

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3TL – Yarwun Terminal

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Tenement to Terminal – Yarwun Terminal

Approval will be sought for the first 50Mtpa of capacity, however the terminal could be expanded in the future to 75Mtpa.

• Stage 1: 25Mtpa

• Major project components

• 14km of rail line from Mt Larcom to the proposed 6.5km Mt Miller balloon loop;

• rail receival station and inloading conveyors;

• stockyard site with stacker/reclaimer equipment;

• outloading trestle & conveyors;

• wharves and shiploaders; and

• dredged approach channel, swing basin and berth pocket to access the existing deepwater channel in Gladstone Harbour.

• 3TL plans to reach a final investment decision in late 2014 and envisages the terminal to be operational by 2018.

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MetroCoal in 2012

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During 2012 our focus is on MetroCoal’s project development at both Bundi and Columboola and on infrastructure development.

MetroCoal moves from exploration into the next phase of development, progressing mining and environmental studies

• Exploration will focus on closer spaced drilling, upgrading resources to indicated and measured in mining target areas of Bundi and Columboola

• EIS process commenced for Bundi and Columboola projects

• Bundi Project concept study commenced - results expected in Q3

Infrastructure for the Surat continues to develop

• SBR investment decision 2012, construction commences 2012 (SBR website)

• Wiggins Island Stage 1 construction has commenced

• 3TL preliminary studies completed & feasibility studies to commence in 2012.

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Thank you

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MetroCoal Limited

Contact:

Mike O’Brien – Chief Executive Officer Email: mobrien@metrocoal.com.au Theo Psaros – Chief Operating Officer Email: tpsaros@metrocoal.com.au Office: +61 7 3249 3040 Web: www.metrocoal.com.au

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