METRO MINING LIMITED — Investor Presentation 2015

Sep 14, 2015

15 September 2015

– Diversified Commodities Deliberate Focus ASX : MMI

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Capital Structure Shareholders
9 September 2015
NetWealth
Share Price 8.1c
Investments
DADI
Shares on Issue 358.5m 5% 17%
Mr Gregory
Market Cap A$29.0m Other Willims
Options 10.7m 47% 6%
Cash A$6.8m Balanced
Property
Debt Nil XINFA Group
19%
6%
Enterprise Value A$22.2m
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Funding
Metro Mining has just
completed a successful
A$5.6 Million fundraising
comprising a A$2.0 Million
Placement and a A$3.6
Million Rights Issue.
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• Metro Mining’s recent fundraising confirms the great support we have from shareholders and also reaffirms the merit of the company’s flagship project - the Bauxite Hills project.

• In these difficult market conditions it is notable that Metro Mining has been successful in raising significant funds and receiving support from underwriters.

• As a result of our funding the company is now well financed to finalise pre-development work on the Bauxite Hills Project.

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Well Located in Leading Bauxite Province of Cape York, in Queensland, Australia

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 Reserves of 48.2Mt*

• 50.2% total Al2O3

• 38.4% THA

• 6.4% RxSi

 Product quality comparable to Weipa

 Nearby existing infrastructure

 Positive community engagement

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Mining

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Clear vegetation &
remove overburden
strip mine bauxite
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Mottled Zone
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Transportation

Haul ore 5-10km to stockpile & barge loading Barge ore 10km down Skardon River

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return overburden & replace topsoil - then revegetate

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Tranship to bulk carrier, for export
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Bauxite Hills – Ticking all the Boxes Heading

High Margin Development Opportunity

 Simple Construction and operation

 Low CAPEX and OPEX

 PFS demonstrates robust economics with post-tax NPV 15% of A$197 M and 88% IRR**

 27 years* mine life following recent Reserve increase

 Up to 2Mtpa** Direct Shipping Ore (DSO) operation targeting Q3 2016 production

 Definitive Feasibility Study nearing completion

 Positive Market Fundamentals with increasing demand and positive outlook

 Quality high product in available Al2O3 with third party confirmation of DSO product suitability  Strong community support from Cape York stakeholders with Native Title progressing well

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

– Pre-Feasibility Study Key Outcomes Heading

Completed in February 2015 – Simple Operation & Robust Economics

Operational	Metrics
Production Rate	Up 2	Mtpa* DSO
Strip Ratio (waste to ore)		1:10
Mine Life		27 years*
Construction Start		Q2 2016
FirstProduction		Q4 2016

Financial Metrics (Real)**
NPV (15%) after tax	A$197m
IRR (100% Equity)	88%
Construction Capex	A$27.4m
Sustaining Capex (LOM)	A$18.1m
Average Operating Cost (FOB)	A$26.7/t
Average Price Received (FOB)	A$55.3/t
Average Cash Margin (FOB)	A$28.6/t
Average Annual NPAT	A$37.9m
Capital Payback from 1st production	1.1 years

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Pre-Feasibility StudyHeading – CAPEX & OPEX

Low CAPEX & OPEX*

Capital Expenditure(A$m) Mine Access (Haul Road) 2.8 Mine & Barge Loading Infrastructure 10.6 Mine Camp & Airport 5.0 Mining Equipment 2.5 Contingency & Owners Costs 6.5 Total Capex 27.4	Operational Expenditure(A$/t)
	Mining Cost to ROM stockpile 3.0
	Crush, Load and Barge costs 10.5
	Off Mine costs (inc marketing) 6.8
	Sub-Total Site & Overhead Costs 20.3
	Royalties 6.4
	Total Cost to FOB Inc. Royalties 26.7

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Demand Driven Price Growth Heading

• Bauxite has experienced strong price growth in the past decade, growing at ~8% pa

• Price growth has been further supported by the Indonesian ban on raw material export in early 2014, resulting in demand outstripping supply Body copy

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$70
Average price of Chinese bauxite imports
US$/tonne CIF China
$60
$50
$40
$30
$20
Jan 06 Jan 08 Jan 10 Jan 12 Jan 14
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Price Outlook Heading

 Global growth in aluminium consumption led by China is forecasted to drive bauxite prices

• Metro Mining’s bauxite price forecasts are based on independent research by CM Group

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 Will be updated in Definitive Feasibility Study
Body copy
Forecast Bauxite Prices – Real Terms 2015
80.00
Key
70.00 CBIX Price – Base Case
– – CFR Shandong
60.00 CBIX Price Range CFR
Shandong
Metro Mining Base
50.00 – – Case, FOB Nth Qld
Metro Mining Price
40.00
Range, FOB Nth Qld
30.00
Real US$/t 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025
MMI High Case, FOB 46.4 47.7 52.0 51.7 53.4 51.7 54.0 52.4 53.0 52.6
MMI Base Case, FOB 43.5 44.5 45.5 45.4 47.1 48.5 50.2 47.9 49.7 49.7
MMI Low Case, FOB 39.2 39.6 40.5 40.0 39.6 40.4 40.0 39.3 39.4 39.4
US$/t
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Forecast of China Bauxite Imports Heading

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
120.0 China imported 22.7
million tonnes of bauxite
Body copy
in first half of 2015. Approx
100.0 75% of imports are low
temp bauxite
Shanxi  Indonesian bauxite ban
80.0
still in place
Inner Mongolia
Henan  Malaysia could export up
60.0 to 15-20 million tonnes in
Guizhou
2015 however Malaysia
Chongqing bauxite resources are
40.0 Shandong unknown.
20.0
-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: CM Group
Million Tonne
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Heading

• Cape York’s high quality export grade bauxite with high alumina content and its characteristics are well known to Chinese and other international alumina refineries

• Located close to international shipping routes with low relative freight costs to China Body copy

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47.3% Al2O3
2.79% Silica
47.6% Al2O3 3.13% Silica 46.1% Al2O3
2.87% Silica
48.4% Al2O3
6.51% Silica
51.5% Al2O3
5.45% Silica
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Permitting Heading

Permitting Pathway

Body copy

• Previous mining region

• Outside any environmental exclusion zone

• Minimal environmental impact

• Positive local community engagement and support

• Preferred Right to Negotiate process with Native Title owners underway and set to conclude later in 2015

• Environment Authority (EA) was formally accepted on 17 August 2015 by the (DEHP) Queensland Department of Environment & Heritage Protection

• DEHP evaluating between EMP and EIS - if the latter we would anticipate a delay of six months.

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

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Completed Resource Estimate: 47Mt
In question - recent DEHP
Completed PFS Feb 2015 and Resource increased to 61.5 Mt
advice may cause delay
Lodge Documents Draft EA Approval
First Shipment
Fully Funded
DFS Results
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Definitive Feasibility Study (DFS )
Environmental Approvals
Financing
Right To Negotiate Process
Construction
& Pre-strip
Flora & Fauna Studies Native Title
Operations
(wet season) Agreements ML Grant
Commence
Mining Ore Reserve 48.2 Mt
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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Product Quality & Marketing Heading

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Off-take Discussions and Marketing Strategy Progressing Well

• Marketability study undertaken by industry consultants CM Group

• Bauxite Hills is product suitable for low temperature refining process used in over 80% of China’s current refining capacity

• Recent appointment of China bauxite marketing expert Norman Ting is having desired effect and resulting in excellent exposure to Chinese customers and productive meetings and discussions

• MoU Off-take Agreement signed with major shareholder Xinfa

• Discussions with other Chinese consumers continue to progress well

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

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Future Opportunities Heading

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Bauxite Tenements in Cape York 1,300sq kilometres of exploration permits in a region well known for its high-quality, export grade bauxite. Body copy

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Comprehensive Exploration programme planned for H2 2015 Opportunity to Increase production by replicating the Bauxite Hills model

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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

Attractive Fundamentals	 	Global growth in aluminium consumption Increasing demand for bauxite in China	
		Strong price growth forecasted
		Focus on DSO quality bauxite
Favourable Location	 	Western Cape York is known for high-quality export grade bauxite Proposed mine located close to international shipping routes	
		Low freight costs to China
Robust Economics	 	Simple DSO project Long mine life(27 years*)	
		Low capex and opex
		Off-take opportunities currently in negotiation
Ideally Positioned	 	Close proximity to existing infrastructure Near term development of Bauxite Hills	
		Large land holding on Cape York

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

ISSUED CAPITAL (9 September 2015)

EXECUTIVE MANAGEMENT TEAM

Shares issued | 358.5 million Unlisted employee and Directors’ Options | 10.7 million Shareholders | 2,469

Mr Simon Finnis | Chief Executive Officer Mr Scott Waddell | CFO & Company Sec Mr Mike O’Brien | Project Director

REGISTERED OFFICE AND HEAD OFFICE

Top 20 Shareholders hold 72.4% of listed shares

Level 8, 300 Adelaide St, Brisbane Q 4000 PO Box 10955, Adelaide St, Brisbane Q 4000 Tel: +61 (0) 3009 8000 F: +61 (0) 7 3221 4811 Email: info@metromining.com.au Website: www.metromining.com.au

LARGEST SHAREHOLDERS

Balanced Property Trust |19.1% DADI Engineering (Group)|16.4 China Xinfa Group Corp Ltd | 6.3% Mr Gregory Willims |6.0% NetWealth Investments |5.4%

BOARD OF DIRECTORS

Mr Stephen Everett | Independent Non-Executive Chairman Mr Jijun Liu | Non-Executive Director

Mr Dongping Wang | Non-Executive Director Mr Ken Xiao | Alternate NED to Mr Liu

Mr Xiaoming Yuan | Alternate NED to Mr Wang Mr Philip Hennessy | Independent Non-Executive Director Mr George Lloyd | Independent Non-Executive Director Mr Lindsay Ward | Independent Non-Executive Director

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ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015

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 Metro Mining Limited, 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. Graphs used in the presentation (including data used in the graphs) are sourced from third parties and Metro Mining has not independently verified the information. Metro Mining is at an early development stage and while it does not currently have a operating bauxite mine it is taking early and preliminary steps (such as but not limited to Prefeasibility studies etc.) that are intended to ultimately result in the building and construction of an operating mine at its project areas. 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.

Technical information about the Bauxite Hills Project.

The information in this report that relates to Exploration Results is based on information compiled by Neil McLean who is a consultant to Metro Mining and a Fellow of the Australian Institute of Mining and Metallurgy (F.AusIMM). Mr McLean has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McLean consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

The information in this report that relates to Mining and Reserves is based on information compiled by MEC Mining and reviewed by Maria Joyce, a Competent Person who is a Chartered Engineer of the Australasian Institute of Mining and Metallurgy. The information in this report to which this statement is attached that relates to the “Metro Mining – Bauxite Hills” Reserve Estimate based on information compiled by Maria Joyce, a consultant to Metro Mining and a Competent Person who is a Chartered Engineer of the Australasian Institute of Mining and Metallurgy. Maria Joyce is the head of the Technical Services division and full-time employee of MEC Mining Pty Ltd. Maria Joyce has sufficient experience that is relevant to the style of mineralization, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Maria Joyce consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

With reference to resources in the Metro Mining Thermal Coal Resource in the Surat Basin.

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 an independent Geological Resource Consultant retained by Metro Mining Limited. 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. The JORC Code 2004 Information has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

ASX : MMI | Melbourne Mining Club Cutting Edge Series | 15 September 2015