METRO MINING LIMITED — Investor Presentation 2015

Jun 9, 2015

June 2015

Simple, Low CAPEX & High Margin Development Opportunity

 Clear focus on Bauxite Hills project located in Cape York in Queensland, Australia

 Simple up to 2Mtpa* Direct Shipping Ore (DSO) operation targeting Q4 2016 production

 Recent PFS demonstrates robust economics with post-tax NPV15% of A$197m and 88% IRR**

 Mine life of 25+ years* following recent reserve increase

 Quality high available Al2O3 product with third party confirmation of DSO product suitability

 Positive bauxite market fundamentals with increasing demand and positive outlook

 Strong community support

 Definitive Feasibility Study underway

*Refer ASX Release 2 June 2015. Metro confirms all material assumptions underpinning the production target and corresponding financial information continue to apply and have not materially changed as per Listing Rule 5.19.2 ** Refer ASX Release 17 Feb 2015

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Ca ital Structure ASX:MMI Share Price & Volume - LTM
p ( )
Share Price (5 June 2015) 9.3c 0.12 2.5
Shares on Issue 288.7m
Market Cap A$26.9m
0.10
Options 12.7m
2.0
Cash (31 March 2015) A$4.6m
Debt (31 March 2015) Nil
0.08
Enterprise Value A$22.3m
1.5
Shareholders
0.06
DADI
16%
1.0
0.04
Balance
Other Property
49% 14%
0.5
0.02
Xinfa Group
8%
Mr Gregory
Bondline Willims
Limited 7% 0.00 0.0
6% Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
Share Price (A$) Volume (m)
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4 Board of Directors Stephen Everett Chairman  Chemical engineer with over 40 years experience in the resources and construction industries both in Australia and overseas  Formerly Chairman of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining and IronRidge Resources and currently Chairman of Agrmin Philip Hennessy Independent Non-Executive Director  Over 30 years experience in accounting and corporate experience  Chairman KPMG Queensland for 13 years prior to retiring in 2013 George Lloyd Independent Non-Executive Director  Over 30 years resource industry experience including senior executive and board roles  Previously Chairman of Cape Alumina for 5 years  Currently Chairman of Ausenco and Pryme Energy Lindsay Ward Independent Non-Executive Director  Over 25 years experience with senior executive and board roles in mining, exploration, mineral processing, ports, rail, power generation, gas transmission and logistics  Former Managing Director of Dart Mining and previously Mine Manager of the Yallourn Energy open cut coal mine in Victoria and former Jijun Liu Non-Executive Director  Engineer with over 30 years experience in energy and resources  Managing Director of the Xinfa which controls one of the largest alumina-aluminium enterprises in China Dongping Wang Non-Executive Director  Over 30 years experience mining and prominent figure in the Chinese coal industry and recognised as coal processing expert  Chairman of Dadi Engineering which is one of China's largest coal industry engineering groups

Management & Technical Team

• Simon Finnis  Over 28 years experience in resources industry having working throughout Australia in underground and Chief Executive Officer open cut mining operations. Holds Masters in Business & Technology from University of New South Wales

Chief Executive Officer

• Joined Metro January 2015 having most recently served as CEO of Grande Côte Minerals Sands Operations in Senegal with responsibility for successful $650M project development

• Other key experience include Operations Manager for the Pooncarie Mineral Sands Project, redevelopment of the Gold Ridge Mine in Solomon Islands and MD of Global Resources Corporation

• Mike O’Brien  Mining engineer with over 35 years mining and minerals experienced including over 25 years extensive Project Director management experience with multinational companies Shell Coal and Anglo American

• Holds B.Sc. (Min)(Eng) from the University of Witwatersrand

• Extensive experience gained holding a wide variety of senior roles across multiple sites with Anglo Coal and Rio Tinto Alcan (RTA) and has a solid understanding of the global bauxite, alumina and resources sectors

Scott Waddell

• Chief Financial Officer Rio Tinto Alcan (RTA) and has a solid understanding of the global bauxite, alumina and resources sectors & Company Secretary  Holds Bachelor of Business from the Queensland University of Technology and is an Associate Member of Chartered Secretaries Australia and Fellow of the Certified Practicing Accountants

• Over 25 years experience in environmental management across the mining, consulting, aviation and chemical manufacturing industries in Australia and New Zealand

Colleen Fish Environmental Manager

• Previously served as Manager Environment, Queensland Operations, for Peabody, with responsibility for 7 mine sites with a focus on regulatory negotiation and compliance issues

• Member of Queensland Resource Council Environment Committee and QRC Strategic Advisory Committee

• Nicholas Villa  Over 15 years experience in mining, planning and execution of exploration and development programs as Project Manager well as navigation of both State and Federal Government mining approvals processes

• Norman Ting  Over 30 years industry experience having previously served as Chairman for Traxys China where he traded a General Manager range of products; predominantly bauxite Marketing 

• Former senior executive positions with WOGEN in the United Kingdom, Hong Kong & China – which included representing Comalco (Rio Tinto Alcan) Bauxite and Alumina in Beijing; also served as Technical Marketing Manager, Bauxite and Alumina for Comalco

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

• Clear permitting pathway *Refer ASX Release 2 June 2015.

Completed in February 2015 – Simple Operation & Robust Economics

	Operational Metrics Production Rate Up 2 Mtpa DSO Strip Ratio (waste to ore) 1:10 Product Grade 50.2% Al2O3, 6.4% RxSiO2 Mine Life >25 years Construction Start Q2 2016 First Production 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

*Refer ASX Release 2 June 2015. Metro confirms all material assumptions underpinning the production target and corresponding financial information continue to apply and have not materially changed as per Listing Rule 5.19.2 ** Refer ASX Release 17 Feb 2015

– Pre-Feasibility Study CAPEX & OPEX

Low CAPEX & Competitive 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

Product Quality & Marketing

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Off-take Discussions and Marketing Strategy Progressing Well

• Marketability study undertaken by industry consultants CM Group

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

• current refining capacity

• Off-take discussions with major shareholder Xinfa continue to progress well

• Recent appointment of China bauxite marketing expert Norman Ting important for establishing key marketing presence and relationships in China

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Mining
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clear vegetation & remove overburden

return overburden & replace topsoil - then revegetate

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strip mine bauxite
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Overburden (~0.5m)

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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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Tranship to bulk carrier, for export

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Favourable Location & Known Product

 Located close to international shipping routes with low relative freight costs to China

• 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

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Average bauxite specifications and freight rates to China
INDIA
47.3% Al2O3
2.79% Silica CHINA
GUINEA
JAMAICA 46.1% Al2O3
3.13% Silica
47.6% Al2O3
2.87% Silica ~US$15-$20/t ~US$13-$15/t
BRAZIL
48.4% Al2O3
6.51% Silica AUSTRALIA
51.5% Al2O3
5.45% Silica
~US$33-$44/t
Source: Bauxite and Alumina Long Term Market Outlook, July 2014, CRU
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Permitting

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Clear Permitting Pathway

 Previous mining region

 Outside any environmental exclusion zone

 Positive local community engagement and support

• Preferred Right to Negotiate process with Native Title owners underway and set to conclude Q3 2015

• Up to 2Mtpa* project scale enables a more streamlined environmental approval process

• Highly experienced permitting team

*Refer ASX Release 2 June 2015. Metro confirms all material assumptions underpinning the production target and corresponding financial information continue to apply and have not materially changed as per Listing Rule 5.19.2

 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

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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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Source: ABX Quarterly Report June 2014

 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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Forecast Bauxite Prices – Real Terms 2015
80.00 Key
CBIX Price – Base Case
70.00 – – CFR Shandong
CBIX Price Range CFR
Shandong
60.00
Metro Mining Base
– – Case, FOB Nth Qld
50.00
Metro Mining Price
Range, FOB Nth Qld
40.00
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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Source: CM Group

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Indicative Timeline
Q2 CY 15 Q3 CY 15 Q4 CY 15 Q1 CY 16 Q2 CY 16 Q3 CY 16 Q4 CY 16
Definitive Feasibility Study
Native Title Agreements
Environmental Approvals
Off-Take Agreements
Financing
Construction &
Pre-Strip
Production
15
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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(25+ 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

*Refer ASX Release 2 June 2015. Metro confirms all material assumptions underpinning the production target and corresponding financial information continue to apply and have not materially changed as per Listing Rule 5.19.2

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KEY CONTACTS

Simon Finnis

Chief Executive Officer Metro Mining sfinnis@metromining.com.au Tel: +61 7 3009 8005 Mob: +61 418 695 138

Office Metro Mining ASX:MMI Level 8, 300 Adelaide St, Brisbane Queensland 4000 Tel: +61 7 3009 8000 Fax: +61 7 3221 4811 www.metromining.com.au

APPENDICES

Reserves & Resources

Bauxite Hills JORC Reserves & Resources* (June 2015)

		**DSO2 **	DSO Bauxite	DSO Bauxite	Qualities (Dry Basis)	Qualities (Dry Basis)
Area	Category	Tonnes	**Total Al2O3 **	**THA3 **	**Total SiO2 **	RxSi4 (%)
		**Mt1 **	%	%	%	%
BH1 & BH6	Measured Resource (Dry In-situ)	41.8	51	39.2	11	6.1
BH1 & BH6	Indicated Resource (Dry In-situ)	8.3	49.3	37.1	14	6.8
BH1 & BH6	Inferred Resource (Dry In-situ)	3.4	48.4	35.9	14.8	7.2
	Total Resources	53.6	50.6	38.6	11.7	6.3
BH1 & BH6	Proved Reserve5(ROM @ 10% Moisture)	41.8	50.7	38.6	10.9	6.3
BH1 & BH6	Probable Reserve6(ROM @ 10% Moisture)	6.4	49.3	36.8	13.4	6.9
	Total Marketable Ore Reserves	48.2	50.2	38.4	11.2	6.4

1. For BH1 and BH6 the tonnages are calculated using the following default bulk densities determined from a program of sonic drilling; 1.6g/cm[3] for BH1 and 2g/cm[3] for BH6. Actual values are used where measurements have been taken

2. DSO or “Direct shipping ore” is defined as bauxite that can be exported directly with minimal processing and beneficiation.

3. THA is trihydrate available alumina (gibbsite alumina + kaolinite alumina – low temperature desilication product (DSP) alumina) at 150[0] C.

4. RxSi is reactive silica at 150[0] C .

5. Proved Reserve - the probable reserve is included in the BH1 & BH6 Measured resource

6. Probable Reserve - the probable reserve is included in the BH1 & BH6 Indicated resource

*Refer ASX Release 2 June 2015.

DISCLAIMER Corporate & Contact Details

FORWARD LOOKING STATEMENT

Statements and material contained in this ASX Announcement, 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 this ASX Announcement (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 ASX Announcement 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 ASX Announcement should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

COMPETENT PERSON’S STATEMENT

T he 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.