METRO MINING LIMITED — Investor Presentation 2016

Aug 29, 2016

CEO Presentation at EGM

ASX : MMI| 30 August 2016

Metro Provides a Compelling Investment Opportunity

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Positive fundamentals for bauxite

Simple DSO project, well located in Cape York’s world class bauxite province Production expected Q2 2018*

Low CAPEX (~A$40m), high margins, excellent economics (IRR +150%) and generating average annual EBITDA of A$133m for 13 years

Proven, high quality team who have developed & operated mines globally Strategic financing from Greenstone

Fully funded to decision to mine

Attractive share price upside

*As a result of a possible delay to the Environmental Authority approval and to avoid the impact of the wet season the first shipment of bauxite from the Bauxite Hills Project is expected to be delayed approximately 6 months

ASX : MMI | 30 August 2016

Metro has been Rapidly Advancing Bauxite Hills

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Native Title & Land Access Agreement Signing – January 2016

8 Greenstone  Financing 7 Strategic Stake in  Gulf Secured 6 EIS Submitted 

5 PFS for 4Mtpa 

Lead Consultant for EIS Submission – April 2016

4 Transhipment  Solution

3 Native Title &  Land Access 2 DFS for 2Mtpa 

1 Off-take MOU with Xinfa



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Off-Take MOU with Xinfa Signing – August 2015

ASX : MMI | 30 August 2016

Cornerstone Equity Investment at Significant Premium to Market

About Greenstone  Specialist metals & mining private equity fund  Established by former senior JP Morgan and Xstrata executives in 2013  Significant in-house technical expertise including bauxite and aluminium  Long term investment horizon – 10 year fund  Experienced ASX investment track record – Heron (ASX:HRR) and Avanco (ASX:AVB) Strategic Financing  $8.9 million for 19.98% equity interest in Metro  Investment priced at $0.085 per share, 27% premium to closing price prior to announcement  Ability to maintain equity interest via customary anti-dilution provisions  Additional US$20 Million of follow-on equity support available for construction of Bauxite Hills Strategic Relationship  Representative on Metro board  Representative on the Bauxite Hills Development Steering Committee  Metro to have access strategic, technical and financing expertise and industry relationships	About Greenstone  Specialist metals & mining private equity fund  Established by former senior JP Morgan and Xstrata executives in 2013  Significant in-house technical expertise including bauxite and aluminium  Long term investment horizon – 10 year fund  Experienced ASX investment track record – Heron (ASX:HRR) and Avanco (ASX:AVB) Strategic Financing  $8.9 million for 19.98% equity interest in Metro  Investment priced at $0.085 per share, 27% premium to closing price prior to announcement  Ability to maintain equity interest via customary anti-dilution provisions  Additional US$20 Million of follow-on equity support available for construction of Bauxite Hills Strategic Relationship  Representative on Metro board  Representative on the Bauxite Hills Development Steering Committee  Metro to have access strategic, technical and financing expertise and industry relationships
About Greenstone	 Specialist metals & mining private equity fund  Established by former senior JP Morgan and Xstrata executives in 2013  Significant in-house technical expertise including bauxite and aluminium  Long term investment horizon – 10 year fund  Experienced ASX investment track record – Heron (ASX:HRR) and Avanco (ASX:AVB)
Strategic Financing	 $8.9 million for 19.98% equity interest in Metro  Investment priced at $0.085 per share, 27% premium to closing price prior to announcement  Ability to maintain equity interest via customary anti-dilution provisions  Additional US$20 Million of follow-on equity support available for construction of Bauxite Hills
Strategic Relationship	 Representative on Metro board  Representative on the Bauxite Hills Development Steering Committee  Metro to have access strategic, technical and financing expertise and industry relationships

ASX : MMI | 30 August 2016

Metro’s Board & Management Team have Successfully Developed and Operated over 30 Projects Globally

Key Team Members

Stephen Everett	Chemical engineer with over 40 years experience in resources and construction
Chairman	Formerly Chairman of BeMaX Resources
Simon Finnis	Over 28 years experience & global resource sector experience
Chief Executive Officer	Former CEO of Grande Côte Minerals Sands Operations in Senegal with responsibility for successful $650m project development
Mike O’Brien	Mining engineer with over 40 years mining and minerals experience
Project Director	25 years extensive management experience with Shell and Anglo American
	Environmental scientist with over 25 years experience in environmental management
Colleen Fish Environmental Manager	Former Manager Environment, for Peabody Queensland with responsibility for 7 mine sites Member of Queensland Resource Council Environment Committee
Norman Ting General Manager, Marketing	Over 30 years bauxite industry and marketing experience Former Chairman for Traxys China, former senior executive with WOGEN in UK, Hong Kong & China – which included representing Comalco (RTA) Bauxite and Alumina in Beijing

ASX : MMI | 30 August 2016

Key Ingredient for Manufacturing Aluminium

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4-6 tonnes 2 tonnes 1 tonne = = bauxite alumina aluminium

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Key Bauxite Value Drivers Metro Mining Ltd Grade Alumina content ranges from 30% - 65% and silica ranges from 2% - 30% Alumina 50-54 % Silica 6-9% Location Proximity to buyer, supply reliability and sovereign risk Close to Asia

ASX : MMI | 30 August 2016

Structural Change due to Coastal Refining and Declining Reserves (<10 Years) Driving Strong Chinese Demand for Imported Bauxite

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China Bauxite Demand (by 2015 Capacity Mtpa) China Bauxite Imports (Mt)
Inner Mongolia
Shanxi
Shandong
Henan
Predominantly Imported Bauxite
Chongqing Predominantly Domestic Bauxite
Guizhou
Yunnan
Guangxi 56
54.5
46.4
Total 2015 Chinese Bauxite Demand of 153Mt with 56Mt Imported
26.2
25
17.0
3.0 2.1 2.3 1.5
3
Shandong Shanxi Henan Guizhou Guangxi Chonquing Yunnan Inner
97% of Mongolia
Chinese
2005 2010 2015
Bauxite
Imports
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~7% CAGR for next 15 years

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147
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113
68
56
25
3
2005 2010 2015 2020 2025 2030
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Source: CM Group

ASX : MMI | 30 August 2016

Australia Ideally Placed To Meet Increased Chinese Demand With Proven, Well Accepted Product And Key Freight Advantage

China Bauxite Imports by Country, Volume & Price Last 4 Years

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Indonesia Australia Jamaica India Malaysia Fiji Guyana
Brazil Guinea Dominic Rep. Ghana Solomon Isl. Montenegro Turkey
100
95
1Mt
90
85
80
75
70
65
60
Guinea Supply
55 With Significant
Freight Cost
Disadvantage
50
45 Australia
Well Accepted
40 Indonesia Malaysia ‘Gap’ Producer Reliable Supply
Limited Reserves (<2years)
Export Ban Imposed
Export Ban Recently Imposed
35
Bauxite Price, $/t
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Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16

8

Source: CM Group

ASX : MMI | 30 August 2016

Located 95km North of Weipa with ready access via the Skardon River

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• Weipa is a world renowned and high quality bauxite province

• Adjacent to historic kaolin mining operation

• Compact site, undemanding terrain, easy access to ocean for bulk logistics solutions

• Advantageous proximity to key Chinese end market

• Strategic regional tenement position covering ~1,300km2

ASX : MMI | 30 August 2016

Conventional Mining and Transportation Techniques

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clear vegetation &
remove overburden return overburden & replace
topsoil - then revegetate
strip mine bauxite
Overburden (~0.5m)
DSO Bauxite Horizon (~1.75m)
Ironstone
Mottled Zone
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Haul ore 5-10km to stockpile & barge loading
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Barge ore 10km down Skardon River

Tranship to bulk carrier, for export

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ASX : MMI | 30 August 2016

Barging and Transhipment Solution to be Provided by Proven Operator

Barge Loading Facility (BLF)

Adequate water at low tide & accessible from tenements

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Tugs & ‘Dumb’ Barges Barge capacity of 2,500t - 3,800t depending on tide

Key Points

• TSA previously provided comparable tug and barge services for an iron ore producer operating out of Wyndham’s, Cambridge Gulf in Western Australia

Geared Ship Loading (Panamax vessels loaded~12km offshore)

• TSA will provide and operate all tugs and barges required

• 24 hour barge loading, 17 hour per day transhipment

• No dredging or bed levelling required

ASX : MMI | 30 August 2016

	Recent PFS
	Key Results**
	Steady State Production	4Mtpa
	LOM Production	49.1Mt
	Mine Life	13 years
	Capex(inc 15% contingency)	A$40.1m
	Bauxite Price (FOB)	US$38.6-45.4/t
	Exchange Rate (AUD/USD)	0.75
	LOM Average Total Operating Costs	A$18.8/t
	LOM Average Operating Margin	A$33.6/t
	LOM Average Annual EBITDA	A$133.6m
	Payback Period	1.2 years
	NPV10 (post-tax)	A$582m
	IRR	156%

Significant Scale Benefits Confirmed by Recent PFS

• Detailed PFS completed by MEC Mining

• Based on DFS for 2Mtpa* completed Nov 2015

• 4Mtpa* steady state

• 2Mtpa* for years 1 and 2

• 8 months of operation per year during dry season (April to November)

• 24 hour operation post ramp up with night shift to be added

• +13 year mine life*

• 5 month construction period

• Low CAPEX and highly competitive cash costs

• Environmental footprint unchanged from 2Mtpa* DFS

• DFS to consider benefit of 5Mtpa* production scenario

• *Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed as per Listing Rule 5.19.2 ** Refer ASX Announcement 27 Jan 2016

ASX : MMI | 30 August 2016

Product Quality Confirmed by Potential Customers with Initial Off-take MOU Secured & Discussions with other Possible Partners Progressing

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 Off-take MOU secured with Xinfa

  - Xinfa is one of the largest integrated aluminium companies in China

• MOU secured in August 2015 based on previous 2Mtpa* plan with following key terms:

  • Initial term of 5 years

  • Minimum tonnage of 1Mtpa and up to a maximum of 1.2Mtpa

  • FOB pricing subject to market conditions and agreed quality parameters

  • Take or pay conditions with payment by irrevocable Letter of Credit

• Strong levels of inquiry and interest

• Off-take discussions led by Metro’s bauxite marketing expert Norman Ting

• Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed as per Listing Rule 5.19.2

ASX : MMI | 30 August 2016

22% Stake In Neighbour Provides Multiple Benefits

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Key Points

• Off-market takeover offer closed in June

• Metro now Gulf’s largest shareholder with 22% stake

• Gulf has similar reserves & resources to Metro and access to some legacy infrastructure associated with historic Kaolin mining but project is less advance in other areas

• Enhances Metro’s regional significance and strategic importance and appeal

• Potential upside available from collaboration at either project or corporate level

• Over $200m of merger synergies identified by Gulf’s independent experts Grant Thornton and Xstract

Current Share Price Provides Ground-floor Entry with Significant Upside

Near Term share Price Targets: $0.14 $0.26 $5.6m Equity Raising at $0.08/share $0.20 $0.12 $0.10 $8.9m Strategic Financing with Greenstone at $0.085/share Initial PFS (2Mtpa) $0.08 $0.06 Metro gains control of Bauxite Hills Project & new Management team established $0.04 DFS (2Mtpa) $0.02 Increased Production Scenario PFS (4Mtpa) $0.00 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16

ASX : MMI | 30 August 2016

CORPORATE & CONTACT DETAILS

Attractive Fundamentals, High Quality Project with Proven Team focused on Delivering Shareholder Value

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KEY CONTACT DETAILS

Simon Finnis

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

REGISTERED OFFICE AND HEAD OFFICE

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

ASX : MMI | 30 August 2016

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.

Competent Person Statement

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 Maclean 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.

ASX : MMI | 30 August 2016