METRO MINING LIMITED — Investor Presentation 2016

Apr 6, 2016

Mines & Money Asia April 2016

Metro is a Rare, High Margin Investment in a Growth Sector

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Positive fundamentals for bauxite Simple DSO project, well located in Cape York’s world class bauxite province Low capex, high margins and excellent economics Native title finalised and permitting on track Off-take MOU secured with leading integrated aluminium company Proven, high quality team who have developed & operated mines globally Attractive share price upside

ASX : MMI | Mines & Money Asia| April 2016

China represents around 70% of the 3rd party global traded bauxite market, with import growth driven by increased aluminium production & declining reserves (<10yrs)

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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Key Points

• Since 2009 average quality of Chinese bauxite reserves has declined driving demand for imports

• Recently developed coastal refining province in Shandong relies 100% on imported bauxite

• 75% of Chinese imports are low temp bauxite

• Chinese imported bauxite demand expected to double to +100Mtpa in coming decade

ASX : MMI | Mines & Money Asia| April 2016

Metro’s Board & Management Team have Successfully Developed and O erated over 30 Pro ects Globall p j y

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

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

• Weipa is a world renowned and high quality bauxite province

• Adjacent to historic kaolin mining operation

• Skardon River is an approved Queensland port

• Advantageous proximity to key Chinese end market

• Strategic regional tenement position covering ~1,300km2

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Conventional Mining and Transportation Techniques

Overburden (~0.5m)

Clear vegetation & remove overburden

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Strip mine bauxite
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Return overburden & replace topsoil - then revegetate

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Mottled Zone
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Haul ore 5-10km to stockpile & barge loading

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Barge ore 10km down Skardon River

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Tranship to bulk carrier, for export

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Significant Scale Benefits Confirmed by Recent PFS*

***4Mtpa PFS Key Results1 **	***4Mtpa PFS Key Results1 **
Steady State Production	4Mtpa
LOM Production	49.1Mt
Mine Life	13 years
Capex (inc 15% contingency)	A$40.1m
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%
1 Financial results based on CM Group pricing assumptions of Metro receiving an
FOB bauxite price of US38.60 to US45.40/t & a USD/AUD exchange rate of 0.75

 Detailed PFS completed by MEC Mining

• Based on DFS for 2Mtpa** announced to ASX 5 November 2015

• 4Mtpa steady state

• 2Mtpa** for years 1 and 2

• 8 Months of operation per year during dry season (April – 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

* Refer ASX Announcement 27 Jan 2-16

**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

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Positive & Supportive Relationships Established with Local Community

Recent Native Title & Land Access Agreement reached jointly with:

• Ankamuthi People, the traditional owners; and

• Old Mapoon Aboriginal Corporation (OMAC), the trustee owner of the land

Key Features of the Agreement include:

• Cultural Heritage Management Plan

• Detailed rehabilitation plan with ongoing monitoring

• Training, employment and business opportunities

• Substantial mining benefits based on percentage of FOB price received per tonne of bauxite

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DFS Underway and EIS Permitting Expected to be Completed Q4 2016

	2015	2016	2016	2016	2016	2017	2017	2017	2017
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
EIS Approval Process
Native Title & Land Access
4-5Mtpa PFS
Off-Take Agreement
4-5Mtpa DFS
Financing
Mining Lease Grant
Mine Construction
Mine Production
First Shipment

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Adjacent and Similar Scale Projects Provides Compelling Logic

Metro & Gulf Skardon River Positioning

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Merger Rationale

• Creates leading independent Cape York bauxite company with enhanced bauxite market relevance

• Effectively doubled reserve base of ~96Mt*

• Ability to realise significant operational synergies

• Economies of scale

• Removal of duplication

• Improved efficiency

• Enhanced financing capability given improved economics and enhanced investor appeal

• Benefit of Metro’s proven, ready made board & management team

• Single point of contact for key stakeholders

• Gulf shareholders receive attractive value, ASX liquidity & ongoing exposure to merger benefits

*Refer ASX Release 24 Dec 2015

Metro’s Offer Opened 24 December 2015 and is Progressing in Parallel with Metro Rapidly Advancing its own Project

Offer Ratio		 Intention to improve Offer to: 3.5 Metro shares for every 1 Gulf share (subject to conditions below (Improved Offer)
Ownership Outcome Under Improved Offer		 54.6% Metro / 45.4% Gulf
Key Conditions		 Metro having a relevant interest in more than 50% of Gulf shares (Minimum Acceptance Condition)1  No Change to Gulf’s Capital Structure other than exercise of options already on issue (No Dilution Condition)2
Gulf Board Response		 The Gulf Board currently recommends that Gulf shareholders not accept Metro’s Offer
Metro Voting Power in Gulf		 22%
Offer Close Date		 15 April 2016, until extended

1. Including Gulf shares in the Acceptance Facility

2. This condition will be deemed satisfied when the Minimum Acceptance Condition is satisfied; if the No Dilution Condition cannot be satisfied (e.g. because Gulf has issued shares under a placement), Metro will give notice of its intention to rely on the condition before the Minimum Acceptance Condition is satisfied.

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Background Slides

Capital Share Structure

Share Price (29 March 2016)	.06c
Shares on Issue	366.8m
Market Cap	A$22.0m
Options	13.8m
Cash (31 Dec 2015)	A$5.3m
Debt (31 Dec 2015)	Nil
Enterprise Value	A$16.7m

Shareholders

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Balanced
Property
19.6%
Other
46.8%
DADI
17.0%
Xinfa
6.2%
Bondline Gregory
Limited Willims
4.5% 5.9%
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Current Share Price Provides Ground-floor Entry with Significant Upside

$5.6m Equity Raising at $0.08/share

$0.14 $0.12 $0.10 $0.08 $0.06 Metro gains control of Bauxite Hills project & new Management team established $0.04 $0.02

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Initial PFS (2Mtpa)
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Near TermSharePriceTargets	Near TermSharePriceTargets
Argonaut	$0.20
GMP	$0.18
Morgans	$0.18

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DFS (2Mtpa)
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Increased Production Scenario PFS (4Mtpa)

$0.00 Mar-14

Jun-14

Sep-14

Dec-14

Sep-15

Mar-15

Jun-15

Dec-15

		Chemical engineer with over 40 years experience in the resources and construction industries both in
Stephen Everett		Australia and overseas
Chairman		Formerly Chairman of BeMaX Resources, Australian Solomons Gold, JMS Civil &Mining and IronRidge
		Resources and currently Chairman of Agrmin
Philip Hennessy		Over 30 years experience in accounting and corporate experience
Non-Executive Director		Chairman KPMG Queensland for 13 years prior to retiring in 2013
		Over 30 years resource industry experience including senior executive and board roles
George Lloyd Non-Executive Director		Previously Chairman of Cape Alumina for 5 years
		Currently Chairman of Ausenco and Pryme Energy
		Over 25 years experience with senior executive and board roles in mining, exploration, mineral
Lindsay Ward		processing, ports, rail, power generation, gas transmission and logistics
Non-Executive Director		Former Managing Director of Dart Mining and previously Mine Manager of the Yallourn Energy open cut
		coal mine in Victoria and former
Jijun Liu		Engineer with over 30 years experience in energy and resources
Non-Executive Director		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

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Management Team Simon Finnis CEO  28+ years resources industry experience working throughout Australia in underground & open cut mining operations. Holds Masters in Business & Technology from University of New South Wales  Joined Metro Jan 2015 having previously 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 Pooncarie Mineral Sands Project, redevelopment of Gold Ridge Mine in Solomon Islands & MD of Global Resources Corporation Mike O’Brien Project Director  Mining engineer with 40+ years mining & minerals experienced including over 25 years extensive management experience with multinational companies Shell Coal & Anglo American  Holds B.Sc. (Min)(Eng) University of Witwatersrand Scott Waddell CFO & Co Sec  Extensive experience gained through wide range of senior roles across multiple sites with Anglo Coal & Rio Tinto Alcan (RTA). Has as a solid understanding of the global bauxite, alumina and resources sectors  Holds Bachelor of Business from Queensland University of Technology and is an Associate Member of Governance Institute of Australia and Fellow of the Certified Practicing Accountants Colleen Fish Environmental Manager  25+ years experience in environmental management across the mining, consulting, aviation and chemical manufacturing industries in Australia and New Zealand  Previously Manager Environment, Queensland Operations, Peabody, with responsibility for 7 mine sites focussing on regulatory negotiation and compliance issues  Member of Queensland Resource Council Environment Committee and QRC Strategic Advisory Committee Norman Ting GM Marketing  30+ years industry experience having previously served as Chairman for Traxys China where he traded a range of products; predominantly bauxite  Former senior executive positions with WOGEN in UK, HK & China – incl representing Comalco (Rio Tinto Alcan) Bauxite & Alumina in Beijing; also served as Technical Marketing Manager, Bauxite & Alumina for Comalco

Cape York DSO Bauxite Reserves & Resources*

Area	Category	**DSO2 **	DSO Bauxite Qualities(Dry Basis)	DSO Bauxite Qualities(Dry Basis)	DSO Bauxite Qualities(Dry Basis)	DSO Bauxite Qualities(Dry Basis)
		Tonnes	**Total Al2O3 **	**THA3 **	**Total SiO2 **	RxSi4 (%)
		**Mt1 **	%	%	%	%
Reserves (ROM @ 10% Moisture)
BH1 & BH6 Proved5 41.8			50.7 38.6 10.9 6.3
BH1 & BH6 Probable6 6.4			49.3 36.8 13.4 6.9
Total 48.2			50.2 38.4 11.2 6.4
Resources (Dry In-situ)
BH1 & BH6 Measured 41.8			51 39.2 11 6.1
BH1 & BH6 Indicated 8.3			49.3 37.1 14 6.8
BH2 Indicated 11.7			49.1 37.4 15.7 6.7
BH1 & BH6 Inferred 3.4			48.4 35.9 14.8 7.2
Total 65.3			50.2 38.4 12.4 6.3

1. For BH1, BH2 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,

• 1.92g/cm[3] for BH2 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 & 9 Dec 2015

– Pre-Feasibility Study Key Outcomes**

Key Assumptions
Annual Production Rate (Steady State)	4.0Mt*
LOM Production	49.1Mt*
Mine Life	13 years*
Bauxite Price (FOB)	38.60-45.40/t
Exchange Rate (AUD/USD)	0.75
Discount Rate	10% / 15%
Pre-Mining Development Capital Expenditure	A$40.1m
Deferred and Sustaining Capital Expenditure	A$4.9m
Working Capital	A$4.0m

	Key Results
	NPV (10% DR, Real, after tax)	A$582m
	NPV (15% DR, Real, after tax)	A$440m
	IRR	156%
	Payback Period	1.2 years*
	Total LOM Revenue	A$2.9b
	LOM Average Annual EBITDA	A$133.6m
	LOM Average Annual NPAT	A$91.6m
	LOM Average Operating Margin	A$33.66/t
	LOM Average Opex (ex-Royalties)	A$18.80/t
	LOM Total Operating Costs	A$26.07/t

*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

Pre-Feasibility Study – CAPEX & OPEX* Heading

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CAPEX OPEX
Haul roads and site establishment A$3.03m Mining, haulage and operation of BLF A$6.27/t
Navigational aids and cyclone moorings A$1.15m Transhipment activities A$8.40/t
Site Infrastructure including BLF and A$27.63m Site and administrative costs A$4.13/t
accommodation camp
Mining and ancillary equipment A$6.18m Total Operating Costs (ex-royalties) A$18.80/t
Mobilisation, insurances and EPC design A$2.11m Royalties and other costs A$7.27/t
Total A$40.10m Total A$26.07/t
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• Refer ASX Announcement 27 Jan 2016

ASX : MMI | Mines & Money Asia| April 2016

Barging and transhipment well understood

• New barge loading facility on western side of Skardon River

• Adequate water at low tide and accessible from Metro’s tenements

• ~10km upstream from river mouth

• ~2km upstream from existing port location

• “Dumb barges” with towing and assist tugs to be used

• Barges 70m x 20m with capacity of 2,500t to 3,800t depending on tide

• Geared vessels to be located ~12km offshore in suitable water

• Offshore platform for Panamax vessels to be used when production increases +2Mtpa

• Contract signed recently with highly experienced operators

Tow Passage & transhipment Location

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Cape York Enjoys Strong Freight Advantage to China

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47.3% Al2O3
2.79% Silica
46.1% Al2O3
47.6% Al2O3
3.13% Silica
2.87% Silica
48.4% Al2O3
6.51% Silica
51.5% Al2O3 / 5.45% Silica
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Heading

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

 Off-take MOU secured with Xinfa

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

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

• Initial term of 5 years

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• 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

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Key Ingredient for Manufacturing Aluminium

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4-6 tonnes bauxite 2 tonnes alumina 1 tonne aluminium = = Key Bauxite Value Drivers Metro	4-6 tonnes bauxite 2 tonnes alumina 1 tonne aluminium = = Key Bauxite Value Drivers Metro	4-6 tonnes bauxite 2 tonnes alumina 1 tonne aluminium = = Key Bauxite Value Drivers Metro
Grade	Alumina content ranges from 30% - 65% and silica ranges from 2% - 30%	Alumina ~50%, Silica ~6%
Type	High temp (diasporic, bohmeitic) or low temp (gibbsitic)	Low temp
Location	Proximity to buyer, supply reliability and sovereign risk	Close to Asia

ASX : MMI | Mines & Money Asia| April 2016

Indonesian Export Ban & Recent Ban by “gap” Producer Malaysia (<2yrs reserves) set to Increase Demand for reliable Australian Supply

China Bauxite Imports by Supply Region over last 3 Years (Mt)

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Indonesia Australia Malaysia Other
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1
0
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
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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 | Mines & Money Asia| April 2016