METRO MINING LIMITED — Merger & Acquisition 2016

Mar 22, 2016

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----- Start of picture text ----- ASX ANNOUNCEMENT23 March 2016----- End of picture text -----

Conditional Increase in Offer for Gulf Alumina Limited

On 24 December 2015 Metro Mining Limited ( Metro ) announced an all scrip merger offer to acquire all of the ordinary shares in Gulf Alumina Limited ( Gulf ). The offer was 3.3 shares in Metro ( Metro Shares ) for every 1 share of Gulf ( Gulf Share ) ( Original Offer ). On 8 March 2016 the Original Offer was declared to be free of all conditions.

As a result of acceptances of the Original Offer by a number of Gulf shareholders, Metro is currently entitled to over 22% of the fully paid ordinary shares in Gulf.

Metro is now pleased to announce an improved offer for all of the ordinary shares in Gulf of 3.5 Metro Shares for every 1 Gulf Share ( Improved Offer ), subject to:

• (i) Metro having a relevant interest in more than 50% of all Gulf shares by or before the end of the offer period which, unless extended, will end at 7.00pm on 15 April 2016, and

• (ii) there being no change to Gulf’s capital structure other than as a result of the exercise of options already on issue over ordinary shares.

As the Original Offer has been declared unconditional, Gulf shareholders who accept Metro’s offer will receive the Original Offer consideration of 3.3 Metro Shares for every 1 Gulf Share which they hold and will also benefit from Metro’s Improved Offer should the Improved Offer conditions be satisfied.

The merger will create a leading independent bauxite producer, well positioned to take advantage of the growing demand for seaborne bauxite into China. It enables the development of a larger, longer life project with the potential to deliver real economies of scale and enhanced relevance in the traded bauxite market. It will create a significant company that will provide an attractive investment opportunity, with improved liquidity and upside for all shareholders.

Further Information

For further information, contact Metro on +61 7 3009 8000.

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ASX : MMI ACN 117 763 443

For More information Contact: Mr Simon Finnis | CEO | Mr Scott Waddell | Company Sec T : +61 (0) 7 3009 8000 | F : +61 (0) 7 3221 4811 | E : info@metromining.com.au | Website: www.metromining.com.au Registered Office & Head Office: Lvl 8, 300 Adelaide St, Brisbane | PO Box 10955, Adelaide St, Brisbane Q 4000

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