MRG METALS LIMITED — Capital/Financing Update 2016

Oct 30, 2016

31 OCT 2016 - ASX ANNOUNCEMENT

YARDILLA EXPLORATION UPDATE

• Soil Sampling Generates Two Compelling Drill Targets

• Technical analysis of data supports original hypothesis that

  • previous drilling did not test the targets identified

• Drilling to Commence as soon as drill rigs can be mobilised

MRG is pleased to update the market on significant progress at its high potential Yardilla gold property in WA. The soil auger program undertaken last month has yielded two exciting drill targets. Both targets will be drill tested as soon as rigs can be mobilised.

In relation to this the POW (Program of Work) from WA DMP has progressed to a stage that approval is expected in the next two weeks. Drill tendering and other approvals are being progressed to align with this timeline.

Details of the soil sample results and drill program will be announced in the coming days following final review of the multi element analysis and subsequent drill hole location.

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31 OCT 2016 - ASX ANNOUNCEMENT

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Yardilla Project Background

MRG’s Yardilla Project comprises 3 exploration licences covering high impact gold and nickel sulphide targets, located 95km east-northeast of Norseman on the boundary between the Archaean Yilgarn Craton and the Proterozoic Albany-Fraser Orogen.

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Location of MRG’s Yardilla Project on the boundary of the Yilgarn Craton and Albany Fraser Orogen.

The Albany-Fraser Orogen hosts a number of world class deposits, including:

• Tropicana gold mine – Resource of 115.7Mt @ 1.89 g/t Au for 7.04Moz Au (30 June 2015)

• Nova-Bollinger nickel sulphide deposits – Resource of 14.3Mt @ 2.3% Ni & 0.9% Cu for 325kt Ni & 134kt Cu (30 June 2015)

• Trilogy base metal deposit – Resource of 6.2Mt @ 1% Cu, 0.9 g/t Au & 47 g/t Ag for 65kt Cu, 214koz Au & 9.3Moz Ag (30 June 2015)

The project is considered highly prospective and spans a portion of a the major tectonic suture between the Kurnalpi greenstone Terrain of the Yilgarn Craton and the Proterozoic Albany-Fraser Province, covering tectonically reworked Archaean rocks which form the eastern margin of the Yilgarn Craton. This is a TectonoStructural position similar to Tropicana deposit.

Previous explorers have found geochemical anomalism adjacent to the Cundeelee Fault. Subsequent analysis of this geochemical data by Sasak Technology identified several untested multi – element anomalies, unrecognised and hence untested. These geochemically anomalous zones extend further to the south west, close to the suture zone (Cundeelee Fault). MRG’s infill and extensional sampling will firm up these anomalies.

Additionally, the project covers a greenstone belt containing anomalous Nickel geochemistry accompanied by the strongest magnetic anomaly in the southern part the Yilgarn Craton. Geochemical sampling over this greenstone belt aims to define gold and nickel drill targets within the belt.

Andrew Van der Zwan Chairman

The information in this summary report, as it relates to Exploration Results is based on information compiled and/or reviewed by Mr. Keith Weston, who is a member of the Australasian Institute of Mining and Meta l lurgy (AusIMM).

Mr. Weston is an employee to the Company and has the relevant experience with the mineralisation reported on 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. Weston consents to the inclusion in the report of the matters based on the information in the form and context in which they appear.

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