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1 ASX ANNOUNCEMENT 21 November 2017 Annual General Meeting Chair & Managing Director s Address ASX: MMI ACN Contact: Tel: +61 (0) Fax: +61 (0) For Further Information: E: info@metromining.com.au Managing Director & Chief Executive Officer: Simon Finnis, Chief Financial Officer & Company Secretary: Scott Waddell Electronic copies & more information available at: Registered Office & Head Office: Level 2, 247 Adelaide Street, Brisbane Q 4000 Postal Address: GPO Box 10955, Brisbane Q 4000 This announcement has been prepared for publication in Australia and may not be released or distributed in the USA. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 (as amended) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. Announcement 21 November 2017 Page 1

2 ASX ANNOUNCEMENT Metro Mining Limited (ASX: MMI) 21 November 2017 AGM Chairman Address My fellow Board Members, Ladies and Gentlemen I was interested to note that I concluded my remarks at last year s AGM by saying:.. In the coming year I am sure you will be rewarded for your patience. Today, it gives your Board, Metro Senior Management and the entire team a great deal of satisfaction having, I believe, delivered upon that undertaking to you. What a year it has been. Your company completed the following milestones; Received all the required environmental approvals for the development of Bauxite hills mine. Completed all Native Title requirements Finalised a major offtake agreement with Xinfa Completed and consolidated the acquisition of Gulf Alumina, doubling our reserve base. Completed our DFS and raised the required funding for development. Commenced construction Let s look at the most important benchmark first! On 22 November last year (date of the last AGM) the share price was 0.14 cents and Metro s market capitalisation was $73.8M. Today the share price (last time I looked) is cents and your Company has grown to be valued at over $270M. During this period under review, the company has raised $90M through equity raisings and $40M through new debt facilities which has provided the funding to repay the short-term debt used to acquire Gulf Alumina, build the Bauxite Hills project and strengthen Metro s balance sheet. I would like to say thank you to Argonaut, who were critical to the success of the fundraisings. Your company has developed from junior explorer status to that of a mine developer and is on the cusp of becoming a producer. Certainly, we are now on track to become the second largest Bauxite producer within the internationally acclaimed Weipa Bauxite Region. No doubt you are aware construction at our flagship project, The Bauxite Hills Mine, has been underway in earnest since July. Of course, detailed planning commenced long before that. Announcement 21 November 2017 Page 1

3 The construction team have done a tremendous job and the transformation since July has been nothing short of remarkable. Metro is on schedule to load our first shipment at the Bauxite Hills Mine in April that s in four months time! Just to give you a high-level summary of what has been happening: Extensive marine works are complete including the installation of new barge loading facility; The new accommodation camp is well on the way to being completed and some of the new units are already being used to house construction workers. Haul roads are taking shape and the first stage of grade control drilling is complete Our Managing Director, Simon Finnis, will give you further details in his presentation at the end of the meeting. Of course, all of that is very important -- and indeed exciting. However, the development of your company has been and continues to be just as exciting. As I mentioned, Metro Mining s market capitalisation today is over $270M. Over the past year we have attracted the interest, and subsequent investment, of many significant resource focused institutional investors both local and international. Full details of our shareholder base and financial position is, of course, included in the Annual Report. It is important to note, we continue to enjoy the ongoing support of our long-term key shareholders, Balanced Property & Greenstone. I feel it is not improper for me to single them out because of their long association and commitment to the company and the Bauxite Hills Mine. Likewise, it is important for me to acknowledge the ongoing support of those not so large shareholders. Each, and every shareholder is important to Metro and we particularly acknowledge those who have remained during what has been quite a long -- and let s say -- interesting journey. To all of Metro Mining s shareholders I say, thank you. And long may the journey continue! Throughout the past year Metro has been totally committed to developing the Bauxite Hills project. It has unashamedly been our key focus and will continue with the aim of achieving our first shipment in April Ladies and Gentlemen, the achievements of the last 12 months are due to the efforts of the entire Metro team. We have an excellent executive team who have been well supported by a dedicated team of professionals. Thank you all. I would like to acknowledge the tremendous support and positive contribution that the Ankamuthi People, the Traditional Owners, and Old Mapoon Aboriginal Corporation, the Trustee owner of the land, have made to the progress and achievements to date. I would also like to acknowledge the stellar effort of my fellow Board members. In the Annual report, I refer to the 31 board meetings held during the year. The commitment of each, and every board member has gone well beyond that. I think it is appropriate that I conclude today with similar comments I made at the end of last year s Annual General Meeting. In the coming year I am sure you will be further rewarded as Metro becomes a Bauxite producer and exporter. ASX Announcement 21 November 2017 Page 2

4 Annual General Meeting ASX : MMI 21 November 2016

5 Corporate Snapshot Capital Structure (Post-Equity Raising) Share Price Share Price (20-Nov-17) $0.21 Shares on Issue 1,286M Market Cap $270M Options Unlisted 41.6M Cash (30-Sept-2017 Post Equity) $41.5M $0.30 $0.25 $0.20 $0.15 BUY (Jul-17) Target Price: $0.44 BUY (Aug-17) Target Price: $0.42 Debt Facility (drawn & undrawn) $26.7M $0.10 Enterprise Value Board of Directors $255.2M $0.05 Chairman Managing Director & CEO Non-Executive Director Non-Executive Director Stephen Everett Simon Finnis Philip Hennessy George Lloyd Share Register (Post-Equity Raising) Other Shareholders 32% 20% Greenstone Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Lindsay Ward Mark Sawyer Dongping Wang Jijun Liu Institutions 26% 16% 6% DADI Balanced Property 2 ASX : MMI AGM November 2017

6 Milestone Achievements Metro has completed several value adding milestones in 2017 to be primed for Q production 1 Acquired Gulf Consolidated Project Doubled Reserves Gained Infrastructure 4 Customer Base Growing Binding Sales Agreement for 7Mt over 4 years & LOI for 2.5Mt over 3 years Positive response from customers across China & internationally 2 Project Scale Expanded Incorporated Gulf Assets Staged Development Post tax NPV 10 of $601M & IRR of 81% 5 Environmental Approvals Received All environmental approvals received Approval for up to 10Mtpa production 3 Equity Issues & Debt provide Project Finance Equity Raisings for $90M Total to Strengthen Balance Sheet & provide Project Finance Secured Flexible, Low Cost Debt Facility of $39.4M 6 Project Construction on-time & on-budget BLF Structurally Complete Commissioning this week All other aspects on target Operational readiness on track 3 ASX : MMI AGM November 2017

7 Operational Overview Project Overview Bauxite Hills Mine Snapshot Location Key BFS Statistics 1 Ownership: Metro (100%) Location: Cape York, Qld Commodity Bauxite Product Type Direct Shipping Ore Mine Type Surface mining Contained mineral: Reserves 92.2Mt 1 Resources 144.8Mt 1 Status EA Granted, MLs Granted Construction H First Production April 2018 Start-up Production ~2Mtpa 2 Steady State Production ~6Mtpa (year 4) 2 Pre Production Capex ~$35.8m 3 Expansion Capex ~$36.7m Costs (LOM Avg) Onsite $16.4/t Incl Royalty $23.0/t Mine Life Operations Workforce 17 years Contract mining & transhipment ~185 personnel 1.ASX Release 15 Mar Metro confirms all material assumptions underpinning production target & corresponding financial information continue to apply & have not materially changed 3. Note this Capex & analysis excludes the purchase of Haul Trucks 4 ASX : MMI AGM November 2017

8 Pathway to Production 4 months to Production Construction underway and 1st production scheduled April 2018 Financing May June July Aug Sept Oct Nov Dec Jan Feb Mar April Piles & Steel Fabrication Camp Refurbishment Tug & Barge Mobilisation Civil Works Barge Loading Facility Haul Roads Barge Loading Facility Marine Installation Conveyor Electricals Material Offloading Facility Office & Workshop Refurbishment Grade Control Drilling & Analysis New Camp Installation Commissioning Care & Maintenance (Wet Season) Mining Fleet Mobilisation Mine Production 5 ASX : MMI AGM November 2017

9 Construction Team Brisbane / Mackay / Gladstone Feasibility & engineering Owner s team project construction management Queensland Piling works Marine installation Marine infrastructure management Logistics Cairns fabrication Conveyor system Product sampling Brisbane Feasibility Mine planning Queensland Civil works Haul Roads Townsville Electrical engineering & design North Queensland operations Camp management Cairns Fuel and lubricants Cairns Marine logistics 6 ASX : MMI AGM November 2017

10 Traditional Owner Engagement Excellent Relationships continue to flourish Ancillary Native Title & Land Access Agreement in place for mine life Liaison Committee with Traditional Owner established Traditional Owner training and employment Indigenous employment is 42% and is above target. Business opportunities for Traditional Owner s being developed Community engagement meetings and skills-audit workshops held in local communities Cultural Heritage Management Plan in place to preserve Aboriginal Heritage

11 Construction Update Bauxite Hills Village Barge Load-Out Facility Civil Works Infrastructure New camp installation complete Dec 2017 Existing camp used during construction Marine install complete and team demobilised BLF structurally complete Commissioning planned for next week Civils at Port Area complete Sediment catchment dams complete Haul roads construction well progressed Communications solution confirmed & ordered Fuel system designed & being fabricated Electricity by generators on site and operating 8 ASX : MMI Investor Presentation November 2017

12 Bauxite Hills Mine Accommodation New Camp Perimeter Existing Camp area Upgraded access & Parking

13 New Mine Accommodation Wet Mess

14 Barge Loading Facility

15 Barge Loading Facility

16 Barge Loading Facility

17 Regional Exploration Metro s exploration exposure on Cape York covers >1,800km 2 of holdings (including Bauxite Hills) Close proximity to the coast Potential to duplicate Bauxite Hills internal growth Identify other opportunities on Cape York and in other prospective locations. Ongoing exploration work planned for 2018 Reconnaissance sampling Drilling of priority targets

18 Current Bauxite Market Conditions in China Source: CM Group A Glimpse into the Future? Domestic bauxite shortages have emerged in the north particularly Henan but also Shanxi (less so), driven by environmental compliance audits, deteriorating grades and mine closures. High caustic prices and scarcity of supply have combined to force inland refiners to seek bauxite from southern China and from overseas. At least three inland refineries are either using or trialing imported bauxite. A further three have expressed interest to trial imported bauxite. Domestic bauxite prices in Henan Province have risen from around RMB350/t a year ago to over RMB500/t (delivered incl. VAT). Prices in other provinces have increases, although less so. Potential new alumina refinery projects have also emerged in southern and northern China and are currently seeking long-term, high volume bauxite supply. 15 ASX : MMI AGM November 2017

19 China s Domestic Bauxite Prices on the Rise Prices in Henan and Shanxi increased significantly in response to tightening supply. Northern refiners drawing down on stockpiles and processing lower quality bauxite (A/S ratio 3-4.5) to continue production. Sourcing bauxite at A/S ratio 4.0 material is currently difficult in Henan. Northern refiners sourcing 20-30kt per month of bauxite from Guizhou, have pushed traded prices in the south of China higher. Domestic bauxite tightness forecast to continue into Source: CM Group 16 ASX : MMI AGM November 2017

20 Percentage of China Al Capacity in World Total China vs ROW Primary Aluminium Capacity (Mtpy) 100% ROW Al Capacity(MT) World Total Al Capacity(MT) China's Al Capacity(MT) 90% 80% 70% 60% 50% 40% 30% 20% 10% 86% % % % % % % % % % % % % % % % % % % 44% % 52% 45% % % % % 44% % % % % % % 40% 40% 0% Source: IAI, CM Analysis 17 ASX : MMI AGM November 2017

21 Global Primary Al Production Since 2006 Strong domestic downstream demand driven by construction, transportation, packaging, consumer goods and electrical sectors China s CAGR is 12.8%, while ROW is 1% China s proportion in world primary Al production increased from 28% in 2006 to 54% in China production: 32.4 MTPA 2016 ROW production: 27.2 MTPA On a full-cost basis, low-cost Chinese smelters are globally competitive Source: CM Group 18 ASX : MMI AGM November 2017

22 China Imported Bauxite Demand Forecast Chinese refiners better understanding the ViU value proposition lower import prices mean higher import volumes Additional Bx imports at CBIX ~US$50/dmt Bx imports at CBIX ~$US80/dmt 19 ASX : MMI AGM November 2017 Source: CM Group

23 Australian Bauxite Production (Mtpa) Source: Australian Government 20 ASX : MMI AGM November 2017

24 Summary A Transformational Year 1 Metro holds significant advantages and is backed by leading partners 2 Strong seaborne bauxite fundamentals in China provide positive outlook 3 Recent achievements have delivered platform for value creation 4 Compelling metrics provides significant share price upside 5 Attracting increased investor awareness and support 6 Exciting period ahead with first production on track for April Strategic appeal from being Australia s leading independent bauxite producer 21 ASX : MMI AGM November 2017

25 For Further Information Contact: Simon Finnis Chief Executive Officer & Managing Director Company Secretary & CFO Scott Waddell Ph: +61 (0) Head Office: Lvl 2, 247 Adelaide Street, Brisbane Q 4000 GPO Box 10955, Brisbane Q