Metals X : 2019 Renison Ore Reserve Update

ASX RELEASE

20 AUGUST 2019

2019 RENISON ORE RESERVE UPDATE

Metals X Limited (Metals X or the Company) is pleased to provide its annual update of the Ore Reserve estimate for the Renison Tin Operations (Renison) in Tasmania. Renison is 50%-owned by Metals X through the Bluestone Mines Tasmania Joint Venture.

The 2019 Mineral Resource estimate at the Renison underground tin mine, on which the Ore Reserve update is based, was announced on 24 May 2019 and highlighted:

• Total Measured, Indicated and Inferred Resource of 17.55Mt at 1.50% Sn for 263,000 tonnes of contained tin representing:
  o A 22% increase in contained tin, from 215,700 tonnes of contained tin to 263,000 tonnes of contained tin; and
  o A 14.5% increase in total Mineral Resource grade from 1.31% Sn to 1.50% Sn.

HIGHLIGHTS (100% basis)

• Total Renison Bell Proved and Probable Reserve increased to 8.098 Mt at 1.02% Sn for 82,360 tonnes of contained tin:
  o 20% increase in contained tin in total Ore Reserves at Renison Bell underground after taking into account depletion over the past 12 months;
• It is important to note that only Mineral Resources above the 1095m RL in the high-grade Area 5 zone are included in the Ore Reserve, leaving 2.1Mt at 2.07% Sn for 44,000 tonnes of contained tin in Measured and Indicated Resources below this level yet to be evaluated for conversion to Ore Reserve:
  o The orebody below 1095mRL is being analysed in the "Area 5 Mine Optimisation Study" which is specifically targeting optimal extraction of the high grade resource;
  o The decline at Renison is currently below the 1055mRL providing rapid access to the high grade Area 5 zone. Completion of the optimisation study and incorporation into the Renison Life of Mine Plan is expected to be completed early in the March 2020 quarter at which time an updated Ore Reserve is planned to be released.

Managing Director, Mr Damien Marantelli, commented:

"Renison continues to outperform. It is pleasing to see an increase in our reserves, with significant further upside expected as the majority of the high grade Area 5 resource has yet to be incorporated into the Ore Reserve estimate" he said.

"We are already processing high grade development ore as we extend the decline and lateral development into Area 5. The Mine Optimisation Study is progressing well and we anticipate providing a further Ore Reserve upgrade upon completion of the study early in the March 2020 quarter."

ASX Code: MLX	Level 5, 197 St Georges Terrace	T: [phone]
	Perth WA 6000	[e-mail]
	Australia	www.metalsx.com.au

2019 RENISON ORE RESERVE UPDATE

ORE RESERVE STATEMENT - RENISON TIN OPERATIONS

TABLE 1. RENISON TIN OPERATIONS ORE RESERVE ESTIMATE AT 31 MARCH 2019

MLX equity share is 50% of the Ore Reserve estimate shown below

										Tin								Copper
				Ore			Ore			Grade			Tin			Ore			Grade			Copper
	Project			Reserve			'000							'000
							% Sn			tonnes					% Cu			tonnes
				Category			tonnes							tonnes
				Proved	1,260	1.28%	16,138	1,260	0.32%	3,989
	Renison Bell1		Probable	6,838	0.97%	66,222	6,838	0.20%	13,389
				Total			8,098			1.02%			82,360			8,098			0.21%			17,377
				Proved	-		-		-		-		-		-
	Rentails2		Probable	22,313	0.44%	98,930	22,313	0.23%	50,668
				Total			22,313			0.44%			98,930			22,313			0.23%			50,668
				Proved	1,260	1.28%	16,138	1,260	0.32%	3,989
	TOTAL
		Probable	29,151	0.57%	165,152	29,151	0.22%	64,057
				Total			30,411			0.60%			181,290			30,411			0.22%			68,045

1. The Renison Bell Ore Reserve is based on the Mineral Resource estimate at 31 March 2019 (refer to ASX Announcement of 24 May 2019) with applied modifying factors, at a cut-off grade of 0.7% Sn.
2. The Renison Tailings Retreatment Project (Rentails) Ore Reserve is unchanged from that reported as at 31 March 2017 (refer to ASX Announcement of 28 August 2017), at a cut-off grade of 0.0% Sn.

KEY ASSUMPTIONS AND JORC 2012 REQUIREMENTS

Mineral Resources are reported inclusive of Ore Reserves. Mining production data up to 31 March 2019 and all exploration information has been included. Mineral Resources have been depleted for mining to 31 March 2019.

The tin price assumption used to estimate Mineral Resources and Ore Reserves was US$17,280/t Sn at an assumed exchange rate of USD/AUD 0.72 giving a price of AUD $24,000/t Sn.

The Mineral Resources and Ore Reserves have been classified in accordance with the guidelines set out in the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves, published by the Joint Ore Reserves Committee (JORC), of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia, December 2012 (the 'JORC Code' or 'JORC 2012').

The Mineral Resource estimate for the Renison Tin Operations (Renison) was reported to ASX on 24 May 2019. The 2019 Ore Reserve estimate for Renison is reported in Table 1.

Material Information for the individual deposits, including a summary of material information pursuant to ASX Listing Rule 5.9 and the Assessment and Reporting Criteria in accordance with JORC 2012 requirements, is included in the body of this report and in Appendix A to this announcement.

MINERAL RESOURCE AND ORE RESERVE GOVERNANCE STATEMENT

In accordance with ASX Listing Rule 5.21.5, governance of the Company's Mineral Resources and Ore Reserves development and management activities is a key responsibility of the Executive Management of the Company.

Senior geological and mining engineering staff of the Company oversee reviews and technical evaluations of the estimates and evaluates these with reference to actual physical, cost and performance measures. The evaluation process also draws upon internal skill sets in operational and project management, ore processing and commercial/financial areas of the business.

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2019 RENISON ORE RESERVE UPDATE

The Executive General Manager Geology (in consultation with senior staff) is responsible for monitoring the planning, prioritisation and progress of exploratory and resource definition drilling programs across the Company and the estimation and reporting of Mineral Resources. These definition activities are conducted within a framework of quality assurance and quality control protocols covering aspects including drill hole siting, sample collection, sample preparation and analysis as well as sample and data security. The Executive General Manager Mining & Technical (in consultation with senior staff) is responsible for the reporting of Ore Reserves.

A four-level compliance process guides the control and assurance activities:

• Provision of internal policies, standards, procedures and guidelines;
• Mineral Resource and Ore Reserve reporting based on well-founded geological and mining assumptions and compliance with external standards such as the JORC Code;
• Internal review of process conformance and compliance; and
• Internal assessment of compliance and data veracity.

The Executive Management aims to promote the maximum conversion of identified mineralisation into Mineral Resources and Ore Reserves compliant with JORC 2012.

The Company reports its Mineral Resources and Ore Reserves, as a minimum, on an annual basis, in accordance with ASX Listing Rule 5.21 and clause 14 of Appendix 5A (the JORC Code).

Competent Persons named by the Company are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and/or the Australian Institute of Geoscientists (AIG), and qualify as Competent Persons as defined in the JORC Code.

ORE RESERVE ESTIMATE

Table 1 shows the updated Ore Reserve estimate for the Renison Tin Operations at 31 March 2019.

SUMMARY OF MATERIAL INFORMATION

The updated Renison Bell Ore Reserve estimate reported in Table 1 is based on the updated Mineral Resource estimate (refer to ASX Announcement of 24 May 2019) with modifying factors applied. The modifying factors and associated criteria used in determining the Ore Reserve are summarised below, in accordance with ASX Listing Rule 5.9.1, and detailed in Appendix A:

• Geological models used in the estimation are summarised in Appendix A: Table 1, Section 3: Modelling Techniques;
• Cut-offgrade was determined based on actual unit costs currently being experienced at the Renison operations;
• Tin price assumption of US$17,280/t at an assumed exchange rate of USD/AUD 0.72 for a price of AUD $24,000/t Sn;
• Open stoping and up hole benching is assumed as per current operations;
• Underground stoping uses a mining recovery factor of between 90% and 100% depending on the individual stoping block (average 95%). Additionally, mining dilution of between 5% and 20% has been applied to individual stopes blocks (average over the resource of 13%);
• Metallurgical recoveries applied to produce tin concentrate from ore are based on historical and current recoveries in the operating Renison Tin Concentrator based on a regression analysis of the grade recovery curve;
• The operation is fully permitted allowing production to continue for the life of mine.

ANNUAL COMPARISON OF ORE RESERVES

Table 3 compares the 2018 Ore Reserve estimate, as at 31 March 2018, with the updated Ore Reserve estimate as at 31 March 2019 for the Renison Bell deposit. The Ore Reserve estimate for Rentails has not been updated since 31 March 2017 (reported on 28 August 2017).

MLX equity share is 50% of the Ore Reserve estimates shown below. Ore Reserves are a subset of the Mineral Resource estimate.

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2019 RENISON ORE RESERVE UPDATE

TABLE 2. RENISON ORE RESERVE ESTIMATE - DEPLETION & RESERVE ADJUSTMENTS FROM PRIOR YEAR

							Tin								Copper
	Project			Ore			Grade			Metal			Ore			Grade			Metal
			kt			% Sn			kt Sn			kt			% Cu			kt Cu
	31 March 2018
	Renison Bell	6,822		1.01		69		6,822		0.22		15
	Rentails	22,313		0.44		99		22,313		0.23		51
	Total	29,135		0.58		168		29,135		0.23		66
	Mining Depletion
	Renison Bell	(808)		1.17		(9)		(808)		0.32		(2)
	Rentails	-		-		-		-		-		-
	Reserve Adjustments
	Renison Bell	2,085		1.11		23		2,085		0.23		5
	Rentails	-		-		-		-		-		-
	31 March 2019
	Renison Bell	8,098		1.02		82		8,099		0.21		17
	Rentails	22,313		0.44		99		22,313		0.23		51
	Total	30,411		0.60		181		30,411		0.22		68

Note: rounding may result in apparent discrepancies in totals and grades.

The difference between the 2019 Renison Bell Ore Reserve estimate and 2018 Ore Reserve estimate include the following modifications:

• Update of reserve position based on new drilling, face sampling and sludge data incorporated with stope shape estimations in each mine area;
• All dilution and recovery factors updated as appropriate; and
• Inclusion of new mining areas that have been found to be economically extractable.

TABLE 3. RENISON BELL ORE RESERVE ESTIMATE - ANNUAL COMPARISON

MLX equity share is 50% of the Ore Reserve estimates shown below

										Tin								Copper
	Ore Reserve			Ore			Ore			Grade			Tin			Ore			Grade			Copper
			Reserve
	reporting date					kt3			% Sn			Tonnes4			kt3			% Cu			tonnes4
			Category1
				Proved	1,310	1.29%	16,900	1,310	0.33%	4,300
	31 March 20181		Probable	5,512	0.94%	51,800	5,512	0.20%	10,900
				Total			6,822			1.01%			68,800			6,822			0.22%			15,200
				Proved	1,260	1.28%	16,138	1,260	0.32%	3,989
	31 March 20192		Probable	6,838	0.97%	66,222	6,838	0.20%	13,389
				Total			8,098			1.02%			82,360			8,098			0.21%			17,377

1. As reported by Metals X in its Annual Update of Mineral Resources and Ore Reserves on 23 August 2018.
2. Ore Reserves as calculated at 31 March 2019 by Metals X, adjusted for depletion to 31 March 2019, based on the Mineral Resource estimate of 31 March 2019 (refer to ASX Announcement dated 24 May 2019).
3. Tonnes are reported as thousand tonnes (Kt) and rounded to the nearest 1,000 tonnes.
4. Tin and copper tonnes at 31 March 2018 were rounded to the nearest 100 tonnes. Rounding may result in some slight apparent discrepancies in totals.

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2019 RENISON ORE RESERVE UPDATE

COMPETENT PERSON'S STATEMENT

The information in this report that relates to Ore Reserves has been compiled by Bluestone Mines Tasmania Joint Venture Pty Ltd technical employees under the supervision of Mr Mark Recklies, B Engineering (Mining Engineering), AusIMM. Mr Recklies is a full time employee of the Bluestone Mines Tasmania Joint Venture Pty Ltd. Mr Recklies has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities which he is undertaking 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 Recklies consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Recklies is eligible to participate in the Bluestone Mine Tasmania Joint Venture Pty Ltd short and long term incentive plans.

ENQUIRIES

Damien Marantelli

Managing Director

1. [e-mail]

MEDIA ENQUIRIES

Michael Weir / Cameron Gilenko

Citadel-MAGNUS

M: [phone]

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