Metallica Minerals : $2M Standby credit facility

ASX RELEASE 10 AUGUST 2017 $2M STANDBY CREDIT FACILITY SECURED

Metallica Minerals Limited (ASX:MLM) (Metallica, the Company) is pleased to advise that it has executed binding agreements with a private company to provide a $2 million standby credit facility (Standby Facility).

The selection of the private Queensland-based group with interests in property development and resources, follows a competitive tender process announced by Metallica on 10 March 2017. The private company is a related party to an existing shareholder of the Company.

Following its recent Rights Issue and underwritten options exercise, Metallica is fully funded to progress development of the Urquhart Bauxite project in northern Queensland, with access to $6.4 million (cash and Standby Facility). The execution of the Standby Facility is a prudent financial measure as the Company looks to bring Urquhart Bauxite project into production in 2017 and will provide additional balance sheet flexibility during the Project's construction and ramp-up phase, should it be required.

Metallica CEO, Mr Simon Slesarewich said:

"By providing the Standby Facility the private lender has shown its support for Metallica and its plans to become a bauxite producer. This important milestone delivers on the Company's financing plans detailed in March this year. The finalisation of this Standby Facility is prudent risk management and the facility will only be drawn down in the event that additional capital resources other than that currently envisaged are required. The Company is delighted to partner with the selected lender and would like to thank its principals for their ongoing support."

Key Terms

The key terms of the Standby Facility are:

Principle $2 million Provider Private Queensland based company Initial Drawdown Within 12 months at Metallica's election. If not drawn then a $50,000 Expiry Fee is payable Drawdown Flexible Term 2 years from Initial Drawdown Approved Purpose The development of the Urquhart Bauxite project

Purchase of equipment for the Urquhart Bauxite project Working capital for the Company

Security Yes Coupon 10% Repayment Schedule Monthly interest payments with Principle at the Termination Date Early Repayment Yes Redraw Facility Yes Royalty Modest on initial production Set-up Fee No

For more information please contact:-

Metallica Minerals Ltd:

Simon Slesarewich Chief Executive Officer

Phone: + 61 7 3249 3000

[e-mail]

Media Enquiries:

Luke Forrestal

Media + Capital Partners Phone: + 61 411 479 144

[e-mail]