Metminco : March 2019 Quarterly Activities and App 5B Cashflow Report

	ASX ANNOUNCEMENT	METMINCO LIMITED	30th April 2019

METMINCO Limited

Quarterly Activities Report for period ending 31st March, 2019

HIGHLIGHTS

Chuscal: tenure awarding and drill targeting advanced

Scheduled payments to RMB deferred

Proposed merger with Andes Resources announced

$918,000 raised through placement of Convertible Notes

Metminco Limited ("Metminco" or the "Company") (ASX: MNC) is pleased to present the activity report for the quarter ending 31st March 2019.

OPERATIONS

Quinchia Gold Portfolio, Colombia

The gold portfolio is contained within the Quinchia district located in the highly fertile Mid-Cauca Gold Belt of west-central Colombia (refer Figure 1). The portfolio is the Company's key asset and within a 3km radius comprises the following:

•the Miraflores deposit (0.88Moz gold Resource, and 0.37Moz gold Reserve, refer to announcement dated 27th October 2017);

•the Dosquebradas deposit (0.92Moz gold Resource estimated under NI 43-101 - refer to announcement dated 7th March 2016);

•the recently drilled Tesorito gold porphyry target; and

•the undrilled Chuscal gold target which is subject to a recently announced joint venture with AngloGold (refer Figure 2).

Figure 1: The Mid-Cauca Belt of Colombia, with the location of Metminco's Miraflores deposit

Suite 3, Level 2, 470 Collins street,	[phone]	Metminco Limited
Melbourne, 3000		ACN 119 759 349
Australia

ASX ANNOUNCEMENT	METMINCO LIMITED	30th April 2019

Figure 2: Metminco's Quinchia portfolio and distance to proposed Miraflores plant site.

During the March Quarter, focus within the Quinchia Portfolio was fourfold:

1.Cesar Garcia, a Senior Geologist joined the exploration team. Cesar has over 10 years' experience with AngloGold and was part of the team that discovered the world class La Colosa and Nuevo Chaquiro deposits and developed the Chuscal target;

2.interrogation and site checking of the integrated Quinchia dataset to inform targeting for an upcoming maiden drill program at Chuscal;

3.continued evaluation and rationalisation of the Quinchia tenement portfolio; and

4.maintaining and improving the Social Licence for Miraflores.

Suite 3, Level 2, 470 Collins street,	[phone]	Metminco Limited
Melbourne, 3000		ACN 119 759 349
Australia

ASX ANNOUNCEMENT	METMINCO LIMITED	30th April 2019

Chuscal

On 6th December 2018 Metminco announced that it had entered into a joint venture with AngloGold Ashanti Ltd ("AngloGold") to develop the Chuscal gold target. Chuscal is the second new exploration target being developed, after Tesorito, within the area of influence of Metminco's proposed Miraflores mine.

The Chuscal gold zone is a 900m by 530m Au target (+100ppb Au in soils) within which highly anomalous rock samples have been collected by AngloGold (refer Figure 3).

•The rock chip sampling has defined a Central Zone of 600m long by 240m wide (183 samples) where the average grade of samples is 2.66gpt Au (uncut) or 1.94gpt Au (cut1). Twelve of the samples encountered grades over 10gpt Au and six reported grades over 20gpt Au, with the highest at 54gpt Au.

•This is incorporated within a broader area (Main Zone) of 900m long by 530m wide (289 samples) where the average grade of samples is 1.79gpt Au (uncut) or 1.33gpt Au (cut1).

Channel sampling of the small-scale underground mine in the southeast corner of the Central Zone (the Guayacanes tunnel) was undertaken by a previous owner in 2012. Sampling results had been previously only partially described (refer ASX announcement dated 16th September 2016) but the absence of laboratory certificates and QA/QC data precluded a full analysis and description at that time. In January, after obtaining validated certificates and QA/QC data, Metminco released a full description in compliance with JORC 2012 (refer ASX announcement dated 21st January 2019).

1.Topcut to 20gpt Au, 6 samples, max 54gpt Au.

Suite 3, Level 2, 470 Collins street,	[phone]	Metminco Limited
Melbourne, 3000		ACN 119 759 349
Australia

ASX ANNOUNCEMENT	METMINCO LIMITED	30th April 2019

Figure 3: Gold values in surface rockchip samples at Chuscal showing the envelopes around samples included in grade averaging in the Central and Main zones and the location of the underground workings.

The underground sampling comprised 120, approximately two-meter long channel samples taken along the length of the underground working. These delivered gold grades of up to 250gpt with 10% of samples having grades over 10gpt (average grade 62.7gpt). The higher gold grades are associated with two or three vein systems with elevated silver (up to 59gpt) and associated arsenic, antinomy, tungsten and tellurium. In the cross-cuts between these veins, continuous lower grade (1gpt to 3.9gpt) gold mineralisation is present (refer Figures 2 & 3 of ASX announcement dated 21st January 2018).

Analysis of the multi-element geochemistry and correlation with surface mapping confirmed that the gold mineralisation is hosted by a porphyritic diorite but also extends into the altered monzonite. Two mineralization populations are clearly distinguished and reflect:

•an early phase of stockwork / disseminated mineralization (porphyryitic diorite) with an average grade of approximately 1.5gpt Au; cut through by

•a later high-grade epithermal vein population with an average grade of approximately 8gpt Au using a 20gpt Au topcut (uncut: 19gpt Au).

Suite 3, Level 2, 470 Collins street,	[phone]	Metminco Limited
Melbourne, 3000		ACN 119 759 349
Australia

ASX ANNOUNCEMENT	METMINCO LIMITED	30th April 2019

No detailed mapping was undertaken during the channel sampling and mineralisation widths have not been estimated. As such the grades reported are considered indicative only at this stage. Nevertheless, they are considered encouraging and are supported by the surface rockchip and soil sampling.

While the underground development covers a very small area within the target zone, it demonstrates the potential for a late stage, high grade vein system hosted by a large volume, stockwork / disseminated style of mineralisation, just 1,700m south of the proposed Miraflores plant site.

Development of Drill Program

Drilling will commence once the exploration titles are granted and all permits and approvals are obtained, and financing is secured. With the impact of the potential merger with Andes Resources Pty Ltd ("Andes") this is anticipated to be Q3, 2019.

Prior to drilling, a surface (on geochemistry rejects) and underground (on magnetic susceptibility) mapping program will be carried out to allow detailed, constrained 3D modelling of existing aeromagnetic data. This will be combined with results of underground mapping and sampling, to define structures and mineralisation characteristics to guide drilling. Further details will be provided once this process is completed.

Subject to landowner access, soil sampling will be extended to the north of the existing grid to cover the Chuscal anomaly and cover the strike extension of the Tesorito target. This has not been previously evaluated but passes through the Chuscal tenement.

Quinchia Tenement Portfolio Management

Following an evaluation of the tenements within the Quinchia Portfolio, the contracts for 2 tenements situated over the northern extension of the Quinchia District were terminated. Based on the information available the primary justifications were the low exploration potential for primary mineralisation and proximity/overlap with the Quinchia town limits and interference with an Indian community in the north. These tenements have no impact on the core project area.

At Chuscal, the Audiencia Publica (socialisation of the proposed grant of title) occurred on 15 March 2019. This process was successfully completed by the Colombian Mining Authority. The Exploration Licence contracts ("ELs") are on track for signing in Q2, 2019.

Following grant of the ELs, the Company expects to rapidly mobilise to undertake an approximately 2,500m maiden diamond drilling program to test the large outcropping Chuscal porphyry gold target with epithermal gold overprint, which comprises a large coincident geochemical and geophysical anomaly above an artisanal mining operation. This program is due to occur shortly after, and subject to, the completion of the proposed merger with Andes and associated financing (refer ASX release dated 13 March 2019 and elsewhere in this report).

Tesorito

No further work was carried out at Tesorito. Further drilling is required, and will be considered within the Chuscal evaluation program. Chuscal has the potential to produce high grade vein mineralisation while to date, Tesorito is regarded as an outcropping medium grade (1gpt to 1.7gpt) gold porphyry system.

Suite 3, Level 2, 470 Collins street,	[phone]	Metminco Limited
Melbourne, 3000		ACN 119 759 349
Australia