Cape Alumina : Metro now in control of Cape Alumina

ACN 117 763 443

ASX ANNOUNCEMENT 22nd April 2014 MetroCoal now in control of Cape Alumina with a shareholding of approximately 57%

MetroCoal Limited (MetroCoal) (ASX-MTE) is pleased to announce that it has substantially increased its shareholding in Cape Alumina Limited (Cape) (ASX-CBX) from 46.04% to 57.22% through the purchase of
27,136,354 shares in Cape on 17 April 2014. The shares were purchased on market at 0.6 cents per share under the terms of the offer made on 18 March 2014. A Notice of Changes of interests of Substantial Shareholder has been separately lodged with ASX today.
Now that Metro Coal has effective control of Cape, and in accordance with MetroCoal's intentions outlined in its
Bidders Statement, MetroCoal will commence discussions with the Board and Management of Cape to:
(a) Engage with the Queensland Government to ensure that the Bauxite Hills project is able to be developed in conjunction with the Cape York Regional Plan once enacted;
(b) On gaining a requisite level of confidence that the Bauxite Hills project is able to be developed in accordance with the Cape York Regional Plan (once adopted), accelerate the development of the Bauxite Hills project;
(c) Support Cape in any future resubmission to the Queensland Government to develop the Aurukun bauxite deposit;
(d) Utilise MetroCoal's surplus cash to facilitate the funding of Cape's bauxite projects and in particular the Bauxite Hills project in a period of strong global bauxite markets with a view to commercial production and corresponding generation of positive cash flows; and
(e) Support Cape in optimising opportunities with third parties in the bauxite exploration and development sector (initially in the Cape York region) to enhance or accelerate the development of Cape's bauxite projects.
MetroCoal also intends to conduct a broad based review of Cape's structure and operations, and intends to
amalgamate the administrative functions of both companies with a view to eliminating duplication of tasks.
MetroCoal is proposing to acquire Cape for a relatively small capital outlay (based on the current Offer price) to expose its shareholders to a diversified bulk commodities entity. MetroCoal is seeking to gain control of Cape to diversify its asset base and risk profile to provide it with both a stronger near term (bauxite) and long term (coal) project pipeline.
Details of the Offer are set out in the Bidder's Statement which can be viewed at http://metrocoal.com.au/uploads/MTE_Bidder_Statement.pdf.
MetroCoal confirms that as advised in its ASX release dated 2 April 2014, it will not increase the bid price during the term of its on-market bid for the takeover of Cape Alumina Limited. MetroCoal will also continue to assess and evaluate other projects and corporate opportunities.

For further information, please contact:

Mr Mike O'Brien

Chief Executive Officer
Phone: [phone] Fax: [phone] email: [e-mail]
Postal Address: GPO Box 122, Brisbane QLD 4001
Further information on MetroCoal can be found on our website www.metrocoal.com.au
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