Metal Bank : Quarterly Activities Report

ASX ANNOUNCEMENT 27 October 2016

ASX: MBK

QUARTERLY ACTIVITIES REPORT For the quarter ended 30 September 2016 HIGHLIGHTS

• Discovery of high grade gold mineralisation at New Constitution prospect, Triumph project

• Further high grade mineralisation intersected from drilling at Bald Hill prospect, Triumph project

• Successful capital raising completed - $5.4M (before costs)

  Metal Bank Limited (ASX:MBK) Metal Bank Limited ('MBK' or 'the Company') is pleased to outline below the activities for the quarter ended 30 September 2016.

  Business Overview

  Metal Bank Limited is in the business of mineral exploration and development with a strategy focussed on creating shareholder value by building a successful resource company. MBK holds a strong portfolio of gold ± copper projects with untapped upside potential, championed by a Board and management team with a depth of experience in project generation, early recognition of advanced opportunities, resource development and building of successful resource companies.

  Metal Bank Limited ABN: 51 127 297 170

  Telephone: [phone]| Facsimile: [phone]| Email: [e-mail]

  Suite 2508, Level 25, 31 Market St, SYDNEY NSW 2000 | GPO Box 128 Queen Victoria Building NSW 1230 Australia

  www.metalbank.com.au

  Exploration over the past six months has focussed on the Triumph project where near surface high grade gold results have been intersected at the New Constitution and Bald Hill prospects. MBK has invested in a significant greenfields exploration programme on the Triumph project over the past five years resulting in the definition of an extensive gold camp / system predominantly concealed by shallow cover with only two of the priority targets tested to date.

  The exploration priority on the Triumph project is to prove up near-surface high grade gold resources particularly at New Constitution and Bald Hill prospects and to follow the high grade zones at depth. The improved geological understanding to be gained through further drilling will provide greater confidence in targeting the causative mineralising intrusive, which could hold potential for a bulk tonnage style gold system.

  The eastern Australian exploration projects of Triumph and Eidsvold represent intrusion related gold systems (IRGS) within the northern New England Orogen of eastern Australia. This region hosts several gold mines including the Cracow (3Moz Au), Mt Rawdon (2Moz Au) gold mines and Mt Carlton gold-silver-copper mine (1.4Moz AuEq) as well as the historical Mt Morgan deposit (8Moz Au).

  Intrusion related gold systems like Triumph are well represented in Eastern Australia and have formed the basis for significant gold production in the region. Refer to Figure 1 showing the intrusion related gold model and MBK projects.

  Figure 1: Intrusive related gold deposit styles showing MBK projects.

  EASTERN AUSTRALIA GOLD PROJECTS Triumph Project (100% MBK)

  The project is an intrusion related gold camp centred about the historical high grade Norton goldfield (mined in the late 1800's and again in the 1990's) located between Mt Rawdon (2Moz Au) gold mine and the historical Mt Morgan (8Moz Au and 0.4Mt Cu) mine in the Northern New England Orogen, south-east Queensland.

  RC drilling was completed at the New Constitution and Bald Hill prospects during the quarter to follow-up previous high grade drill results reported in Q2. Fifteen holes were completed for 897 metres of RC drilling.

  Shallow high grade gold results achieved in drilling over the past six months confirm the Triumph project as a genuine 'first mover opportunity' with significant upside yet to be tested.

  Two RC holes totalling 121m were completed at the New Constitution prospect to follow up and investigate the geometry of near surface gold mineralisation intersected in previous drilling1.

  Significant results from the drill programme at New Constitution include2:

  • 10m @ 26.9g/t Au, 165g/t Ag and 6.0% Zn from 51m (open) (TDH056) including

    o 7m @ 36.3g/t Au, 220g/t Ag and 7.9% Zn from 51m (open - note an historical stope void was intersected from 41.5m to 51m)

  • 3m @ 8.1 g/t Au, 79g/t Ag from 35m (TDH055)

The true width of high grade mineralisation will only be determined with further drilling. However, TDH056 intersected 0.5m @ 2.6g/t Au prior to entering a 9.5m historically mined stope (downhole length) and then intersected 10m @ 26.9g/t Au, 165g/t Ag, and 6% Zn from 51m. If the stope represents historically mined high grade mineralisation, then the true width may be approximately 8m. Historical workings at surface can be traced along this particular target zone for over 500m with the majority of this trend being concealed by shallow cover. The historical underground stope intersected in drilling was not previously mapped and no production records are available. Refer to Figure 2.

Across the New Constitution prospect, multiple interpreted target zones have been identified which collectively could indicate over 3km of strike potential, the majority of which is concealed by shallow cover (

1 MBK ASX Release 21 June 2016

2 MBK ASX Release 05 September 2016

Figure 2: Drill section looking north-west showing high grade mineralisation intersected in TDH056 with section location shown in Figure 2.

Thirteen RC holes totalling 776m were completed at the Bald Hill prospect to follow up and investigate the geometry of near surface high grade gold mineralisation intersected in previous drilling including 15m @ 10.3g/t Au, 76g/t Ag, 0.5% Cu from 9m, released in Q23.

A summary of significant results returned from this shallow programme include4:

o 7m @ 4.9g/t Au, 27g/t Ag, 0.2% Cu from 11m (TDH040)

o incl. 2m @ 12.7g/t Au, 74g/t Ag, 0.5% Cu from 11m

• 8m @ 2.0g/t Au, 23g/t Ag from 27m (TDH041)

  o 14m @ 2.6/t Au, 34g/t Ag, 1.1% Cu from 18m (TDH046)

  o Incl. 2m @ 10.6g/t Au, 152g/t Ag, 7.2% Cu from 25m

  o 10m @ 3.0g/t Au, 24g/t Ag, 0.2% Cu from 16m (TDH047)

• 6m @ 2.0g/t Au, 9g/t Ag, 0.1% Zn from 35m (TDH048)

o 14m @ 1.0g/t Au, 10g/t Ag, 0.1% Cu from 12m (TDH049)

3 MBK ASX Release 21 June 2016

4 MBK ASX Release 14 September 2016