Metal Bank : Quarterly Activities Report

ASX ANNOUNCEMENT 31 Oct 2019

ASX: MBK

QUARTERLY ACTIVITIES REPORT

For the Quarter ended 30 September 2019

Highlights

Exploration during the Quarter focused on the Company's 8 Mile project, located near the Mt Rawdon gold mine (2Moz) in SE Queensland.

8 Mile Project

• A total of 10 additional drill holes (1338m reverse circulation and diamond drilling) have been completed (assay results awaited) to follow-up to the broad zones of gold intersected in the initial drill programme.
• Results from the initial drilling programme include1:
• • Floris Find Prospect
  • • 22m @ 1.1g/t Au from 8m
    • 4m @ 5.5g/t Au from 76m, including 2m @ 9.7g/t Au
  • Painkiller Prospect
  • • 46m @ 0.3g/t Au from 24m
    • 12m @ 2.15g/t Au from 4m, including 2m @ 7.5g/t Au
    • 36m @ 1.2g/t Au from 36, including 2m @ 14.8g/t Au

Eidsvold Project

• No field activities were completed during the Quarter

Triumph Project

• No field activities were completed during the Quarter.

1 MBK ASX Release 23 July 2019

Metal Bank Limited ABN: 51 127 297 170

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

Suite 506, Level 5, 50 Clarence Street, SYDNEY NSW 2000 | GPO Box Q128 Queen Victoria Building NSW 1230 Australia

www.metalbank.com.au

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 2019 ('Quarter').

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.

The south-east Queensland exploration projects of

8 Mile, Eidsvold and Triumph are all associated with historical goldfields and represent intrusion related gold systems (IRGS) with multi-million-ounce upside 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 the historical Mt Morgan deposit (8Moz Au).

The 8 Mile project (centred on the Perry goldfield) represents a large hydrothermal mineral system near the Mt Rawdon gold mine (2Moz). During the Quarter MBK completed ten (10) reverse circulation (RC) drill holes (1175m) with two drill holes being extended with diamond drill (DD) tails (163m) on two prospects at the Eastern Target. Results from this drilling are awaited and will be released to the market when received.

This drill programme represents a follow-up programme to the initial drill programme completed in Q2 2019 which intersected broad zone of gold mineralisation as part of a large intrusion related gold system.

The Triumph project (centred on the Norton goldfield) is a 10km² gold camp which has intersected near-surfacehigh-grade gold mineralisation on five prospects. Four large-scale bulk tonnage targets >200m depth now form the priority on the project. Work on Triumph remains on hold whilst a more detailed appraisal of the 8 Mile project is completed, to ensure prudent use of the Company's current cash reserves.

At Eidsvold project (centred on the Eidsvold goldfield), five priority intrusion related gold targets have been defined as 'low pH' soil geochemical anomalies with coincident EM and magnetic geophysical anomalies. All these targets are concealed beneath 10m to >50m of sedimentary cover and none of the targets have been previously drill tested.

The Company continues to maintain low overheads to ensure maximum inground exploration expenditure.

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8 Mile Project

MBK identified the 8 Mile project through the reprocessing and interpretation of airborne magnetics data which identified multiple alteration targets as a potential large-scale hydrothermal gold system near the 2Moz Mt Rawdon gold mine in SE Queensland.

Work for the quarter focused on further drilling (assays results awaited) on the Perry and Floris Find prospects, located 2km apart within the Eastern Target.

On the Perry prospects nine drill holes were completed for 1068m reverse circulation with two holes extended as diamond drill tails (163m). The holes were designed to investigate IP geophysical targets, extensions to gold mineralisation and soil geochemical targets. On the Floris Find prospect, one reverse circulation drill hole was completed for 107m. This hole is designed to investigate the down plunge extension to the gold mineralisation intersected in previous drilling and IP geophysical target. Results from this drilling are awaited and will be released to the market when they become available. Refer to Figure 1 showing the location of the drilling to date.

Summary of drill results from the initial programme completed in July 20192:

Flori's Find Prospect

22m @ 1.1g/t Au from 8m (ETRC001)

18m @ 0.7g/t Au from surface (ETRC002)

22m @ 0.44g/t Au from 45m (ETRC004)

4m @ 5.5g/t Au from 76m, including 2m @ 9.7g/t Au from 76m (ETRC005)

Perry Prospect

46m @ 0.3g/t Au from 24m (ETRC007)

12m @ 2.1g/t Au from 4m, including 2m @ 7.5g/t Au from 14m (ETRC008)

36m @ 1.2g/t Au from 36m, including 2m @ 14.8g/t Au from 36m(ETRC009)

8m @ 0.8g/t Au from 70m, (ETRC009)

At both Flori's Find and Perry prospects the gold mineralisation is closely associated with high- level strongly altered intrusive rocks, interpreted as high-level leakage above a larger gold system occurring less than 200m below surface. These rocks have many similarities to the alteration and intrusives suite at the nearby Mt Rawdon gold mine (2Moz).

2 MBK ASX Release 23 July 2019

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Figure 1: Eastern Target showing drilling and MBK soil geochemistry.

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Multi-element and gold surface geochemistry highlight at least four near-surface gold systems (including the Flori's Find and Perry prospects) within an overall north-east trending structural corridor greater than 3.6km x 800m (open to the north-east) (refer Figure 1). Metal zonation models derived from the interpretation of multi-element soil geochemistry suggest the near surface geochemical anomalies are in the upper levels of a large intrusion related gold system. Drilling to date has only evaluated a small portion of the interpreted overall gold system with the aim of achieving a better understand the structure and geometry of the gold mineralisation prior to additional drilling.

Figure 2: Perry prospect drill section showing bulk tonnage target interpreted from IP geophysics data. Location of section shown in Figure 3.

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