Metro Mining : Bauxite Hills Mine Construction Update

ASX ANNOUNCEMENT

27 July 2017

Bauxite Hills Mine Construction Update

Highlights

• Civil works contractor mobilised to site - works commenced

• Port area for Barge Loading Facility (BLF) cleared and ready for construction

• Tug and barge fleet mobilisation to site has begun

• Piles and steel fabrication for jetty for the BLF are now complete

• Conveyor design complete and fabrication has commenced

• A high level of Ankamuthi and Indigenous engagement is already occurring

• Significant contracts awarded to Queensland companies

Metro Mining Limited (ASX: MMI) (Metro) is pleased to provide a construction update for the Bauxite Hills project, which is now fully funded through to the commencement of production.

SAB Mining has been mobilised to site to commence civil works. SAB's initial focus will be at the Port area, preparing the site for marine infrastructure. After this, SAB will then commence upgrades of the existing roads, and construction of new haul roads.

Figure 1. Metro & SAB team members with civil works construction equipment on site at Bauxite Hills Mine

ASX Announcement | 27 July 2017 | Page 1

The fabrication of the BLF jetty piles and structural steel has been completed in China and is currently being shipped to Australia. The tug and barge fleet provided by Transhipment Services Australia (TSA) has being mobilised and on route to site will pick up piles, steel and other equipment. A separate barge will be set up for marine piling works.

Figure 2: TSA Reliance tug and barge departs Wyndham for Bauxite Hills Mine

Figure 3: Fabricated steel on factory floor in China

Once at site, the jetty piles and steel headstocks will be installed in the Skardon River by Foreshore Marine QLD. Concurrently, the Barge Loading Facility conveyor system is being designed and managed by Process 26 and fabricated in Cairns by CSF Steel Fabricators. Once complete it will be shipped to site for installation.

Construction of the Bauxite Hills accommodation village is also progressing well. Twelve bunk-houses have already completed and will be mobilised to site early to provide additional accommodation during construction.

Figure 4: Bauxite Hills Mine accommodation village construction in Gatton, Qld

Figure 5: Cleared land for Bauxite Hills Mine new accommodation adjacent to the existing accommodation village

The port area has been cleared and ready for construction of the Barge Loading Facility. Much of the on-site infrastructure has been incorporated into the project design including utilising existing buildings for the laboratory, warehouse, maintenance facilities, and offices. Existing tanks will be used for water storage.

Figure 5: Cleared port area ready for construction of the Barge Loading Facility

Metro is also focussed on providing employment opportunities through the company and its contractors for the traditional owners of the land, the Ankamuthi people, and the greater indigenous community. Based on current personnel on site, Metro has achieved Indigenous employment of 25%.

Metro's Managing Director, Simon Finnis, said:

"This is an exciting time for Metro and our shareholders. The company has entered the execution phase and we are committed to delivering the Bauxite Hills mine on time and on budget.

Bauxite Hills has already generated significant business and employment opportunities for Queensland based companies and I am particularly pleased with the high-level of Ankamuthi engagement on site already. As construction works continue and production ultimately commences, we will strive to continue from this positive start.

ASX: MMI | ACN 117 763 443

Contact: Simon Finnis, Managing Director & CEO | Scott Waddell, Company Secretary & CFO Head Office: Lvl 2, 247 Adelaide St, Brisbane | GPO Box 10955, Brisbane Q 4000

Information: P: [phone] | E: [e-mail]: www.metromining.com.au

This announcement has been prepared for publication in Australia and may not be released or distributed in the USA. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 (as amended) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.