Metro Mining : Capital Raising Investor Presentation

Equity Raising Investor Presentation 24 February 2017

No reliance

To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Metro Mining Limited (Metro) or any of its related bodies corporate or their respective directors, officers, partners, employees, advisors and agents (Relevant Parties). The information contained in this presentation is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the information, whether as to the past or future. Recipients of the document must make their own independent investigations, consideration and evaluation.

Limited disclosure

This presentation contains summary information about Metro and its activities which is current at the date of this presentation. The information in this presentation is of a general nature. The presentation does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in Metro nor does it contain all the information which would be required in a disclosure document prepared in accordance with the requirements of the Corporations Act 2001 (Cth) and should not be used in isolation as a basis to invest in Metro. It should be read in conjunction with Metro's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Seek your own advice

In providing this presentation, Metro has not considered the objectives, financial position or needs of the recipient. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein, and conduct its own due diligence and other enquiries in relation to such information and any investment in Metro and the recipient's objectives, financial position or needs.

No offer to acquire Metro shares

The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in Metro in any jurisdiction in which it would be unlawful. The distribution of this presentation in jurisdictions outside of Australia and New Zealand may be restricted by law and you should observe any such restrictions. See the 'Foreign Selling Restrictions' section of this presentation for more information. In particular, this presentation does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any person in the United States. Metro securities have not been, and will not be, registered under the US Securities Act of 1933 (US Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

Competent Person Statement

The information in this presentation that relates to Gulf Alumina Limited's (Gulf) Mineral Resources is based on information compiled by Jeff Randall of Geos Mining, a consultancy group contracted by Metro Mining Limited. Mr Randell is a Member of the Australian Institute of Geoscientists (MAIG), a Registered Professional Geoscientist (Rage) and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Randell consents to the inclusion in this presentation of the matters based on information in the form and context in which it appears.

Competent Person Statement

The information in this presentation that relates to Metro is based on information compiled by Neil McLean who is a consultant of Metro Mining Limited. Mr McLean is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. Mr McLean consents to the inclusion in this presentation of the matters based on information in the form and context in which it appears.

Competent Person Statement

The information in this presentation that relates to Gulf 's Ore Reserves is based on information compiled by John Wyche of Australian Mine Design & Development (AMDAD), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. John Wyche is a full-time employee of AMDAD. John Wyche has sufficient experience that is relevant to the style of mineralization, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. John Wyche consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Competent Person Statement

The information in this presentation that relates to Metro Reserves is based on information compiled by MEC Mining and reviewed by Edward Bolton, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Edward Bolton is a full-time employee of MEC Mining Pty Ltd. Edward Bolton has sufficient experience that is relevant to the style of mineralization, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. Edward Bolton consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Cautionary note regarding reserves and resources

You should be aware that as an Australian company with securities listed on the ASX, Metro is required to report reserves and resources in accordance with the JORC Code. You should note that while Metro's reserve and resource estimates comply with the JORC Code, they may not comply with the relevant guidelines in other countries and, in particular, do not comply with Industry Guide 7, which governs disclosures of mineral reserves in registration statements filed with the US Securities and Exchange Commission. Information contained in this presentation describing Metro's mineral deposits may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of US securities laws. In particular, Industry Guide 7 does not recognise classifications other than proven and probable reserves and, as a result, the SEC generally does not permit mining companies to disclose their mineral resources in SEC filings. You should not assume that quantities reported as 'resources' will be converted to reserves under the JORC Code or any other reporting regime or that Metro will be able to legally and economically extract them.

Forward-looking statements

Statements and material contained in this presentation, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of Metro, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Graphs used in the presentation (including data used in the graphs) are sourced from third parties and Metro has not independently verified the information. Metro is at an early development stage and while it does not currently have an operating bauxite mine it is taking early and preliminary steps (such as but not limited to Prefeasibility studies etc.) that are intended to ultimately result in the building and construction of an operating mine at its project areas. Although reasonable care has been taken to ensure that the facts stated in this Presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this Presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Currency

All references to '$' are to Australian currency (AUD) unless otherwise noted.

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Metro is undertaking an equity raising of up to approximately $52 million

• Institutional placement to raise up to $15.9 million
• Underwritten 1 for 2 pro-rata non-renounceable entitlement offer to raise approximately $36.5 million
• Proceeds from equity raising will enable Metro to:

   Continue to rapidly advance Bauxite Hills Mine into development by ordering long lead time items required, providing environmental bonding so early works can commence and completing BFS and final project approvals

   Repay bridge loan facilities related to Gulf acquisition

• Equity raising significantly sub-underwritten by Metro's long-term cornerstone shareholder Balanced Property
• Post equity raising Metro will be fully funded to decision to mine
• Bankable Feasibility Study (BFS) for Bauxite Hills Mine, incorporating benefits for Gulf acquisition, to be completed in coming weeks
• Metro rapidly progressing towards becoming a leading independent bauxite producer with full project construction on-track to commence H2 2017 with first production H1 2018

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Offer Structure & Size	Equity Raising to raise approximately $52.4 million, comprising: Approximately 419.3 million new Metro shares (New Shares) will be issued.2 New Shares issued under the Institutional Placement will not be entitled to participate in the Entitlement Offer.  Institutional Placement to raise between $12.8 million and $15.9 million1 (Institutional Placement); and  1:2 non-renounceable entitlements offer to raise approximately $36.5 million (Entitlement Offer).
Offer Pricing	Offer price of $0.125 per New Share, which as of 23 February 2017 represents a:  12.3% discount to TERP3 of $0.142;  19.4% discount to the last closing price of $0.155; and  20.8% discount to the 30 day VWAP of $0.158.
Use of Proceeds	Purchase of long lead time items and grade control drilling required for Bauxite Hills Mine (~$6.9m) Environmental bonding required for commencement of early works (~$2.1m) Completion of BFS and final project approvals (~$3.0m) Contribution to full repayment of debt facilities related to Gulf acquisition (~$40.4m)
Key Shareholder Support	Balanced Property has committed to subscribe for its 12.4% pro-rata entitlement and to priority sub-underwrite the entitlement offer up to a 19.9% ownership interest post Equity Raising and is expected to invest approximately $16 million.
Underwriting	Entitlement Offer underwritten by Argonaut Capital Limited.
Lead Manager	Argonaut Securities Pty Limited.
Ranking	New shares issued under the Equity Raising will rank equally with existing Metro shares.

1 Includes 24,903,903 shares ($3.1 million) reserved for Greenstone pursuant to its anti-dilution rights (see slide 31)

2 Metro will have approximately 1,004,022,176 shares on issue following completion of the Equity Raising

3 The Theoretical Ex-Rights Price (TERP) is the theoretical price at which Metro shares should trade immediately following the ex-date for the Entitlement Offer assuming 100% take up of the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which Metro's shares trade immediately following the ex-date for the Entitlement Offer will depend on many factors and may not approximate TERP. The TERP includes New Shares issued under the Placement.

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