Metro Mining : Heavily Oversubscribed Institutional Placement Raises $38 Million

ASX ANNOUNCEMENT

19 July 2017

Heavily Oversubscribed Institutional Placement Raises $38 Million

Highlights

• Institutional Placement bookbuild successfully completed raising $38 million

• Heavily oversubscribed with strong support from existing institutional shareholders and significant demand from new major domestic and international institutions

• Metro's strategic shareholder Greenstone will participate in the Institutional Placement to maintain its 19.9% stake via its anti-dilution rights

• The Institutional Placement complements the recently completed Sprott and Ingatatus debt financing package*

• Metro is now fully funded for construction and development of the Bauxite Hills Mine*

• Construction is to commence immediately with first production expected in April 2018

Metro Mining Limited (ASX:MMI)(Metro) is pleased to announce that it has successfully completed a bookbuild to raise $38 million, at an issue price of $0.135 per share (Institutional Placement).

The Institutional Placement was heavily oversubscribed with strong support from existing institutional shareholders, along with significant demand from new major domestic and international institutional investors.

Greenstone will participate in the Institutional Placement to maintain its 19.9% stake via its anti-dilution rights.

Argonaut was Sole Lead Manager to the Institutional Placement with Morgans Co-Manager for Australia and Tamesis Co-Manager for Europe.

Metro's Managing Director, Simon Finnis, said the response from investors to Metro's equity raising was exceptional:

"We are delighted by the success of the Institutional Placement which generated exceptional demand from leading institutional investors. The bookbuild closed quickly and well above target."

"We are very pleased by the support shown by our existing institutional shareholders and that Greenstone has chosen to participate to the fullest extent possible to maintain its stake in Metro."

* Refer ASX Release 22 June 2017

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"We are also very pleased to broaden and strengthen the register by attracting new high quality domestic and international institutional investors.

"This Institutional Placement completes Metro's funding journey. We are fully funded and are now immediately commencing full construction of the Bauxite Hills Mine. Metro will become a leading Cape York bauxite producer early next year."

New Shares to be issued under the Institutional Placement will rank equally with existing Metro shares. New Shares under Tranche 1 are expected be allotted on 27 July 2017. New shares under Tranche 2 of the Institutional Placement are subject to shareholder approval at an Extraordinary General Meeting which is planned for 21 August 2017.

Further Information: Should you have any queries in relation to the Institutional Placement, please contact Metro's company secretary, Scott Waddell, on [phone] on weekdays between 9.00am and 5.00pm (Brisbane time). Alternatively, contact your stockbroker, solicitor, accountant or other professional adviser.

Important Information: This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to in this document have not been and will not be registered under the United States Securities Act of 1933 (the 'US Securities Act'), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available.

This document may not be distributed or released in the United States.

This announcement contains certain 'forward-looking statements' within the meaning of the securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as 'may,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'scheduled' or 'continue' or the negative version of them or comparable terminology. Any forecasts or other forward looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements.

ASX: MMI | ACN 117 763 443

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

Information: P: [phone] | E: [e-mail] W: 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.

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