Metro Mining : Investor Presentation - December 2021

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Explore | Define | Mine

Delivering turnaround

December 2021

onlyFORWARD LOOKING STATEMENT

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 Mining Limited, industry growth or other trend projections are, or may be, forward l king statements. Such statements relate to future events and expectations and, as such, involve

kn wn and unknown risks and uncertainties. Graphs used in this ASX Presentation (including data used in the graphs) are sourced from third parties and Metro Mining has not independently verified the information. Although reasonable care has been taken to ensure that the facts stated in this

usePr sentation 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 ASX

Pre entation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

COMPETENT PERSON'S STATEMENT

ersonalAny information in this report that relates to the Bauxite Hills Mine Mineral Resource is based on information compiled by Ed Radley who is a consultant to Metro Mining and a Member of the Australian Institute of

Mining and Metallurgy (MAusIMM). Mr Ed Radley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'.

Mr Ed Radley has consented in writing for inclusion in this Report the matters based on the inf rmation in the form and context it appears

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COMPETENT PERSON'S STATEMENT

Any information in this report to that relates to the "Metro Mining - Bauxite Hills" 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Edward Bolton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

COMPETENT PERSON'S STATEMENT

Any information in this report that relates to Exploration Results is based on information compiled by Neil McLean who is a consultant to Metro Mining and a Fellow of the Australian Institute of Mining and Metallurgy (F.Ausimm). Mr McLean 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'. Mr McLean consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

KEY RISK FACTORS

Whilst some changes to operating plans have been outlined in this presentation, Metro directs the reader to the comprehensive description of Key Risk Factors outlined in the in the Equity Raising Presentation of 25 June 2021.

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Metro Investment Thesis

High quality operating mine with post COVID recovery underway and pathway to growth

100 Mt reserve, 17-year life bauxite mine. World class Weipa bauxite province. Current capacity ~4 Mt pa Expansion to ~6 Mt/a when additional offtake locked in, projected costs to market lowest in the world Market growth likely as Chinese domestic bauxite production reduces quality / volume.

Competitor bauxite environment uncertain: Indonesia exports banned by 2023. Guinea under Military Coup Simple low-cost mining, strip ratio effectively zero, barge / trans-ship to large bulk vessels;

Costs and productivity improved under new management

Freight costs reduced and de-risked with procurement of new floating crane

Capital options for expansion under review: Range A$20 M to $57 Million including ship-loading and site upgrade

EBITDA margins recovering: @ 4 Mt pa circa. A$ 25 M for 2022; @ 6 Mt/a rate circa. A$ 90 M pa*

Broker price target 0.07 /shr (A$ 210 M market cap); Broker NPV $0.14 /shr (A$ 420 M market cap)*

Deep value proposition given current market cap: approx. A$ 54 M (@share price $0.018 /shr)**

* Source: A. Hines, Shaw & Partners Equity Analysis Report 25/11/21 ** 06/12/21

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Simple High-Quality Bauxite Operation

Metro second significant exporter out of Weipa

 1963 COMALCO starts commercial production in Weipa
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	2008 First long term contracts from Weipa to China
	2018 North of Weipa, Metro Mining establishes Bauxite Hills
	mine as second significant producer

 2020 Total capacity from Cape York now exceeds 40 Mt/a

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 Metro 100 Mt Reserves plus 30 Mt Resources
 Simple low-cost mining production process
ersonal	 Clear top-soil/overburden, mine 1.5-3 m, using FEL, rehab
 Road train 160 t haul 5 to 22 km to port site

 Load and tow barge down river to ocean mooring  Trans-shipusing high-capacityfloating crane

 Current run rate 3.3 Mt, capacity 4 Mt/a

 Low cost Stage 2 expansion option to 6 Mt/a

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Clear vegetation &	Return overburden & replace
remove overburden	topsoil - then revegetate

Overburden (~0.5m)

DSO Bauxite Horizon (1.5-3m)

Ironstone

Mottled Zone

Haul ore 5 - 22km to stockpile and barge loading

RIO TINTO

4 Load Large OGV's with Floating Crane

Implementing Transformation Initiatives

only	2022 de-risked with multiple pathways to Stage 2 Expansion established
Main Features	Key Implications

 New management team from July'21, delivering change	 3.3 Mt shipments for 2021*, 4 Mt target for 2022
 A$ 25.5 M capital raise oversubscribed	 Floating crane immediately provided ~50% relief from
 Ongoing success with Shanxi customer trials in 2021	historical Ultraclass freight rates
 A$ 6 M reduction of cost base in the 2nd half of 2021.
use	resulting new contracts for 2021 and 2022
	Further 10% cost reduction planned for 2022
 New floating crane mobilized ahead of schedule in	 Implementation of capital raise, floating crane, sales
	October 2021 and loading Capesize vessels
 Further productivity initiatives and cost reductions being	book and cost reductions builds cash for the wet season,
transforms liquidity for 2022 and avoids further capital
	implemented	raising*
		 Floating Crane is logical progressive step towards stage 2
		expansion whilst keeping options open
	All tonnes are wet metric tonnes unless otherwise stated
	*Subject to weather
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