Metro Mining : Minister Grants Bauxite Hills Mining Leases

Metro Mining Ltd (ASX: MMI)

ASX ANNOUNCEMENT

29August 2017

Minister Grants Bauxite Hills Mining Leases

Highlights

• Mining Leases for Bauxite Hills Mine granted by Queensland Government

• Follows all environmental approvals for the Bauxite Hills Mine being secured

• Continues Metro's development momentum for Bauxite Hills Mine with first production

  on-track for Q2 2018

• Construction program well advanced and on schedule

Metro Mining Ltd (ASX: MMI) (Metro) is pleased to announce the Minister for State Development, Natural Resources and Mines Hon Dr Anthony Lynham has signed the three Mining Leases for the Bauxite Hills Mine.

Granting of the mining leases follows final Federal and State Government environmental approvals being received on 26 June (Refer ASX Announcement).

Metro Mining Managing Director Simon Finnis says granting of the Mining Leases continues Metro's development momentum for Bauxite Hills Mine with first production remaining on track for Q2 2018.

Construction of the Bauxite Hills Mine site has commenced.

Minister Lynham's media release is attached.

ASX: MMI | ACN 117 763 443 For Further Information: P: [phone] | F: [phone]| E: [e-mail] Contact: Simon Finnis, Managing Director & Chief Executive Officer | Scott Waddell, Chief Financial Officer & Company Secretary Electronic copies & more information available at: www.metromining.com.au

Registered Office & Head Office: Lv 2, 247 Adelaide St, Brisbane | GPO Box 10955, Brisbane Q 4000

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.

ASX Announcement | 29 August 2017 | Page 1

Bauxite mine leases to unlock FNQ jobs

Hundreds of jobs in Far North Queensland are closer after the Palaszczuk Government today granted three mining leases for the Bauxite Hills Mine project to operator Metro Mining.

Minister for State Development and Minister for Natural Resources and Mines Dr Anthony Lynham said the granted leases were critical for the $35.8 million bauxite mine project to proceed into planned production.

"Granting these leases allows Metro Mining to consolidate and unlock the potential of the significant bauxite reserve that exists on the western Cape York Peninsula, and generate hundreds of jobs for the region" Dr Lynham said.

The three granted leases are part of Metro Mining's Bauxite Hills Mine project. The project in total is estimated to have a Resource of 144.8 tonnes of bauxite.

"The three leases contain a large portion of bauxite Reserve that is estimated at 92.2 million tonnes.

"Granting these leases gives Metro Mining the confidence to progress the mine's construction and begin production with the first shipments of bauxite planned for early 2018."

Dr Lynham said the Bauxite Hills Mine project, located approximately 100 kilometres north north- east of Weipa, would bring substantial economic benefits to Queensland.

"The mine will produce bauxite for export and is planned to operate for an initial 17 years with opportunities for extending the life based on the known resources in the area," Dr Lynham said.

"The start-up production rate of approximately two million tonnes of bauxite per annum is proposed increasing to approximately six million tonnes over a four year period.

"Up to 200 people are expected to be employed with a 30 per cent indigenous workforce target incorporating traineeships and apprenticeships and training requirements, plus provision for local and regional procurement.

"Pre-approved construction had commenced at the mine site and Metro Mining anticipates commencing mining operations in April next year, following the wet season."

Dr Lynham said the Bauxite Hills Mine project was another example of Queensland's resources sector continuing to show signs of growth and expansion.

"The Palaszczuk Government has worked hard to grow Queensland's resources sector in a responsible and sustainable manner and we are now reaping the rewards of that work," Dr Lynham said.

"Our focus on job creation and the right framework for resources exploration and production, balanced with strong environmental protections and public consultation, and is delivering results."

ENDS | Media contact: 0419 562 389

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