MMG : Announcements and Notices – Mineral Resources and Ore Reserves Statement as at 30 June 2019

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MMG LIMITED

五礦資源有限公司

(Incorporated in Hong Kong with limited liability)

(HKEX STOCK CODE: 1208)

(ASX STOCK CODE: MMG)

MINERAL RESOURCES AND ORE RESERVES STATEMENT AS AT 30 JUNE 2019

This announcement is made by MMG Limited (Company or MMG and, together with its subsidiaries, the Group) pursuant to rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (Listing Rules) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (Board) is pleased to report the Group's updated Mineral Resources and Ore Reserves Statement as at 30 June 2019 (Mineral Resources and Ore Reserves Statement).

The key changes to Mineral Resources and Ore Reserves Statement as at 30 June 2019 are:

• The Group's Mineral Resources (contained metal) have increased for zinc (4%) and decreased for copper (1%), lead (6%), silver (7%), gold (6%) and molybdenum (8%).
• The Group's Ore Reserves (contained metal) have increased for molybdenum (2%) and decreased for copper (7%), zinc (15%), lead (23%), silver (13%) and gold (9%).
• Cobalt has been reported for the first time in Mineral Resources and now includes 48kt cobalt from Kinsevere and 4kt from the regional deposits.

For copper metal, the main reasons for the changes are depletion, cost increases and pit design at Kinsevere which were partially offset by increased metal price. For zinc metal, the main reasons for the changes are depletion at all sites and changes in the mine design at Dugald River deposit.

All data reported here are on a 100% asset basis, with MMG's attributable interest shown against each asset within the Mineral Resources and Ore Reserves tables (pages 4 to 7).

MMG Limited

MINERAL RESOURCES AND ORE RESERVES STATEMENT 30 June 2019

MINERAL RESOURCES AND ORE RESERVES STATEMENT

A copy of the executive summary of the Mineral Resources and Ore Reserves Statement is annexed to this announcement.

The information referred to in this announcement has been extracted from the report titled Mineral Resources and Ore Reserves Statement as at 30 June 2019 published on 22 October 2019 and is available to view on www.mmg.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resources and Ore Reserves Statement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the Mineral Resources and Ore Reserves Statement continue to apply and have not materially

changed. The Company confirms that the form and context in which the Competent Person's findings are

presented have not been materially modified from the Mineral Resources and Ore Reserves Statement.

By order of the Board

MMG Limited

Gao Xiaoyu

CEO and Executive Director

Hong Kong, 22 October 2019

As at the date of this announcement, the Board comprises nine directors, of which two are executive directors, namely Mr Gao Xiaoyu and Mr Xu Jiqing; three are non-executive directors, namely Mr Guo Wenqing (Chairman), Mr Jiao Jian and Mr Zhang Shuqiang; and four are independent non-executive directors, namely Dr Peter William Cassidy, Mr Leung Cheuk Yan, Ms Jennifer Anne Seabrook and Professor Pei Ker Wei.

MMG | 2019 Mineral Resources & Ore Reserves Statement

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MMG Limited

MINERAL RESOURCES AND ORE RESERVES STATEMENT 30 June 2019

EXECUTIVE SUMMARY

Mineral Resources and Ore Reserves for MMG have been estimated as at 30 June 2019 and are reported in accordance with the guidelines in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and Chapter 18 of the Listing Rules. Mineral Resources and Ore Reserves tables are provided on pages 4 to 7, which include the 30 June 2019 and 30 June 2018 estimates for comparison. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources that convert to Ore Reserves. All supporting data are provided within the Technical Appendix, available on the MMG website.

Mineral Resources and Ore Reserves information in this statement has been compiled by Competent Persons (as defined by the 2012 JORC Code). Each Competent Person consents to the inclusion of the information in this report that they have provided in the form and context in which it appears. Competent Persons are listed on page 8.

MMG has established processes and structures for the governance of Mineral Resources and Ore Reserves estimation and reporting. MMG has a Mineral Resources and Ore Reserves Committee that regularly convenes to assist the MMG Governance and Nomination Committee and the Board of Directors with respect to the reporting practices of the Company in relation to Mineral Resources and Ore Reserves, and the quality and integrity of these reports of the Group.

Key changes to the Mineral Resources (contained metal) since the 30 June 2018 estimate have been mostly related to depletion1 at all sites together with increased costs and changes to pit design at Kinsevere. An increase in metal price assumptions and decreases in cut-off grades (except Kinsevere) have partially offset these depletions. In the DRC, Mineral Resources have been declared for copper and cobalt at three new satellite oxide deposits. At Dugald River, a net increase has resulted from Mineral Resource extension in the hangingwall and footwall lenses which has replaced 2018 depletion.

Key changes to the Ore Reserves (contained metal) since the 30 June 2018 estimate have been mostly related to depletion. Ore loss and dilution greater than planned have been offset by gains from higher metal price assumptions. Decreases at Kinsevere are related to unplanned ore loss and dilution as well as to geotechnical challenges which have resulted in increased cut off grades and pit design changes. At Dugald River, changes to pillar design and mining sequence have resulted in lower Ore Reserves.

Las Bambas has been operating for 36 months since commercial production was declared on 1 July 2016. During this time the mine has experienced both positive and negative reconciliation factors compared to the Ore Reserve. Ore loss factors by material type have been increased for the 2019 Las Bambas Ore Reserve estimates (10% for mixed ores and 3%-5% for primary ore depending on the pit phase).

Pages 9 and 10 provide further discussion of the Mineral Resources and Ore Reserves changes.

1 Depletion in this report refers to material processed by the mill and depleted from the Mineral Resources and Ore Reserves through mining.

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MMG Limited

MINERAL RESOURCES AND ORE RESERVES STATEMENT 30 June 2019

MINERAL RESOURCES1

All data reported here is on a 100% asset basis, with MMG's attributable interest shown against each asset within brackets.

				2019												2018
Deposit	Tonnes	Cu	Zn	Pb	Ag	Au	Mo	Co		Tonnes		Cu		Zn		Pb		Ag		Au		Mo		Co
(Mt)	(%)	(%)	(%)	(g/t)	(g/t)	(ppm)	(%)		(Mt)		(%)		(%)		(%)		(g/t)		(g/t)		(ppm)		(%)
Las Bambas (62.5%)
Ferrobamba Oxide
Copper
Indicated	2.1	1.7								3.0		1.7
Inferred	1.3	1.8								1.1		1.9
Total	3.4	1.7								4.1		1.7
Ferrobamba Primary
Copper
Measured	553	0.56			2.4	0.05	202			546		0.60						2.7		0.05		1099
Indicated	465	0.58			2.5	0.05	166			426		0.61						3.0		0.05		890
Inferred	239	0.61			1.3	0.03	79			254		0.63						3.0		0.05		493
Total	1,257	0.57			2.2	0.04	166			1,226		0.61						2.9		0.05		2483
Ferrobamba										1,230
Total	1,261
Chalcobamba Oxide
Copper
Indicated	6.5	1.4								6.1		1.5
Inferred	0.5	1.5								0.7		1.5
Total	7.0	1.4								6.8		1.5
Chalcobamba Primary
Copper
Measured	113	0.44			1.4	0.02	75			75		0.44						1.4		0.02		189
Indicated	174	0.63			2.4	0.03	179			179		0.67						2.5		0.03		353
Inferred	38	0.51			1.8	0.02	33			33		0.54						1.9		0.03		70
Total	325	0.55			2.0	0.02	287			287		0.60						2.2		0.03		612
Chalcobamba
Total	332									293
Sulfobamba Primary
Copper
Indicated	98	0.61			4.3	0.02	89			89		0.65						4.6		0.02		187
Inferred	133	0.50			5.2	0.02	106			106		0.56						6.3		0.02		238
Total	230	0.55			4.8	0.02	194			194		0.60						5.5		0.02		425
Sulfobamba
Total	230									194
Oxide
Copper
Stockpile
Indicated	11.4	1.2								9.9		1.2
Total	11.4	1.2								9.9		1.2
Sulphide Stockpile
Measured	9.0	0.46								2.3		0.41
Total	9.0	0.46								2.3		0.41
Las Bambas
Total	1,844									1,730

1 S.I. units used for metals of value; Cu=copper, Zn=zinc, Pb=lead, Ag=silver, Au=gold, Mo=molybdenum, Co=cobalt.

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MMG Limited

MINERAL RESOURCES AND ORE RESERVES STATEMENT 30 June 2019

MINERAL RESOURCES - DRC1

					2019												2018
Deposit	Tonnes	Cu	Zn	Pb	Ag	Au	Mo	Co		Tonnes		Cu		Zn		Pb		Ag		Au		Mo		Co
	(Mt)	(%)	(%)	(%)	(g/t)	(g/t)	(ppm)	(%)		(Mt)		(%)		(%)		(%)		(g/t)		(g/t)		(ppm)		(%)
Kinsevere (100%)
Oxide Copper
Measured		1.4	4.2						0.17		2.0		4.3
Indicated		7.2	3.3						0.08		9.7		3.1
Inferred		0.9	2.4						0.09		1.8		2.4
Total		9.5	3.3						0.10		13.6		3.2
Transition Mixed Copper Ore
Measured		0.5	2.5						0.21		1.3		2.9
Indicated		2.0	2.0						0.14		3.4		2.0
Inferred		0.3	1.9						0.09		0.4		1.9
Total		2.8	2.1						0.15		5.2		2.3
Primary Copper
Measured		1.2	2.8						0.28		6.1		2.7
Indicated		19.5	2.3						0.13		15.8		2.1
Inferred		2.4	1.9						0.12		2.0		1.7
Total		23.2	2.3						0.14		24.0		2.2
Oxide-TMO Cobalt
Measured		0.03							0.61
Indicated		0.3							0.59
Inferred		0.1							0.56
Total		0.4							0.58
Primary Cobalt
Measured		0.01							0.33
Indicated		0.2							0.31
Inferred		0.1							0.29
Total		0.3							0.30
Stockpiles
Measured
Indicated		12.9	1.8								10.2		2.2
Total		12.9	1.8								10.2		2.2
Kinsevere
Total		49.2									52.9
Sokoroshe II (100%)
Oxide Copper
Measured
Indicated		0.8	3.5						0.28
Inferred		0.1	1.9						0.11
Total		0.9	3.3						0.26
Nambulwa (100%)
Oxide Copper
Measured
Indicated
Inferred		0.9	2.3						0.11
Total		0.9	2.3						0.11
DZ (100%)
Oxide Copper
Measured
Indicated
Inferred		0.5	1.9						0.16
Total		0.5	1.9						0.16

MMG | 2019 Mineral Resources & Ore Reserves Statement

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