26 May 2016

METALS EXPLORATION PLC

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015

Metals Exploration plc (AIM: MTL) (the "Company" or the "Group"), the natural resources exploration and development company with assets in the Pacific Rim region, is pleased to announce its final audited results for the year ended 31 December 2015.

Highlights Operational

• Equipment and construction materials continued to arrive throughout the reporting period.

• Construction activity and final handover of the constructed project to the operating team was completed in November 2015.

• Staged dry and wet commissioning of processing plant and associated operations commenced in June 2015 and continued through the second half of the reporting period.

• The project was fully permitted with in excess of 400 permits from various regulators by January 2016.

• Super Typhoon Lando (known internationally as Koppu) struck Central and Northern Luzon in mid-October.

• Following a site inspection into water damage caused by the typhoon, the Company's Philippine subsidiary company, FCF Minerals Corporation, was issued with a Partial Suspension Order by the Mines and Geosciences Bureau ("MGB") to suspend construction works at the Residual Storage Impoundment and Malilibeg Dump Site areas belonging to the Runruno project.

• Working closely and diligently with the MGB to complete a programme of rehabilitation and enhancement works, the Partial Suspension Order was lifted post-period end in April 2016.

• Ore commissioning and debugging of the processing plant and associated operations commenced post period end in May 2016.

• No material health and safety incidents experienced throughout the reporting period.

  Corporate

• Mr Lucian Eduard Simovici joined the Board of Directors as a Non-Executive Director in January 2015.

• The Company's average number of personnel and full-time workforce numbers during the period were 677.

• Launch of a wide variety of community based programmes to ensure the positive impacts of the Project elevate the economic status of the company's host community.

  Financial

• Cash and cash equivalents of £10.969 million (US $16.261 million) at period end.

• US $83 million debt facilities provided by HSBC and BNP Paribas were fully drawn down during the period.

• Equity of US $14.447 million raised during the period, via a share placing of US $5 million and an open offer of £3 million, together with a loan facility of US $5 million. Funds were raised for general corporate and working capital requirement, and to complete the project.

  • An additional equity raise of US $6.2 million was completed post period end, in March 2016 to ensure the Company's short term funding needs were met. The total amount of debt and equity raised within the period and post period end is approximately US $20.647 million.

  • An initial rescheduling of capital repayments to funders regarding the Company's senior debt facility was completed in the period.

  • The auditors drew attention to the Going Concern principle by way of emphasis in their report on the statutory accounts for the year ended 31 December 2015

  • FCF Minerals Corporation has a US $2.181m top-up payment to make to a Debt Service Reserve Account by 30 May 2016 latest and this will be funded out of the Project's funds

  • As a result of the delay experienced in commencing commercial operations, negotiations continue with funders with regards to the Company's existing debt repayment schedule to ensure the project is not in technical breach through a default on payments due on 30 June 2016.

For further information please visit or contact www.metalsexploration.com

CHAIRMAN'S STATEMENT

Dear Shareholder,

I have great satisfaction in presenting Metals Exploration plc's (the "Company" or the "Group") results for the year ending 31 December 2015. The Strategic Report will provide you with a review of progress and developments for the Group covering the year to 31 December 2015 as well as the period subsequent to the financial year-end.

Significant change occurred in 2015 as the Company successfully realised the construction completion of the Runruno Gold Project (the "Project") and moved into commissioning. The Project is now positioned to move as efficiently as possible towards commercial production, which is expected to result in the realisation of significant value to shareholders, staff and other stakeholders.

The transition from commissioning towards commercial production presented the Company with a number of significant challenges which prevented the Project from achieving commercial production in 2015.

By January 2016 the Company had achieved all the operating and occupancy permits necessary to commence ore commissioning and ramp-up of the process plant. However, the permitting process had proved to be far more detailed and involved than could have been reasonably predicted which resulted in a consequential delay to the Project. The number of permits required for operations totalled well in excess of 400 the majority of which were secured in this period - an effort that I am proud to say was achieved with considerable diligence by the Company personnel involved and the full engagement of the various responsible regulators.

The impact of Super Typhoon Lando (international Koppu) was as unfortunate as it was ill-timed for the Project. The progression of permitting was significantly accomplished with expectations of moving into ore commissioning to occur in Q4 2015. Stage 2 of the Residual Storage Impoundment (the "RSI") had been completed to design and was being prepared for the finalisation of the tailings pipeline. The erosional damage caused by the extreme rainfall event associated with the typhoon downstream of the RSI (which itself incurred no structural damage) and other areas lead to the Mines and Geosciences Bureau (MGB) issuing a partial suspension order (the "Order") which prevented ongoing construction work in the RSI area and on the Malilibeg Dump Site and the tailings pipeline in those areas. The Order required that the Company undertake a program of rehabilitation and enhancement works in the affected areas to the satisfaction of the MGB before the Order would be lifted. This unfortunately resulted in delays in ore commissioning of the plant and a consequential delay in commencing production.

The Order was lifted in April 2016. Since then the Company has rapidly moved into the ore commissioning and "debugging" phase as it ramps up towards achieving full commercial production. This has also resulted in a significant morale boost for staff who have finally been able to put their training into practice in actual production level activities through this phase.

The delay in commercial production has placed significant pressure on the cash reserves of the Group. The shareholders have steadfastly supported the Group through this period providing over £13.8 million through additional equity and a debt facility through 2015 and to March 2016. A project of this nature could not have achieved what it has without this ongoing shareholder support.

Pleasingly the Company has not been subject to any significant legal actions in 2015 of a similar nature to the Writ of Kalikasan reported in the past. Any actions over the reporting period were "in the normal nature of business" and have been progressively dealt with accordingly. The Company however has not seen any progression of a resolution through its action to recover VAT paid to the BIR

incorrectly levied on imported capital equipment. Relief from such imposts is provided under the Company's Financial and Technical Assistance Agreement, however the BIR has chosen not to recognise the provisions within the agreement. The Company continues to pursue this matter through various means.

Construction and Commissioning

The completion of the construction of the process plant in 2015 was a tremendous milestone. Given the slippage caused by design drawing delays the decision to build the process plant under the "self- manage" model has proven to be a significant cost saving and not exposed the Company to "extension of time" claims which would have resulted out of alternate Contractor driven construction models.

Highlights during this period included:

• Staged dry commissioning commenced in June 2015 with the crusher, transfer station and conveyor areas. The various stages of the process circuit followed under a detailed commissioning strategy lead by Company personnel and supported by Plant & Infrastructure Engineering Pty Ltd who had been involved in the project throughout the project's construction.

• Final handover of the constructed project to the operating team in November 2015.

• Connection of the Project's switchyard to the National Grid.

• Transitioning from dry commissioning into wet commissioning in preparation for ore commissioning. Ore commissioning was commenced following the lifting of the partial suspension order.

• Construction of stage 2 of the RSI. Stage 3 is well progressed under the design of GHD and is expected to be complete in Q3 2016.

• The process mini plant has successfully confirmed the application of the technology to the Runruno ores and generated 300 cubic metres of the BIOX® culture in preparation for the commissioning of the operational BIOX® circuit.

• The mining operations and process plant were well prepared for operational readiness prior to the lifting of the suspension order.

• Well progressed in achieving ISO14001 accreditation of the Company's environmental systems.

A more detailed explanation of these achievements is found in the Strategic Report.

Cash Position and Project Finance

As at 31 December 2015 the Group's cash at bank position was £10,969,449. The funds available under Facility Agreement are fully drawn including the cost overrun facility.

Resulting from the delay in commercial production the Company agreed a rescheduling of the repayments with the lenders under the existing facility agreement. This was designed to reschedule principal payments to allow the Company the flexibility in cash management whilst moving through the ramp up phase into commercial production.

Through the further delay resulting from rehabilitation activities required prior to the lifting of the suspension order the Company has also been working with the lenders to determine an alternative lending structure to ensure the project does not default on payments in June 2016.

The lenders remain supportive of the project and recognise its economic fundamentals have not changed, with the working relationship with Management continuing to be strong and constructive. Similarly to the improved moral of staff, the lifting of the suspension order has created an impetus towards finding a solution that will be beneficial to all parties that will assist the Project to achieve its financial returns.