Metals X Limited is a diversified group exploring and developing minerals and metals in Australia. It is Australia's largest tin producer, a top 10 gold producer and holds a pipeline of assets from exploration to development including the world class

Wingellina Nickel Project.

CORPORATE DIRECTORY

ASX Code: MLX

OTCQX Code: MLXEF

Level 3, 18-32 Parliament Place

West Perth WA 6005

Australia

PO Box 1959

West Perth WA 6872

Australia

t: +61 8 9220 5700

f: +61 8 9220 5757

[email protected] www.metalsx.com.au

QUARTERLY REPORT

FOR THE PERIOD ENDING 30 SEPTEMBER 2015

OVERVIEW

• It was a milestone quarter with several new acquisitions adding life and capacity to

  the gold division. The Mt Henry and Georges Reward acquisitions were completed, and subsequent to the end of the quarter, the Fortnum (Grosvenor) acquisition was completed.

• The operating performance of the gold division during the quarter was slightly below expectations as timing delays and an anticipated lower grade zone at the Trident underground mine coincided to impact gold output and costs. Subsequent to the end of the quarter, the processing plant at the Central Murchison Gold Project (CMGP) was successfully commissioned and gold production has commenced.

• The tin division had a solid quarter with excellent cost and output control. Despite low tin prices, the mine remained profitable and generated modest earnings.

• Subsequent to the end of the quarter Metals X moved a step closer in its strategy to expand its diversified resource and production base with an off-market takeover offer for all the shares in Aditya Birla Minerals Limited.

  HIGHLIGHTS OF THE QUARTER

  GOLD DIVISION

• Produced 36,038 ounces of gold at cash cost of $1,298 per ounce and generated

  $8.20 million in EBITDA (un-audited).

• Commenced mine production at the CMGP and subsequent to the end of the quarter successfully commissioned the process plant and poured its first gold bar.

• Completed a gold hedge of 245,000 ounces with equal deliveries from September 2015 to September 2018 at a price of A$1631.23 per ounce.

• Completed acquisition of Mt Henry and Georges Reward gold projects.

  
  

  TIN DIVISION

• Produced 1,645 tonnes of tin metal at a cash cost of sales of A$17,454 per tonne of tin metal and generated $3.15 million in EBITDA (un-audited).

  
  

  NICKEL DIVISION

• Submitted the Public Environmental Review document and public consultation processes commenced. Advanced discussions with Korean parties on application of new technology.

  
  

  
  

  FORTNUM CMGP

  SKO HGO

  
  

  ROVER

  
  

  CLAUDE HILLS MT DAVIES

  WINGELLINA

  EXPLORATION

  • More bonanza Copper-Gold results from Rover 1 with hole WGR1D060 returning 5.46 m at 15.8 g/t Au, 4.03% Cu, 0.96% Bi, 0.06% Co from 937 m.

    
    

    CORPORATE

  • Annual Dividends of $12.27 million paid (including $2.48 million re-invested in DRP).

  • Cash, working capital and share investments as at 30 September 2015 were $92.6 million.

ENQUIRIES

Peter Cook Warren Hallam

[email protected] [email protected]

RENISON RENTAILS

GOLD DIVISION

OVERVIEW

Overall production from the gold division for the September 2015 quarter was 36,038 ounces (guidance 37,500 ounces). As was foreshadowed in the June quarter, the Trident underground mine was entering an overall lower grade zone and the HBJ mine was transitioning to the stoping phase. Timing delays and consequently lower production impacted overall productivity and costs. Total cash costs of sales for the quarter was higher at A$1,290 per ounce (guidance $1,100/oz) and cash flow generated was temporarily lower at $8.20 million.

Significant progress was made at the CMGP where open pit mining started in June 2015. The development of the Paddy's Flat underground commenced in late August with first ore production expected in the next quarter. Refurbishment and repairs to the process plant were completed and commissioning of the plant commenced on 9 October 2015.

The Mt Henry Project acquisition was completed adding a significant resource base to the Higginsville Gold Operations (HGO).

The Fortnum (Grosvenor) project acquisition was completed on 19 October 2015 subsequent to the end of the quarter. Metals X will refer to this project as Fortnum. Development studies and requirements to start the project are underway. Prior to sale, RNI NL had completed a feasibility study and had announced a Total Mineral Resource estimate of 34.3 million tonnes at 1.79 g/t Au containing 1.97 million ounces of gold.

Deep Diamond drilling program at Rover 1 was completed.

Production guidance for the ensuing quarter for the gold division is 43,000 ounces at a cash cost of sales of $1,200 per ounce.

HIGGINSVILLE GOLD OPERATIONS (HGO) (MLX 100%)

Productivity and operational performance was hampered by the coincidence of known lower grade zones. The Trident underground mine had a number of issues with stope drilling and paste fill which delayed/deferred some production sources impacting the overall productivity. Whilst this shortfall was topped up with open pit ore stocks, the lower grade impacted the overall gold output and the costs.

The process plant operated on a full time basis for the entire quarter and some excess ore was also trucked to the South Kalgoorlie Operations for processing during the quarter. Key physical outputs for the quarter are summarised below:

The key fiscal outcomes for the quarter for HGO are summarised below:

Capital re-investment in HGO has continued with quarterly re-investment as follows:

ACQUISITION OF THE MT HENRY PROJECT (MHP)

The transaction to acquire the MHP was completed at the end of the quarter. MHP is located approximately 70 km south of HGO and has a combined total mineral resource estimate of 43.18 million tonnes at 1.19 g/t Au containing 1.654 million ounces (refer overleaf for details).

The MHP consists of three main deposits, namely Mt Henry, Selene and North Scotia, all of which are simple open pit mining propositions. Metals X has commenced studies to integrate this project into HGO. The open pits sources are being re-worked at higher cut-off grades and by ore oxidation state. An initial phase of mining of the oxide and transition ores is being planned and metallurgical studies on processing the sulphide ores co-incident with a plant capacity increase is underway.

The acquisition cost for the MHP was 22 million new fully paid ordinary shares in Metals X Limited.

The table overleaf summarises the Mineral Resource and Ore Reserve inventory as at 30 June 2015 as publicly disclosed in the Matsa Resources Limited 2015 Annual Report.*

* The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources and Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

HGO EXPLORATION & DEVELOPMENT

Underground resource development work at HGO has continued to focus on providing adequate orebody definition in advance of mining at the high-grade Trident underground mine.

Diamond drilling aimed at expanding the down-plunge continuity of the high-grade Artemis and Helios lodes at the Trident underground mine was completed with results such as 4.3 m at 71.46 g/t from 155 m in TUG2611 (Artemis), 13.6 m at

7.01 g/t from 144 m in TUG2621 (Helios) and 2.3 m at 7.74 g/t from 228 m in TUG2592 at Pluto returned.

Exploration work on conceptual targets by way of land-based aircore programs and specialist salt-lake based air core drilling was successfully completed. Highly encouraging first pass results were received from aircore drilling at the Igloo target on Lake Cowan, such as 20 m at 571 ppb Au from 20 m in LKCA795, 56 m at 503 ppb Au from 12 m in LKCA800, 26 m at 1,478 ppb Au from 8 m in LKCA812 and 20 m at 919 ppb Au from 2 m in LKCA813.

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QUARTERLY REPORT

FOR THE PERIOD ENDING 30 SEPTEMBER 2015