Metro Mining Limited (Metro) is pleased to announce that the Metro Board of Directors has approved a Final Investment Decision (FID), subject to financing to expand the capacity of the Bauxite Hills Mine to 7.0 Million Wet Metric Tonnes per annum ('M WMT pa').

The approval for the expansion is underpinned by securing additional binding offtake with Xinfa Aluminium Group for 2023 and 2024. There are no further traditional owner, environmental or regulatory approvals required as Metro already has approval to mine up to 10.0 M WMT pa. The economics of the Definitive Feasibility Study (DFS) have been run at a production/sales rate of 6.0 M WMT pa over a 15-year mine life, delivering strong returns with an NPV (10%) of $372 M, IRR 78%, payback in 2 years and average Site EBITDA margin of $83 M.

The expansion capital of $28.3 M, takes productive capacity to 7.0 M WMT pa which, given the strong market outlook, provides flexibility to support upside spot demand as required and, at the same time, reducing implementation risk. The choice to leverage Metro's established experience with a Floating Crane Barge (FCB), with a much lower capital cost than the previously considered floating terminal, allows a more rapid, lower risk and lower cost implementation as well as significant operating risk reduction and synergy. Securing the access to a new crane is the critical path item for commissioning of the Second FCB by the end of Q3 2023. Metro has obtained an extension of the working capital facility announced in April 2022, to be able to secure a crane production slot, commence the FEED/detailed design and expand owners team EPCM capability.

Metro's Managing Director and Chief Executive Officer Simon Wensley said: 'The completion of the expansion DFS confirms Bauxite Hills Mine as a highly profitable, low-cost, long life producer of good quality bauxite. This brownfield expansion is low risk and low capital expenditure, with 100% binding offtake now confirmed for 2023 and 2024 with our established customer Xinfa, and no further approvals required. The choice of a Second Floating Crane Barge makes enormous sense given the experience we have gained and we expect to gain a number of operational efficiencies from running two Floating Cranes. Expanding to 7 M WMT pa is perfectly timed to respond to bauxite market conditions expected to be very strong in the next few years. The scale benefits mean that the prospective financial returns are outstanding and I thank Greenstone and Lambhill for their support to move immediately to accelerate implementation. '

Second Floating Crane

The second floating crane barge (FCB) will be identical or substantially similar to the FCB procured in 2021, TSA Skardon, already commissioned and operating at nameplate capacity of approx. 4.0 M WMT pa at Skardon River. This will give the opportunity to maximise synergy and operating/maintenance costs. The previous crane was purchased on a substantially complete basis, so this new build option will allow Metro to include optimisation lessons from the first FCB such as services, accommodation and design elements fit for purpose for the Gulf of Carpentaria location. Due to the elevated coal price, the market for trans-shipment assets is tight and Metro has been advised that delivery could be 12 to 15 months from firm order placement.

Contact:

Tel: +61 (0) 7 3009 8000

FORWARD LOOKING STATEMENT

This announcement contains certain 'forward-looking statements' within the meaning of the securities laws of applicable jurisdictions. Forward- looking statements can generally be identified by the use of forward-looking words such as 'may,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'scheduled' or 'continue' or the negative version of them or comparable terminology. Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements.

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