Metminco Regulatory News (MNC)

ASX ANNOUNCEMENT

30 April 2016

Highlights of the activities for the Quarter ending 31 March 2016 included:

Quinchia Gold Project

· Acquisition of the Quinchia Gold Project in Colombia with a NI 43-101 estimated mineral resource of 2.8 million ounces of gold is on target to be completed by 31 May 2016.

· The Quinchia Gold Project complements Metminco's (or the "Company") strategy and capabilities providing the Company with a near term cashflow opportunity via the Miraflores project which contains 1.88Moz gold and 3.8Moz silver.

· Significant upside potential exists through such targets such as Tesorito, a gold porphyry system where one drill hole TS-DH-02 returned an intercept of 384m @ 1.01 g/t gold, 0.9 g/t silver and 0.08% copper from surface.

Los Calatos

· A drill hole (CD-96) was completed at the TD2 Target with the objective of assessing the mineralisation potential of the breccias that have been mapped on surface (and host visible copper oxide mineralisation as chrysocolla), at depth.

· The presence of gold (at levels some 13 times higher than the mean gold value associated with the main Los Calatos porphyry) and silver, as well as elevated zinc and lead values associated with a strongly sericitized breccia, rooted in quartz epidote altered rocks, suggests that the CD-96 intersection is located in the upper levels of a hydrothermal system located above a deeper seated porphyry body.

Mollacas

· The Chilean Supreme Court upheld a prior ruling by the Court of Appeal of Region IV, Chile, in January 2016, which overturned a decision granting access for mining purposes to Minera Hampton Chile Limitada ("MHC"), a wholly owned subsidiary of Metminco and the owner of the Mollacas copper project, from a lower court. The Company and MHC continue to assess all options for gaining mining access to its Exploitation Concessions.

Corporate

· Cash position as at 31 March 2016 was approximately A$0.25 million. In early April 2016 the Company completed a capital raising of approximately A$1.0 (£0.5) million and announced a share purchase plan offer to eligible shareholders.

· The Company is progressing negotiations with interested parties regarding equity funding of the Los Calatos Project.

Mr William Howe, Managing Director, commented: "Through the acquisition of the Quinchia Gold Project during the Quarter, the Company has made a decisive move towards diversifying into gold. The project represents an excellent fit to the Company's strategy and capabilities, and has the potential to provide Metminco with a near term cashflow opportunity and significant upside potential through exploration. On completion of the acquisition, the Company looks forward to advancing the most exciting target, Miraflores, up the value chain and to assess the resource potential of the other targets that have been identified within the broader, highly prospective, project area.

At Los Calatos, whilst the single drill hole at the TD2 target did not return economic grades, the results support our expectations of the presence of a probable, deeper seated, porphyry system adjacent to the Los Calatos deposit. Reported gold and silver levels significantly higher than those reported to date is an interesting development that requires further investigation.

Securing a funding partner for the advancement of Los Calatos remains a focus and is progressing with the Company being in negotiations with interested parties."

For further information contact:

METMINCO LIMITED

Stephen Tainton / Phil Killen

Office: +61 (0) 2 9460 1856

NOMINATED ADVISOR AND BROKER

RFC Ambrian

Australia

Will Souter/ Nathan Forsyth

Office: +61 (0) 2 9250 0000

United Kingdom

Charlie Cryer

Office: +44 (0) 20 3440 6800

JOINT BROKER

SP Angel Corporate Finance LLP (UK)

Ewan Leggat

Office: +44 (0) 20 3470 0470

Company

Project

Mineral Resource

(Measured, Indicated & Inferred)

Tonnes (millions)

Grade (g/t)

Moz

AngloGold / B2Gold

Gramalote

372

0.51

6.1

Sunward Resources

Titribi

635

0.52

10.6

Batero

Quinchia

165

0.57

3.0

Bellhaven

La Mina

80

0.62

1.6

Minera Seafield

Quinchia

134

0.65

2.8

AngloGold Ashanti

La Colosa

1,255

0.82

33.1

Gran Colombia

Marmato

489

0.92

14.4

Red Eagle

San Ramon

13

1.78

0.8

Geology

All

FS

Scott Wilson's scope of work. Appears all work completed with exception of final rock type characterization.

Open Pit Mining

Pit Optimization

FS

At Feasibility Study level

Pit Design

FS

Supported by Feasibility Study geotechnical parameters

Waste Dump Design

PFS

Ramps, Slope angles. Stability analysis for valley dump recommended

Pre-Production Schedule

PFS

Scheduled volumes not supported by detailed design volumes

Mine Production Schedule

FS

Haul profiles calculated to Feasibility Study level

Fleet Estimate Cost

PFS

Would be Feasibility Study if quotes, taxes and import duties updated through 2015

Mine Operating Cost

PFS

Would be Feasibility Study with updated labor, consumable and burdens

Underground Mining

Mine Design

PFS

To confirm PFS level:

Additional detail on development such as ramps, ventilation, etc.

Checking stope detail of the optimizer shapes to ensure mineability.

Infrastructure

PEA

Ventilation models should be completed simulating the underground production schedule to ensure adequate airflows to all parts of the mine.

Electrical loads need to be further evaluated and an adequate system should be designed.

Additional dewatering

Production Schedule

PFS

To confirm PFS level:

More complete productivity estimates which are used in the schedule. Scheduling methodology would remain the same.

Underground Operating Cost

PFS

To confirm PFS level:

Further refinement of first principle costing and tie back to production schedule.

Updated cost quotes to 2014

Underground Capital Cost

PFS

Could refine auxiliary equipment and utility costs.

Geomechanical

Characterization

FS

Unless additional resources are identified outside the current volume then the conducted characterization programs to date should be at a Feasibility Study level.

Open Pit Stability

FS

Unless additional weathering with depth is identified with new infill drilling then the stability analyses conducted to date should be at a Feasibility Study level, with the exception of checking stability under earthquake conditions.

Underground Stability

FS

Unless the cut-off grade significantly changes mineable vein widths or infill drilling identifies additional high grade areas that could be mined early in the sequence then the stability analyses conducted to date should be at a Feasibility Study level.

Backfill

PEA

Quantity of cement in the cemented backfill requires testing.

Environmental

Permitting (incl. EIS)

PFS

PFS requires a comprehensive overview and listing of required permits, as well as the initiation of the EIS, but not necessarily submission of the EIS to the regulatory authorities.

Baseline Data

PFS

PFS requires the collection and review of available environmental data from existing databases for environmental studies, assessments or audits; regulatory inspections, waste handling practices; management plans.

Geochemistry

FS

Unless that there are significant changes in the beneficiation process, or the cut-off grade has changed, then the geochemical evaluations conducted to date should be at a Feasibility Study level.

Hydrogeology

PFS

Hydrogeology baseline is very close to Feasibility Study level, but would need some additional analysis given the new location of the tailings impoundment.

Management Plans

PFS

PFS requires preparation of environmental plans and monitoring programs; preliminary sediment and erosion control plan; conceptual reclamation plan; evaluation of acid rock drainage; geotechnical stability review of waste dumps and tailings dam; preliminary impact mitigation plan; preliminary spill and emergency response plan.

Socioeconomics

PFS

PFS generally requires the initiation of social baseline data gathering, some community engagement and training, and health /safety programs identified.

Process Design

Design

PFS

Lyntek scope of work. Substantial drawings exist. Would need further review and re-confirmation by an alternate firm.

Capital Cost

PEA

Lyntek scope of work. Capital equipment was updated with quotes however installation and other costs were not updated. A complete capital cost estimate was not compiled by Lyntek.

Operating Cost

PEA

Lyntek scope of work. An operating cost was not provided by Lyntek. The PEA cost was used with adjustments by SRK to account for labor, power, and inflation.

Tailings Facility

Design

PEA

Leachate storage facility is at Feasibility Study level and a Feasibility Study report was developed. Updated location for the flotation tailings impoundment presented herein is at a PEA level. Field characterization and more detailed design is required for PFS for the flotation tailings embankments. Scheduling of the borrow material quantities needs to occur.

Capital/Operating Cost

PEA

Flotation tailings costs needs to be re-estimated based on quantities of a PFS level design. Leachate costs need to be re-estimated based on quantities in the current Feasibility Study level design.

Metallurgy

All

FS

A Feasibility Study level metallurgical report was completed.

JORC TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

Explanation

Drill hole CD-96

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Half HQ core (about 4kg) was sampled every 1m interval from sawn core, sent to the Inspectorate laboratory in Lima (Peru), where it was pulverised to produce a 30g charge for Fire Assay and ICP (45 elements) analysis.

Drilling techniques

· Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

HQ drill core.

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

A minimum of 95% core recovery was conditional to the drilling contract. Slow drilling advance and careful handling of broken cores was assessed by our personnel and core recovery varied between 95% and 100%.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation mining studies and metallurgical studies.

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

· The total length and percentage of the relevant intersections logged.

The drill core was logged both geotechnically and geologically (qualitative and quantitative). Core was photographed (as dry and wet cores).

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

· If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

Half HQ core was sampled from sawn drill core.

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Sample Analysis: ICP 45 elements and Fire Assay for Au (Inspectorate laboratory - Lima)

Metminco QAQC:

4 blanks every 100 samples

4 standards (high and low grade) every 100 samples

1 duplicate every 100m

Inspectorate QAQC:

1 blank every 20 samples

1 standard (high and low grade) every 10 samples.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· Discuss any adjustment to assay data.

Significant intersections were cross-checked and confirmed by a senior geologist.

Sawn samples and the introduced QAQC samples (blanks, standards) were bagged, labelled and registered by geologists. The remaining half cores were stored in trays at the Los Calatos core shed facility. Once sent to the laboratory and analysed, the sample pulps and rejects were stored and documented in any orderly fashion at the Los Calatos core shed facility.

The drill hole database was updated daily during the whole process of drilling, logging, sampling, and data entries were double checked. The database was finalised once the assays were available.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Specification of the grid system used.

· Quality and adequacy of topographic control.

A hand-held GPS was used to survey the collar position (WGS84), whereas a north seeking gyro was used to survey the orientation of the drill hole.

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

The entire drill hole was logged & sampled every 1m interval. Only 80% of the samples were sent to the laboratory for analysis, as some intercepts were considered to be devoid of mineralisation.

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

The drill hole was orientated perpendicular to the strike of those structures that are expected to be mineralised.

Sample security

· The measures taken to ensure sample security.

Stored at Los Calatos core shed facility.

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

No such audits or reviews were conducted.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

Explanation

Drill hole CD-96

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Exploration concessions 100% held by Minera Hampton Peru SAS.

Nett Smelter Return of 2% held by Highland Holdings.

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

Area explored by Phelps Dodge Arequipa Resources and Barrick over the period 1995 to 1997.

Geology

· Deposit type, geological setting and style of mineralisation.

Porphyry hosted Cu-Mo deposit occurring within the Incapuquio structural belt in southern Peru.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

· easting and northing of the drill hole collar

· elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

· dip and azimuth of the hole

· down hole length and interception depth

· hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Easting: 286077

Northing: 8130151

Elevation above mean sea level: 3,118 metres

Angle of drill hole: -60°

Azimuth of drill hole trace: 260°TN

Length of drill hole: 666.35 metres

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

Weighted average along core: As every sample is of the same length (viz. 1 metre), the relative weight of each sample has been considered to 1.

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

The intersected structures are sub-vertical, which have been intersected at an angle of approximately 60°.

Mineralised intercepts are reported as drill intercepts and have not been corrected to reflect true width.

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer Annexure 3 of this Announcement.

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

The drill hole intersected a quartz-monzonitic intrusive near surface and was terminated in a dioritic intrusive at a depth of 666 metres, both of which are traversed by breccias.

Two significant structures were intersected over the depth intervals 172 to 213 metres and 311 to 346 metres, comprising dominantly chalcedonic quartz and pyrite associated with strong phyllic alteration.

Significant analytical results include the following over the depth interval 311 to 346 metres:

· 35 metres @ 0.24g/t Au and 2.64g/t Ag

· 5 metres @ 0.44g/t Au and 6.02g/t Ag (and 2m @ 0.72g/t Au and 13.05g/t Ag)

· 17 metres @ 0.30g/t Au and 2.98g/t Ag (and 2m @ 0.69g/t Au and 8.25g/t Ag)

· 1 metre @ 0.82% Cu

(Refer Table 1a below)

The presence of gold and silver, as well as elevated zinc and lead values associated with a strongly sericitized breccia, rooted in quartz epidote altered rocks, suggests that the CD-96 intersection is located in the upper levels of a hydrothermal system located above a deeper seated porphyry body. Of significance is the fact that the mean gold value returned over the 35 metre intersection alluded to above is some 13 times higher than the mean gold value associated with the underlying porphyry, as intersected in the main Los Calatos deposit.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

The TD2 Target is located to the southwest of the main Los Calatos deposit on a 'structural bend' of the southernmost bounding fault that constrains the extent of the Los Calatos Porphyry Complex. Whilst a large percentage of the target is covered by younger volcanic cover, surface mapping has identified the presence of copper oxides within quartz tourmaline breccias over a strike extent in excess of 250 metres. Soil geochemical sampling has identified a well-developed copper anomaly (>300ppm Cu) related to the copper oxides developed within the quartz tourmaline breccia. In 2010 a Titan-24 geophysical survey was completed over parts of the Los Calatos Project area. Two of these lines (L10300W and L11100W) traverse the TD2 Target area which have identified sub-surface magnetotelluric anomalies that persist below the main Los Calatos deposit. There is also a ground magnetic anomaly that is coincident with both the Los Calatos deposit and TD2 Target. Therefore, the TD2 Target shares many similarities with the key features that characterise the presence of mineralisation at the Los Calatos Porphyry Complex.

Further work

· The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

The drilling results from CD-96 confirm the potential of the TD2 Target, albeit that the targeted porphyry hosted Cu and Mo mineralisation is expected to be deeper than anticipated. As such, further drilling will be required to test the system at depth.

Drill Depth (m)

Sample

Wt (kg)

Cu (ppm)

Ag (ppm)

Au (ppb)

Intercept Interval (m)

From

To

311-346

323-346

311-316

312-314

325-327

311

312

3.27

365

1.5

134

A

C

312

313

4.48

390

3.8

510

D

313

314

5.21

8189

22.3

920

314

315

3.87

78

0.8

96

315

316

4.33

182

1.7

523

316

317

4.12

103

0.8

76

317

318

3.76

115

0.7

19

318

319

4

97

0.2

14

319

320

4.82

79

0.4

22

320

321

3.76

79

0.5

32

321

322

4.75

74

0.4

40

322

323

4.05

61

1.3

121

323

324

4.84

18

1.7

214

B

324

325

3.95

29

3.1

397

325

326

4.35

143

9.7

647

E

326

327

4.89

73

6.8

734

327

328

3.75

22

3.3

316

328

329

4.65

20

3.3

361

329

330

4.52

21

2.8

403

330

331

5.05

16

1.9

226

331

332

4.29

12

1.9

234

332

333

3.56

12

1.8

194

333

334

4.09

21

2.5

254

334

335

3.73

11

2.2

169

335

336

3.31

12

1.9

229

336

337

4.55

18

2.5

224

337

338

4.2

59

1.8

171

338

339

4.17

28

1.9

127

339

340

3.63

27

1.6

203

340

341

3.04

64

1

76

341

342

4.19

67

0.7

50

342

343

4.04

24

1

67

343

344

4.26

27

1.5

126

344

345

4.18

25

1.4

126

345

346

3.42

113

1.6

509

Intercept

Width (m)

Gold (g/t)

Ag (g/t)

A

35

0.24

2.64

B

17

0.30

2.98

C

5

0.44

6.02

D

2

0.72

13.05

E

2

0.69

8.25