Metminco Regulatory News (MNC)

Metminco Limited (LSE: MNC)

("the Company")

27 January 2011

qUARTERLY ACTIVITIES REPORT - 31 DECEMBER 2010.

HIGHLIGHTS

·; Metminco completes the acquisition of Hampton Mining Limited to gain 100% of Los Calatos copper/molybdenum project in Peru

·; A 50,000 metre diamond drilling starts at Los Calatos

·; $A30 million capital raising to fund accelerated exploration completed

·; Early repayment of $US3.5 million convertible notes completed

OPERATIONS

Los Calatos project, Peru

Metminco started a 50,000 metre diamond drilling program at its Los Calatos copper-molybdenum project in southern Peru on 14 December, 2010.

The new drilling program is designed primarily to extend the Los Calatos resource which currently stands at approximately 4.7 million tonnes of copper equivalent (CuEq) metal*, or over 10 billion lbs of CuEq.

The Los Calatos project has JORC compliant resources of 926 million tonnes, consisting of 111 million tonnes at 0.39% Cu and 380ppm Mo of Indicated Resources and Inferred Resources of 815 million tonnes at 0.37% Cu and 260ppm Mo (at a 0.2% copper cut-off grade).

The drilling program will also test a number of new targets identified by surface geochemical sampling.

By the end of the quarter a total of 592 metres had been completed in two (2) drill holes. The drilling will test the upper part of the Los Calatos mineralisation and the northern contact of the mineralised envelope outlined in previous drilling.

Drill hole CD24 advanced to 191 metres by the end of the quarter with copper/ molybdenum mineralisation encountered from 19 metres. The hole remained in mineralisation to 191 metres. The drill hole is planned to proceed to a depth of 900 metres.

CD 25, had reached 401m by the end of the quarter. Copper mineralisation was visible from 62m and high-grade molybdenum at 300m. This drill hole has a planned depth of 750 metres.

Vallecillo, Chile

Metminco's 50% owned Vallecillo gold project is located in central Chile (Region iv), approximately 150km from the port of Coquimbo at an altitude of approximately 2,100 metres. Previous small scale mining on high-grade gold/zinc veins is associated with high-grade breccia systems that host the gold/zinc mineralisation identified by Metminco.

Detailed mapping and grid geochemical sampling continued at Vallecillo where several zones of anomalous copper, gold, and zinc worthy of drilling have been defined. These zones are extensions of and peripheral to the JORC defined gold and zinc breccia, previously reported.

Metminco has increased its licence area in the Vallecillo area following up on regional geological studies.

Loica, Isidro and Camaron projects, Chile

No work was undertaken on these projects during the quarter.

New Project areas

The identification of new areas in the north of Chile has commenced with applications placed for Caldera (42 sq km) and Belen (93 sq km) in the Arica area, and Jaspe (14 sq km) in the Antofagasta area.

These licence applications all target strongly altered systems in favourable geological environments and within the well documented porphyry belts of northern Chile which host some of the world´s largest copper mines.

The Caldera project, one of three areas under application, is targeting a strongly altered sequence of porphyry rocks within the caldera of an extinct volcano.

CORPORATE

$30 million Capital Raising

Metminco completed a A$30million capital raising by issuing 150 million Metminco fully paid ordinary shares on 30 November, 2010. The placement, which was approved by shareholders at the Annual General Meeting on 24 November, 2010, was primarily to institutional investors, significantly broadening Metminco's shareholder base and introducing a number of strong "cornerstone" institutional investors to the company.

The capital will be used to fund ongoing exploration of Hampton's South American assets and specifically to fund a 50,000 metre drill program at Los Calatos which commenced mid December 2010. Funds raised in the placement will also be used to advance the Mollacas and Vallecillo projects and for working capital.

Lead manager for the capital raising was BGF Equities.

Acquisition of 100% of Hampton Mining Limited

On the 3 December Metminco completed the purchase of 60,970,425 fully paid ordinary Hampton shares (27.3% of Hampton) resulting in Hampton becoming a wholly owned subsidiary of Metminco.

Effective 3 December 2010, Mr Rodney Hudspeth and Mr Terry Wilsteed, appointees to the Board of Hampton in accordance with a share subscription agreement between Hampton and Takoradi dated April 2006, resigned from the Hampton Board. Mr Hudspeth's application to the Federal Court to seek leave as a director of Hampton in accordance with S237 of the Corporations Act to pursue legal action on behalf of Hampton has been subsequently dismissed by the Federal Court.

Managing Director Appointed

On 8 December William Howe was appointed as managing director of Metminco. Mr Howe is based in Santiago, Chile, overseeing Metminco´s operations in South America from Metminco´s operation head quarters in Santiago, Chile. Mr Howe, Hampton´s founder, has driven the development of Metminco's portfolio of copper and gold projects in Chile and Peru.

Investec Bank plc appointed as Broker and Nomad to the AIM market

On 8 December 2010, the Company appointed Investec Bank plc as its Nominated Advisor and Broker to the AIM market. Metminco will maintain its strong association with Daniel Stewart (Nomad to the AIM secondary listing) who will continue to act as joint broker to the Company in the AIM market.

Early repayment of $US3.5 million convertible notes

On 24 December 2010, Metminco completed early repayment of convertible notes totalling $US 3.5 million by issue of 30,114,160 Metminco shares in satisfaction of principal and accrued interest to date of repayment. The company also paid $US 560,000 in early repayment fees. As previously announced on 1 April 2010, these notes were entered into by Metminco as part of the $A20 million capital raising and admission to the AIM Market of the London Stock Exchange. The majority of funds from this capital raising were applied to acquire Junior Investment Company 's 31% stake in Hampton and with it a controlling interest in Hampton.

Issue of Options to Directors and Employees

Following shareholder approval at the Annual General Meeting on 24 November 2010, the following options were issued to directors:

John Fillmore:

·; 3,000,000 options exercisable at A$0.44 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

·; 3,000,000 options exercisable at A$0.525 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

Timothy Read:

·; 3,000,000 options exercisable at A$0.44 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

·; 3,000,000 options exercisable at A$0.525 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

Following shareholder approval at the Annual General Meeting the Company issued the following options under the Employee Share Option Plan:

·; 8,250,000 options exercisable at A$0.44 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

·; 8,250,000 options exercisable at A$0.525 per share no later than 6 December 2013 in accordance with the rules of the Company's Employee Option Plan.

Change of Financial Year:

Pursuant to subsections 323D(3) of the Corporation Act 2001 (Cth), Metminco is required to ensure the financial years of its consolidated entities are synchronised with its own financial year. Metminco announced that effective 31 December 2010, the Company will change its financial year from 30 June to 31 December in order to synchronise with the Hampton group of companies.

William Howe

Managing Director

About Metminco:

Metminco is a dual ASX and AIM listed company with a portfolio of copper and gold projects in Peru and Chile. The Los Calatos project located in southern Peru has JORC compliant resources of 926 million tonnes, consisting of Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo and Inferred Resources of 815 million tonnes at 0.37% Cu and 260ppm Mo(at a 0.2% copper cut-off grade).

The Chilean assets include a 50% interest in the Mollacas copper leach project with JORC compliant resources of 17 million tonnes consisting of Indicated Resources of 7.2 million tonnes at 0.56% copper and Inferred Resources of 9.8 million tonnes @ 0.52% copper (at a 0.2% copper cut-off grade); and a 50% interest in the Vallecillo gold zinc project with JORC compliant resources of 10.1 million tonnes consisting of Indicated Resources of 7.9 million tonnes @ 1.14g/tAu; 11.4g/tAg; 1.32% Zn; 0.29% Pb and Inferred Resources of 2.2 million tonnes @ 0.78g/t Au; 8.2g/t Ag; 0.58% Zn; 0.26% Pb (at a cut-off grade of 0.3g/t Au).

For further information please contact :

South America:

William Howe - Managing Director Ph: +56 (2) 411 2600

Australia:

William Etheridge - Executive Director Ph: + 61(0) 419 400 919

Phillip Wing - Executive Director Ph: + 61(0) 412 254 704

Philip Killen - Company Secretary & CFO Ph: + 61(0) 408 609 916

Ian Howarth (Collins St Media) Ph: + 61(0) 407 822 319

United Kingdom:

Tim Read - non-Executive Director +44 (0) 7770721809

Stephen Cooper (Investec Bank plc) +44 (0)20 7597 5104

Tim Thompson / James Strong / Katharine Sutton +44 (0) 20 7466 5000

(Buchanan Communications)