Metminco Regulatory News (MNC)

ASX ANNOUNCEMENT

03 February 2014

Activities for the quarter ending 31 December 2013 largely focused on advancing the Mollacas Copper Leach Project, and preparatory work for the planned Pre-Feasibility Study at Los Calatos.

Mollacas Project - Chile

Results from the column leach testwork recently completed by SGS (Chile), and supervised by an independent expert, concluded the following:

· A recovery rate of approximately 85% of the average "sequential" assayed copper grade for the deposit should be attained;

· The recovery rate for the supergene ore could be as high as 90%;

· Low acid consumption in the range of 12 kg/t to 14 kg/t of ore leached was achieved, a significant reduction on the previous testwork. Additional testwork is planned to ascertain whether this acid consumption rate can be reduced further by limiting the acid dosage in agglomeration.

These results will have a significant, positive, impact on the economics of the project.

The results from this testwork will form the basis for the detailed mine and processing design which is required to complete a Feasibility Study and the Environmental Impact Study (EIS), both of which are expected to be completed during the 4th quarter of 2014.

The Company expects a final determination on the issue of its 1st Extension "Servidumbre" (Right to Access) for the Mollacas Project during the 1st quarter of 2014.

Los Calatos Project - Peru

On 12 August 2013, the Company announced the results of further optimisation work undertaken by RungePincockMinarco at its 100% owned Los Calatos Project, the key results of which are summarised as follows:

· Life of Mine of 34-years;

· Comprises an open pit and underground block cave operation;

· Total tonnes treated over Life of Mine of 811Mt at 0.47% copper and 0.03% molybdenum;

· Annual copper in concentrate production of 98.4kt; and,

· Cash operating costs of US$1.12/lb Cu inclusive of by-product credits.

Discussions with a number of interested parties on the future funding of Los Calatos are advancing, certain of which are to be held in Peru during February 2014.

Corporate

· Cash position as at 31 December 2013 was approximately A$7.8 million (US$6.9 million);

Mr William Howe, Managing Director commented: "The December quarter saw the successful completion of the metallurgical testwork at Mollacas, a major milestone in progressing the project towards production. The results from the column leach testwork have confirmed 85% copper recoveries with low acid consumption rates, which significantly enhance the economics of the project. Additional metallurgical testwork is to commence shortly to determine the potential to further reduce these low acid consumption rates.

The Company is well advanced with the planning for the completion of a Feasibility Study and Environmental Impact Study, which is required for mining approval at Mollacas, and expects to complete these studies by late 2014."