Metminco Regulatory News (MNC)

Level 6

122 Walker St

North Sydney

NSW 2060

Australia

T +61 (0)2 9460 1856

F +61 (0)2 9460 1857

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL

AIM ANNOUNCEMENT

A$30.4 million Capital Raising

28 April 2011

The Board of Metminco is pleased to announce that the Company has raised A$ 30.4m (£19.8m) ( the "Placement") as follows:

·; A$7.6m (£5.0m) by issue of 20 million new fully paid shares in the Company (Shares) at an issue price of A$ 0.38 (£0.247) per Share (the "Initial Placing"); and,

·; A$22.8m (£14.8m) by issue of 60 million Shares at A$0.38 (£0.247) per Share, subject to shareholder approval at the Company's Annual General Meeting to be held 30 May 2011 (the "Conditional Placing").

BGF Equities has acted as the lead manager and fully underwritten the Placement, Investec Bank plc has acted as Nomad, joint broker and placing agent in the United Kingdom and Asset Chile as placing agent in Chile.

The Placement, which is primarily to institutional investors in Australia, Asia, Chile and the United Kingdom further broadens Metminco's shareholder base and introduces a number of new "cornerstone" investors to the Company.

·; the Placement Shares being issued will represent approximately 5.5 per cent of the issued capital of the Company (after the Placement and the MN and Barrick Transactions);

·; The Issue Price represents a discount of approximately 3.8 per cent to the closing middle market price per Share on 20 April 2011 on the ASX;

·; Admission of the Initial Placing shares to trading on AIM and ASX is expected to take place on or about 6 May 2011. Admission of the Conditional Placing shares to trading on AIM and ASX is expected to take place on or about 3 June 2011;

In separate announcements issued today Metminco has also announced that:

·; the Company has signed an agreement with Barrick Gold Corporation (Barrick) whereby Barrick has surrendered its "buy back right" in connection with Metminco's Los Calatos copper-molybdenum project in Southern Peru (Barrick Transaction) for a consideration of approximately A$29.6m (£19.3m) satisfied by the issue to Barrick of 75 million Shares; and

·; the Company has completed the purchase of 50% of SCM Ovalle from MN Ingenieros Limitada (MN) resulting in Metminco now owning 100% of the Mollacas copper leach project, the Vallecillo Au-Zn project and the Loica Cu-Mo deposit for consideration of US$35 (approximately A$32.7m or £21.3m) satisfied by US$10m paid in cash and the balance through the issue to MN of approximately 70.3 million Shares (MN Transaction).

The Directors believe the Barrick and MN Transactions are both net asset value accretive and significantly strengthen the Company's asset base and enhance long term value for shareholders. Together with the Placement, the Barrick and MN Transactions pave the way for the Company to complete the feasibility study on the Mollacas copper leach project, including further drilling and metallurgical testwork; undertake detailed deep looking geophysical surveys on the Vallecillo, Loica and Camaron projects to assist in defining drill targets and a new drilling program covering the Cu-Au porphyry target recently discovered at Vallecillo; and, enable Metminco to accelerate the drilling campaign currently underway at the Los Calatos Project.

Accordingly the Directors intend to recommend unanimously that Shareholders vote in favour of the resolution that will be proposed at the Annual General Meeting to enable the Conditional Placing to proceed.

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 100% 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).

* Cut off grade of 0.2% Cu. Copper equivalence (CuEq), in-situ, assumes a ratio of Mo/Cu prices of 5.

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

Broker

Warwick Grigor (BGF Equities) Ph: + 61(0) 2 9263 2700

Marcus Freeman (BGF Equities) Ph: + 61 (0) 3 8688 9100

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

United Kingdom:

Tim Read - Director Ph: +44 (0) 777072 1809

Nomad and Broker - Investec Bank plc Ph: +44 (0) 207 597 5000

Stephen Cooper

Patrick Robb

Tim Thompson (Buchanan Communications) Ph: +44 (0) 20 7466 5000

James Strong

Katharine Sutton

This announcement does not constitute or form part of any offer or instruction to purchase, subscribe for or sell any shares or other securities in Metminco nor shall it nor any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract therefor. This announcement provides information about the Placing, but does not invite participation in the Placing. This announcement does not constitute, and Metminco is not making, an offer to the public of transferable securities within the meaning of sections 85 and 102B of FSMA nor does it constitute an admission document drawn up in accordance with the AIM Rules for Companies. This announcement is therefore not an approved prospectus for the purposes of section 85 of FSMA, and has not been prepared in accordance with the prospectus rules of the FSA and as such neither its contents nor its issue have been approved by the FSA or by any authority which would be a competent authority for the purposes of any legislation that implements the EU Prospectus Directive.

The Placing Shares have not been, and will not be, registered under the United States Securities Act 1933 (as amended) or under the applicable securities laws of Canada, Japan or South Africa. Accordingly the Placing Shares may not be, directly or indirectly, offered, sold, taken up, delivered or transferred in or into the United States, Canada, Japan or South Africa. The distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore persons who receive this announcement should inform themselves about and observe the laws governing those jurisdictions. Any failure to comply with any restrictions may constitute a breach of securities laws of any such jurisdictions.

Investec Bank plc, which is authorised and regulated in the United Kingdom by the FSA, is acting as nominated adviser, broker to Metminco in relation to the Placing and Admission and is not acting for any other persons in relation to the Placing and Admission. Investec Bank plc is acting exclusively for Metminco and for no one else in relation to the matters described in this announcement and is not advising any other person and accordingly will not be responsible to anyone other than Metminco for providing the protections afforded to clients of Investec Bank plc, or for providing advice in relation to the contents of this announcement or any matter referred to in it. The responsibilities of Investec Bank plc as Metminco's nominated adviser and broker under the AIM Rules for Companies and the AIM Rules for Nominated Advisers are owed solely to the London Stock Exchange and are not owed to Metminco or to any Director, Shareholder or any other person, in respect of any decision to acquire or dispose of shares in the capital of Metminco in reliance on any part of this announcement, or otherwise.

No liability is accepted by Investec Bank plc nor does it make any representation or warranty, express or implied, in relation to, the contents of this announcement, including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on its behalf, in connection with the Metminco and the Placing and accordingly Investec Bank plc disclaims all and any responsibility or liability whether arising in tort, contract or otherwise which it might otherwise have in respect of this announcement or any such statement. Investec Bank plc has not authorised the contents, or any part, of this announcement. Investec Bank plc may, in accordance with applicable legal and regulatory provisions, engage in transactions in relation to the Ordinary Shares (including the Placing Shares) and/or related instruments for its own account for the purposes of hedging its underwriting exposure or otherwise. Except as required by applicable law or regulation, Investec Bank plc does not propose to make any public disclosure in relation to any such transactions.