MTR.L Regulatory News (MTR)

METAL TIGER PLC

12 February 2016



Metal Tiger plc

("Metal Tiger" or the "Company")

Gold Production Opportunity Update

Metal Tiger (LON:MTR), the natural resources investing company is pleased to announce an update with regard to the option over Semenovsky Tailings Project ("STP") which is being undertaken by Eurasia Mining plc (LON:EUA)("Eurasia").

We would refer readers to our announcement dated 16 November 2015 which provided details of the original option agreement and then project fundamentals.

Highlights:

- Option agreement expiry date extended to 15 March 2016 to allow additional time for review of recently received project data and for liaison with a third party who have expressed an interest in project participation via Metal Tiger;

- Metal Tiger to pay a further $25,000 to Eurasia Mining for option extension bringing total payments to date to $50,000 to be offset against maximum commitment of $100,000 for initial due diligence work by the partners should Metal Tiger proceed by 15 March 2016;

- Latest project data demonstrates significantly improved project financials including a 64% increase in Net Present Value to $23m reflecting improved project economics and a favourable Rouble/US Dollar exchange rate;

- Further work is continuing actively to collate, review and assess detailed project data.

Paul Johnson Chief Executive Officer of Metal Tiger said "We are pleased to secure the option period extension which provides the additional time to review the new information received on the project and to liaise with third parties as appropriate.

The project fundamentals are looking increasingly robust and we are extremely pleased to see this strengthening which has occurred in part from the work undertaken during the due diligence phase. 

We look forward to finalising our work and reporting back to market in due course."

Background to Semenovsky Tailings Project

On 16 November 2015 the Company secured an option to participate in a gold tailings production opportunity alongside Eurasia Mining. This option was secured under the new project collaboration agreement signed by Eurasia and Metal Tiger as announced to market on 29 December 2014.

Metal Tiger agreed to pay $25,000 immediately in November to secure an option with Eurasia that afforded Metal Tiger the opportunity to elect to participate in the Semenovsky Tailings Project ("STP") on equal terms with Eurasia. The option period expired on 12 February 2016 but with a further payment of $25,000 has now been extended until 15 March 2016.

If Metal Tiger exercises its option, it will fund up to $100,000 of exclusivity work programme costs i.e. an additional $50,000 plus the $50,000 option payments already made. The forecast exploration costs of the exclusivity period are $72,000, with the additional $28,000 being a contingency for unforeseen expenses.

Should Metal Tiger exercise its option, and both companies confirm they wish to pursue the STP opportunity by the end of the exclusivity period, the project financial and operational risks and rewards will be shared equally between Eurasia and Metal Tiger. It is anticipated that this will be in the form of a specially formed Joint Venture held through a UK private limited company.

Readers are advised to review the market announcement issued by Eurasia Mining today which provides full details with regard to this opportunity. This announcement can be viewed on the Eurasia website www.eurasiamining.co.uk.

Highlights of the STP:

In November 2015 Eurasia Mining signed a Heads of Terms ("HOT") agreement whereby Eurasia has the right to participate in a gold tailings opportunity. The principal highlights in respect of this opportunity are summarised as follows (Extracted from EUA market announcement - 12.2.16 and reflecting the February 2016 data and the original November 2015 data in brackets):

· HOT agreement signed in respect of the STP, a near term gold production opportunity in Russia;

· HOT provides for a six month period (From November 2015 onwards) of exclusivity enabling technical study completion, sampling, metallurgical testing and general due diligence;

· Latest internal work undertaken by Eurasia indicates potential total gross revenue of approximately $86m (Nov15: was $57m) over a 10 year mine life (Nov 15: 8.5 year life), with net project total cash inflow of approximately $51m (Nov 15: $29m) or $5.1m per annum (Nov 15: $3.5m per annum);

· The same work by Eurasia has provisionally estimated that project net present value is c$23m (Nov 15: c.$14m) at a 10% discount rate, project IRR of 82% (Nov 15: 65%) and project payback within 1 year of production start-up, against a total estimated plant construction cost of approximately $5.2m (Nov 15: $5m).

The figures given above are given for guidance only and are subject to updating, correction and verification. The figures will be reviewed and updated when Eurasia has undertaken more detailed work on the site.

For further information on the Company, visit: www.metaltigerplc.com:

Notes to Editors:

Metal Tiger plc is a natural resources focused investing company quoted on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and two investment divisions, Direct Projects and Direct Equities.

The Direct Projects division invests in mineral exploration projects operated by trusted partners on the ground. Projects are selected for their strategic significance in terms of commodity, location and commerciality factors. Key strategic investments to date include Spanish Gold & Tungsten, Thai Gold, Copper & Antimony, and Botswanan Copper & Silver.

The Direct Equities division invests in quoted natural resource explorers and developers, with a combination of shares and warrants and seeks generate trading profits for reinvestment into the Direct Projects division.

Metal Tiger's target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide where possible, with a cyclical recovery in the exploration and mining markets.