Metals X Limited is a diversified group exploring and developing minerals and metals in Australia. It is Australia's largest tin producer, a top 10 gold producer and holds a pipeline of assets from exploration to development including the world class

Wingellina Nickel Project.

CORPORATE DIRECTORY

ASX Code: MLX

OTCQX Code: MLXEF

Level 3, 18-32 Parliament Place

West Perth WA 6005

Australia

PO Box 1959

West Perth WA 6872

Australia

t: +61 8 9220 5700

f: +61 8 9220 5757

[email protected] www.metalsx.com.au

ROVER

QUARTERLY REPORT

FOR THE PERIOD ENDING 31 DECEMBER 2015

HIGHLIGHTS OF THE QUARTER

GOLD DIVISION

• Total gold produced of 48,134 ounces (including Cannon 50% profit share).

• Attributable gold production (excluding Cannon) of 41,660 ounces at Cash Cost of sales of $1,161 per ounce (compared to guidance of 43,000 ounces at Cash Cost of Sales of $1,200 per ounce).

• HBJ underground mine transitions to stoping translating to higher gold production and lower costs.

• Agreement reached to expand Cannon and to mine MLX's wholly owned and adjoining Georges Reward resource in conjunction. Mining commenced on the expanded pit and the first Cannon toll processing campaign was completed in November and yielded 6,474 ounces. MLX has a 50% share of surplus funds from the open pit results.

• CMGP plant successfully commissioned in mid-October 2015 and first quarter gold production (8 weeks milling) produces 8,934 ounces at cash cost of sales of

  $1,166 per ounce.

• New gold acquisition of Mt Henry Gold Project and Fortnum (Grosvenor) Gold Project have been settled and agreement reached to acquire the Comet Gold Mine and a 260-person accommodation village in Cue.

  
  

  TIN DIVISION

• Renison mine increases tin production by 14.8% (over previous quarter) to 1,889 tonnes of tin metal and Cash Cost of Sales decrease by 7.9% to $16,076 per tonne of tin metal.

• Process plant improvements continue to lower residues and improve throughput.

• Excellent drill results continue to positively expand and enhance the operations.

  
  

  OTHER BASE METALS

• Wingellina Nickel-Cobalt project completes Public Environmental Review process with no major issues and continues to advance to be development ready for a nickel market uptick.

• Re-assaying of previous nickel-cobaltr-iron intercepts suggest a very significant co-product of scandium exists in the ores.

  
  

  CORPORATE

• Cash, working capital and investments at the end of the quarter stood at $63.1 million.

• Shares on issue now total 458,181,038. Shares allotted during the quarter were 18 million for the settlement of Fortnum Gold Project.

• Metals X made an off-market takeover offer for all the shares in copper producer, Aditya Birla Ltd during the quarter with conditional acceptances currently standing at 25.5%.

FORTNUM CMGP

SKO HGO

CLAUDE HILLS MT DAVIES

WINGELLINA

ENQUIRIES

Peter Cook Warren Hallam

[email protected] [email protected]

RENISON RENTAILS

GOLD DIVISION

OVERVIEW

Total gold produced from the operations was 48,134 ounces (including Cannon).

Gold produced excluding Cannon was 41,660 at cash cost of sales of $1,161 per ounce. This compares with guidance provided of 43,000 ounces at cash cost of sales of $1200 per ounce.

EBITDA of $17.16 million was generated by the gold group. Capital re-investment across the whole gold division was $22.3 million reflecting the various phases in capital development across the different operations.

The December quarter was one of the most active for Metals X as we commenced commissioning of the Central Murchison Gold Project (CMGP) and transitioned it into gold production.

At the CMGP we established access into the Paddy's Flat underground mine and commenced pre-strips for future open pit production from the new Jack Ryan and Bluebird open pits. At the same time we remained in an intensive capital development phase at the HBJ underground mine, although this was somewhat mitigated by the onset of ore stoping and expanded mine development. This quarter marked the transition of HBJ underground from mine development to mine production, resulting in increases in productivity, a reduction in costs, improved profitability and cash flow from the South Kalgoorlie Operations.

Three additional major events occurred at the CMGP during the quarter. The Comet Mine at Cue was agreed to be acquired from Silver Lake Resources Limited (Silver Lake) (Mineral Resource estimate 3.8 million tonnes @ 2.9 g/t containing 353,000 ounces). Agreement was reached to acquire the 260 person (near new) accommodation village in Cue, and thirdly a revised Mineral Resource estimate for the planned Big Bell underground using a more selective approach was completed with excellent outcomes.

Mining continued at the Cannon mine and the first parcel of ore from Cannon Stage 1 was processed yielding 6,474 ounces of gold and showing excellent reconciliations. Metals X has a mine management and profit share arrangement over the Cannon mine whereby it has rights to all gold and gold sales to repay costs and a right to 50% of all surplus profits. Although the final surplus profit of the Cannon mine will not ultimately be determined until the end of the pit in late 2016. For guidance, the Cannon mine (refer to Southern Gold Limited (Southern Gold) announcement of 9/12/2015 ASX:SAU) is expected to produce 50,000 ounces at AISC of $1014 per ounce. Significantly, agreement with Southern Gold to mine the Georges Reward deposit (an immediate over the lease boundary extension of the Cannon ore body) in conjunction with Cannon was reached. Georges Reward (100% Metals X) ore will form part of the blended processing options for the South Kalgoorlie Operations.

At the Higginsville Gold Operations (HGO), lower outputs and higher costs continued as the Trident mine remained in a lower grade zone near the limits of the Artemis and Helios lodes. Both mining metrics and geotechnical constraints impacted mine costs during the quarter. The Trident mine is under review by the Company as to whether it can continue as a long term and sustainable source of blended feedstock and a decision is expected to be made in the ensuing half. Suffice to say that significant progress was made on the current open pits and on bringing the Mt Henry open pits into the blended mill feed-stocks. Even without Trident, HGO has a long future with outputs around 100,000 ounces per annum from the large open pit feedstock available in the region.

Having settled the acquisition of Fortnum (Grosvenor) Gold Project in the quarter, the datasets were reviewed and development plans for a project re-start advanced with engineering, permitting and planning works taking a priority. In the ensuing quarter drilling of known low grade stockpiles will commence as will the completion of initial mine development plans. Metals X expects to outline its feasibility and development strategy by the end of the June quarter.

Metals X continued to operate and sell its gold above average prices by virtue of its gold hedge sales program and the delivery of most of its gold into the program. This enabled total gold sales to achieve a sales price of $1,575 per ounce on average for the quarter.

Overall guidance for the gold division for Calendar 2016 is for production of 300,000 ounces at an average cash cost of sales of $1,115 per ounce. This excludes potential production from Fortnum as a final development decision is yet to be made. Guidance of March 2016 Quarter is 58,000 ounces at a Cash Cost of Sales of $1,300 per ounce.

SOUTH KALGOORLIE OPERATIONS (SKO) (MLX 100%)

It was a solid quarter for the South Kalgoorlie Operations with the rewards from a period of heavy capital investment starting to flow through. Whilst still advancing, the momentum has shifted from capital invest toward operating as stoping commenced on the HBJ Underground Central Ore Zone (COZ) enhancing productivity and grade.

Overall gold production (including Cannon) for SKO increased by 62% over the previous quarter to 17,361 ounces. Leaving Cannon aside due to the complications of the integration of its fiscal performance on overall costs the wholly owned operations of SKO (being the HBJ underground mine, the Georges Reward pit and existing low grade stocks) performed strongly with Cash Costs of Sales falling by 39% to $871 per ounce and quarterly EBITDA increasing seven-fold to $7.36 million. Total Costs of Sales coincidentally fell by 35% to $1048 per ounce.

Overall guidance for the SKO for calendar 2016 is 65,000 ounces at a cash cost of sales of $1,000 per ounce. Key physical outputs for the quarter are summarised:

* For Cannon, MLX entitled to all gold to repay costs and 50% share of surplus.

The key fiscal outcomes for the quarter for SKO are summarised below:

Total capital reinvestment into SKO for the quarter is summarised:

CANNON - MINE MANAGEMENT & PROFIT SHARE

Under the Cannon agreement, Metals X, through it's wholly owned subsidiary HBJ Minerals Pty Ltd (HBJ) has the rights to mine, cart and process ores from the Cannon mine. All revenue from Cannon goes first to repay costs and HBJ has the right to a 50% share of all surplus profits. Metals X is banker to the project on a cost recovery basis and has extended addition loan funds on a secured basis to Cannon's owner, Southern Gold which are earning 8% p.a. interest.

A stage 1 open pit mine commenced at Cannon (Bulong District) in the September quarter. Metals X purchased the Georges Reward prospect in July 2015 for $4.5 million (plus stamp duty) and opened the door for a larger open pit to be mined over the one ore system without lease boundary complications. Subsequently a larger open pit (Stage 2) for the Cannon Agreement was enabled with the one larger open pit exploiting ore on both mining leases. The existing agreement for Cannon was extended, although all ore from Georges Reward will be 100% owned by and at the sole risk of Metals X.

The Stage 2 Cannon Pit commenced during the quarter with 1.16 million cubic metres of waste and 130,462 tonnes at

2.66 g/t being mined. The first parcel of ore was processed in November 2015 with some 86,333 tonnes of ore at head grade of 2.57 g/t were treated. Metallurgical recovery was 91% resulting in 6,474.2 ounces of gold being recovered and

$9.71 million of revenue received.

Mine to processing reconciliations have been very close and actual mined to ore reserve estimate reconciliations have been positive. The open pit will continue to be mined for the ensuing year. Estimates by Southern Gold (refer to their ASX announcement of 9/12/2015) are that 50,000 ounces will be recovered and all-in-sustaining costs are estimated to be

$1,014 per ounce.

Metals X believes that the Cannon- Georges Reward ore system has excellent metrics for underground mining and this will be the subject of investigation as the open pit progresses.

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QUARTERLY REPORT

FOR THE PERIOD ENDING 31 DECEMBER 2015