ASX RELEASE

17 April 2015

DIRECT SHIPPING BAUXITE QUALITY CONFIRMED

HIGH AVAILABLE ALUMINA RESULTS FOR "AREA A" DEPOSIT

Highlights:

 Attractive average grades of 40% available alumina (Avl Al2O3) and

4.9% reactive silica (RxSi) from low temperature (150°C) digestion

testwork on high grade Direct Shipping bauxite from Area A, part of

Metallica's Urquhart Point Heavy Mineral Sands and Bauxite JV

project, 3kms south of Weipa on Queensland's Cape York

 Both results meet key market criteria for export bauxite markets

 Today's results follow additional analysis of all mineralised holes within Area A's high grade Direct Shipping Bauxite (DS Bauxite) which can potentially be mined and exported - (see Table 1).

 Area A is close to Metallica JV's current construction of a new zircon-rutile HMS mine and plant operation due for commissioning later this year

Summary

Brisbane-based Metallica Minerals Ltd (ASX: "MLM") is pleased to announce high available alumina recovery results from further analysis of Direct Shipping Bauxite (DS Bauxite) at the Company's Urquhart Point Bauxite Project (refer to ASX Release dated 26 February 2015) near Weipa on Queensland's Cape York Peninsula.

The results - which also returned moderate reactive silica (RxSi) levels (high silica is deleterious) - are from the Area A bauxite deposit located southeast of where the Company is currently constructing its zircon-rutile heavy mineral sand (HMS) minerals processing plant at Urquhart Point, to be commissioned later this year.

Metallica believes the average grade of 40% available alumina (Avl Al2O3) with

4.9% reactive silica (RxSi) at Area A, are well within the market criteria

favoured by importers of quality bauxite.

Metallica Managing Director, Mr Andrew Gillies:

"The ratio between available alumina and reactive silica influences eventual price premiums, and supply and volume opportunities. These latest results, and February's work shows that Area A has a high grade bauxite footprint and provides a confident foundation on which to continue evaluations of the project. This will now include resource estimation, the commencement of permitting and potential mining plan design. The Area A resource estimation and scoping study are both planned for completion by June. In addition to DS

bauxite there is expected to be significant lower grade bauxite tonnages which

could be potentially upgraded to achieve export quality bauxite by the additional of beneficiation (primarily screening) to selectively reduce (by removing) the fines fraction (

Metallica also noted today that the advancing Area A bauxite project was evolving within changing market conditions where most, if not nearly all, of the Chinese stockpiles of Indonesian bauxite had now been or will be exhausted over coming months.

Indonesia has traditionally supplied around three quarters of China's imported bauxite requirements until electing early last year to ban such exports in favour of in- country value-adding of its key mineral commodities. Demand in China for third-party bauxite has been forecast to (by independent analysis) increase by 50% by 2019 (estimated at approximately 50Mt) and this will represent strong opportunities for bauxite producers.

Mr Gillies says these market changes are creating the strong global demand and outlook fundamentals for bauxite.

Area A background

The latest analyses were undertaken at ALS Laboratory in Brisbane and followed an assessment in February this year of assay results from 23 drill holes drilled in November 2014 which delineated a significant and well defined area of potential DS Bauxite at Area A, which is located adjacent to Rio Tinto Australia's mining lease covering an extensive bauxite plateau (Refer Figure 1).

The Area A DS Bauxite mineralisation is generally defined by 15 of the drill holes and is contained within a 3.4km by 0.6km zone (Refer Figure 1), providing an area of pisolitic bauxite of more than 2km² with an average thickness of 2 m.

The new available alumina and reactive silica results are summarised in Table 1 with the drill hole locations shown in Figure 2 along with the respective DS Bauxite drill intercepts. For detailed information on the analyses please refer to Appendix 1.

Area A and a second nearby bauxite deposit, Area B, are located south of the Urquhart Point HMS mining project currently under development and which is due to commence first production of zircon-rutile heavy mineral concentrate later this year.

Urquhart Point is currently held 60% by Oresome Australia Pty. Ltd (a wholly owned subsidiary of Metallica), and 40% by Joint Venture partner, Ozore Resources Pty. Ltd (Ozore has the right to move to 50%). The Joint Venture also holds a further

2,500km² of exploration tenements highly prospective for bauxite and HMS deposits in the Western Cape York region.

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The Urquhart Point bauxite project is the first of many identified bauxite target areas within the Joint Venture's extensive Western Cape tenement holdings, which extends over an area of approximately 180 km from near Weipa north to the Vrilya Point area and which is targeted for future grid drilling.

For more information, please contact:-

Andrew Gillies, Managing Director or John Haley, CFO/Company Secretary

Phone: +61 07 3249 3000 Phone: +61 07 3249 3000

Email: [email protected]

Competent Person's Statement

The Technical information contained in this report has been compiled and/or supervised by Mr Andrew Gillies B.Sci (Geology) M.AusIMM (Managing Director of Metallica Minerals Ltd) and who is a Competent Person and a Member of the Australasian Institute of Mining and Metallurgy (M.AusIMM).
Mr Gillies has relevant experience in the mineralisation, exploration results, being reported on to
qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Gillies consents to the inclusion of this information in the form and context in which it appears in this release.
The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by John Cameron (a geologist of over 25 years experience), and a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a contract consultant to Metallica Minerals Ltd. Mr Cameron has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cameron consents to the inclusion of this information in the form and context in which it appears in this release/report.

Caution regarding Forward Looking Statements

Certain statements made in this announcement contain or comprise certain forward-looking statements. Although Metallica believes that the estimates and expectations reflected in such forward- looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in commodity prices and exchange rates and business and operational risk management. Metallica undertakes no obligation to update publically or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events.

See attached respective Table 1JORC Code, 2012 Edition Section 1 (Sampling Techniques and
Data) and Section 2 (Reporting of Exploration Results) for the Urquhart Point Bauxite Project.

3

METALLICA MINERALS LIMITED

N

LEG END A

• Completed Arioore drilllng (Nov.2014)

"' Completed hand auger drillmg (2014)

lnterpreted DS baux•te

Jl Tracl

MINERAUSATION

• 3m @ 53.8 / 12.8

lnterval (m) @Alp %/ SiO?

2

8,596,000m N

3m@ 43.1 / 4.3

lnterval (m) @ Avi.AifRxSi

NMR No Matenal DSB Result

1.!:::::::========:========#

/ 'l

(

EPM 15268

? /

/ l •18

• 17

NMR ' AREAA

8,595.000mN

Yl

l •19

3m @ 53.8 / 12.8

43.1/4.3

•8

2m

RTA Mlnlng Lease

ML 7024

l I

-.'

-0 ?

m @ 52.4 / 15.7 .....,

43.0/3.9

•20

1m @ 50.6 / 15.1

43.4/3.7

•6

3m

çl} j l

• 21

4 1.3s/4.9

2.5m @ 52.6 / 14.1

• 22

1m @ 58 1"1"2.2

1. 5

87594,000 N -4U.6 1·

Bauxite

e 23

NMR

•.,«> NMR

Plateau

8,593,000mN

•1

NMR

Urquart Point Bauxite Project

"Area A" Drilling

Direct Shipping (DS) Bauxite

Mineralisatiorn

o SOOm

4

Table 1: EPM15268 Urquhart Point - Area A Material DS Bauxite4 Exploration Drillhole Results

2 3 2 2 3

2 3 2

Note: 1 Al2O3/SiO2/Fe2O3/Avl.Al2O3/RxSiO2 averages are weighted

2 Avl. Al O % - Available Alumina at 1500C

2 3

3 RxSiO

- Reactive silica at 1500C

4 Direct Shipping bauxite threshold used ≥45% total Al O and ≤15% total SiO

2 3 2

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the

Public Report.

 In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Reverse Circulation aircore drill hole samples representing 0.25m intervals were collected in plastic bags through a cyclone mounted on the drill rig. The entire sample was collected to ensure full representivity of the drilled material. All samples were geologically logged at the time of drilling to determine 1) the type of bauxite material, 2) which samples to composite over 0.5m intervals, 3) which samples to retain for analysis and 4). when to stop the hole.

Samples were collected as individual 0.25m samples or composited over successive 0.5m intervals where the logged material was geologically similar.

Samples that contained pisolites in significant volume were logged as bauxitic and submitted for analysis. These samples were placed in polywoven sacks for dispatch to the laboratory.

A small representative sub-sample (approx. 50g) was collected for each

0.25m interval and stored in a plastic sample tray for future reference.

Drilling techniques
Drill sample recovery

 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential

loss/gain of fine/coarse material.

Drilling was carried out by Wallis Drilling Pty Ltd using a Wallis Mantis 80

Aircore drill rig mounted on a 6x6 Toyota. Shallow (up to 10m) vertical aircore holes were drilled using NQ rods and an NQ aircore drill bit with an outside diameter of 93mm.

Reverse Circulation aircore drilling was used due to its proven reliability in producing good representative sample recoveries across accurate sample intervals.

To ensure representivity of the material being drilled the entire sample was collected for each 0.25m interval of the drill hole.

Logging  Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate

All drilled intervals were logged by a competent geologist at 0.25m intervals. The logging was undertaken in a qualitative manner and

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Criteria JORC Code explanation Commentary

Mineral Resource estimation, mining studies and metallurgical studies.

 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 The total length and percentage of the relevant intersections logged.

focussed on documenting the amount and nature of the overburden, the pisolitic intervals and the floor to mineralisation. The bauxitic horizons were defined by the presence of pisolites and the absence of ferricrete, ironstone and/or clays.

Logging included visual estimates of pisolitic bauxite concentration and pisolite size and nature.

Sub-sampling techniques and sample preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Quality control procedures adopted for all sub-sampling stages to maximize representivity of samples.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field

duplicate/second-half sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

No sub-sampling of material was undertaken at the time of collection. The entire sample was collected over each 0.25m interval directly from the cyclone on the drill rig. Sample weights were on average between 2 and 3 kg for each 0.25m sample and 4 to 6kg for the composited 0.5m samples.

The samples were dispatched to the sample preparation facility at the

ALS laboratory located in Virginia, Brisbane.

For each drill hole, bauxite intervals were selected for Direct Shipping bauxite analysis using a threshold of ≥45% total Al2O3 and ≤15% total SiO2, based on earlier analyses of beneficiated (+1.2mm) samples, and prepared for assay using the following method:

 source and weigh B fraction of original sample split (the A fraction was beneficiated at +1.2mm and analysed previously);

 the B fraction was then riffle split to collect approximately

0.5kg of material. The residue was retained and stored;

 the sample was then dried at 105oC and then pulverised to a nominal 85% passing below 75 microns;

 50g fractions were split off for total oxide analysis and the residue retained.

This preparation is regarded as being appropriate for bauxite analyses.

Quality of assay data and laboratory

 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 For geophysical tools, spectrometers, handheld XRF instruments, etc,

Sample analyses were undertaken by ALS laboratory at its Stafford facility in Brisbane.

The analytical methods applied to the pulverised sample were as follows:

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Criteria JORC Code explanation Commentary

tests the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

 Total oxides by XRF (ALS code ME-XRF13n) for Al2O3, BaO, CaO, Cr2O3, Fe2O3, K2O, MgO, MnO, Na2O, P2O5, SO3, SiO2, SrO, TiO2, V2O5, Zn, ZrO2; and

 H2O/LOI by TGA furnace (ALS code ME-GRA05)

 Available Alumina (ALS code Al-LICP01)

 Reactive Silica (ALS code Si-LICP01)

No field duplicate samples were collected because the total sample was collected for analysis.

Two standard bauxite reference samples were sourced from Geostats Pty Ltd in Perth. The bauxite reference samples were relabelled and renumbered prior to being provided to ALS to insert in each batch at a ratio of 1 standard in every 30 samples. Results of the analysis of the standards were all within one standard deviation of the certified values.

In addition the laboratory undertook Quality Control measures with one in every 12 samples analysed in duplicate. Seven laboratory standards and one blank were run with each sample batch and the results reported.

Verification of sampling and assaying
Location of data points
Data spacing and

 The verification of significant intersections by either independent or alternative company personnel.

 The use of twinned holes.

 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

 Discuss any adjustment to assay data.

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 Specification of the grid system used.

 Quality and adequacy of topographic control.

 Data spacing for reporting of Exploration Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral

One in every 12 samples was analysed as a duplicate by ALS.

No twinned holes were drilled due to the early stage nature of this investigation into assessing the presence of mineralisation.

ALS provided the analytical data in csv and pdf format. The data was converted by Oresome Australia to Excel spreadsheets and combined with the geological logs, sample intervals and drill hole location data.

Drill collars were located by hand held Garmin GPS considered to have an accuracy of ± 4 m.

The grid system used was GDA94 Zone 54L.

The base topographic control is the local 1:50,000 topographic maps (Weipa and Winda Winda Creek) which is adequate to identify overall and specific locations.

23 holes were drilled on a nominal 320m x 320m grid (Refer to Figure 2 in the release).

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Criteria JORC Code explanation Commentary

distribution Resource and Ore Reserve estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

The aim of the program was to test the presence of significant bauxite mineralization. The drill hole spacing was adequate for this purpose and is deemed sufficient to establish the degree of geological and grade continuity appropriate for an Inferred Mineral Resource estimate if required at a later date.

Samples were collected as individual 0.25m samples or composited into

0.5m intervals where the geology was similar. No additional compositing of samples was undertaken, even at the laboratory analysis stage.

Orientation of data in relation to geological structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 If the relationship between the drilling orientation and the orientation of key mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

The mineralisation is regarded as horizontal due to the tabular nature of the style of deposit as demonstrated elsewhere on the Weipa Plateau.

All drill holes were less than or 10m in length, vertical and intersected the mineralisation at an approximate 900 angle with all intercepts are regarded as having True Width. Considering the deposit type the sampling has shown the presence of broad zones of continuity of

mineralisation in an unbiased manner.

Sample security
Audits or reviews

 The measures taken to ensure sample security. The samples were collected in large plastic sample bags on site which were secured using cable ties and bagged into white polywoven sacks and stored in a locked compound. The sacks were palleted and shrink- wrapped for shipment. It is considered that due to the nature (bauxite) and the value of the mineralisation potential, security interference was extremely remote.

 The results of any audits or reviews of sampling techniques and data. No independent audits of the drilling and sampling have been undertaken due to the early stage nature of the project.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental

Urquhart Point EPM15268 is located some 5 km west of the township of

Weipa on the western side of Cape York. EPM 15268 is currently held 66

2/3% by Oresome Australia Pty Ltd (a 100% owned subsidiary of

Metallica Minerals Limited), and 33 1/3% by its Joint Venture Partner,

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Criteria JORC Code explanation Commentary

settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Ozore Resources Pty. Ltd. Ozore can increase its JV interest to 50% upon contribution of a further A$2.5 million to the Joint Venture. There is an exploration access agreement with the local Indigenous Groups represented by the Wik and Wik Way. The area is covered by the Cape York Regional Plan (CYRP).

Exploration done by other parties

EPM15268 is unaffected by the current CYRP and the tenement is in good standing.

 Acknowledgment and appraisal of exploration by other parties. An appraisal has been undertaken on previous exploration for bauxite.

Although some widespread sampling had taken place, there was no

evidence of previous systematic, grid-based drilling. Oresome undertook a maiden auger drilling and sampling program within the tenement in

2014. Refer ASX Release dated 11 July 2014.

Geology  Deposit type, geological setting and style of mineralization. The deposit type is bauxite laterite derived from the tropical to sub- tropical weathering of aluminous sediments.
Drill hole
Information
Data aggregation methods

 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in

metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

 If the exclusion of this information is justified on the basis that the

information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly explain why this is the case.

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values

Refer to Table 1.

For each drill hole, bauxite intervals were selected for DSO analysis using a threshold of ≥45% total Al2O3 and ≤15% total SiO2 based on the results of analyses of beneficiated (+1.2mm) samples. A minimum interval thickness of 0.5m was applied.

Down-hole assays were weighted on the basis of intercept thickness to determine the weighted average assay for the bauxite zone in each drill intercept. No upper cut-off grades were applied.

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Criteria JORC Code explanation Commentary

should be clearly stated.
Relationship between mineralization widths and intercept lengths

 These relationships are particularly important in the reporting of

Exploration Results.

 If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.

 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true

width not known').

The mineralisation is regarded as horizontal due to the tabular nature of the style of deposit and because the holes are shallow (up to 10m in length), drill hole deviation would be minimal and therefore the holes are considered vertical with all intercepts representing True Width.

Down hole depths are considered as True Widths.

Diagrams  Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer to Figures 1 and 2.

Balanced reporting
Other substantive exploration data

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

See Table 1 in this release

The drilled area was identified due to its recognised proximity to known bauxite deposits within the adjoining Rio Tinto ML, desk-top mapping of potential bauxite plateau features in satellite image studies and encouraging results from limited hand auger drilling completed in 2014. Refer ASX Release dated 11 July 2014.

Further work  The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas,

provided this information is not commercially sensitive.

It is envisaged that further drilling will be carried out later in 2015 and may include infill drilling of areas already drilled and testing of their lateral extensions.

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