Asx mlx 665012

SIGNIFICANT OUTPUTSDURING THE QUARTERCORPORATE

• Metals X completed the purchase of the entire Australian Business Unit of Alacer Gold Corp during the quarter. Metals X took economic control of the operations as at 1 October 2013 and reached completion on 29 October 2013.

• Metals X closed the quarter with cash and working capital of $49.84M and has no corporate debt.

TIN DIVISION• Quarterly operating performance (imputed) from the tin operations has the

following key outputs when compared to the previous quarter:

• Tonnes mined decreased by 8% to 145,519 tonnes @ 1.45% Sn.

• Tonnes processed increased 1.6% to 155,679 tonnes @ 1.44% Sn.

• Tin metal in concentrates decreased by 3.3% to 1,534 tonnes.

• Cash cost of sales increased by 1% to A$17,685/t Sn.

• Metalsx X share of EBITDA (unaudited) increased by 14.8% to $5.36M.

GOLD DIVISION• Quarterly consolidated operating performance (imputed) from the newly acquired

gold operations had the following key outputs:

• Ore mined were 297,683 tonnes @ 5.15 g/t Au.

• Ore processed were 384,985 tonnes @ 4.34 g/t Au (includes LG Stock).

• Average metallurgical recovery was 95.4%.

• Gold metal procuded was 51,287oz.

• Total cash cost of sales was $812/oz.

• EBITDA (unaudited) was $32.65M.

ENQUIRIESPeter Cook Warren HallamExecutive Director & CEO Executive [email protected] [email protected]

QUARTERLY REPORTFOR THE PERIOD ENDING 31 DECEMBER 2013

Metals X Limited is a diversified miner and developer of mineral and metal projects in Australia. It is Australia’s

largest tin producer, a significant gold producer and has a pipeline of

development assets in the base and precious metals space, including the world-class Wingellina Nickel-Cobalt

Project.

CORPORATE DIRECTORYASX Code: MLX

OTCQX Code: MTXXYGermany OTC: FG5:GR

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

COLLINGWOOD

RENISON

WINGELLINA

CLAUDE HILLSMT DAVIES

CMGP

ROVER

SKOHIGGINSVILLE

QUARTERLY REPORT 2FOR THE PERIOD ENDING 31 DECEMBER 2013

TIN DIVISIONRENISON PROJECT (MLX 50%)Productivity and operational performance was steady during the quarter. Comparisons against the previous quarter is as follows:

Renison Mine 100%Dec ‘13 Quarter

Previous Quarter

Rolling 12-months

Mine Production

Ore Tonnes 145,519 158,040 585,227

ROM Grade (% Sn) 1.55% 1.55% 1.52%

Tin Concentrator

Tonnes Processed 155,679 153,183 597,171

Head Grade (% Sn) 1.44% 1.53% 1.51%

Tail Grade (% Sn) 0.47% 0.50% 0.49%

Tin Metal Produced (t) 1,534 1,586 6,152

Mine productivity performance over the quarter was impacted by failure of the 1336 crown pillar resulting in a buried loader, significant ore loss, additional dilution and a depleted mining fleet. Minor additional impacts on productivity resulted from power failure and consequential flooding of active work areas.

The Renison tin concentrator throughput was constrained by mine output during the quarter and all surface stocks including the low grade was consumed. The lower throughput resulted in slightly lower production of tin metal in concentrates. Overall tail grade was reduced by 6% over the previous quarter.

Cash costs of sales were higher due mainly to increased shipping and concentrate sales costs.

Free cash flow increased as higher revenue resulting from a 5.6% increase in the A$ tin price during the quarter.

The key fiscal outcomes for the quarter attributable to Metals X’s 50% ownership of the Renison Project are summarised below :

Fiscal Outcomes (MLX) Dec ‘13 Quarter Previous Quarter Rolling 12 Months

Revenue (Imputed) (A$M) $18.92M $18.53M A$71.16M

Tin Price Received A$/t Sn A$24,673 A$23,370 A$23,134

Cash Operating Costs $/t Sn $14,512 $15,136 $14,480

Cash Cost of Sales $/t Sn $17,685 $17,506 $17,065

Cash Operating Surplus (EBITDA) $5.36M $4.67M $18.7M

Depreciation & Amortisation $/t Sn $2,888 $3,356 $3,048

Total Cost of Sales $/t Sn $20,573 $20,862 $20,080

Capital re-investment in the Renison project continued to push forward capital mine development for sustaining and future production. One full time underground diamond rig was engaged in exploration during the quarter.


Total capital re-investment for the group decreased by 12.4% over the previous quarter:

MLX 50% Share Dec ‘13 Quarter Previous Quarter Rolling 12 Months

Capital Mine Development $3.29M $3.05M $10.19M

Exploration $0.36M $0.89M $2.63M

Property, Plant & Equipment $0.45M $0.74M $2.25M

TIN EXPLORATION Exploration activity during the quarter was weighted toward defining extensions and upgrading known resources.

Extensions of the ore system outside previously defined ore boundaries were made in the high-grade Huon North and Rendeep areas. Pleasingly, not only have drill results been significant in their own right, but several holes have returned multiple intercepts suggesting that future mining could access multiple stoping panels from a single level access.

Best results from the Huon North extensional holes during the quarter were:

Hole Intercept N Intercept E Intercept RLIntercept

(True Width)From (m)

U4845 67,116 44,538 1,288 1.07m @ 3.41% Sn 157.2

67,119 44,532 1,285 6.57m @ 3.28% Sn 164

U4855 67,046 44,580 1,233 8.45m @ 2.57% Sn 155

67,044 44,572 1,220 2.7m @ 2.92% Sn 171

67,043 44,563 1,207 3.62m @ 3.24% Sn 186.3

Infill drilling was also completed in the CFB zone with an objective of further defining the grade distribution. Excellent results continue to underline the potential of this resource panel centrally located to the existing mine infrastructure.

Best Results from the CFB zone during the quarter were:



U4826 67,165 44,496 1,442 4.36m @ 4.13% Sn 107.5

U4828 66,108 44,498 1,431 11.69m @ 6.66% Sn 126.4

U4957 66,309 44,484 1,485 3.31m @ 5.51% Sn 51.6

Infill drilling within the upcoming Area 4 panels returned bonanza intercepts confirming the higher grade forecast production as development moves into the bulk of Area 4 in the ensuring quarters.

The bonanza results include:



U4924 66,606 44,495 1,246 12.47m @ 8.84% Sn 45.0

U4927 66,597 44,477 1,256 12.88m @ 7.50% Sn 30.3

U4928 66,511 44,536 1,232 2.64m @ 31.58% Sn 134.8

U4986 66,607 44,500 1,256 10.01m @ 8.48% Sn 12.1


GOLD DIVISIONDuring the quarter Metals X began to rapidly expand its Gold Division with the acquisition of the whole of the Australian gold portfolio of Alacer Gold Corp (“Alacer”) on 29 October 2013. The effective date and transfer of economic interests to Metals X was 1 October 2013 and the purchase price was A$40 million plus working capital adjustments of A$4 million.

Metals X, structured the transaction through its wholly owned subsidiary, Westgold Resources Pty Ltd (“Westgold”) and the Alacer Gold Pty Limited holding company was renamed as Hill 51 Pty Ltd.

The first full quarter of operating returned pleasing results with the consolidated Gold Division producing 51,287oz with Total Cast cost of sales imputed to be $812/oz and the operating mines generating an un-audited EBITDA of $32.65 million.

THE HIGGINSVILLE OPERATIONS (HGO)The Higginsville Operations consists of a modern 1.3Mtpa CIP plant, a 300 person village, two underground mines (Trident & Chalice), and requisite mine and process infrastructure. Alacer (ASX:AQG 2 April 2013) have previously announced the Total Mineral Resource (43:101) at HGO (as at 31 December 2012) to be 15.9 million tonnes at 3.0 g/t Au containing 1.55 million ounces. HGO is currently operating at an annualised rate of approximately 150,000 oz per annum.

[Picture: Higginsville Gold Plant 1.35 Mtpa]

Productivity and operational performance was steady from Higginsville as operatorship transferred. Operating output was:

Higginsville Gold Operations 100%

Dec ‘13 QuarterPrevious Quarter

(Alacer)

Mine Production

Ore Tonnes (t) 238,453t 298,621t

ROM Grade (g/t Au) 5.64 g/t Au 5.11 g/t Au

Ore Processed

Tonnes Processed 251,561 298,372

Head Grade (g/t Au) 5.46 g/t Au 5.08 g/t Au

Recovery (g/t Au) 96.1% 96.0%

Gold Produced (oz) 42,443 oz 47,310 oz


The imputed key fiscal outcomes for the quarter attributable to Metals X’s ownership of the Higginsville Gold Project for the quarter are summarised below:

Higginsvile Gold Operations Dec ‘13 Quarter

Imputed Revenue (A$) $58.38M

Avg. Gold Price Received (A$/oz) $1,372/oz

Cash Operating Cost (A$/oz) $699/oz

Cash Cost of Sales (A$/oz) $825/oz

Cash Operating Surplus (EBITDA) $M $23.38M

Depreciation & Amortisation (A$/oz) $78/oz

Total Cost of Sales (A$/oz) $903/oz

Following the completion of the transaction and the re-evaluation of the short term operating strategy, Metals X began to transition the operation towards a sustainable production profile. Capital mine development at Trident and Chalice mines recommenced in mid-November and exploration activities from underground at the Trident and Chalice mines recommenced in December 2013.

Total capital re-investment into the Higginsvile Gold Operations for the quarter is summarised:

Higginsvile Gold Operations Dec ‘13 Quarter

Capital Mine Development $4.14M

Exploration $0.26M

Property, Plant & Equipment $0.03M

Financial analysis of the large imposts of external third party royalties payable from gold production at Higginsville re-affirmed the crippling nature of these imposts on future risk reward decisions for the Company. Discussion with external royalty holders to lower these royalty imposts were commenced with a view to re-establishing them at a rate that does not stifle or jeopardise the future development of the project and the sustainability of the operation.

Evaluation of open pit mining to supplement gold production from the Lake Cowan resource group commenced with likely pit developments to start late in the ensuring quarter.

Metals X commenced an operations-wide review of mining, processing and operating practices within the operation with a view to lowering costs and re-aligning the site to an operating regime akin to the size and reality of what the operation is.


THE SOUTH KALGOORLIE OPERATION (SKO)The South Kalgoorlie Operations consists of an older 1.2 Mtpa CIP plant and infrastructure. Numerous open pit and underground options have previously been mined with the tenement area over the past 25 years.

The SKO operated predominantly as a toll processing plant (two months out of three) during the quarter. Metals X inherited the legacy of a friendly toll processing arrangement related to the previous sale by Alacer of its share in the Frog’s Leg mine to La Mancha. This arrangement will continue in the ensuring half with La Mancha processing for a further 120 days.

Alacer had ended open pit mining and hence higher grade production as part of its sale process. Metals X did however benefit from remaining ore stocks acquired at the time of acquisition which were processed and for the best part exhausted during the quarter.

Metals X has commenced evaluation of a number of open-pit and underground mining opportunities within the package and expects to be able to bring some future mining operations back on later in the year. In the meantime, Metals X intends to either process its own low grade stocks which can provide an addition year of plant feed and/or establish the operation as a toll processing business unit whilst studies on the other internal feed sources are undertaken.

[Picture: Jubilee Plant (SKO) 1.2 Mtpa]

Productivity and operational performance was steady from South Kalgoorlie Operations is summarised:

South Kalgoorlie Operations 100% Dec ‘13 QuarterPrevious Quarter

(Alacer)

Mine Production

Ore Tonnes (t) 59,230t 46,929t

ROM Grade (g/t Au) 3.22 g/t Au 2.68 g/t Au

Ore Processed

Tonnes Processed (inc LG) 133,424t 43,559t

Head Grade (g/t Au) 2.24 g/t Au 3.38 g/t Au

Recovery (g/t Au) 91.8% 92.0%

Gold Produced (oz) 8.844 oz 4,375 oz

The imputed key fiscal outcomes for the quarter attributable to Metals X’s ownership of the South Kalgoorlie Operations for the quarter are summarised below:


South Kalgoorlie Operations Dec ‘13 Quarter

Imputed Revenue (A$) $12.24M

Avg. Gold Price Received (A$/oz) $1,384

Cash Operating Cost (A$/oz) $745/oz

Cash Cost of Sales (A$/oz) $751/oz

Cash Operating Surplus (EBITDA) $M $7.35M

Depreciation & Amortisation (A$/oz) $67/oz

Total Cost of Sales (A$/oz) $818/oz

Total capital re-investment into the South Kalgoorlie Operations for the quarter is summarised:.

South Kalgoorlie Operations Dec ‘13 Quarter

Capital Mine Development $0.0M

Exploration $0.0M

Property, Plant & Equipment $0.0M

CENTRAL MURCHISON GOLD PROJECT (CMGP)The CMGP is a development ready project with a number of open pit and underground options. MLX has previously announced (ASX:MLX 19 December 2012) a Total Mineral Resource (as at December 2012) to be 61.2 million tonnes at 2.52 g/t Au containing 4.95 million ounces. A DFS was completed and announced (ASX:MLX 11 January 2013) which showed a viable plan to produce approximately 100,000 oz per annum at cash operating costs of $980/oz over an initial 11 year mine life. Capital costs were estimated at $117 million. The Total Ore Reserve estimate was 15.5 million tonnes at 2.36 g/t Au containing 1.17 million ounces.

[Figure: Central Murchison Gold Project Locations]


The CMGP has the largest resource base of the projects in the Central Murchison region but doesn’t have established process plant infrastructure. Metals X continues to evaluate opportunities to acquire, append to and/or toll process ores from its CMGP at existing processing facilities.

THE ROVER PROJECTThe Rover Project is an under-cover repetition of the rich Tennant Creek goldfield 80 km to the north-east. Exploration to date has so far fully tested three blind targets within the project, each of which has defined significant mineralised IOCG (Iron Oxide Copper Gold) systems at Rover 1, Explorer 108 and Explorer 142 prospects.

The Rover 1 Prospect is a virgin IOCG discovery. Metals X and Westgold have previously announced a Total Mineral Resource at Rover 1 (as at 30 June 2013) to be 6.81 million tonnes at 1.74 g/t Au, 1.2% Cu, 0.14% Bi and 0.06% Co.

The key elements of the Rover Project are:

• A new gold province analogous to the historic Tennant Creek goldfield which historically produced +5.5Moz Au and 0.5Mt Cu.

• Three successful discoveries in Rover 1 (Au-Cu), Explorer 108 (Pb-Zn-Ag) and Explorer 142 (Cu-Au).

• A 1.22Moz Au equivalent Total Identified Mineral Resource (JORC) at Rover 1.

• A Total Identified Mineral Resource at Explorer 108 of 490Kt Pb-Zn, 5.6Moz Ag and 71Koz Au.

• A commercially positive outcome from Rover 1 development studies.

• The project area is proximal to a major infrastructure corridor adjacent to Central Australian Railway, gas pipeline and Stuart Highway.

• Exploration upside in multiple coincident geophysical anomalies considered as analogs to the Rover 1 anomaly.

No active field work was completed at Rover 1 during the period as wet season access limited access. The field crews shifted their focus to the Warumpi JV during the quarter.

Further considerations to an optimal development pathway for the Rover 1 deposit continues.

NICKEL DIVISIONMetals X’s nickel strategy is built upon the Central Musgrave Project (CMP) which straddles the triple-point of the WA/NT/ SA borders. The project represents the Company’s key nickel assets and comprises of the globally significant Wingellina Ni–Co deposit, the Claude Hills Nickel deposit and the Mt Davies exploration prospects. The project encompasses 1,957 km2 of prospective exploration tenure encompassing the whole of the Wingellina layered intrusive sub-set of the Giles Complex.


The key focus of the Nickel Division is to bring the Wingellina Nickel–Cobalt Project into production.

As advised previously, a decision was made to defer the expenditure on the updated feasibility for a period of up to 12 months due to the continuum of a depressed nickel market and remains the case. During the quarter, the nickel price showed signs of a rebound as Indonesia moved to curtail the oppurtunistic and unofficial bulk shipping of unprocessed tropical laterite ores to Chine to feed the pig nickel industry demands.

Whilst the engineering works for the updated feasibility study have been halted, Metals X continues to use its internal resources to complete other long lead-time studies required for the DFS, including infrastructure, roads, rail and ports studies, and the completion of the Public Environmental Review (PER) documentation which is on target for lodgement in March 2014. Further, significant interaction with state and federal governments has occurred with excellent co-operation and desire to assist with the development of the project.

Metals X completed the acquisition of Rio Tinto’s in the Mt Davies JV and now solely owns the exploration rights over the whole Wingellina layered intrusive complex, which provides large upside for nickeliferous limonite additions as well as nickel sulphide targets.

Metals X previously completed a high-powered airborne electro-magnetic survey (Spectrum) which defined a number of priority targets considered to represent buried conductors that could potentially indicate nickel-copper sulphide bodies in the layered intrusive complex. Diamond drilling programs to assess the highest priority targets have been designed and Metals X has completed landowner clearances under heritage protocols to enable the company to commence work on the evaluation of these nickel-copper sulphide targets. A rig has been organised and the drilling is expected to commence in the ensuring quarter.

OTHER EXPLORATION ASSETSWARUMPI JOINT VENTURE (EARNING UP TO 80%)Warumpi is a significant exploration holding at the base of the Arunta province in the Northern Territory, which has recently been identified as being geologically, tectono-thermally and temporally similar to Proterozoic basins in Eastern Australia that host five of the world’s ten largest stratabound Pb-Zn deposits (Broken Hill, Hilton-George Fisher, Mount Isa, MacArthur River and Century). Metals X is undertaking the first modern exploration program in this highly underexplored region.

During the quarter on-ground work continued with grassroots exploration at the Warumpi Project. Results received from detailed lag sampling throughout the Gold Hill region last quarter have highlighted a strong east-west gold anomaly adjacent to the contact of an intruding charnokite and the amphibolite basement rock.

Follow-up soil sampling completed during the quarter did not duplicate the magnitude of the anomalies defined by the lag sampling.

Further follow-up of the high-grade nickel rock chip results was also completed. It is apparent that enriched nickel oxide mineralisation is related to minor primary structures and the weathering profile has been extensively stripped and remobilised, limiting the potential for a significant nickel limonite or laterite accumulation. Airborne geophysical methods of exploration are being evaluated as a tool to test these target areas.


CORPORATEMetals X ended the quarter with cash and net working capital of $49.84 Million.

The Group has no corporate debt.

INVESTMENTSMetals X holds the following investments in other listed entities:

• Reed Resources Limited – 4.99% shareholding.

• Aziana Limited –13.73% shareholding.

• Mongolian Resource Corporation Limited –14.76% shareholding.

CAPITAL STRUCTUREThe Company has the following equities on issue as of 31 December 2013:

Fully Paid Ordinary Shares 1,655,386,110

Unlisted Options - various conversions and dates 12,312,500

Fully Diluted Equity 1,667,698,610

MAJOR SHAREHOLDERSThe significant shareholders of the Company as of 31 December 2013 are:

APAC Resources (HK:1104) 24.07 %

Jinchuan Group 10.66 %

End

COMPETENT PERSONS STATEMENTThe information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Peter Cook BSc (App. Geol.), MSc (Min. Econ.) MAusIMM (11072) who has sufficient experience that is relevant to the styles of mineralisation, the types of deposits under consideration and the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cook is a full time employee of Metals X Limited and consents to the inclusion in the reports of the matters based on his information in the form and context in which it appears.


APPENDIX 1 Exploration Results Renison Tin Operations

Figure 1 Renison Quarterly Drilling Locations.

Figure 2 North Renison quarterly drilling schematic.


Table 1 North Renison quarterly drilling results.

Lode Hole ID Intercept Northing Intercept Easting Intercept RL Intercept (True Width) From (m)

HUON DEEP U4845 67,116 44,538 1,288 1.07m at 3.41% Sn 157.2

HUON DEEP U4845 67,119 44,532 1,285 6.57m at 3.28% Sn 164

RENDEEP NTH U4850 67,060 44,558 1,245 3.57m at 2.67% Sn 159.16



RENDEEP NTH U4851 67,024 44,546 1,230 1.09m at 2.76% Sn & 1.34% Cu 182.31


RENDEEP NTH U4855 67,046 44,580 1,233 8.45m at 2.57% Sn 155


RENDEEP NTH U4855 67,043 44,563 1,207 3.62m at 3.24% Sn & 1.21% Cu 186.27


RENDEEP NTH U4857 67,033 44,580 1,177 7m at 2.49% Sn 200.19

RENDEEP NTH U4857 67,031 44,574 1,164 1.35m at 4% Sn & 2.26% Cu 220.13



Figure 3 Central Federal Bassett quarterly drilling schematic.


Table 2 Central Federal Bassett Quarterly Results.


CFB U4825 66,214 44,496 1,447 2.38m at 1.23% Sn 113.26

CFB U4825 66,215 44,500 1,452 1.43m at 7.66% Sn 119.12

CFB U4826 66,165 44,496 1,442 4.36m at 4.13% Sn 107.48

CFB U4826 66,158 44,513 1,466 0.56m at 2.9% Sn & 3.11% Cu 138.04

CFB U4826 66,154 44,522 1,478 0.5m at 5.05% Sn & 1.56% Cu 154.16

CFB U4827 66,127 44,506 1,425 8.78m at 1.8% Sn 116.28

CFB U4827 66,110 44,525 1,444 2.88m at 1.24% Sn 147.00

CFB U4827 66,106 44,529 1,448 2.84m at 1.77% Sn 155.00

CFB U4828 66,108 44,498 1,431 11.69m at 6.66% Sn 126.42

CFB U4828 66,097 44,506 1,441 9.17m at 1.8% Sn 142.40

CFB U4829 66,195 44,503 1,414 4.25m at 1.2% Sn 89.56

CFB U4836 66,122 44,537 1,319 0.65m at 2.33% Sn 126.87

CFB U4842 66,217 44,547 1,236 1.48m at 1.64% Sn 165.37

CFB U4842 66,218 44,554 1,228 1.3m at 2.53% Sn 175.22

CFB U4843 66,231 44,543 1,204 3.37m at 1.5% Sn 191.90

CFB U4844 66,216 44,544 1,177 0.64m at 2.56% Sn 211.50

CFB U4844 66,217 44,547 1,172 0.93m at 4.79% Sn 219.30

CFB U4902 66,393 44,520 1,308 3.21m at 1.18% Sn 117.78

CFB U4903 66,309 44,530 1,286 1.26m at 1.28% Sn 101.00

CFB U4904 66,350 44,524 1,288 0.85m at 1.95% Sn 106.00

CFB U4905 66,379 44,523 1,252 1.49m at 2.45% Sn 147.88

CFB U4906 66,304 44,528 1,268 2.66m at 0.62% Sn 113.00

CFB U4908 66,305 44,529 1,238 0.33m at 4.2% Sn 141.10

CFB U4908 66,306 44,553 1,180 0.27m at 4.88% Sn 204.00

CFB U4933 66,006 44,512 1,598 2.22m at 0.92% Sn 127.55

CFB U4934 66,005 44,486 1,569 0.73m at 1.6% Sn 122.60

CFB U4936 65,965 44,508 1,578 3.99m at 1.06% Sn 139.54

CFB U4941 65,996 44,480 1,596 1.12m at 1.17% Sn 101.30

CFB U4941 65,992 44,524 1,567 1.66m at 0.93% Sn 153.67

CFB U4954A 66,284 44,481 1,486 0.52m at 8.54% Sn 60.36

CFB U4954A 66,276 44,486 1,495 1.9m at 7.03% Sn 73.67

CFB U4955 66,311 44,499 1,445 1.2m at 2.37% Sn 43.79

CFB U4955 66,310 44,505 1,446 1.42m at 3.91% Sn 49.55

CFB U4956A 66,326 44,501 1,424 1.7m at 2.19% Sn & 1.39% Cu 47.41

CFB U4957 66,309 44,484 1,485 3.31m at 5.07% Sn 51.56

CFB U4959 66,348 44,473 1,499 0.73m at 21.27% Sn 64.43

CFB U4961 66,369 44,472 1,497 3.94m at 1.33% Sn 75.73

CFB U4966 66,328 44,516 1,404 0.79m at 3.85% Sn 69.59

CFB U4967 66,282 44,504 1,412 9.17m at 1.05% Sn & 1.25% Cu 65.27

CFB U4967 66,218 44,590 1,364 3.64m at 0.8% Sn 182.94

CFB U4968 66,290 44,512 1,379 3.55m at 1.18% Sn & 1.08% Cu 39.00

CFB U4968 66,287 44,521 1,381 0.49m at 5.16% Sn 46.87

CFB U4970 66,311 44,516 1,362 6.71m at 0.93% Sn 42.00

CFB U4971 66,351 44,523 1,271 4.92m at 1.81% Sn 68.42

CFB U4972 66,276 44,519 1,358 5.38m at 1.51% Sn 49.02

CFB U4973 66,263 44,523 1,339 1.8m at 6.81% Sn 66.20

CFB U4979 66,600 44,506 1,268 9m at 3.08% Sn 4.00


Table 3 Area 4 Quarterly Results


AREA 4 U4919 66,598 44,478 1,270 3.6m at 1.02% Sn 30

AREA 4 U4922 66,641 44,496 1,256 1.71m at 9.1% Sn 49.71

AREA 4 U4920 66,627 44,495 1,265 0.6m at 5.4% Sn 43.9

AREA 4 U4918 66,649 44,497 1,299 2.14m at 5.42% Sn 65

AREA 4 U4917 66,585 44,495 1,293 1.33m at 1.17% Sn 58.24

AREA 4 U4925 66,610 44,498 1,257 2.77m at 1.48% Sn 45.6

AREA 4 U4925 66,607 44,515 1,255 1.6m at 4.07% Sn 62.32

AREA 4 U4924 66,606 44,495 1,246 12.47m at 8.84% Sn 45

AREA 4 U4926 66,603 44,475 1,258 0.63m at 4.42% Sn 24.22

AREA 4 U4926 66,602 44,479 1,257 0.76m at 4.36% Sn 28.68

AREA 4 U4926 66,598 44,487 1,256 8.46m at 4.89% Sn 37

AREA 4 U4926 66,589 44,505 1,253 3.69m at 2.67% Sn 58

AREA 4 U4926 66,574 44,539 1,247 2m at 2.32% Sn 95.8

AREA 4 U4928 66,537 44,515 1,240 3.72m at 1.54% Sn 100.54

AREA 4 U4928 66,531 44,519 1,238 1.61m at 7.07% Sn 107.56

AREA 4 U4928 66,528 44,522 1,237 5.55m at 2.09% Sn 112.1

AREA 4 U4928 66,518 44,530 1,234 3.48m at 6.45% Sn 125.53

AREA 4 U4928 66,513 44,534 1,232 0.96m at 4.38% Sn 131.57

AREA 4 U4928 66,511 44,536 1,232 2.64m at 31.58% Sn 134.8

AREA 4 U4949 66,572 44,471 1,343 0.94m at 2.89% Sn 176.94

AREA 4 U4949 66,572 44,462 1,338 3.27m at 5.66% Sn 187.53

AREA 4 U4948 66,550 44,467 1,337 4.14m at 1.37% Sn 184.79

AREA 4 U4927 66,597 44,477 1,256 12.88m at 7.5% Sn 30.27

AREA 4 U4927 66,586 44,492 1,252 1.91m at 5.23% Sn 48.19

AREA 4 U4927 66,564 44,522 1,244 2.46m at 1.04% Sn 86

AREA 4 U4927 66,548 44,544 1,238 1.68m at 1.96% Sn 114.51

AREA 4 U4927 66,541 44,554 1,235 22.1m at 1.68% Sn 126.7

AREA 4 U4923 66,625 44,508 1,244 4.14m at 3.33% Sn 57.83

AREA 4 U4923 66,628 44,526 1,239 1.79m at 2.21% Sn 76.8

AREA 4 U4923 66,630 44,539 1,234 2.32m at 2.06% Sn 91.27

AREA 4 U4986 66,609 44,507 1,263 5.38m at 4.79% Sn 2.55

AREA 4 U4986 66,607 44,500 1,256 10.01m at 8.48% Sn 12.14

AREA 4 U4982 66,611 44,496 1,271 6.94m at 2.29% Sn 12.65

AREA 4 U4980 66,601 44,496 1,262 6.86m at 4.28% Sn 14.57

AREA 4 U4979 66,600 44,506 1,268 9m at 3.08% Sn 4

AREA 4 U4976 66,561 44,524 1,266 2.35m at 2.1% Sn 11.78

AREA 4 U4984 66,611 44,507 1,264 3.39m at 1.92% Sn 1.68

AREA 4 U4983 66,615 44,502 1,269 10.92m at 0.83% Sn 8

AREA 4 U4983 66,628 44,483 1,278 2.41m at 1.5% Sn 32.58

AREA 4 U4987 66,612 44,510 1,246 3.81m at 6.62% Sn 0

AREA 4 U4987 66,609 44,511 1,264 2.74m at 1.65% Sn 17.88

AREA 4 U4978 66,576 44,483 1,258 1.07m at 6.16% Sn 24.37

Table 4 Argent Fault Quarterly Results

Lode Hole ID Intercept Northing Intercept Easting Intercept RL Intercept (True Width) From Argent Fault AFS1666 64,751 43,671 2,164 4.27m at 4.72% Sn 104.72

QUARTERLY REPORT 15 FOR THE PERIOD ENDING 31 DECEMBER 2013

Section 1 Sampling Techniques and Data

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

Criteria JORC Code explanation Commentary

Sampling techniques

Drilling techniques

Drill sample recovery

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.

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.

Diamond Drilling The bulk of the data used in resource calculations at Renison has been gathered from diamond core. Three sizes have been used historically NQ2 (45.1mm nominal core diameter), LTK60 (45.2mm nominal core diameter) and LTK48 (36.1mm nominal core diameter), with NQ2 currently in use. This core is geologically logged and subsequently halved for sampling. Grade control holes may be whole-cored to streamline the core handling process if required. NQ and HQ core sizes have been recorded as being used at Mount Bischoff. This core is geologically logged and subsequently halved for sampling. The bulk of the data used in resource calculations at Collingwood has been gathered from diamond core. Three sizes are recorded as having been used historically BQ (36.4mm nominal core diameter), NQ (47.6mm nominal core diameter), TT56 (42mm nominal core diameter) and LTK48 (36.1mm nominal core diameter). This core is geologically logged and subsequently halved for sampling. Grade control holes were at times whole-cored to streamline the core handling process if required.

There is no diamond drilling for the Rentails Project.

Face Sampling

Each development face / round is horizontally chip sampled at both Renison and Collingwood. The sampling intervals are domained by geological constraints (e.g. rock type, veining and alteration / sulphidation etc.). Samples are taken in a range from 0.3m up to 1.2m in waste / mullock. All exposures within the orebody are sampled. A similar process would have been followed for historical Mount Bischoff face sampling. There is no face sampling for the Rentails Project.

Sludge Drilling



Sludge drilling at Renison and Collingwood is performed with an underground production drill rig. It is an open hole drilling method using water as the flushing medium, with a 64mm (nominal) hole diameter. Sample intervals are ostensibly the length of the drill steel. Holes are drilled at sufficient angles to allow flushing of the hole with water following each interval to prevent contamination. There is no sludge drilling for the Mount Bischoff Project. There is no sludge drilling for the Rentails Project.

RC Drilling RC drilling has been utilised at both Mount Bischoff and Collingwood. Drill cuttings are extracted from the RC return via cyclone. The underflow from each interval is transferred via bucket to a four tiered riffle splitter, delivering approximately three kilograms of the recovered material into calico bags for analysis. The residual material is retained on the ground near the hole. Composite samples are obtained from the residue material for initial analysis, with the split samples remaining with the individual residual piles until required for re-split analysis or eventual disposal. There is no RC drilling for the Renison Project. There is no RC drilling for the Rentails Project.

Percussion Drilling This drilling method was used for the Rentails project and uses a rotary tubular drilling cutter which was driven percussively into the tailings. The head of the cutting tube consisted of a 50mm diameter hard tipped cutting head inside which were fitted 4 spring steel fingers which allowed the core sample to enter and then prevented it from falling out as the drill tube was withdrawn from the drill hole. There is no percussion drilling for the Renison Project. There is no percussion drilling for the Mount Bischoff Project.



There is no percussion drilling for the Collingwood Project. All geology input is logged and validated by the relevant area geologists,

incorporated into this is assessment of sample recovery. No defined relationship exists between sample recovery and grade. Nor has sample bias due to preferential loss or gain of fine or coarse material been noted.

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

Diamond core is logged geologically and geotechnically. RC chips are logged geologically. Development faces are mapped geologically. Logging is quantitative in nature. All holes are logged completely, all faces are mapped completely.

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 maximise

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.

Drill core is halved for sampling. Grade control holes may be whole-cored to streamline the core handling process if required

Samples are dried at 90°C, then crushed to <3mm. Samples are then riffle split to obtain a sub-sample of approximately 100g which is then pulverized to 90% passing 75um. 2g of the pulp sample is then weighed with 12g of reagents including a binding agent, the weighed sample is then pulverized again for one minute. The sample is then compressed into a pressed powder tablet for introduction to the XRF. This preparation has been proven to be appropriate for the style of mineralisation being considered.

QA/QC is ensured during the sub-sampling stages process via the use of the systems of an independent NATA / ISO accredited laboratory contractor.

The sample size is considered appropriate for the grain size of the material being sampled.

The un-sampled half of diamond core is retained for check sampling if required. For RC chips regular field duplicates are collected and analysed for significant

variance to primary results. Quality of assay data and laboratory tests

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, 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.

Assaying is undertaken via the pressed powder XRF technique. Sn, As and Cu have a detection limit 0.01%, Fe and S detection limits are 0.1%. These assay methodologies are appropriate for the resource in question.

All assay data has built in quality control checks. Each XRF batch of twenty consists of one blank, one internal standard, one duplicate and a replicate, anomalies are re-assayed to ensure quality control.

Specific gravity / density values for individual areas are routinely sampled during all diamond drilling where material is competent enough to do so.



Verification of sampling and assaying

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.

Anomalous intervals as well as random intervals are routinely checked assayed as part of the internal QA/QC process.

Virtual twinned holes have been drilled in several instances across all sites with no significant issues highlighted. Drillhole data is also routinely confirmed by development assay data in the operating environment.

Primary data is loaded into the drillhole database system and then archived for reference.

All data used in the calculation of resources and reserves are compiled in databases (underground and open pit) which are overseen and validated by senior geologists.

No primary assays data is modified in any way. Location of data points

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.

All data is spatially oriented by survey controls via direct pickups by the survey department. Drillholes are all surveyed downhole, currently with a GyroSmart tool in the underground environment at Renison, and a multishot camera for the typically short surface diamond holes.

All drilling and resource estimation is undertaken in local mine grid at the various sites.

Topographic control is generated from remote sensing methods in general, with ground based surveys undertaken where additional detail is required. This methodology is adequate for the resource in question.

Data spacing and distribution

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

Whether sample compositing has been applied.

Drilling in the underground environment at Renison is nominally carried-out on 40m x 40m spacing in the south of the mine and 25m, x 25m spacing in the north of the mine prior to mining occurring. A lengthy history of mining has shown that this data spacing is appropriate for the Mineral Resource estimation process and to allow for classification of the resource as it stands.

Drilling at Mount Bischoff is variably spaced. A lengthy history of mining has shown that this data spacing is appropriate for the Mineral resource estimation process and to allow for classification of the resource as it stands.

Drilling at Collingwood is variably spaced. With a nominal sectional spacing of 25m assumed over the central portion of the orebody. The Collingwood production history has shown that this data spacing is appropriate for the Mineral resource estimation process and to allow for classification of the resource as it stands.

Drilling at Rentails is usually carried out on a 100m centres. This is appropriate for the Mineral resource estimation process and to allow for classification of the resource as it stands.

Compositing is carried out based upon the modal sample length of each individual domain.



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 mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Drilling intersections are nominally designed to be normal to the orebody as far as underground infrastructure constraints / topography allows.

Development sampling is nominally undertaken normal to the various orebodies. It is not considered that drilling orientation has introduced an appreciable

sampling bias. Sample security

The measures taken to ensure sample security. At Renison, Mount Bischoff and Rentails samples are delivered directly to the on-site laboratory by the geotechnical crew where they are taken into custody by the independent laboratory contractor. No samples are currently being processed for the Collingwood deposit.

Audits or reviews

The results of any audits or reviews of sampling techniques and data. Site generated resources and reserves and the parent geological data is routinely reviewed by the Metals X Corporate technical team.

Section 2 Reporting of Exploration Results

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


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 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.

All Tasmania resources are hosted within 12M1995 and 12M2006. Both tenements are standard Tasmanian mining leases.

The Collingwood resource lies within Mining Leases 3065 and 3067. Both tenements are standard Queensland mining leases.

No native title interests are recorded against the Tasmanian tenements. Native title interests are recorded against the Queensland tenements.

Tasmanian tenements are held by the Bluestone Mines Tasmania Joint Venture of which Metals X has 50% ownership. Queensland tenements are held by the Bluestone Nominees of which Metals X has 100% ownership.

No royalties above legislated state royalties apply for the Tasmanian tenements. At Collingwood, Bluestone Nominees is obliged to pay a 2% royalty on net smelter return to AngloGold / North Forest Products over and above the state government royalty.

Bluestone Mines Tasmania Joint Venture and Bluestone Nominees operate in accordance with all environmental conditions set down as conditions for grant of the mining leases.

There are no known issues regarding security of tenure. There are no known impediments to continued operation in either Tasmania or

Queensland.



Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties. The Renison, Mount Bischoff and Collingwood areas have an exploration and production history in excess of 100 years.

Bluestone Mines Tasmania Joint Venture and Bluestone Nominees work has generally confirmed the veracity of historic exploration data.

Geology Deposit type, geological setting and style of mineralisation. Renison is one of the world’s largest operating underground tin mines and Australia’s largest primary tin producer. Renison is the largest of three major Skarn, carbonate replacement, pyrrhotite-cassiterite deposits within western Tasmania. The Renison Mine area is situated in the Dundas Trough, a province underlain by a thick sequence of Neoproterozoic-Cambrian siliciclastic and volcaniclastic rocks. At Renison there are three shallow-dipping dolomite horizons which host replacement mineralisation.

Mount Bischoff is the second of three major Skarn, carbonate replacement, pyrrhotite-cassiterite deposits within western Tasmania. The Mount Bischoff Mine area is situated within the Dundas Trough, a province underlain by a thick sequence of Neoproterozoic-Cambrian siliciclastic and volcaniclastic rocks. At Mount Bischoff folded and faulted shallow-dipping dolomite horizons host replacement mineralisation with fluid interpreted to be sourced from the forceful emplacement of a granite ridge and associated porphyry intrusions associated with the Devonian Meredith Granite, which resulted in the complex brittle / ductile deformation of the host rocks. Lithologies outside the current mining area are almost exclusively metamorphosed siltstones. Major porphyry dykes and faults such as the Giblin and Queen provided the major focus for ascending hydrothermal fluids from a buried ridge of the Meredith Granite. Mineralisation has resulted in tin-rich sulphide replacement in the dolomite lodes, greisen and sulphide lodes in the porphyry and fault / vein lodes in the major faults. All lodes contain tin as cassiterite within sulphide mineralisation with some coarse cassiterite as veins throughout the lodes.

The Rentails resource is contained within three Tailing Storage Facilities (TSF’s) that have been built up from the processing of tin ore at the Renison Bell mine over the period 1968 to 2013.

Drill hole Information

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.

The attached tables contain drill intercept locations in three dimensions for all holes.

Excluded results are non-significant and do not materially affect understanding of the Renison deposit.



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.

Data aggregation methods

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 should be clearly stated.

Results are reported on a length weighted average basis. Results are reported above a 3% Sn/m cut-off. Results reported may include up to two metres of internal dilution below a 0.5% Sn

cut-off. No metal equivalent values are reported in an exploration context.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation 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’).

Interval widths are true width unless otherwise stated.

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.

The attached diagrams show the location of all interval pierce-points with respect to the defined mineralisation areas at the Renison Mine.

Balanced reporting

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.

Excluded results are non-significant and do not materially affect understanding of the Renison deposit.

Other substantive exploration data

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.

Relevant information presented above.

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.

Exploration assessment and normal mine extensional drilling continues to take place at Renison.

Exploration assessment continues to progress at Mount Bischoff. Project assessment continues to progress at Rentails.

Documents

Asx mlx 665012