Update Presentation

March 2010

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Company Outline

ƒ Metals Exploration has rights to 100% of the Runruno gold – molybdenum project in
northern Luzon, Philippines.

ƒ Flagship Runruno project contains 1.5 million ounces of gold and 25Mlb moly

ƒ Feasibility Study due in April 2010

ƒ FTAA permit signed by Order of the President in October 2009

ƒ Environmental Compliance Certificate approval imminent

ƒ Strong community relations resulting in several awards

ƒ Runruno Project
• Geological database independently verified by Mining Associates
• Resource of 1.5Moz announced November 2009
• 560,000oz Measured & 290,000oz Indicated
• $150M capex to build 100k oz /yr operation
• 25.4 Mlb of valuable molybdenum by-product
• ~93,000m drilled to date

ƒ Way forward Q1 / Q3
• Substantial exploration upside over remainder of area
• Bank project financing to be arranged
• Potential to start construction Q4 2010

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 Corporate Information

Capital Structure*
ƒ Ticker Symbol:
ƒ Shares in Issue:
ƒ Share Price:
ƒ Market Cap:
ƒ Funding
Significant Shareholders◊
LSE : MTL
269.7M (295.6M F-D) ƒ Solomon Capital Ltd 44.10%
13p ƒ Williams de Broe 8.65%
£35.06M / $52.79M ƒ Baker Steel Capital Managers 6.73%
£3.7M raised Jan 2009 ƒ Allianz Cornhill Insurance 4.45%
£12M raised in May 2009

Liquidity

ƒ Approx 500,000 shares traded per day

ƒ Around 40% of share capital freely traded
Share Price (Pence)

Volume
◊ Data as at 31.01.2010 * Data correct 05.03.2010
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Runruno Project Location

Approx. extent of
volcanic complex

Area containing
current resource -
~20% of total
Offsite Infrastructure

Road – upgrade allowed

along whole 30km length.
Currently passable all year.

Airfield – Bagabag airfield

10 miles north of Solano

Power supply – switch yard in

Bayombong will be the origin for
the new 69Kv line to site, running
along the new road

EP boundary

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Project Infrastructure

Access road
• All weather national road access to site – 28 km
• Upgrade allowed
Power
• Local access to national grid
• Switch yard with capacity located at Bayombong
• 35km dedicated line to be constructed to site
• Magat hydro scheme located 35 miles north
Tailing Storage
• Tailing solution identified adjacent to plant
• Permanent valley fill model
Accommodation
• Senior and professional staff housed in Solano
• Rostered operators camp based
• Local employees – bussed to site daily
Communications
• Direct access to the Philippine communication
network at Solano
Water supply
• Process water from local river systems
• Potable water treated at site
• Waste water – treated at site before release

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Resource Statement

November 2009 Resource

• Total resource currently 1.5Moz gold and 25.4Mlb molybdenum

• Resource reinterpreted by Mining Associates Pty in Q3 2009
• Based on 650 holes for 92,898m, 430 more holes than Oct 2008 (32,153m)
• 56.66% of resource in M&I (37.75% previously)
• 107% increase in Measured resource
• Only 43% of resource remains within Inferred category

Tonnes Gold (Au) Molybdenum (Mo)*

Resource
in Ounces in Pounds in
Category g/t ppm
millions thousands millions
Measured 9.1 1.92 560 650 13.0
Indicated 5.0 1.81 290 425 4.7
Inferred 10.4 1.94 650 335 7.7
Total 24.5 1.91 1,500 470 25.4

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NE extension

JORC classification of resource

Resource Extension
Inferred B
• Resource remains open to the north east
Inferred A
• Priority to convert Indicated to Measured and Inferred to
Indicated Indicated
• Possible fault running parallel to Malilibeg
Measured

Known fault
Possible fault running parallel to Malilibeg
Approximate pit outline

W-E section through resource

Malilibeg fault

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Mining
Mining Estimates
• Head grade approx 1.91g/t Au, 470ppm Mo
• 10% dilution applied, 10% mining loss allowed
• Mining lower cut off grade 0.3g/t Au
• Production - 100,000oz Au and 1Mlb Mo
• Life of mine strip ratio 6 : 1 or less
Mining Methods
• Open cut, truck and shovel operation
• Ore transported over Sulong river to crusher
• Waste rock stored in pit where possible
• Tailings dam site within EP boundary
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 Gold and Molybdenum Recovery

ƒ Ore contains free and refractory gold and

molybdenite

ƒ Gold circuit demonstrated by extensive testwork

• Gravity recovery – min 30% of gold
• Flotation to gold rich concentrate
• Biox® to oxidise sulphides
• Carbon in leach to recover gold to doré
• Cyanide destruct and tailing neutralisation
• Tailings stored in purpose constructed facility

ƒ Moly circuit
• Method to recover moly dissolved during the
BIOX® process being developed
• Work underway to confirm the application of
activated carbon or ion specific resin columns to
recover moly to a saleable product
• Circuit will be modular to the gold circuit

ƒ Testwork undertaken by Metcon, Burnie, Ammtec,

Optimet, Goldfields and SGS (SA) laboratories

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Pilot Plant

ƒ Integrated piloting of process underway

ƒ 10 tonnes of drill sample being piloted through:
• Gravity and flotation
• Biox® and neutralisation
• CIL to recover gold
• Molybdenum recovery
• Cyanide destruction, tails settling, compaction and
chemistry
ƒ Goldfields managing pilot plant
ƒ Undertaken in SGS’ laboratory in Johannesburg Flotation pilot plant
ƒ Reports March 2010
Thiobacillus ferrooxidans bacteria

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 FTAA and Permitting

Outline of an FTAA:

• FTAA is a partnership between the mining company and

Philippine Government
• Designed to attract foreign investment to the country while
developing the resource in a responsible manner
• Valid for 25 years once granted, and can be renewed for a
further 25 years
• Allows 100% foreign investment, which the alternative
MPSA does not, simplifying operations in the future.
• Legality of the FTAA is well established and cannot be
challenged – Supreme Court Final Judgment
• Investment of at least $50M on local infrastructure and
development is required
• Any arbitration will be conducted under International Law
at the Singapore International Arbitration Centre
• Also grants other rights over the area, such as access,
water use, land occupation as and use of natural materials

Progress to date:
• FTAA application process began in January 2008
• Endorsed by Secretary Atienza of the DENR to the Office of the President in March 2009
• Jonathan Beardsworth met HE President Arroyo to discuss progress in September 2009
• FTAA granted in full in October 2009
• Metals Ex awarded one of only 4 FTAAs granted to date

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Community Support and Project Acceptability

ƒ The project has been endorsed by:

• Municipal Mayor Aurelio S. Salunat
• Municipal Council, Quezon, Nueva Vizcaya
• Runruno Barangay Captain & Council
• All 11 downstream Barangay Officials, Quezon, Nueva Vizcaya
• Direct endorsement from the majority of the residents of Runruno
• All Irrigators Association of Quezon, Nueva Vizcaya

ƒ Awards and Commendations:

• Mining Journal ‘Outstanding Achievement Award’ November 2007
An emotional Dr. Ernesto Mendoza and his wife
• Special Award to Dr Ernesto Mendoza
Nanette receive the “Special Award” from Michael
• ‘Kablikat Skills Development Award’ – August 2008 Portillo at the Mines & Money Awards”, November
• Presidential Mineral Industry Environment Award 2007.
• November 2008
• Mining Forest Award
• November 2008
• Community Development Initiative Award at Asia Mining Congress Sustainability Awards
• March 2009

ƒ MGB Regional Director Albert Jacildo reported, during the visit of DENR Secretary Lito Atienza in October ‘07 to Nueva
Viscaya, that “there are no issues raised against the project”

ƒ MGB Regional Director Albert Jacildo also commended MTL for it’s outstanding community development and information
programme

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Community Relations

Education & Training

• Provision of 21 teachers including school supplies and equipment
• Introduction of Basic Literacy program
• Run classes for 40 learners in partnership with Dept of Education

Health & Nutrition

• Feeding program for undernourished children
• Provision of medical services and first aid training

Skills Development
• Welding course for 30 youths, now employed by Korean ship builder
• IT scholarship program
• Cosmetology and hair science
• Rattan furniture making
• Baking and culinary art
• Basic electrician course
• Meat & food processing
• Lantern making using indigenous materials

Infrastructure Progression
• Constructed day care building & community training centre
• Constructed & repaired 11 bridges in partnership with the Barangay
• Provided potable water facilities and irrigation hoses to farmers

Employment Generation
• Provide direct employment for nearly 300 individuals
• At least 106 students benefited from the summer job program

MGB assessment: “The MTL Runruno Gold Project at Barangay Runruno is a 95% socially acceptable project”

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 Geological Model

High level copper leakage zones

located at top of mountain
Possible continuation of
mineralisation around
edge of dome?

Current resource area

consisting of mineralised
lenses dipping outward

Copper-gold
porphyry target

In short, the Runruno gold deposit is remarkable

in terms of its shared characteristics with other
alkaline epithermal deposits, including Cripple
Creek, Colorado, and its additional potential as
MTL’s exploration activities continue and expand”
Fault formed around edge of
dome containing current deposit
“Significant potential for additional discoveries of
mineralisation seems obvious”
(Dr Eric Jensen PhD – February 2008)
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Exploration Potential - Soil Geochemistry

ƒ Gold-in-soil anomalies
scattered over the
sampled area – similar Further prospective
to Cripple Creek’s areas yet to be
historic mines explored

ƒ Soil sampling ongoing

ƒ Clear potential to
expand on current
resource base

ƒ Only around 20% of the

volcanic complex has
been explored in detail

1.5Moz gold and

24.5Mlb moly

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Step-out drilling

ƒ Three diamond holes were completed in late 2009, 700m SE of the most
southerly known mineralisation

ƒ The holes intersected a broad flat westerly dipping zone of alteration hosting
anomalous gold and high grade molybdenum mineralisation in discrete lenses

ƒ Style of mineralisation directly analogous to the Runruno deposit indicating

potential of mineralised system

ƒ Mineralisation closely related to a north striking fault structure running parallel

300m to 400m east of the Mallilibeg fault which is directly related to the Runruno
deposit

ƒ This fault structure has been traced to continue over 2,000m north of the three
holes reported

ƒ Further drilling to test this zone to be completed in 2010

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Summary

ƒ World class gold project enhanced by:

• Proven management
• FTAA permit in place
• Independently verified resource
• Strong potential to expand resource
• Valuable moly by-product
• Outstanding community relations and local support
• Excellent infrastructure

ƒ Currently trading at ~$35/oz

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Appendices

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Board

Jonathan Beardsworth Former investment banker focused solely on the mining and metals sector with Standard Bank, and previously
Chief Executive Officer with Warrior International. Was head of the London office of Standard Bank’s Mining and Metals team with
additional responsibility for Moscow and Shanghai.
Ian Holzberger Over 35 years experience in the base and precious metals mining industry. Between 1997 and 2007 he was
Executive Chairman & managing Director of Highlands Pacific, a company listed on the Australian Stock Exchange with operations in
Project Director Papua New Guinea. He has experience of a wide range of management, operational, mine development and
feasibility study roles. He successfully completed the feasibility studies on the Ramu, Frieda River and Kainantu
projects, and subsequently oversaw the development, financing, construction and commissioning of the Kainantu
gold mine. He is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of
Geoscientists.
Jonathan Pearson Jonathan has forty years experience in banking including the position of CEO with Standard Chartered Merchant
Non Executive Director Bank Asia. Most recently at Standard Bank Plc he was responsible for the Bank`s activities in Europe, the Middle
East and Central Asia. Jonathan had significant exposure to the Standard Bank`s mining finance, precious metals
trading and hedging activities. He is also chairman of the remuneration committee and a member of the audit
committee.
Tim Dean Tim joined the Board as a Non-Executive Director following the January placing to Solomon Capital. Mr. Dean is a
Non Executive Director Director of Solomon Capital Limited, an Associate of the Institute of Chartered Accountants in England and Wales
and has a Masters Degree in Engineering Science from Oxford University.

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Management

Craig Watkins Craig is a qualified engineer with over 15 years experience in the mining industry. He has spent much of his
Country Manager career working in South East Asian emerging markets. Most recently he worked as a consultant with Ausenco Ltd.
Craig is responsible for the design and control of the infrastructure for the project.
Rizaldy Palomaria Zaldy is a senior geologist with more than 25 years experience in the mining and exploration industry in the Asia
Chief Geologist Pacific region (Philippines, Indonesia, Mongolia) and with vast experience in epithermal gold and porphyry copper
style mineralization.

Ernesto Mendoza Ernesto is a specialist in Community Relations with over 35 years experience in the mining industry in the
Community Relations Philippines. He was a key player in securing agreements with the indigenous tribes in one of the only two FTAAs
signed to date; and was responsible for the approval of the first ECC under President Arroyo’s Administration. He
was a senior executive with various Australian companies including WMC, Lafayette, and before that with Atlas
Mining at its copper mines in Toledo City. In 2007 he was the recipient of the Special Award at the Mining
Journal’s Outstanding Achievements Awards for his exceptional service to the community of Runruno in the
aftermath of Typhoon Paeng.
Damien Blyth Damien has 27 years experience in mining, heavy civil construction, mineral & oil exploration and power
Logistics Manager generation. Experience in operational mines holding management positions on projects from green field through
to production. Last position was manager of mining fleets for Australian Contract Mining operations in SE Asia on
a project from bid process to full operation. Also has 16 years experience in Asia, including PNG, Singapore,
Malaysia, and Cambodia and the past 11 years in the Philippines.

Chevy Albo Chevy is a qualified accountant and has been working in the exploration/drilling business since 1997, and before
Finance & Administration that 5 years with US subsidiary company Fritz Philippines Inc., a freight forwarding company, and 4 years with
Fiesta Motor Philippines. Chevy has also worked in liaison with offshore consulting accountant firms in Sweden,
Malaysia and Australia. She fills the roles of Company Secretary and Treasurer in the Philippine subsidiary
companies

Querubin Rebong Querry has 20 years experience in mineral exploration and mine geology, and was recently involved in bankable
Senior Geologist feasibility studies of Masbate Gold Project, and more recently in the Petaquilla Copper Project, Panama Central
America as Supervising Geologist. He also worked for 3½ years on Mt Muro Gold Mine, Central Kalimantan,
Indonesia. He has extensive experience ranging from grass root to advance development stages of exploration
through to mining, including assisting in mine feasibility studies, mineral resource estimations, and underground
grade control monitoring.

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