Metallum Limited Suite 5, 62 Ord Street West Perth WA 6005 I Phone +61 (08) 9322 4328 I Fax +61 (08) 9322 5230 I www.metallum.com.au

Quarterly Activities Report – September 2017

ASX ANNOUNCEMENT 30 October 2017

Perth-based exploration company Metallum Limited (ASX: MNE) provides the following activities and cashflow report for the quarter ended 30 September 2017. Kopore Project During the quarter, the Company announced its intention to acquire the Kopore Botswana Copper/Silver Project (Kopore Project) via the acquisition of 100% of the existing shares in Global Exploration Technologies Pty Ltd (to be renamed “Kopore Metals Australia Pty Ltd”) (Kopore) in consideration for the issue of 137,500,000 shares in the Company (ASX announcement 30 August 2017) (Transaction). On 6 September 2017, the Company announced that both Kopore and the Company had satisfactorily completed its due diligence enquiries, thereby satisfying the due diligence condition precedent of the Transaction. The acquisition is subject to remaining material conditions, with the Transaction terms subject to shareholder approval as summarised in the Company’s 2017 Notice of Annual General Meeting dated 25 September 2017 and released on ASX on that date. The Annual General Meeting will be held on 31 October 2017. The Kopore Project consists of a portfolio of eight 100% owned prospecting licences with a total area of 5,161km2 in the western part of the Kalahari Copper Belt. The Kalahari Copper Belt in north-west Botswana is a relatively underexplored and emerging world class copper province with total reported Mineral Resources of over 7Mt of contained Cu (14Bn lbs Cu) and 260Moz contained silver (see Figure 1), and located in one of the most highly ranked mining investment jurisdictions in Africa. Figure 1 - The Kopore Kalahari Copper Belt Projects

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The Company agreed to provide Kopore a loan of $148,300 as initial funding for Kopore to conduct a 5,032-line kilometre airborne magnetic and electromagnetic (EM) survey over an approximate area of 1,091.7km2 on the Kopore Project with the aim of delineating domal structures, which have been recently interpreted (ASX announcement 25 September 2017). The airborne magnetic and EM survey will solely focus on the GWD1 potential domal target (Figure 2). NRG Geophysics of South Africa, who has conducted recent airborne geophysical surveys across the Kalahari Copperbelt, has been engaged by Kopore to undertake the airborne magnetic and EM survey. Subject to potential permitting and weather delays, NRG Geophysics are planning to mobilise in November 2017, with results expected in early February 2018.

Figure 2 - Kopore Ghanzi West Project Map with Key Targets Kopore also intends to commence a ground magnetic and EM survey over the Kopore Copper/Silver Project’s Ghanzi West GW1 and GW2 soil anomalies in October 2017.

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The planned ground geophysical program will target selected areas of two 10km strike length copper soil anomalies, which to date are virtually untested. The survey will comprise two grids at GW1 and GW2, with a total line kilometre of 7.2km and 13.5km respectively. The Company and Kopore have agreed that the ground magnetic and EM surveys will be funded by Kopore. Mobilisation of a geophysical survey crew has been scheduled to occur in late September, with completion and survey results in November 2017. Teutonic Project As announced on 8 August 2017, a Moving Loop Electromagnetic (MLEM) survey was completed during the quarter at the Teutonic Project in Western Australia. The Company engaged the services of independent geophysical consultants to process and model the raw MLEM survey data. Following processing and modelling, the information was integrated into the exploration model developed by the Company to target Volcanogenic Massive Sulphide (VMS) base metal mineralisation within the interpreted favourable host sequences. This work has identified priority MLEM conductors along strike to the northwest of the Company’s Mustang prospect.

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Figure 1– Regional geology and location of the Teutonic Project and Mustang Conductor showing proximity to the Jaguar and Bentley VMS deposits. Resource figures for Bentley and Jaguar sourced from Independence Group’s website. Metallum tenements outlined in red, approximate area of recent MLEM survey in yellow

MLEM Anomalies The MLEM survey has identified 15 geophysical anomalies which occur within a NW-SE trending corridor, running along strike from the previously identified and drilled Mustang Prospect (ASX announcement 7 January 2016). The geophysical anomalies are interpreted to be associated with the contact between sedimentary rocks and a package of mafic to felsic volcanic rocks. The anomalies have been grouped into four main target zones containing ’clusters’ of priority EM anomalies. Further processing including three-dimensional conductor plate modelling was completed on anomalies in these target areas to provide a spatially referenced model for future drill planning.

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Figure 2 - MLEM anomaly areas coloured by priority, where red = highest priority 1 and light blue = lowest priority 4, overlain on a magnetic greyscale colour image (TMIRTP – 1VDAGC). Tenement E37/1037 is shown by the yellow outline and the Mustang Prospect is shown by the white star. The late EM time channel anomaly associated with

the Mustang Prospect is shown by the pink outline.

Target areas 3 and 4 are favoured for initial drill testing as they are spatially associated to a discrete magnetic anomaly located on the interpreted contact between sedimentary and mafic to felsic volcanic rocks. Other known VMS deposits in the region are located at or near similar geological contacts and the magnetic anomaly may represent an accumulation of pyrrhotite (sulphide) or magnetite which can be associated with VMS style mineralisation. The Company’s interpretation of the MLEM survey data has been largely focussed on integration of the available magnetic data and the MLEM data, as little outcrop has been located along the interpreted VMS corridor trend. This is due to the area being covered in a blanket of transported regolith with no outcrop existing. Work is ongoing to further resolve the geology and regolith over the area to allow more accurate EM conductor plate modelling for future drill targeting.

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The next stage of work will comprise of compilation of all available historical geological mapping and drilling data to support a lithological and structural interpretation study to verify bedrock geology, along with the preparations required for a drilling program. Pump Station Gold Target E37-1281 Following a review of publicly available data, a new gold target (Pump Station Target) has been identified which shows geophysical similarities to other economically significant gold deposits occurring along the Keith-Kilkenny Tectonic Zone (KKTZ). The tenement E37-1281 is located approximately 10km north of Leonora, adjacent to the KKTZ (ASX announcement 12 September 2017). Comval Project The Company continues to hold the Comval Copper Gold Project in the Philippines on care and maintenance while it seeks partners to assist in progressing the project. The Company’s interest is now being diluted in accordance with the original acquisition terms and the Company’s joint venture partner Rizal Resources Limited is taking over management of the JV. Corporate On 17 July 2017, the Company announced that the following unlisted options expired unexercised: • 37,501 options exercisable at $6.00 each on or before 15 July 2017; and • 222,223 options exercisable at $6.00 each on or before 30 July 2017. The Company’s 2017 Annual Report and 2017 Notice of Annual General Meeting were released on 22 September 2017 and 25 September 2017 respectively. No other significant corporate matters occurred during the quarter. Outlook Concurrently with its work on the Teutonic Project and its proposed acquisition on Kopore Project, the Company continues to seek and review complementary resource and other projects.

For further information please contact:

Winton Willesee Chairman Metallum Ltd P: + 61 8 9322 6424

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About Metallum Limited Metallum Limited (ASX: MNE) is an Australian-based company that acquires and develops copper and gold projects around the world. The Company currently has interests in its Australian-based Teutonic Project as well as the Comval Copper Project in the Philippines.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Lyle Thorne (B App Sc (Hons) Member AusIMM). Mr Thorne is a consultant of the Company. Mr Thorne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcement. Tenement Schedule

Tenement

Name

Location Size

(Ha) Grant Date Expiry Date %

Ownership

E37/1037 Teutonic Western Australia 1,613 23/07/2010 22/07/2020 70%

E37/1281 Teutonic Western Australia 954 21/03/2017 20/03/2022 100%

E37/1282 Teutonic Western Australia 2,350 21/03/2017 20/03/2022 100%

EP-000001-00-XI

Comval Mindanao, Philippines 2,171

30/01/2009

(2nd renewal)

29/01/2011 36%

EP -000002-09-XI

Comval Mindanao, Philippines 2,139

15/08/2015

(2nd renewal)

14/08/2017 36%

Notes:

1. EP-000001-00-XI expired on the 29/01/2011. The Company’s Philippines subsidiary has applied to the Philippines

Mines and Geosciences Bureau for a 2 year renewal.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

METALLUM LIMITED

ABN Quarter ended (“current quarter”)

73 149 230 811 30 September 2017

Consolidated statement of cash flows Current quarter $A’000

Year to date (3 months)

$A’000

1. Cash flows from operating activities - - 1.1 Receipts from customers

1.2 Payments for

(38) (38) (a) exploration & evaluation

(b) development - -

(c) production - -

(d) staff costs (32) (32)

(e) administration and corporate costs (90) (90)

1.3 Dividends received (see note 3) - -

1.4 Interest received 1 1

1.5 Interest and other costs of finance paid - -

1.6 Income taxes paid - -

1.7 Research and development refunds - -

1.8 Other (Kopore transaction costs) (3) (3)

1.9 Net cash from / (used in) operating activities

(162) (162)

2. Cash flows from investing activities

- -

2.1 Payments to acquire:

(a) property, plant and equipment

(b) tenements (see item 10) - -

(c) investments - -

(d) other non-current assets - -

+ See chapter 19 for defined terms 1 September 2016 Page 1

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows Current quarter $A’000

Year to date (3 months)

$A’000 2.2 Proceeds from the disposal of:

- - (a) property, plant and equipment

(b) tenements (see item 10) - -

(c) investments - -

(d) other non-current assets - -

2.3 Cash flows from loans to other entities (148) (148)

2.4 Dividends received (see note 3) - -

2.5 Other (provide details if material) - -

2.6 Net cash from / (used in) investing activities

(148) (148)

3. Cash flows from financing activities - - 3.1 Proceeds from issues of shares

3.2 Proceeds from issue of convertible notes - -

3.3 Proceeds from exercise of share options - -

3.4 Transaction costs related to issues of shares, convertible notes or options - -

3.5 Proceeds from borrowings - -

3.6 Repayment of borrowings - -

3.7 Transaction costs related to loans and borrowings

- -

3.8 Dividends paid - -

3.9 Other (provide details if material) - -

3.10 Net cash from / (used in) financing activities - -

4. Net increase / (decrease) in cash and cash equivalents for the period

726 726 4.1 Cash and cash equivalents at beginning of

period

4.2 Net cash from / (used in) operating activities (item 1.9 above)

(162) (162)

4.3 Net cash from / (used in) investing activities (item 2.6 above)

(148) (148)

4.4 Net cash from / (used in) financing activities (item 3.10 above)

- -

4.5 Effect of movement in exchange rates on cash held

- -

4.6 Cash and cash equivalents at end of period

416 416

+ See chapter 19 for defined terms 1 September 2016 Page 2

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter $A’000

Previous quarter $A’000

5.1 Bank balances 411 736

5.2 Call deposits 5 5

5.3 Bank overdrafts - -

5.4 Other (details) - -

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

416 741

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 30

6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

1.2(e) Payments made to a director related entity for company secretarial services and for sub-lease of office premises for the quarter summed $15,000 and $2,659, respectively.

7. Payments to related entities of the entity and their associates

Current quarter $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 -

7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

+ See chapter 19 for defined terms 1 September 2016 Page 3

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8. Financing facilities available Add notes as necessary for an understanding of the position

Total facility amount at quarter end

$A’000

Amount drawn at quarter end

$A’000

8.1 Loan facilities - -

8.2 Credit standby arrangements - -

8.3 Other (please specify) -

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter $A’000

9.1 Exploration and evaluation (585)

9.2 Development -

9.3 Production -

9.4 Staff costs (75)

9.5 Administration and corporate costs (182)

9.6 Other (provide details if material) -

9.7 Total estimated cash outflows (842)

10. Changes in tenements (items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest Interest at beginning of quarter

Interest at end of quarter

10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

10.2 Interests in mining tenements and petroleum tenements acquired or increased

+ See chapter 19 for defined terms 1 September 2016 Page 4

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 30 October 2017 (Company secretary)

Print name: Shannon Coates

Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been

financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

+ See chapter 19 for defined terms 1 September 2016 Page 5

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