MetalsTech Limited: Robust Scoping Study Delivered at Sturec

3 August 2022 - MetalsTech Limited (ASX: MTC) (the Company or MTC) is pleased to announce the results of the Scoping Study for the Company’s 100% owned Sturec Gold Mine (Sturec or the Project) located in central Slovakia, between the town of Kremnica and the village of Lučky, 17km west of central Slovakia's largest city, Banská Bystrica, and 150km northeast of the capital, Bratislava. The Project economics and technical viability are highly encouraging, highlighting its potential to become a low cost gold concentrate producer.

The Company commissioned Measured Group Pty Ltd (Measured Group), an independent consultant, to complete the Scoping Study. The Scoping Study is based on the Measured Group JORC (2012) Mineral Resource model (2021) which includes drilling results from Drill Chamber #1 and #2, but excludes more recent drilling from Drill Chamber #3. This study was aimed at developing scoping study level accuracy evaluations on four mine development options based on opencut mining, underground mining and a combination of the OC and UG mining. Measured Group considered a number of development options for the Sturec Gold Mine, from which it was determined that a combined OC and UG mining operation with a plant throughput of 1.5 Mtpa and mine life of 15 years using tailing co-disposal in waste dumps is the highest value development option.

“Excellent Recoveries and Robust Economics position Sturec as a potentially Low OPEX Producer of Gold-Silver Concentrate from Combined Open-Cut and Underground Mining”

MetalsTech Limited (ASX: MTC) (MTC or the Company) is pleased to announce the results of a Scoping Study (Study) on the Company’s 100% Sturec Gold Mine (Sturec or the Project) located in central Slovakia, between the town of Kremnica and the village of Lučky, 17km west of central Slovakia's largest city, Banská Bystrica, and 150km northeast of the capital, Bratislava. The Project economics and technical viability are highly encouraging, highlighting its potential to become a low cost gold-silver concentrate producer.

HIGHLIGHTS:

The Study confirms the Sturec Gold Mine can support a Base Case scenario with a combined open cut and underground mining operation delivering gold and silver concentrate production of ~1Moz AuEq production over an initial mine life of 15 years for the open cut operation and 10 years for the underground operation with a plant production capacity of 1.5Mtpa:

-          Life of Mine (LoM) operating cost estimate of US$754/oz AuEq (AISC) delivering robust operating margins – based on a forecast gold price of US$2,014/oz (Canaccord LT Forecast), the Sturec Gold Mine exhibits an operating margin in excess of 267%

-          Based on current spot gold price of US$1,780/oz the Sturec Gold Mine will deliver an operating margin of US$1,026/oz and will deliver an NPV(8%) of US$360M (A$512M)

-          Total LoM capital investment for the open cut and underground operation, process plant and infrastructure estimated at US$82.8 million (including contingency, owners’ cost and sustaining capital)

-          Pre-production capital of US$64.5M based on a significant portion of process plant infrastructure being built ex-China (Yantai Jinpeng Mining Machinery Co., Ltd (Jinpeng))

-          Total undiscounted free cashflows of US$1,094.8M (A$1,574M), pre-tax

-          Total combined O/C and U/G LoM production of 21.2Mt @ 1.63 g/t AuEq equating to total combined production of 1,007,000 oz AuEq over a 15 year mine life for the O/C and 10 year mine life for the U/G with a LoM average open cut strip ratio of 0.9:1 (t waste : t ore)

-          Pre-tax Net Present Value (NPV8%) of US$591 million (A$846 million) and internal rate of return (IRR) of 102.5%

-          Scoping Study is of a very high quality with 82% of the mining inventory based on Measured and Indicated Resources, with only 18% in the Inferred category

-          The Scoping Study has been designed with the latest ESG principles addressing previous concerns around the use of cyanide and minimising environmental and surface footprint

-          JORC (2012) Mineral Resource Estimate at the Sturec Gold Mine of 38.5Mt @ 1.23 g/t Au and 8.8 g/t Ag, containing 1.522Moz of gold and 10.93Moz of silver using a 0.26g/t Au cut-off and within an optimised open pit shell:

• An additional 148kt @ 3.55 g/t Au and 12.6 g/t Ag containing 17koz of gold and 60koz of silver using a 2.00g/t Au cut-off sits outside the optimised open pit shell on an underground mining basis

• JORC (2012) Mineral Resource includes a higher-grade subset of 6.25Mt @ 3.27 g/t Au and 19.4 g/t Ag containing 658Koz of gold and 3.89Moz of silver using a cut-off grade of 2 g/t Au

-          Significant JORC (2012) Exploration Target* (in addition to JORC (2012) Mineral Resource) of between 37.9Mt and 58.2Mt at an average grade of between 1.79g/t AuEq and 2.75g/t AuEq for total ounces of between 2.18M oz AuEq and 5.15M oz AuEq

-          The Production Target within the Scoping Study does not take into account the JORC (2012) Exploration Target*

-          Scoping Study is based on the existing JORC (2012) Mineral Resource and does not take into account the current drilling from Drill Chamber #3 or #4 (just commenced) – demonstrating the significant updside in the economics and size of deposit

-          The Company is currently awaiting assay results for UGA-31 to UGA-42 (inclusive) – all holes that sit within the current JORC (2012) Mineral Resource, that will increase its confidence

-          Resource upgrade anticipated following completion of the Phase IV diamond drilling campaign

-          Sturec Gold Mine to progress to Pre-Feasibility Study (PFS) following completion of Phase IV diamond drilling program and resource upgrade

Commenting on the exceptional results of the scoping study for the Sturec Gold Mine, Executive Director of MetalsTech, Mr Gino D’Anna stated:

“The completion of the Scoping Study marks a significant milestone achievement for the Company and brings with it the rebirth of one of Slovakia’s historic mining operations reinvigorating opportunity for the local communities within the region.

The Scoping Study has confirmed the mining method, technical aspects and the economic viability of a 1.5Mtpa mining and processing operation. The design basis has been responsive to previous concerns, focusing on generating a high-value gold concentrate without the use of cyanide, whilst also minimising environmental footprint and minimising surface area disturbance. The latest ESG principles were adopted during the design basis, including monitoring truck movements to and from the mining operation to reduce noise and traffic and also ensuring that any blasting activities were done at times which would minimise any impact on local communities.

The Scoping Study has demonstrated potential for a robust mining operation at Sturec with a forecast AISC of US$754/oz AuEq and a capital payback of 2.3 years (post-tax) from first production.

The Scoping Study at Sturec is of a very high quality with 82% of the mining inventory based on Measured and Indicated Resources, with only 18% in the Inferred category. Only two-thirds of the JORC (2012) Mineral Resource has been mined with the significant JORC (2012) Exploration Target demonstrating further upside.

The Company is continuing on with its drilling activities at Sturec from Drill Chamber #4 following which it is anticipated that a resource upgrade will be announced and the Sturec project will move towards a PFS.

We look forward to providing shareholders with further updates as we progress.”

A copy of the announcement can be found on the following link:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02549371-6A1103016?access_token=83ff96335c2d45a094df02a206a39ff4

ENDS

For further information, contact:

Gino D’Anna

Director

M +61 400 408 878

[email protected]

Nathan Ryan

Investor Relations

M +61 420 582 887

[email protected]