Metminco : Miraflores - JORC Mineral Resource Statement

ASX ANNOUNCEMENT

ASX ANNOUNCEMENT

21 July 2016

MIRAFLORES MINE DEVELOPMENT JORC 2012 MINERAL RESOURCE STATEMENT Metminco Limited ("Metminco" or the "Company") (ASX: MNC; AIM: MNC) announces that it has received a mineral resource estimate for the Miraflores gold deposit in Colombia that has been prepared by Metal Mining Consultants ("MMC") based in Denver, USA, in accordance with the guidelines of the JORC Code (2012 Edition). This mineral resource estimate replaces the previous NI 43-101 statement completed by MMC that was released to the market on 7 March 2016.

The JORC 2012 Mineral Resource Estimate for the Miraflores deposit (using a 1.2g/t Au cut-off grade) is as follows:

Measured Mineral Resources 2.95Mt @ 2.98g/t Au and 2.5g/t Ag

Indicated Mineral Resources 6.24Mt @ 2.74g/t Au and 2.89g/t Ag Measured & Indicated Mineral Resources 9.19Mt @ 2.81g/t Au and 2.76g/t Ag Inferred Mineral Resources 0.18Mt @ 1.44g/t Au and 5.49g/t Ag

MMC previously estimated a NI 43-101 Measured and Indicated Mineral Resource of 72.6Mt at a gold and silver grade of 0.78g/t and 1.52g/t respectively, using a cut-off grade of 0.27g/t gold. The mineral resource estimate was based on 25,884 metres of drilling in 73 diamond drill holes and 236 metres of underground channel samples. The mineral resource estimate provided for both an open pit and an underground mining operation.

More recently, Metminco requested that MMC produce a mineral resource estimate in accordance with the guidelines of the JORC Code (2012 Edition), but for an underground mining operation only, and hence a higher cut-off grade of 1.2g/t gold was applied. The Measured and Indicated Mineral Resources estimated by MMC contain 832,000 oz Au and 817,000 oz Ag at the 1.2g/t gold cut-off.

SRK are currently completing a revised mine plan and schedule for the underground mining option which will be available shortly.

Minera Seafield SAS ("Minera Seafield") is now a wholly owned subsidiary of Metminco and has been renamed Miraflores Compania Minera SAS.

Mr William Howe, Managing Director, commented: "This resource statement and the pending mine plan will allow the Company to fast track the completion of the Feasibility Study. A final decision on whether the mine will be developed as a stand-alone underground operation or a combination of an open pit and underground mine as previously contemplated, will be taken once the revised underground mine plan has been completed.

The decision on the development option will take cognisance of community and environmental factors, as well as financial factors. The smaller surface footprint of the underground only mining option remains a very attractive option."

Metminco Limited ABN 43 119 759 349 Level 6, 122 Walker Street, North Sydney, NSW, 2060

ASX Code: MNC.AX; AIM Code: MNC.L Tel: +61 (0) 2 9460 1856; Fax: +61 (0) 2 9460 1857

www.metminco.com.au

Introduction Geology

The Miraflores deposit comprises a magmatic-hydrothermal breccia pipe located within a fertile hypabyssal porphyry cluster breccia-pipe. The breccia pipe is sub-vertical and cylindrical with surface dimensions of 250m x 280m with a known vertical extent of 500m to 600m, but open at depth, with clear contacts with the adjacent basalts of the Barroso Formation. A NNW - SSE fracturing system appears to control the formation of the breccia.

Four types of breccia have been distinguished, namely a Red Breccia, a Green Breccia, a Grey Breccia and a White Breccia. The contacts between the different types of breccias are gradational or transitional. The White Breccia occurs in irregular, elongated vertical zones or pockets, surrounded by Green or Grey breccia's, and is interpreted to have formed later than the other breccias. Furthermore, hydrothermal fluid appears to have washed out the rock flour matrix within the White Breccia, or replaced it, with deposition of gangue and sulfide minerals. Of the four breccia types, the Red Breccia contains the highest gold grades with grades of up to 429g/t gold in the vicinity of fault / vein zones.

Steeply-dipping high-grade veins are present, which represent the youngest mineralizing event at Miraflores. Three groups of veins have been identified based on strike direction, namely Group 100 comprising 3 veins with an average strike/dip of 293°/-87°; Group 200 comprising 5 veins with an average strike/dip of 308°/-82°; and Group 800 comprising 13 veins with an average strike/dip of 340°/-82°. Of these veins, Group 100 is the oldest, and the Group 800 is the youngest.

The main mineralization trends of the high-grade veins vary in strike from 325° to 10° and 280° to 60°, and vary in dip from being vertical to dipping 70°E. The veins are defined by a narrow mineralized core (10cm to 60cm) and a wider mineralized halo (1m to 5m). The narrow core consists of increased amounts of sphalerite, galena, pyrite, chalcopyrite, and fine clay. The wider mineralized halo is defined by weak to moderate mineralization along the margins of breccia fragments. The intensity and width of the mineralized halo is controlled by the porosity and permeability of the wall rock. Assay values as high as 429g/t Au have been reported for the veins, with numerous sample values ranging from 10g/t Au to grades exceeding 100g/t Au.

The younger sub-vertical, northeast dipping veins, that cross-cut the breccia are characterized by the development of argillized material that contains large quantities of pyrite, chalcopyrite, sphalerite and galena, with occasional visible gold. The sulfides are present as coarse particles ranging from 100 to 200μm (occasionally greater than 200μm). The lateral continuity of the NNW-SSE structures is important, and is clearly recognized in prior exploitation workings, where high gold grade mineralization can be followed over a strike length in excess of 150 metres (and more than 80 metres in height), with limited displacement by younger structures. Intersection points of cross-cutting structures (veins) form high gold grade 'shoots' of variable dimensions, which can be observed in the underground workings.

Mineral Resource Estimate General

Three diamond drilling programs have been carried out at Miraflores over the period 2006 to 2013 consisting of 73 drill holes totalling 25,884m.

• Kedahda (4 drill holes totalling 1,415m)

• B2Gold (6 drill holes totalling 2,210m)

• Minera Seafield (63 drill holes totalling 22,259m)

The modelling of the Miraflores deposit has been undertaken using Vulcan™ and Leapfrog™ Software. All of the exploration sampling has been used in the geological modelling process. The drill hole database was de- surveyed, transformed and validated in the Vulcan™ software, which was then used for the modelling of the mineral resource.

The statistics have been completed using a combination of Vulcan™, Microsoft Excel™ and Sage™ 2001. Geostatistics have been completed in Vulcan™ and Sage™ 2001 and grade interpolation has been undertaken in Vulcan™. Compilation of the final model was undertaken in Vulcan™. Vulcan™ software is similar to other mining software systems and relies on a block modelling approach to represent deposit as a series of 3-D blocks to which grade attributes, and virtually any other attributes can be assigned. The software provides numerous means by which attributes can be assigned, and optimization routines are provided that

allow block splitting, such that complex deposit outline details are not lost or smoothed out by regular size blocks.

Drill hole assays for Miraflores were composited using 2m down the hole composite lengths. A total of 13,194 two-metre composites were constructed, starting at the collar of the drill hole. Composite intervals less than 0.75m in length were merged with 2m composites however; some composites less than 2m do exist, as the composites were constrained by geological boundaries.

Basic statistics were compiled for both gold and silver grades in each mineralized lithology and all 21 veins developed within the Miraflores deposit. Capping statistics were determined using histogram and log probability plots of all gold composites in the breccia. A capping value of 45g/t was determined for the breccia, whereas it varied from 0 to 17g/t for the veins. Silver grades were not capped as the silver grades at Miraflores are very low.

Block Model

The resource model for Miraflores was constructed with Vulcan™ software using a block model. All of the required information about the deposit is stored in each individual block. This includes estimated characteristics of gold and silver and statistical characteristics such as number of samples used in an estimate, distances to the nearest sample and the number of drill holes used. Geological triangulations were also used to identify the rock type of each block, and these structures also controlled the sub-blocking in Vulcan™ along their boundaries. Geological codes stored in the block model were also used to assign the density within specific geological boundaries.

Grade Estimation

The Inverse Distanced cubed (ID3) grade estimation methodology was used to estimate gold and silver grades. For the breccia, basalt and saprolite, the variography was modelled to determine appropriate search ellipsoid orientation and search distances, whereas for the 21 veins, the search orientation varied depending on the orientation of the vein.

Density

A total of 2,100 specific gravity measurements were used to define the density of each lithological block in the model.

Mineral Resource

As of 02 April, 2013, MMC estimated a Measured and Indicated Mineral Resource of 72.6mt at a gold and silver grade of 0.78g/t and 1.52g/t respectively using a cut-off grade of 0.27 g/t gold in accordance with NI 43-

101. The mineral resource was based on 25,884 m of drilling in 73 diamond drill holes and 236 metres of underground channel samples. The mineral resource estimate provided for both an open pit and an underground mining operation.

More recently, MMC were retained by Metminco to produce a mineral resource that is estimated in accordance with the guidelines of the JORC Code (2012 Edition), but which only provided for the exploitation of the Miraflores deposit via an underground mining operation, and hence a higher cut-off grade of 1.2g/t gold. The revised mineral resource estimate is summarized in Tables 1 and 2 below.

Table 1: Mineral Resource Estimate - Miraflores Gold Project (MMC July 2016).

Classification	Tonnes (000's)	Au (g/t)	Ag (g/t)	Oz Au (000's)	Oz Ag (000's)
Measured	2,948	2.98	2.50	282	237
Indicated	6,245	2.74	2.89	549	580
Measured &Indicated	9,193	2.81	2.76	832	817
Inferred	180	1.44	5.49	8	32

Note:

1. Based on a gold cut-off grade of 1.2g/t.

2. Rounding-off of numbers may result in minor computational errors, which are not deemed to be significant.

3. Refer Appendix A - Table 1 requirement in support of the JORC Code (2012 Edition).

Table 2: Sensitivity of Mineral Resource to varying gold cut-off grades.

Measured and Indicated Mineral Resource (Breccia and Veins)
Cut-off (Au g/t)	K Tonnes	Au (g/t)	Au (Koz)	Ag (g/t)	Ag (Koz)
0.60	23,455	1.61	1,211	2.13	1,606
0.70	18,983	1.83	1,114	2.27	1,383
0.80	15,868	2.04	1,041	2.39	1,222
0.90	13,571	2.24	978	2.52	1,098
1.00	11,761	2.44	923	2.62	991
1.10	10,361	2.63	875	2.71	903
1.20	9,193	2.81	832	2.76	817
1.30	8,342	2.97	797	2.83	759
1.40	7,614	3.14	767	2.89	708
1.50	6,966	3.29	737	2.96	663

Inferred Mineral Resource (Breccia only)
Cut-off (Au g/t)	K Tonnes	Au (g/t)	Au (Koz)	Ag (g/t)	Ag (Koz)
0.60	1,461	0.77	36	3.45	162
0.70	342	1.14	13	3.79	42
0.80	260	1.27	11	4.25	36
0.90	212	1.37	9	4.97	34
1.00	182	1.43	8	5.45	32
1.10	181	1.44	8	5.47	32
1.20	180	1.44	8	5.49	32
1.30	178	1.44	8	5.53	32
1.40	77	1.54	4	2.59	6
1.50	35	1.67	2	0.93	1

Future Work

The Company will use the JORC 2012 mineral resource estimate, as well as the work completed by SRK, as the basis for the conduct of a Feasibility Study, which is scheduled for completion in January 2017.

The Company retained the services of SRK Consulting (U.S.), Inc. ("SRK") to complete a detailed Gap Analysis of key information required to progress the project through to the completion of a Feasibility Study. Although a Feasibility Study was previously initiated Minera Seafield using SRK, it ended abruptly in late 2014 with the appointment of a receiver over its parent company, Seafield Resources Limited.

SRK has been retained to complete an underground only mining study (using paste backfill) as an alternative to the combined open pit and underground mining option developed previously. The results of the study are expected shortly.

William Howe Managing Director