Metro Mining Limited (ASX: MMI) (MMI or the Company) announces it is remobilising production and services team back to site from next week.

The target for mining start is 24 March with ship-loading due to commence on 2 April, one or two weeks earlier than normal, when the floating crane barge, TSA Skardon, returns to site after an accommodation refit. The traded bauxite market continues to remain firm after a strong 2022 with Chinese bauxite imports breaking previous records of 126 Million tonnes (Mt), up 17% year on year.

Demand is expected to remain strong in 2023 as alumina capacity increases and as traded bauxite supply is constrained by the exit of Indonesia from the market. This should see prices for Australian bauxite to continue to rise through the year. MMI has agreed offtake agreements for up to 5 Mt for 2023 and has secured Q2 '23 price outcomes approx. 30% higher than CY 2022 across 1.4 Mt of sales. MMI has invested in maintenance and upgrade work through the wet season. Scania and Blake Machinery Group have been making necessary modifications to the new prime mover fleet which will be arriving at site from March. All trailers have received maintenance and additional trailers have been procured. Site maintenance has been focused on the screen grizzly feeders, conveyors and chutes to build on the capital spent in 2022 on screen decks.

The Barge Loading Facility will also have completed a major capacity upgrade from 1500 to 2000 tonnes per hour through chute modification and speed improvement in time for operational restart. The planned production rate is 3.5 to 4 Mt/a in Q2 and then ramping up in Q3 to a 5 to 6 Mt/a rate aligned with the already funded capacity upgrades to the relevant parts of the Bauxite Hills flow sheet. The production estimate for CY 2023 is 4.5 to 5 Mt, with additional sales above the capacity of the first floating crane barge being loaded via geared vessels. MMI has been finalising project engineering, procurement and financing for the remaining elements of the 7 mt/a expansion, the 2nd floating crane barge and enhanced screen solution, and expects to be able to announce an update before the end of March 2023. MMI is also pleased to announce that it has signed an MOU with a third base load customer for offtake commencing in 2024 and ramping up in 2025 to 2 Mt per annum. The counterparty is currently confidential and will be released when further terms are agreed. This is encouraging confirmation of the value proposition of MMI bauxite in the market and is perfectly aligned to MMI's expansion plans to 7 Mt per annum over the next 2 years, to take advantage of the significant inherent economies of scale

Contact:

Tel: +61 (0) 7 3009 8000

FORWARD LOOKING STATEMENT

This announcement contains certain 'forward-looking statements' within the meaning of the securities laws of applicable jurisdictions. Forward- looking statements can generally be identified by the use of forward-looking words such as 'may,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'scheduled' or 'continue' or the negative version of them or comparable terminology. Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements

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