METMINCO LIMITED - ASX2008/10/30 · GRC-001 385001 8028095 328 -75 5 30 25 metres @ 1.75 g/t GRC-004 384988 8028066 328 -60 50 66 EOH 16 metres @ 3.23 g/t GRC-007 384956 8028067

METMINCO LIMITED (ASX CODES: MNC & MNCO) ACN 119 759 349

Level 2, 224 Queen Street, Melbourne, VIC, 3000 Telephone: 61 3 9670 8896 Fax: 61 3 9670 8897

Email: [email protected] Page 1

QUARTERLY ACTIVITIES REPORT for the period ending 30 September 2008

HIGHLIGHTS

• Grants Creek drilling intersects broad gold mineralised zones including 5 metres @ 6.33g/t gold, 10 metres @ 4.12g/t gold and 20 metres @ 2.38g/t gold.

• Drilling for base metals on the Ashburton Project set to commence.

• Further geophysical work at Mulgul reveals near surface conductive horizons.

EAST KIMBERLEY PROJECTS

GRANTS CREEK – North East of Halls Creek, WA - Gold

This project of 14.3km2, covers the historic Grants Patch Mining Centre, 60km north east of Halls Creek. It was one of the earliest gazetted goldfields in Western Australia, but has largely remained undeveloped due to complex ore mineralogy and absence of mining infrastructure. Metallurgical testing has indicated that acceptable gold recoveries are now possible with modern cyanidation techniques.

Previous exploration has largely focussed on the historic workings of the known reefs, with only limited examination on the strike extensions and almost no examination of repetitions within similar lithological horizons.

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Figure 1: Grants Creek drilling cross section GRC09 to GRC011

Following a review of past exploration data, Metminco embarked upon a geochemical sampling program accompanied by detailed geological mapping. This work, along with additional geophysical interpretation delineated new targets for drill testing. There is likelihood of further economic concentrations of gold within quartz reefs that have no surface expression.

Better rock chip results from the sampling program include; 271.7g/t, 104.7g/t (Moodys Prospect) & 56.7g/t gold (Perseverance Prospect).

As recently reported, drilling on the project began in September 2008, with 15 holes over the Perseverance prospect and 6 exploration holes on targets along the main structural trends. 14 of the holes returned gold mineralised intercepts of greater than 1 g/t gold in the composite samples

Best results from the Perseverance prospect are tabulated below:

Hole ID Easting Northing Azimuth (mag)

Dip From (m)

To (m)

Interval and g/t gold

GRC-001 385001 8028095 328 -75 5 30 25 metres @ 1.75 g/t GRC-004 384988 8028066 328 -60 50 66 EOH 16 metres @ 3.23 g/t GRC-007 384956 8028067 328 -60 30 35 5 metres @ 6.33 g/t gold GRC-009 384924 8028071 331 -60 10 20 10 metres @ 4.12 g/t GRC-010 384929 8028059 328 -60 25 30 5 metes @ 5.73 g/t gold GRC-014 384965 8028103 148 -60 10 30 20 metres @ 2.38 g/t

Note – Coordinates in GDA Zone 52. Gold values determined by On Site Laboratories via Fire Assay.

The drilling did not fully encompass the Perseverance prospect, which is still open along strike to both the east and west and at depth. Single metre splits are currently in transit to the assay laboratory for analysis. Interpretation of these results will aid in the determination of controls and geometry of the gold mineralisation and aid in future drill targeting.

The Perseverance prospect is the first target to be drilled at Grants Creek and these initial promising results and previous geochemical data validate Metminco’s belief in the potential of the project. A number of other prospects have been identified for drilling and if results of a similar tenor are achieved, it is likely that substantial gold mineralisation can be delineated.

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Figure 2: Angelo gold in soil anomaly showing location of recent drilling and soil sampling

ANGELO – South West of Halls Creek, WA - Gold

The Angelo Project is located approximately 40km south-west of Halls Creek and 5km south of the Great Northern Highway. Geological reconnaissance work indicates an epithermal style of gold mineralisation, similar to other recent discoveries in the East Kimberley region. Gold occurs within a network of fine interconnected veins (stockwork system) and thicker stratabound reefs.

Previous soil sampling identified an area of elevated gold in a zone six kilometres long and up to one kilometre wide. The north eastern portion of this zone is known as the Leonardo prospect. Additional soil sampling this season has extended this anomalous soil zone for a further 1.5km along strike up to the Mary River. Further soil sampling north of the Mary River is planned during 2009. A second zone of elevated gold is also present in the southern part of the licence (Figaro Prospect). Mapping and geochemical sampling commenced this season at Figaro, revealing numerous large outcropping quartz reefs.

Metminco undertook a reverse circulation drilling program of 25 holes at the Leonardo prospect in June/July 2008, which highlighted a number of zones of sulphidic quartz. This drilling indicated greater structural complexity to controls on mineralisation than indicated by previous surface exploration. However, elevated assays including 3m @ 1.97g/t gold and 2m @ 4.31g/t gold, as well as a bordering stockwork zone of 17m @ 0.24g/t gold, builds upon earlier RAB drilling and indicates the presence of a mineralised system. Initial interpretation suggests that nuggetty gold is present in a south easterly dipping quartz veins with a peripheral lower grade stockwork system. Further RAB drilling on this project is planned for next season, following additional geochemical sampling and prospect scale mapping.

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Figure 3: Google Earth image overlain with outline of major conductive horizons C1 to C4 and trends of major fold axes within C1 and C2. A through E are coincident electromagnetic and magnetic anomalies.

SOPHIE DOWNS - North East of Halls Creek, WA Gold & Rare Earth Elements

This exploration licence, granted in April 2008, lies to the northeast of Halls Creek and is prospective for a wide variety of mineralisation styles. These range from vein & stockwork hosted gold copper mineralisation, roll front style uranium through to felsic granite related Rare Earth Element occurrences.

Discussions with the Kimberley Land Council, on behalf of the Native Title Claimants and the Pastoral Lease holder regarding access occurred in mid year. Reconnaissance sampling over the Gentle Annie gold target and Sophie Downs rare earth target is scheduled for late 2008, prior to the commencement of the wet season.

MULGUL - North of Meekatharra, WA - Base Metals

The Mulgul exploration licence is located some 200km north of Meekatharra and is prospective for large base metals prospects. The area lies only 25km southwest of the Abra deposit (93 million tonnes @ 4% lead & 10g/t silver), and Mulgul has potential for similar deposits as well as secondary fault & fissure hosted copper-gold and base metal mineralisation.

Metminco has reviewed previous exploration data and undertaken an interpretation of the available aeromagnetic and radiometric data for the project. This work enabled the differentiation of the major rock units and revealing a number of features, including the prospective Tangadee lineament, a major regional structural feature.

A field visit undertaken during early March 2008 included the collection of stream sediment samples sourced from drainage covering the Tangadee lineament and an orientation geochemical survey over the historic Mulgul copper prospect.

Further geophysical data (GEOTEM) was acquired and ongoing interpretation has highlighted a number of targets for additional exploration work. These targets comprise either coincident magnetic and electromagnetic anomalies or horizons with enhanced conductivity due to increased carbon content or alteration. A field program directed at these targets will be undertaken concurrently with the Ashburton drilling program.

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Figure 4: IP chargeability sections over gravity with lead soil contours and rock chip sample locations.

ASHBURTON PROJECT – South of Paraburdoo, WA E08/1239 (Pingandy) & E08/1240 (Mount Vernon) – Base Metals

In early 2008 Metminco Ltd entered into a Joint Venture farm-in agreement with Peak Resources Ltd to earn a 40% interest in the Ashburton Project, in the Murchison region of WA.

This project provides the Company with additional exposure to prospective ground in the Proterozoic Bangemall Basin. This emerging province base metals province has similarities with other significant worldwide base metal terrains.

The Ashburton Project is located approximately 70km south of the township of Paraburdoo and 300km NNW of Meekatharra, Western Australia. The Project consists of two granted exploration licences E08/1239 (Mt Vernon) and E08/1240 (Pingandy) covering a combined area of 412km2.

A 1,400 station gravity survey commissioned by Peak in November 2007 on the Mt Vernon Project (E08/1239) outlined a large structural feature, where surface geochemical sampling revealed anomalous lead up to 6% in samples collected from outcropping quartz rich iron-oxide rocks.

Peak Resources has previously undertaken broad spaced soil and stream sediment sampling, geological mapping and rock chip sampling over both the Mount Vernon and Pingandy tenement areas. Geophysical work on the Mount Vernon licence comprises a gravity survey and acquisition & re-interpretation of Airborne Electromagnetic data.

The first phase of exploration on the joint venture, an Induced Polarisation (IP) survey was completed during May 2008. This survey over Mt Vernon enhanced definition of the anomalous features outlined by previous work and focussed on targets for Reverse Circulation drilling.

Following site clearances, an initial drilling program on the best two targets is scheduled to commence in the first week of November 2008.

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WEST LAKE EYRE – West of Lake Eyre, SA - Uranium

This licence of over 600km2, lies to the west of Lake Eyre in South Australia. It is prospective for both deeply buried Iron Ore Copper Gold (+Uranium) deposits similar to Olympic Dam and Prominent Hill and shallower palaeo-channel deposits in the overlying Cretaceous sediments. There has been limited prior exploration over the area.

During February 2008 Metminco completed an additional gravity survey over the eastern portion of the licence area. This survey meshes with and extends the regional gravity data collected by the South Australian Government.

The regional gravity survey, along with three detailed traverses reveals two prominent gravity features. Both Olympic Dam and Prominent Hill deposits are associated high gravity anomalies caused by hematite rich brecciated granitic rocks.

This work shows the both the presence of high density rocks and major structural control and this supports Metminco’s belief that the licence has strong potential for the discovery of Olympic Dam style iron oxide copper gold mineralisation within the Gawler Craton. This style of deposit is associated with large hydrothermal breccia systems spatially associated with granitic rock that occur on major structures.

Metminco is presently considering options to drill test these targets and is seeking to either joint venture the project with other explorers active in the region, or apply for a drilling grant from the South Australian Government’s PACE program.

The Company also completed a scintillometer survey over two surficial uranium anomalies revealed during an analysis of regional radiometric data. The scintillometer survey found uranium levels up to 5 times background. Further testing of these targets, including drilling, is planned for early 2009 to determine the nature of these shallow uranium anomalies.

KING RIVER – Southwest of Katherine NT - Uranium

This licence was granted on 18 December 2007 for a term of 6 years and is located in the Daly River Basin region in the Northern Territory. The licence covers sediments of Cretaceous age and is prospective for sandstone and unconformity hosted uranium and rock phosphate deposits.

In 2007, re-interpretation and reprocessing of radiometric data delineated strong untested anomalies within the Cretaceous sandstone units. This supports previous work by the Australian Atomic Energy Commission that concluded there was the possibility of a high grade uranium source in the Cretaceous Jinduckin Formation.

A field inspection in late April 2008, including an orientation scintillometer survey and rock chip sampling, revealed uranium levels in sandstone between 10 and 15ppm. The significance of these results is being assessed as a prelude to more intensive exploration during 2009.

Keith Weston Managing Director 29 October 2008 For further information please contact Keith Weston, Managing Director on 0428 312 767

The information in this report that relates to Exploration Results based on information compiled by Keith Weston, BSc(hons) MAusIMM, who is a Member of the Australasian Institute of Mining and Metallurgy. Keith Weston is a full time employee of Metminco Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves” Keith Weston consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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METMINCO LIMITED - ASX2008/10/30 · GRC-001 385001 8028095 328 -75 5 30 25 metres @ 1.75 g/t GRC-004 384988 8028066 328 -60 50 66 EOH 16 metres @ 3.23 g/t GRC-007 384956 8028067