Ann: Equity and Debt Placement Update , page-2

BRISBANE, 2 December 2009 – Metal Storm Limited (ASX trading code: MST, OTC
Symbol: MTSXY).
Metal Storm has previously announced the signing of an Equity Subscription Agreement and
a Loan Facility Agreement for an investment of US$35 million by Assure Fast Holdings
Limited BVI (AFHL).
The first tranche of approximately $2.1 million (US$1.9 million) of equity capital was initially
scheduled to close on 3 November but had been extended subsequently until close of
business Tuesday 1 December.
At close of business Tuesday the funds had not been received.
The Board is sensitive to the continuing delays. The clearing banks are processing first
tranche funds for remission in accordance with their own timetables. Neither AFHL nor Metal
Storm has been able to directly influence that process timing.
The Company now expects funds to be received before 7pm Brisbane time today.
Should the Board determine these funds will not arrive the Company may consider the
appointment of an administrator.