announcement on jinchuan update

Jinchuan has formally advised Metals X that they have not been offered by BHP Billiton
to participate in the next stage of the asset sale process for the Ravensthorpe assets.
Jinchuan considers that Metals X¡¯s Wingellina Nickel Limonite Project represents a much
better opportunity to grow its global business with a superior uncomplicated orebody
with simple metallurgy. Although remote, Jinchuan believes the world-class size and
quality of Wingellina will overcome the isolation impediment. Jinchuan is a 14.8%
shareholder in Metals X and has a co-operation agreement with the Company to assist
with the project studies, development and potential off-take of concentrates.
Metals X completed its first phase feasibility study on Wingellina in mid 2008 which
showed a robust project for the construction of a nickel and cobalt operation to produce
40,000tpa of nickel and 3,500tpa of cobalt with an initial mine life of 40 years at an
operating cost of less than US$3.50 per pound of Nickel after cobalt credits. The after
tax NPV of the project based on the feasibility study assumptions of a nickel price of
US$20,000/t, cobalt price of US$45,000/t and a USD exchange rate of 0.85 was A$3.4
billion.
Metals X is continuing to consult with its major shareholders, Jinchuan Group Limited
and APAC Resources Ltd (HK1104) and is seeking funding opportunities for the
development of the Wingellina project.
Metals X has also recently announced that it has entered into a Farm-in and Joint
Venture agreement with Rio Tinto Exploration Pty Ltd over the Mt Davies Tenement
(E3932) in the Central Musgrave region of South Australia. The tenement is juxtaposed
with the wholly owned Wingellina deposit and is encapsulated within the wholly owned
subsidiary Austral Nickel Pty Ltd¡¯s 100% owned tenement E3555. The Mt Davies
tenement hosts significant prospectivity for oxide and sulphide nickel and PGE deposits.
The tenement also hosts extensions to the Claude Hills prospect already drilled on
Metals X¡¯s 100% owned E3555. While a JORC compliant resource has not yet been
calculated, Claude Hills drilling has identified significant mineralisation with similar nickel
and cobalt tenor as that seen at Wingellina. Drilling by previous owners of the Mt
Davies tenement has also confirmed the continuation of mineralisation at Claude Hills.