equity & debt placement update

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Equity & Debt Placement Update
BRISBANE, 14 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 (First Tranche)
was initially scheduled to close on 3 November but had been extended subsequently until 7pm
on 10 December. The Board gave a formal notice to AFHL on Friday requiring AFHL to remedy
its non-compliance with the Subscription Agreement namely, the failure to provide the First
Tranche funding.
The Subscription Agreement requires the Company to give AFHL two Business Days from the
date of notice to remedy the failure to provide the First Tranche funding. Accordingly the
Company will allow that time before any further action on the AFHL Subscription Agreement but
reserves its rights. The Company has not yet determined if there is any economic value pursuing
those rights.
As previously announced the Company is considering alternative equity arrangements and will
advise on that once they are finalised.