** modified announcement - risk to funding ...

... as mentioned in the previous h/c contribution ...
... PREVIOUS MARKET SENSITIVE ANNOUNCEMENT 20NOV2009.
... see near end of article - "RISK OF ADMIN" ....
...
Equity & Debt Placement Update
BRISBANE, 23 November 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 $1.925 million) of Capital was initially
scheduled to close on 3 November but had been extended subsequently until today.
AFHL has today advised the Company that it will receive the funds relating to the first tranche
settlement no later than close of business Friday 27 November.
After significant consideration, and after discussion with AFHL directors and attorneys, the
Company has agreed to accept the modified first tranche settlement date.
The Company continues to be aware of the concern in the marketplace caused by a number of
delays to the settlement of the first tranche, and is continuing its efforts to complete the
settlement as soon as possible.
In the announcement on Friday 20 November, the Company stated that its current level of cash
funding was very low. This continues to be the case.

.... ** If the AFHL first tranche investment is not
received by Friday 27 November, and if no alternate source of immediate funding is concluded
(which is not expected), the Company may at that stage be required to appoint an Administrator. ** ........

The Company will keep the market informed of any material developments that occur over the
coming days.
ENDS
Company Contact:
Australia
Mr Terry O’Dwyer – Chairman, Metal Storm Limited – Ph: +61 7 3031 1300
Dr Lee Finniear - Chief Executive Officer, Metal Storm Limited - Ph: +61 7 3123 4700
.....
............ ende of article .........
...