share placement

BRISBANE, Friday, 18 December 2009 Metal Storm Limited (ASX trading code: MST, OTC
Symbol: MTSXY).
On 16 December Metal Storm announced that it had entered into a formal Subscription
Agreement with a private investor, committing to an equity placement of $200,000 by close of
business on Friday this week, followed by a further $300,000 on or before 5 January 2010.
The Company is pleased to confirm that the investor has today remitted $300,000 to Metal
Storm, comprising the $200,000 originally agreed plus an advance of $100,000 on the amount
originally expected on 5 January. The Company will be issuing 18,750,000 ordinary shares
shortly. The remaining $200,000 is now expected on 5 January, 2010, or earlier at the investors
option.