Nickel-Cobalt & Scandium

Zircon & Rutile HMS

Resource Development Company

An Australian

Queensland Explorer of the Year - 2011

RIU Sydney Resources Round-up

Andrew Gillies

9th May 2012

Statements & material contained in this presentation, particularly those regarding possible or assumed future performance, production levels or rates, metal prices, metalmarkets, resources or potential growth of Metallica Minerals Ltd, industry growth or other trend projections are, or may be, Forward Looking Statements. Suchstatements relate to future events & expectations &, as such, involve known & unknown risks & uncertainties.

The NORNICO Nickel-Cobalt & Scandium Project, Lucky Break Nickel Projects, the Weipa & Gippsland Heavy Mineral Sands projects are at the evaluation & feasibility stage& although reasonable care has been taken to ensure that the facts stated in this presentation are accurate & or that the opinions expressed are fair & reasonable, no reliancecan be placed for any purpose whatsoever on the information contained in this document or on its completeness.

Actual results & developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.

At the date of this presentation Metallica Minerals holds approximately 30.8% of MetroCoal Limited which listed on the ASX on 4 December 2009, further information can besourced from metrocoal.com.au

At the date of this presentation Metallica Minerals holds approximately 19.1% of Cape Alumina Ltd which listed on the ASX on 29 January 2009 & latest & more detailedinformation can be sourced from Cape Alumina & capealumina.com.au

At the date of this presentation Metallica Minerals holds approximately 15.7% of Orion Metals Limited, further information can be sourced from orionmetals.com.au

At the date of this presentation Metallica Minerals holds approximately 37% of Planet Metals Limited, further information can be sourced from planetmetals.com.au

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

This material is used for a company summary presentation only, for more detailed information the reviewer should seek company information as provided in Metallica’s ASXreleases, Annual & Quarterly Reports.

Disclaimer

Technical information contained in this report has been compiled by Metallica Minerals Managing Director Mr Andrew Gillies B.Sc. M. AUSIMM & Metallica Minerals Ltd, whois a competent person & a member of the Australasian Institute of Mining & Metallurgy & have relevant experience to the mineralisation being reported on to qualify asCompetent Persons as defined by the Australasian Code for Reporting of Minerals Resources & Reserves. Mr Gillies consents to the inclusion in this presentation of thematters based on the information in the form & context in which it appears.

3

MLM Financial Overview

Financial Information

Share price (27 April 2012) 0.25c

Shares on Issue 132.4M

Market Cap $33.7M

Cash Position (27 April2012) $10.5M

ASX Investments* ~$32.2M

Cash & Listed Inv. per share 0.32c

Major Shareholders

Jien Mining Pty Ltd** 19.0%

Golden Breed Pty Ltd 7.3%

Victorian Ferries Pty Ltd 4.5%

RCF (Funds III LI & IV LP) 3.9%

Bondline Ltd 3.8%

Top 20 shareholders 55.4%** Subsidiary of Jilin Nickel Co. Limited*see investment slide at the back of this presentation

Cash & listed ASX investments provide financial confidence to advance core projects

MLM: 12 Month Trading History

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4

Board of Directors (5) & CEO

Name Position Background Experience

David Barwick Non-Executive Chairman Financial / Corporate 40+ years

Andrew Gillies Managing Director Geology / Mining 25+ years

John Haley CFO / Director / Company Secretary Financial 25+ years

Barry Casson Non-Executive Director Financial / Corporate 40+ years

Wu Shu (Tao Li– Alternate)

Non-Executive Director Engineering 30+ years

Gavin Becker CEO Metallurgy / Engineering 30+ years

Experienced, talented & dedicated Board & Management teamFocussed on delivering value to shareholders

(L-R): Gavin Becker, Barry Casson, John Haley,David Barwick, Andrew Gillies, Tao Li

Core Project Assets: Nickel-Cobalt-Scandium& Zircon-Rutile

Vision

Become a highlysuccessful Australianmineral resourcedeveloper, a profitableproducer of Nickel -Cobalt - Scandium &Zircon - Rutile anddeliver high returns forshareholders

5

100% owned by Metallica

Tri-metal project – nickel, cobalt & scandium

Excellent location and processing site

Total project resources contain 406kt Ni, 44kt Co& 3,250t Sc2O3 based on >4,000 drill holes(see page 9 and Appendix I for detailed resource tables)

Significant discovery - Lucknow & Kokomohigh-grade scandium deposits

Ni-Co + Sc oretypes are highly amenable toHPAL extraction

6

NORNICO: Project Overview

The discovery of scandium within Ni-Co deposits provides Metallica with an excitingopportunity to become the world’s pre-eminent supplier of scandium oxide

7

NORNICO: Greenvale Nickel Mine Site

Greenvale Township

Excellent location

Completed extensive exploration & resource definition program

Ni-Co resource 50.3Mt @ 0.81%Ni, 0.09% Co (406,000t Ni & 44,000t Co)(~90% in Indicated & Measured category)(see page 9 and Appendix I for detailed resource tables)

PLUS

Scandium resource 16.8Mt @ 130g/t Sc (3,250t Sc2O3)(see page 9 for detailed resource tables)

Completed successful bench testing using High Pressure Acid Leach (HPAL) & scandium solventextraction (SX) confirming ability to confidently recover nickel, cobalt & scandium

Assembled experienced project development team for feasibility studies

Commenced HPAL continuous pilot testing to produce Scandium Oxide (Sc2O3)

Completed first stage of this process – extraction of Scandium from laterite (oxide) oretypes intoPLS through HPAL pilot plant (PLS delivered to Brisbane in preparation of SX recovery andpurification ~June 12)

Commenced scandium market development – seeking offtake partners

Discussions with potential JV partners / offtakers

8

NORNICO: Current Status & Recent Milestones

9

NORNICO: Scandium & Ni-Co Resource Statement(Updated 21st February 2012)

Scandium Resource Statement

Description Tonnes(Mt)

Sc(g/t)

Sc Metal(t)

Kokomo

Measured 0.7 154 108

Indicated 3.8 121 460

Sub-total M&I 4.5 126 568

Inferred 4.4 91 400

Total 9.0 109 968

Lucknow

Measured 0.6 190 116

Indicated 6.9 153 1,065

Sub-total M&I 7.5 156 1,181

Inferred 0.3 99 26

Total 7.8 154 1,207

Combined Total

Measured 1.3 171 223

Indicated 10.7 142 1,525

Sub-total M&I 12.0 145 1,748

Inferred 4.7 91 427

TOTAL 16.8 130 2,175

Notes:1. Scandium resource & nickel-cobalt resource are considered separately (no double counting)2. Scandium resource reported at a cut off grade of 70g/t Sc3. The resources for Greenvale and Lucknow are reported at a cut-off grade (COG) of NiEq 0.7% (Ni

+ 2Co). This NiEq COG formula has been calculated using commodity prices of US$10/lb nickeland US$20/lb cobalt, and recoveries of 90% for both nickel and cobalt.The resources for Kokomo, Bell Creek South, Bell Creek North, Bell Creek Northwest,Minnamoolka and The Neck are reported at a COG of NiEq 0.7% (Ni + 3Co). This NiEq COGformula has been calculated using commodity prices of US$10/lb nickel and US$30/ lb cobalt, andrecoveries of 90% for both nickel and cobalt.The rationale for using different formulas is because these resource estimates were calculated atdifferent points in time. The commodity prices adopted in each instance were consideredreasonable at the time of calculation. It should be noted that the spot price for nickel and cobaltvaries constantly. The rationale in using a NiEq COG is to ensure that both significant nickel andcobalt mineralisation are encapsulated in the resource estimate.From Metallica's metallurgical testwork to date, it is of the opinion that there is reasonable potentialfor the nickel and cobalt to be recovered and similar recoveries to those assumed have beenachieved in testwork. Table contains minor rounding errors

4. For more detailed information on the Lucknow resource, please see MLM ASX release dated 21Feb 2012

5. For more detailed information on the NORNICO Ni-Co resource, please see table at the end ofthis presentation

Nickel-Cobalt Resource Statement (see Appendix I)

Description Tonnes(Mt)

Ni(%)

Co(%)

Ni Metal(kt)

Co Metal(kt)

Greenvale 8.0 1.04 0.08 83 6.6Lucknow 3.6 0.57 0.19 21 6.8Kokomo 16.3 0.67 0.12 108 19.4Bell Creek S 9.1 0.97 0.07 88 6.3Bell Creek N 2.3 0.83 0.03 19 0.7Bell Creek NW 3.1 0.77 0.05 24 1.5The Neck 0.8 0.84 0.03 7 0.3Minnamoolka 7.1 0.80 0.04 56 2.6TOTAL 50.3 0.81 0.09 406 44.2

Nickel-cobalt material can be supported by high grade scandium material feed(and vice-versa)

10

NORNICO: Historical Greenvale Nickel Mine (1974-92) Site(looking ESE towards Greenvale township & Sc-Ni-Co Lucknow deposit)

3,340 HaMining Leaseapplied forApril 2012

11

NORNICO: Greenvale Mineable Resources & Open Pit Shells

Shallow, open-pitable

Ni-Co resources +

Historical mining

stockpiles which are

yet to be quantified

8Mt @ 1.04% Ni &

0.08% Co

-see Appendix I

12

NORNICO: Shallow Ni-Co Resources (Greenvale)

Greenvale nickel-cobalt mineralisation <50m depth

Shallow, simple & cheap mining operation

13

NORNICO: Lucknow Scandium-Ni-Co Resource(looking NNW from Lucknow to Greenvale Nickel Mine Site ~8km road distance)

14

NORNICO: Lucknow Scandium & Ni-Co Resource Outline

461 RC Drill Holes

7.5Mt @ 156g/t Sc(Indicated & Measured)(see page 9)

MLA applied Nov 2011

15

NORNICO: Shallow Scandium-Ni-Co Resources (Lucknow)

Lucknow scandium mineralsation starts at surface & extends to a maximum depthof 35m

Best drill intercept 27m @ 882g/t Sc (April 2010)

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NORNICO: Lucknow Scandium Resource Block ModelCross Section*

Easy access,bulk mineablehigh grade Scmineralisation

* Colour code simplified, basedon detailed block modelresource compiled by GolderAssociates (Feb 2012)

Single HPAL processing plant to extract Ni, Co & Sc

Proven extraction process – provides high ~90% Ni-Co & Scextraction

Proposed plant size of 750ktpa

Blend of Ni-Co & high grade Sc laterite oretypes

Ratio of scandium ore can be adjusted to meet growth in demandfor Sc2O3

Planned production commencement in late 2015 (subject tocomplete of feasibility, permitting, scandium offtake and finance)

HPAL testwork indicates 90% Ni-Co + 80-90% Sc extraction fromNi-Co-Sc oretypes with >95% extractions on high grade Sc oretype(>200g/t Sc)

Commenced pilot HPAL & SX testwork to produce Sc2O3 (June2012) – demonstration of potential product for end users + patentprocess commenced to protect value of technology

17

NORNICO: HPAL Processing Ni-Co & Sc Laterite Oretypes

Metallica is planning to become the world’s major supplier of scandium– a unique & strategic opportunity

SGS Lakefield Oretest Perth –HPAL Pilot Plant

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NORNICO: Proposed Simplified Flowsheet – HPAL & SX(Producing Ni Metal, Co Sulphide & Sc Oxide)

19

NORNICO: Delivering Scandium - Element 21 “The Enhancer”

Fuel Cells(up to 85% energy efficiency)

Scandia StablisedZirconia

Lighting

Aluminium-Scandium Alloys(light, high strength alloy frames)

Scandium has unique properties that will enhance our future –A major & reliable supply could underpin a significant increase in scandium’s usage & application

Aerospace

20

NORNICO: Scandium Uses

Product Application of scandium

Scandium – AluminiumAlloys

Small quantity of scandium (0.2-0.5%) significantly increases the strength of aluminiumalloys – important for transport (lightness) & structural (strength) applications

Scandium significantly improves weldability, corrosion resistance & reduces heatcracking

Stronger & lighter frames can deliver significant benefits to industry(aerospace, marine craft, cars, sporting goods, bicycles, construction, etc)

Scandium super alloys provide the highest strength-to-weight ratio of any materialcommonly used today

Solid Oxide Fuel Cells(SOFC)

SOFCs allow natural gas (or other fuel source) chemically converted to electricity, heat,water & CO2 with up to 85% efficiency

Scandium Stabilized Zirconia (SSZ) most efficient SOFC & at lower temperature(performance gains) & extended life for SOFC’s

SOFC on-site electricity generators sized for home, business or town (gas connected)& selling excess electricity to grid

SOFC using SSZ technology coinciding with increasing gas availability network

Lighting Scandium in metal halide vapour lamps contributes a large number of spectralemission lines to the light, giving it a natural white light or sunlight appearance

The light is brighter (more lumens per watt) & is a more efficient form of lighting

Commonly used on movie sets & sport stadiums to create artificial sunlightappearance

21

NORNICO: Scandium Supply & Demand

To date, the use of scandium has been severely limited by its scarcity & lack of reliable supply

Lucknow & Kokomo are two of just a few discovered large, high-grade Sc deposits worldwide

Current annual scandium consumption sourced from old Soviet stockpiles (<3 tonnes Sc2O3) & small scale by-product from strategic metal refining from Russia, Ukraine & China (~4-6 tonnes Sc2O3)

Based on preliminary discussions with potential end users / offtakers & market research – we believethat the demand for scandium will grow significantly once a long term, reliable supply can beestablished

Pricing of Sc2O3 at ~$US1,500/kg (99.9% purity) – we believe that this price will match a long termreliable supply, despite delivering an increase in the amount of scandium produced because:

Increased demand will follow reliability more than price and maintain strong pricing

Commercial sized scandium deposits are scarce & upfront capital cost is high

Scandium is highly potent (a spice metal) and is used in small amounts (eg SOFC & Sc-Al alloys) – thereforethe cost of scandium has a marginal effect on the overall price of valuable end products

A truly unique opportunity exists for Metallica to work with end users / offtakers to establish theworld’s first market for scandium

Planned / WIPCompletedCommenced

Mar Q Jun Q Sep Q Dec QMar Q Jun Q Sep Q Dec QMar Q Jun Q Sep Q Dec QMar Q Jun Q Sep Q Dec Q

Exploration Program / Resource Delineation

Concept Study

HPAL pilot testwork / SX extraction (Sc focus)

Metallurgical Testing (ongoing)

Scoping Study (750ktpa)

Environmental Studies

Prefeasibility Study

Scandium Marketing & Offtake Arrangement

Bankable Feasibility Study

Funding / Financial Close

Design Phase

Development / Construction

Commissioning / Operation

Milestones 2012 2013 2014 20152010 2011

22

NORNICO: The Way Forward

1H 2012 – Key Activities

HPAL continuous piloting – provide Sc2O3 product for marketing + patent process commenced

Scoping Study commenced

Greenvale stockpile sampling & beneficiation studies Environmental Impact Statement (EIS) – commenced

Greenvale MLA & progress permitting

23

Zircon-Ti Minerals: Gippsland HMS Project OverviewA Major New Zr-Ti Minerals HMS Resource

In August 2011, Metallica acquired an option topurchase the Gippsland Heavy Mineral Sands(HMS) project from Rio Tinto 12 month option to acquire 100% for $8M

Advanced exploration project Nine tenements covering over 620km2 of Pliocene

fossil HMS strandlines 12,700m of RC drilling (232 holes) completed to

date by Rio Tinto Exploration & 43 Aircore holescompleted by MLM Jan 2012

Maiden JORC Inferred Mineral Resourceannounced April 2012 1.7Bt @ 2.2%THM* for 38Mt contained HM Inc: Higher grade zone 360Mt @ 2.7% THM for

9.7Mt contained HM** (see page 25)

*THM – Total Heavy Mineral

**HM – Heavy Mineral

Medium grade, high tonnage resource with significant zircon in mineral assemblage –A company making project?

24

Zircon-Ti Minerals: Gippsland HMS ProjectMLM Drill Results (Mar 2012)

Hole 510

33m @ 3.02%THM

Inc. 4.5m @ 5.62% THM

Hole 514

51m @ 3.09%THM

Inc. 7.5m @ 6.27% THM

Hole 504

48m @ 2.90%THM

Inc. 6.0m @ 4.90% THM

Hole 513

51m @ 2.89%THM

Inc. 7.5m @ 5.18% THM

25

Zircon-Ti Minerals: Gippsland HMS ProjectMineral Resource

Resource Category Tonnes(Mt)

THM(%)

Slimes <38 μm(%)

Contained HM(Mt)

Inferred 1,700 2.2% 24.4% 38

Notes:1. The Mineral Resource was estimated by AMC Consultants and reported according to the JORC Code and guidelines (JORC,2004)2. Tables may contain arithmetic errors due to rounding.3. The Mineral Assemblage data is reported as the percentage of the Total Heavy Mineral (THM) component and is classified as4. Inferred due to limited data available5. Combined Titanium Materials consists of leucoxene, altered ilmenite and ilmenite.6. THM and Contained HM also include other non-valuable minerals. As such, the Contained Mineral Assemblage does not sum tothe Contained HM.

Tonnes(Mt)

Contained(HM)

HMS Mineral Assemblage (Inferred)Zircon (%) Rutile (%) Combined Titanium

Materials (%)Monazite (%)

360 2.7% 15% 4% 50% 0.6%

Tonnes(Mt)

Contained(HM)

Contained HMS Mineral Assemblage (Inferred)Zircon (kt) Rutile (kt) Combined Titanium

Materials (kt)Monazite (kt)

360 2.7% 1,420 400 4,760 60

Total JORC Inferred Mineral Resource (cut-off grade of 1% THM)

Including high grade zone with closer spaced drilling (cut-off grade of 1% THM)

26

Zircon-Ti Minerals: Gippsland HMS ProjectResource Outline

Orange Zone

Inferred Resource:

360Mt @ 2.7% THMinc 15% zircon, 4%rutile and 50%combined titaniumminerals (see page 25)

Total InferredResource

1.7 Billion tonnes @2.2% THM (see page 25)

50km2 Area –HMS Resource

27

Zircon-Ti Minerals: Gippsland HMS ProjectBlock Model Resource Cross Section

Extensive thick zones of>1% THM

High grade areas (Pink shaded areas >4%THM) – focus of Scoping Study

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Zircon-Ti Minerals: Gippsland HMS ProjectSchematic Plan

Extensive zonesof higher grademineralisation(>4% THM)

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Zircon-Ti Minerals: Gippsland HMS ProjectNext Steps

April 2012

Maiden JORC Resource (AMC)

Commissioned & commenced Scoping Study (R.J. Robbins)

May 2012

Metallurgical testwork including slimes (R.J. Robbins)

Marketing report – Product specifications (TZMI)

Initial mineable resource & mining studies

June 2012

Complete Scoping Study (R.J. Robbins)

July 2012

Finalise due diligence (Acquisition of Gippsland project)

August 2012

Board approval decision (Exercise option to purchase project)

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Zircon-Ti Minerals: Gippsland HMS ProjectBenchmarking

Gippsland compared wellagainst other HMS projects inboth tonnage & grade

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Zircon: Supply / Demand

Robust fundamentals for the zircon sectorOutlook for zircon appears excellent

Source: TZMI

20% shortfallby 2020

Forecast

32

Zircon-Rutile: Weipa HMS Project Overview

Weipa Heavy Mineral Sands (HMS) – Zircon & RutileProject (100% owned) in Cape York, Queensland

Urquhart Point Mining Lease applied for over shallow(<3m) high grade (~7% THM) Zircon-Rutile deposit

Zircon + Rutile >40% HMS

Over 2,000sq km of EPM’s/EPMA’s

Feasibility & EIS process started

Zircon-Rutile production targeted late 2013 subject tofeasibility, permitting and financing

Opportunity for near-term cashflow generation

33

Zircon-Rutile: Weipa HMS Project – Next Steps

WEIPA HMS

Mining Lease application submitted, permitting - ongoing

TLO Compensation negotiations & EIS submitted - ongoing

Feasibility Study – completion expected mid 2012

Subject to feasibility, permitting and financing - Targeted Zircon-Rutileproduction start - late 2013

(Capitalise on high forecast zircon-rutile demand & prices)

34

Strong Financial PositionPlatform to Deliver Value to Shareholders

ASXCode

Commodity Company MLM%

No. SharesMLM hold

SharePrice

Market Value ($)

MTE Coal MetroCoal176,683,663

30.8% 64,300,000 39.5c $25.3M

CBX Bauxite Cape Alumina140,800,900

19.1% 26,867,621 16.0c $4.3M

PMQ Copper Gold Planet Metals59,717,114

37.0% 22,069,619 5.0c $1.1M

ORM Gold &REE’s

Orion Metals79,597,443

15.7% 12,552,658 12.0c $1.5M

Total Listed Investments $32.2M

Approximate Cash at Bank (27/04/2012)* $10.5MCash & Total Listed Investments $42.7M

Shares on Issue 132.4M

MLM Cash & Listed Investments/share $0.32MLM share price (27/04/2012) $0.25

MLM Market Cap $33.7M

Metallica is dedicated to realising the underlying value of its mineral resourcesto generate significant returns for shareholders

Cash + Listed assets alone ($43M) > Market cap ($34M)

Strong financial position

Future value drivers & growth: NORNICO + Zircon-Rutile HMS projects

*Includes $1M loan drawdown, with $4M remaining on facility

Metallica has a clear strategy for major growth

“Discover the hidden value in MLM”

Technical information & exploration results contained in this report has been compiled by MetallicaMinerals Ltd full time employee Andrew Gillies (B.Sc Geology) in the position of Managing Director. MrGillies is a member of the Australasian Institute of Mining & Metallurgy & has relevant experience to themineralisation being reported on to qualify as Competent Persons as defined by the Australasian Code forReporting of Minerals Resources & Reserves. Mr Gillies consents to the inclusion in this report of thematters based on the information in the form & context in which it appears

The NORNICO Nickel-Cobalt & scandium project Mineral Resource estimate(s) is based upon &accurately reflects data compiled, validated or supervised by Mr John Horton, Principal Geologist, who is aFellow of the Australasian Institute of Mining & Metallurgy & a full time employee of Golder Associates PtyLtd. Mr Horton has sufficient experience that is relevant to the style of mineralisation & the type of depositunder consideration & to the activity which he has undertaken to qualify as a Competent Person asdefined in the 2004 edition of the ‘Australasian Code for the Reporting of Exploration Results, MineralResources & Ore Reserves’. Mr. Horton consents to the inclusion of this information in the form & contextin which it appears in this document.

The Gippsland Zircon-Rutile HMS Project Mineral Resource estimates have been prepared by MrRodney Webster of AMC Consultants. Mr Webster BappSc, who is a competent person and a member ofthe Australasian Institute of Mining and Metallurgy and has relevant experience in the style ofmineralisation being reported on to qualify as Competent Person as defined by the Australasian Code forReporting of Minerals Resources and Reserves. Mr Webster consents to the inclusion in this presentationof the matters based on the information in the form and context in which it appears.

Competent Persons Statement

NORNICO Ni-Co Resource Base – Appendix I(updated 21 Feb 2012 with new Lucknow Ni-Co Resource)

Nickel DepositMillion Tonnes

(Mt)Ni

(%)Co(%)

Fe(%)

Mg(%)

In situ containedNi (t)

In situ containedCo (t)

Greenvale Mine SiteMeasured 2.6 1.08 0.09 22.0 3.9 28.4 2.4

Indicated 4.5 1.03 0.08 21.0 4.5 46.0 3.6Inferred 0.9 0.99 0.07 19.0 5.5 8.9 0.6Totals 8.0 1.04 0.08 21.1 4.4 83.3 6.6Lucknow

Measured 0.9 0.65 0.17 24.5 2.2 5.6 1.5

Indicated 2.3 0.54 0.20 23.6 2.0 12.5 4.7Inferred 0.4 0.60 0.13 28.8 2.0 2.5 0.6

Totals 3.6 0.57 0.19 24.4 2.1 20.6 6.8Kokomo

Measured 1.3 0.81 0.17 20.4 4.6 10.5 2.2Indicated 11.7 0.66 0.12 21.9 3.2 77.2 14.0

Inferred 3.2 0.63 0.10 19.1 3.0 20.2 3.2Totals 16.3 0.67 0.12 21.2 3.3 107.9 19.4Bell Creek SouthMeasured 8.9 0.97 0.07 11.7 7.5 85.8 6.2Indicated 0.3 0.83 0.04 8.5 9.1 2.2 0.1

Inferred - -Totals 9.1 0.97 0.07 11.6 7.5 88.0 6.3

Bell Creek NorthMeasured - -

Indicated 2.3 0.83 0.03 8.6 7.7 19.1 0.7Inferred - -Totals 2.3 0.83 0.03 8.6 7.7 19.1 0.7Bell Creek NorthwestMeasured - -Indicated 3.1 0.77 0.05 15.7 5.2 23.6 1.5Inferred - -Totals 3.1 0.77 0.05 15.7 5.2 23.6 1.5

(Continued next page)

NORNICO Ni-Co Resource Base – Appendix I (cont’d)(updated 21 Feb 2012 with new Lucknow Ni-Co Resource)

Nickel Deposit Million Tonnes(Mt)

Ni(%)

Co(%)

Fe(%)

Mg(%)

In situ containedNi (t)

In situ containedCo (t)

Minnamoolka

Measured - -

Indicated 5.9 0.80 0.04 11.3 10.6 47.4 2.4Inferred 1.2 0.78 0.02 8.9 10.2 9.0 0.2

Totals 7.1 0.80 0.04 10.9 10.5 56.4 2.6The Neck

Measured - -Indicated 0.8 0.84 0.03 8.8 6.5 7.1 0.3

Inferred - -Totals 0.8 0.84 0.03 8.8 6.5 7.1 0.3COMBINED NORNICO RESOURCEMeasured 13.6 0.96 0.09 15.3 6.2 130.3 12.3Indicated 30.9 0.76 0.09 17.8 5.4 235.1 27.3

Inferred 5.7 0.72 0.08 17.7 4.8 40.6 4.6

TOTAL 50.3 0.81 0.09 17.1 5.5 406.0 44.2

Notes: Competent Persons Statement located at the end of this presentation

1.The resources for Greenvale and Lucknow are reported at a cut-off grade (COG) of NiEq 0.7% (Ni + 2Co). This NiEq COG formula has been calculated using commodity prices of US$10/ lb nickel andUS$20/lb cobalt, and recoveries of 90% for both nickel and cobalt.

The resources for Kokomo, Bell Creek South, Bell Creek North, Bell Creek Northwest, Minnamoolka and The Neck are reported at a COG of NiEq 0.7% (Ni + 3Co). This NiEq COG formula has beencalculated using commodity prices of US$10/lb nickel and US$30/lb cobalt, and recoveries of 90% for both nickel and cobalt.

The rationale for using different formulas is because these resource estimates were calculated at different points in time. The commodity prices adopted in each instance were considered reasonable atthe time of calculation. It should be noted that the spot price for nickel and cobalt varies constantly. The rationale in using a NiEq COG is to ensure that both significant nickel and cobalt mineralisationare encapsulated in the resource estimate.

From Metallica's metallurgical testwork to date, it is of the opinion that there is reasonable potential for the nickel and cobalt to be recovered and similar recoveries to those assumed have been achievedin testwork. Block models for the above resources estimates were constructed by filling wire frame surfaces representing nickel laterite mineralisation boundary with 10m by 10m by 1m blocks. Nickel(Ni) grades were estimated by ordinary riging using various search radius, depending on the drill spacing of the deposit. A minimum of 4 and a maximum of 15 composites were used to estimate eachblock, with a maximum of 3 composites from any 1 drill hole. Therefore, at least 3 drill holes were used to estimate block grade values. At Bell Creek South, Minnamoolka and Kokomo a nominal 0.3%Ni mineralised envelope was used as a hard boundary for Ni and Co block grade estimation. Hard boundaries were also used between the laterite and basement zones.

3. Variations due to rounding factors.4. Iron (Fe) and magnesium (Mg) are included to indicate the overall ore quality, as both metals influence acid consumption as well as dissolved Fe, Mg and other metals, which are contaminants to nickel

loaded pregnant solution which is treated to produce a marketable nickel and cobalt intermediate product. As a rule, the lower the Fe and Mg in the laterite ore the better metallurgy and the ore is moresuited to heap leach processing.