Quarterly Update to 31 March 2024

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Ø Q1 2024 gold revenue of US$44.4 million (Q4 2023: US$34.7 million).

Ø Q1 2024 gold sales of 21,465 ounces sold at an average realised gold price of US$2,069 per ounce (Q4 2023: 17,514 ounces at an average US$1,980 per ounce).

Ø Q1 2024 positive free cash flow of US$21.6 million (Q4 2023: US$11.5 million).

Ø Mezzanine debt fully repaid by quarter end (subject to resolution of interest dispute noted below).

Ø Debt repayments of US$21.0 million (Q4 2023: US$11.5 million).

Ø Acquisition of an extensive exploration tenement in the prospective Abra area of the Philippines (subject to shareholder and lender approval).

Ø Appointment of Nick von Schirnding as Independent Non-Executive Chairman.

Mining Operations

Ø Q1 2024 mining production of ore and waste was above forecast at 3.31Mt (Q4 2023: 2.83Mt), with a total of 678Kt of ore mined in Q1 2024 (Q4 2023: 534Kt).

Processing Operations

Ø Q1 2024 gold production of 23,006 ounces (Q4 2023: 17,626 ounces) recovered from 581Kt at a head grade of 1.35g/t (Q4 2023: 553Kt at a head grade of 1.15g/t).

Ø Q1 2024 gold recovery of 90.0% (Q4 2023: 85.9%).

Darren Bowden, CEO of Metals Exploration, commented:

"The first quarter of the year has continued to see a strong performance at Runruno. Production was above forecast with excellent gold sales and continued high average recovery rates at 90%.

Whilst Runruno has continued to perform strongly, the first quarter of the year has seen two highly significant corporate events. Firstly, we announced our first Board approved acquisition, the proposed acquisition of the YMC Group; the first step in delivering our strategy of growing MTL within the Philippines and ultimately the broader region, evolving to a new future for the Company.

The second event relates to the repayment of the Group's mezzanine facilities. The interest dispute with the RHL Group is frustrating and we hope it can quickly be resolved to everyone's satisfaction. Since restructuring the debt in October 2020, the Group has made US$171.3 million in debt repayments. This is an outstanding achievement in such a short time and is a testament to the team's ability to deliver such a sustained strong performance from Runruno. This will considerably strengthen our balance sheet in the future and enable us to drive forward the growth of the business.

Finally, as we welcome our new independent chairman Nick von Schirnding to the board, the Company is very well set for the year ahead and we look forward to providing further updates on our progress in the coming months."

Production and Finance Summary

	Runruno Project Report	Quarter	Quarter	FY 2024	FY 2023
	FY 2024	Actual	Actual	Actual	Actual
PHYSICALS	Units	Q1 2024	Q1 2023	3 Months	3 Months
Mining
Ore Mined	Tonnes	677,663	282,256	677,663	282,256
Waste Mined	Tonnes	2,630,225	2,457,153	2,630,225	2,457,153
Total Mined	Tonnes	3,307,888	2,739,409	3,307,888	2,739,409
Au Grade Mined	g/tonne	1.35	1.53	1.35	1.53
Strip Ratio		3.99	8.17	3.99	8.17
Processing
Ore Milled	Tonnes	580,719	546,083	580,719	546,083
Au Grade	g/tonne	1.37	1.30	1.37	1.30
S 2 Grade	%	1.41	1.28	1.41	1.28
Au Milled (contained)	Ounces	25,574	22,806	25,574	22,806
Recovery	%	90.0	93.4	90.0	93.4
Au Recovered/Poured	Ounces	23,006	21,299	23,006	21,299
Sales
Au Sold	Ounces	21,465	21,442	21,465	21,442
Au Price	US$/oz	2,069	1,887	2,069	1,887
FINANCIALS (Unaudited)
Revenue
Gold Sales	(US$000's)	44,401	40,458	44,401	40,458
Operating Costs - Summary
Mining	(US$000's)	5,160	5,244	5,160	5,244
Processing	(US$000's)	9,136	9,232	9,136	9,232
G&A	(US$000's)	2,950	2,952	2,950	2,952
Total Operating Costs	(US$000's)	17,246	17,428	17,246	17,428
Excise Duty	(US$000's)	1,774	1,635	1,774	1,635
UK/Philippine G&A	(US$000's)	1,671	1,680	1,671	1,680
Total Direct Production Costs	(US$000's)	20,691	20,743	20,691	20,743
Net Cash Income	(US$000's)	23,710	19,715	23,710	19,715
Total Capital Costs	(US$000's)	2,143	1,872	2,143	1,872
Total non-cash costs	(US$000's)	9,204	7,852	9,204	7,852
Free Cashflow	( US$000's)	21,567	17,843	21,567	17,843
Cash Cost / oz Sold - C1	US$/oz	791	928	791	928
Cash Cost / oz Sold - AISC	US$/oz	1,051	1,170	1,051	1,170

Note: AISC includes all UK Corporate costs.

Review of Operations

On 18 March 2024, the Company appointed Nick von Schirnding as its new Independent Non-Executive Chairman. Mr von Schirnding has over thirty years' experience in the mining industry. He has held senior Executive and Non-Executive positions, including CEO and Chairman of a number of LSE and internationally listed mining companies.

Project Acquisition

During Q1 2024, the Company announced the proposed acquisition of an extensive exploration tenement in the prospective Abra area of the Philippines, covering 16,200 hectares, which is approximately 200km north of the Company's Runruno mine (subject to shareholder and lender approval). For further details on the proposed acquisition, please refer to the Company's announcement of 12 January 2024. The acquisition is in line with the Company's strategy to grow MTL within the Philippines and ultimately the broader region, leveraging the Company's established in-country knowledge, experience, and strong technical team.

Runruno Operations

Q1 2024 operations produced another strong quarter result for the Company, supported by an improved head grade. Gold sales for Q1 2024 were US$44.4 million (Q4 2023: US$34.7 million), at an average realised gold price of US$2,069 per ounce (Q4 2023: average gold price of US$1,980 per ounce); producing a positive free cash flow of US$21.6 million (Q4 2023: US$11.5 million).

Finance

Please refer to the Company's announcement of 27 March 2024 entitled "Update on Debt Facilities". Total mezzanine debt payments of US$21.0 million made during Q1 2024 (Q4 2023: US$11.5 million).

The Company's position is that the final payment due to the lenders under the Company's mezzanine debt facilities was made on 25 March 2024, on the basis of the lower interest rate of 7% (as opposed to 15%) which the Company believes should apply under such facilities.

However, the Company's minority 29.3% mezzanine debt lenders, Runruno Holdings Limited and D & A Holdings Limited (together the "RHL Group"), dispute that the interest rate applicable to their portion of the mezzanine debt reduced from 15% to 7% from 3 November 2022. As previously announced, MTL Luxembourg S.a.r.l., Nick Candy's investment vehicle, the Company's majority 70.7% mezzanine debt lender has confirmed its agreement to the reduction in interest rate. The Company remains in discussions with the RHL Group in an endeavour to resolve this issue.

The Company's cash holdings at 31 March 2024 were US$1.1 million (31 December 2023: US$0.9 million).

Mining Operations

Mining production of ore and waste for Q1 2024 was above forecast at 3.31Mt (Q4 2023: 2.83Mt), with a total of 678Kt of ore mined in Q1 2024 (Q4 2023: 534kt).

Process Plant

During Q1 2024 most aspects of the process plant performed adequately with a high average recovery rate of 90.0% (Q4 2023: 85.9%).

Gold produced during Q1 2024 was 23,006 ounces (Q4 2023: 17,626 ounces) from ore milled in Q1 2024 of 581Kt (Q4 2023: 533Kt).

Planned downtime included scheduled maintenance to the SAG mill girth gear. Unplanned downtime consisted mainly of repairs to the SAG mill girth gear, pinion and feed chute, to conveyor belt repairs/replacement, and to tails/return water lines.

Residual Storage Impoundment ("RSI")

The RSI dam-wall is at its final height and the dam water freeboard remains well above design minimum levels. Earthworks for the construction of the RSI final in-rock spillway, although behind schedule are well advanced and continuing.

Occupational Health & Safety

Environment & Compliance