ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Quarterly Activities Report Quarter Ended 31 March 2020

Metalsearch Limited (“Metalsearch” or “the Company”) provides the following quarterly update and commentary for the March 2020 quarter. ABERCORN PROJECT The Abercorn Project comprises 4 contiguous Exploration Permits for Mineral (“EPM”) for a total of 50 sub-blocks, these are EPM 26837 comprising 33 sub-blocks, EPM 26903 comprising 4 sub-blocks, EPM 19081 comprising one sub-block and EPM 27427 comprising 12 sub-blocks (Figure 4). The Abercorn Project is situated approximately 135km south of the deep-water port of Gladstone and 125km west of the deep-water port of Bundaberg in Central Queensland. Both major ports are connected to the Abercorn Project by sealed roads. The Burnett highway bisects the property (Figure 5). Aircore Drilling Program During the previous quarter, the Company completed a 62-hole Aircore drilling program on the Abercorn Project. A total of 62 holes were drilled, with depths ranging from 23 metres to 51 metres, for an average depth of 38 metres and a total of 2,358 metres drilled (Figure 1). The total number of holes drilled within the project is now 86 for a total of 3,172m. The Abercorn Project has previously produced 99.99% Al2O3 (4N HPA)1. During the quarter, results have been received and reported in respect to 28 holes. The results of a further 34 holes are still outstanding (refer ASX announcements dated 31 March 2020, 19 February 2020 and 12 February 2020). Many of the drill holes analysed to date have surficial zones of up to 27m thickness grading in excess of 30% Al2O3. All holes have zones that average in excess of 27% Al2O3. The weighted average of all holes reported to date is currently 29.7% Al2O3. Together with the historical drilling of 2007 the Company is confident of delivering a strong maiden Inferred Mineral Resource (JORC 2012).

The -20 um screened fractions commonly contain 5 to 20% fine quartz silt. If this silt fraction quartz can be commercially removed, the grade of the final product will be well in excess of 30% Al2O3. Similarly, the grade of the deeper clays will also be improved by removal of this silt fraction quartz. Results to date indicate that the better quality surficial kaolinite zone is located in the central to western sections of the Abercorn Project and this resource is open to the west of the current drilling (Figure 2).

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Drilling intersections have delivered a very consistent grade over the length of the intervals, making it ideal for open pit mining economics, as grade and quality control will not be a significant factor.

Five holes were drilled at a satellite target approximately 2km southwest of the main Abercorn Project (Figure 3). The excellent results from holes ABAC 25, 26, 27, 28 & 29 have confirmed that this area will make a significant contribution to the resource extension.

These five holes were drilled over an area approximately 300m east-west and 250m north-south. The weighted average of depth and grade of the -20um fraction for these holes is 15m @ 30.51% Al2O3. This high-quality kaolinite zone is open in all directions.

The Company will conduct Halloysite testing, once all current outstanding drill data is received. Specifically, analysed samples from this data, will be submitted to a specialist Halloysite testing laboratory.

The Company continues to receive very consistent, high grade intersections of good quality kaolin. The company looks forward to reporting further results from the remaining 34 holes.

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Figure 1: Metalsearch Abercorn Project – Drilling 2019

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Figure 2: Metalsearch Abercorn Project – Abercorn Project – Drilling 2019

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Figure3: Metalsearch Abercorn Project – Southwest Satellite Target – Drilling 2019

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Competent Person Statement Statements contained in this announcement relating to historical exploration results, and current exploration results are based on, and fairly represents, information and supporting documentation prepared by Mr Graham Rolfe BSc, MSc, FAIG, RPGeo, who is a member of the Australian Institute of Geoscientists (AIG), Member No 5850. Mr Rolfe is a part-time consultant to the Company and has sufficient relevant experience in relation to the mineralisation styles being reported on to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC) Code 2012. Mr Rolfe consents to the use of this information in this announcement in the form and context in which it appears. Exclusive Global licence Agreement – Synthetic Zeolite Subsequent to the end of the quarter, the Company announced that it has secured an exclusive worldwide licence from UniQuest, the technology transfer company of The University of Queensland (UQ) for the manufacturing (synthesising) of zeolites (Technology). The Company will also implement commercialisation of the patent-pending processing Technology (refer ASX announcement dated 7 April 2020 – Exclusive Global Licence Agreement to produce Synthetic Zeolite). Synthetic zeolites processing technology and intellectual property (IP) UQ’s School of Chemical Engineering Associate Professor James Vaughan and Dr Hong (Marco) Peng developed the novel approach to the synthesis of adsorption materials (zeolites) from kaolin and clay minerals which forms the core Technology. The UQ synthetic zeolite processing technology has the potential to significantly reduce the cost of manufacturing synthetic zeolites. UQ has demonstrated the following under lab scale conditions for the formation of certain synthetic zeolites:

- Up to 70% reduction in energy in the thermal activation stage;

- Up to 80% reduction in production time in subsequent zeolite precipitation steps.

The IP has been exclusively licensed by MSE from UniQuest, which is the technology transfer company of UQ. UniQuest filed a provisional patent application for the Technology in 2019. The Technology continues to be the subject of ongoing development which will be undertaken by UQ under the terms of a research agreement with the Company. This work will better define the technical parameters needed to commence construction of a pilot plant (“Pilot Plant”) to test the process and produce commercial samples of synthetic zeolite using the Technology. Next Steps – Synthetic Zeolite • Newly appointed COO Peter Zardo to commence executing commercialisation

plan. • Undertaking synthetic zeolite market participant research through several channels,

primarily into China which is recognised as a global manufacturing hub for this specialised industrial commodity.

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

• A comprehensive market scoping and industry analysis, that will enable targeting of potential future joint venture and offtake partners.

KRAAIPAN PROJECT, BOTSWANA Kraaipan Gold-Nickel-Copper-PGM Project

Metalsearch’s 100% owned Kraaipan Gold-Nickel-Copper-PGM Project comprises Prospecting Licence, PL232/2016 and covers approximately 50 kilometre strike extent of the Kraaipan Greenstone Belt in southern Botswana. The Kraaipan Project is part of the larger NNW trending Amalia-Kraaipan-Greenstone-Terrane (‘AKGT’) of the Kaapvaal Craton. The AKGT in Botswana is directly along strike from significant gold deposits, as well as adjacent to significant PGM deposits, across the border in South Africa.

Kraaipan West Gold-Nickel-Copper-PGM Project The Kraaipan West Project covers an approximately 15 kilometre long stretch of the Amalia-Kraaipan Greenstone Terrane (AKGT) in southern Botswana. The Kraaipan West Project comprises Prospecting Licences, PL064/2017 and PL065/2017, which are 584 km2 and 446km2 in area respectively. This project is approximately 30 kilometres to the west of the Kraaipan Gold-Nickel-Copper-PGM Project. The southern boundary of the tenures is located along Botswana’s southern border with South Africa and can be accessed via well-maintained, all weather roads from Gaborone (capital of Botswana), approximately 180 kilometres to the north. No on-ground work was undertaken during the quarter. The Company is looking to bring a partner into the Kraaipan Gold project to continue testing a number of gold and nickel-copper targets which have been generated by Metalsearch from historical data sets. The Company is in preliminary discussion with a number of parties. CORPORATE

Subsequent to the end of the quarter, the Company restructured the Board and appointed a Chief Operating Officer. Mr Robert Downey resigned as Chairman, remaining on as a non-executive director and Mr Keong Chan assumed the role as Chairman. Mr Jeremy Read resigned as a director of the Company. The Company also announced the appointment of experienced senior commercial banking executive, Mr Peter Zardo, to head up the commercialisation and operations of the Company as Chief Operating Officer.

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Appendix 5B – Quarterly Cash Flow Report The cash position of the Company at 31st March 2020 was $2.3million. The aggregate amount of payments to related parties and their associates included in the current quarter Cash flows from operating activities were $56,000, comprising Directors fees and consulting fees of $41,000 and legal fees of $15,000. This release is authorised by the Board.

For further information please visit www.metalsearch.com.au or contact:

Metalsearch Limited Tel: +61 8 6268 2622

1See Metalsearch Limited ASX Announcement 13 August 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Figure 4 – Project Tenement Location

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Figure 5 – Project Location and Infrastructure

ASX/MEDIA RELEASE

21/4/2020

Metalsearch Limited | ASX: MSE Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia

P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

Tenement Information as required by Listing Rule 5.3.3

The following is a table setting out the information as required by ASX Listing Rule 5.3.3, namely:

1. Mining tenements held at the end of the Quarter and their location; 2. Mining tenements disposed during the Quarter and location; 3. Beneficial percentage interests held in farm-in or farm-out agreements at end of

Quarter; and 4. Beneficial percentage interests held in farm-in or farm-out agreements acquired or

disposed of during the Quarter.

Location

Tenement

Interest at beginning of

quarter (%)

Interests relinquished,

reduced or lapsed (%)

Interests acquired or increased

(%)

Interest at end of

quarter (%)

Australia EPM 19081 100% Nil Nil 100%

Australia EPM 26837 100% Nil Nil 100%

Australia EPM 26903 100% Nil Nil 100%

Australia EPM 27427 100% Nil Nil 100%

Botswana PL232/2016 100% Nil Nil 100%

Botswana PL064/2017 100% Nil Nil 100%

Botswana PL065/2017 100% Nil Nil 100%