WINGELLINA MINING AGREEMENT CLAUDE HILLS PROSPECT In July 2010 Metals X signed a mining agreement (“the Agreement”) with the traditional owners and granted  native title holders of the Wingellina Project area through their representative bodies being the Yarnangu  Ngaanyatjarraku Parna Aboriginal Corporation, the Ngaanyatjarra Land Council (Aboriginal Corporation), and the  Ngaanyatjarra Council (Aboriginal Corporation).  The Agreement provides consent for the grant of a Mining lease, and subsequent mining operations over the  project, which subject to other regulatory approvals allows Wingellina to be developed. In addition the agreement  allows for the granting of additional project titles for water, pipelines, roads and other infrastructure over an area  in excess of 19,000 km 2 . The landmark agreement was the first, and remains the only mining agreement to be successfully negotiated  in the Ngaanyatjarra Lands and the associated Aboriginal Reserves. Whilst the detail of the Agreement remains  confidential, the agreement includes reasonable and appropriate cash payments as project milestones are met,  a gross royalty interest in line with current Western Australian and national industry standards, and employment  and training initiatives for the local people.  The finalization of the Agreement was a major milestone in the development of Wingellina and an important focus  for financial and social development within the Ngaanyatjarra lands. The Agreement reflects a willingness by the  Ngaanyatjarra people to work together with mining companies in the development of resource projects providing  commercial and financial benefits to all stakeholders, whilst maintaining the respect of cultures, beliefs and  traditions of the traditional owners. Claude Hills is located approximately 25kms to the East of Wingellina and is one of a number of areas within the  Company's exploration titles where outcropping nickeliferous limonite similar to Wingellina is known. Metals  X completed an extensive drilling campaign at the Claude Hills prospect to complement the drilling campaign  carried out in late 2008 and has defined an Inferred Resource as follows: A total of 264 holes (16,514m) have been drilled by Metals X to date over a strike length of approximately 11.5km.  The Claude Hills resource straddles the wholly owned tenement EL4751 and the Mt Davies JV tenement EL3932,  of which approximately 50% of the resource is located within EL4751 and the remainder in EL3932. Mineralisation  extends over a 5km strike length with widths of 50 to 250m and ore thicknesses of 12 to 60m, and lies below a  remobilised cover of 5-20m. The grades obtained are similar to Wingellina for nickel, cobalt and magnesium, but  the aluminium content is considerably lower. It is anticipated that the metallurgical behaviour of the ore will be as  favourable as Wingellina as a result of the low magnesium and alumina grades. The presence of well developed nickeliferous limonite at Claude Hills is an exciting development in the  understanding of the Giles Complex, and the Company will continue to explore for additional resources to  complement the Wingellina Project. The likelihood of further developing additional resources outside of the  Wingellina deposit is considered to be high. 09  OPERATIONAL REVIEW Total Identified Mineral Resource Estimate as at 30 June 2011 Cut-off (% Ni) Million Tonnes Ni (%) Co (%) Fe2O3 (%) 0.5% 33.3 0.81% 0.07% 39% 0.7% 19.2 0.96% 0.08% 44% CLAUDE HILLS “AN ADDITIONAL  33.3 Mt $^{ @ 0.81% Ni}$”