OPERATIONAL REVIEW STRATEGIC REVIEW During the previous twelve months Metals X has continued to advance its assets and we are pleased to be able  to report a significant increase in profit after tax for the group of $62.8M ($12.6M for 2010). In addition the  Company is now well positioned with cash and net receivables of $97.6M and investments in other listed entities  of approximately $72M. The Renison Tin Project generated a profit for the group of $21.5M during the period. The Southern area of the mine  is now well established and within the next year it is anticipated that the higher grade Northern area will reach  full production resulting in a significant increase in tin output and reduced operating costs. Exploration within the  mine has been extremely successful with some highly significant results being released during the year.  Tin is still in short supply and is forecast to remain so for the medium term, with a deficit of approximately 10,000  tonnes for the 2011 financial year and a similar deficit expected for the succeding year. The price of tin reached  a record high of A$33,255 in April this year and although it has dropped back, tin fundamentals remain strong. It  is expected that higher tin prices will need to be achieved to encourage additional supply in order to address this  current market deficit. Metals X has also achieved numerous milestones in relation to its globally significant Wingellina Nickel Project  and is now advancing towards financing and development. During the year Metals X signed a landmark mining  agreement with the traditional land owners of the project area, and in addition Jinchuan, China’s largest Nickel  producer agreed to acquire a 20% direct interest in the project. Pending final water studies, environmental studies  are complete and the majority of technical studies have been completed. Metals X through its experienced mining team is continually evaluating and assessing projects and investment  opportunities. The impact and rewards of this approach was demonstrated in the substantial profit made from  the partial divestment of Jabiru Metals Limited during the year. Metals X has further expanded its strategic  investment with the acquisition of a 17% interest in Mongolian Resources Corporation Limited and a 25% interest  in Aziana Limited, a gold and bauxite exploration company in Madagascar. Metals X believes these investments  present an excellent opportunity as cornerstones into Mongolia and Madagascar both of which represent  significant untapped resource potential. These acquisitions complement our investment in Westgold Resources  Limited (25%) and Independence Group NL (3.2%). The company remains in a very strong position with an exceptional cash position, investments and world class  assets including the Renison Tin Project and the Wingellina Nickel Project. With the continued support of our  shareholders and stakeholders we look forward once again to the year ahead.  03  OPERATIONAL REVIEW Warren Hallam Managing Director