Chile Project Update

Metminco Limited (LSE: MNC)

("Metminco" or "the Company")

CHILE PROJECT UPDATE

Mollacas - Drilling comprising 24 diamond drill holes for resource definition and metallurgical testwork, and 14 reverse circulation holes for infrastructure condemnation drilling, completed at Mollacas.

Vallecillo - 9,000 metres of diamond drilling and 4,000 metres of reverse circulation drilling commenced in 41 holes at Vallecillo on 25 September 2011.

(On completion of drilling at Vallecillo, RC drilling rig to be relocated to the Camaron and La Piedra projects to commence planned programs).

Metminco commissioned drilling programmes in June 2011 comprising 16,000 metres of Reverse Circulation ("RC") drilling and 12,000 metres of Diamond Drilling ("DD") at the Mollacas, Vallecillo, Camaron and La Piedra projects. This drill program is expected to be completed during first quarter 2012.

Mollacas Project

The Company has completed drilling of 24 DD holes (2,250 metres) at Mollacas to provide information for an updated JORC resource estimate, expected to be completed by December 2011, and additional metallurgical testwork (Figures 1 and 2).

Condemnation drilling in areas to be affected by future leach pads, process and mine infrastructure and waste dumps comprising 1,158 metres of RC drilling in 14 drill holes was completed as part of the same program.

SGS laboratories in Santiago have been commissioned to undertake the metallurgical testwork program comprising eight 6-metre columns to determine the definitive leach characteristics of the various Mollacas ore types as part of a Feasibility Study which is expected to be completed by mid-2012.

In April 2008, SRK Consulting Chile completed a Scoping Study for the Mollacas copper leach project, the key results of which were as follows:

Open pit copper leach operation

Approximately six year life of mine producing 13,500 tonnes per annum of copper cathode (29.8million lbs per annum)

Estimated capital cost: US$56 million

Life of mine strip ratio: 1.3 to 1

Life of mine operating costs: US$0.91 per lb copper

NPV of US$103 million at US$2.50/lb copper and 8% discount rate

IRR >70%

Vallecillo Project

Drilling has now commenced at the Vallecillo project, which comprises 6,000 metres of DD drilling at the La Colorada deposit (V1 target) for resource definition purposes, and 3,000 metres of DD drilling to test thre Au-Pb geochemical targets. This will form the basis of a Scoping Study to be to be completed on La Colorado and the surrounding polymetallic targets during 2012.

A further 4,000 metres of RC drilling has been initiated to test two geochemical anomalies associated with the Cu-Au porphyry in the northwest of the Vallecillo project area.

The Company is currently completing a ground magnetic and IP (Induced Polarisation) geophysical survey in support of the drilling program, the results of which are expected shortly.

To see the full press release including schematic diagrams of the Mollacas enrichment zone, the primary porphyry mineralisation and the Vallecillo project please download the following pdf http://www.rns-pdf.londonstockexchange.com/rns/8784O_-2011-9-25.pdf

About Metminco:

Metminco is a dual ASX and AIM listed company with a portfolio of copper and gold projects in Peru and Chile. The Los Calatos project, located in southern Peru, has a JORC compliant resource of 927 million tonnes, comprising Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo, and an Inferred Resource of 816 million tonnes at 0.37% Cu and 260ppm Mo (at a 0.2% copper cut-off grade).

The Chilean assets include the Mollacas copper leach project with a JORC compliant resource of 17 million tonnes consisting of Indicated Resources of 7.2 million tonnes at 0.56% copper and Inferred Resources of 9.8 million tonnes @ 0.52% copper (at a 0.2% copper cut-off grade); and the Vallecillo gold zinc project with a JORC compliant resource of 10.1 million tonnes consisting of Indicated Resources of 7.9 million tonnes @ 1.14g/t Au; 11.4g/t Ag; 1.32% Zn; 0.29% Pb and an Inferred Resource of 2.2 million tonnes @ 0.78g/t Au; 8.2g/t Ag; 0.58% Zn; 0.26% Pb (at a cut-off grade of 0.3g/t Au).

Competent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Colin Sinclair, BSc, MSc, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the Company as General Manager Exploration.

Colin Sinclair has sufficient experience (over 30 years) which is relevant to the style of mineralisation, type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results'. Mr Sinclair, as Competent Person for this announcement, has consented to the inclusion of this information in the form and context in which it appears herein.

For further information please contact:

South America:

William Howe - Managing Director Ph: +56 (2) 411 2600

Australia:

Stephen Tainton - Investor Relations Ph: +61 (0) 2 9460 1856

Philip Killen - Company Secretary & CFO Ph: +61 (0) 408 609 916

Broker - BGF Equities

Warwick Grigor / Marcus Freeman Ph: + +61 3 8688 9100

Financial Public Relations Consultant - Collins St Media

Ian Howarth Ph: +61 (0) 407 822 319

United Kingdom:

Tim Read - Non-Executive Director Ph: +44 (0) 777 072 1809

Nomad and Joint Broker - Canaccord Genuity Limited

Robert Finlay/ Andrew Chubb Ph: +44 (0) 207 050 6500

Joint Broker - Liberum Capital Limited

Michael Rawlinson / Clayton Bush Ph: 44 (0) 20 3100 2227

Financial Public Relations Consultant - Buchanan

Tim Thompson / James Strong Ph: +44 (0) 20 7466 5000