Drilling Update

Metminco Limited (LSE: MNC)

("Metminco" or "the Company")

DRILLING AT LOS CALATOS CONFIRMS MINERALIZATION TO DEPTHS IN EXCESS OF 1,700 METRES

Drilling at Metminco Limited's 100% owned Los Calatos copper/molybdenum project in Peru has indicated the existence of significant mineralization close to surface which has the potential to enhance early cash flows from any future development.

The drilling program has also confirmed that the Los Calatos mineralization extends to at least 1,700 metres below surface.

Metminco has now received all assay data from two deep drill holes, CD 27 and CD 31, which are part of an extensive program to assess the full extent of the porphyry system at Los Calatos.

The full intersections for these holes are summarised below:

Los Calatos Project

The main area of interest at Los Calatos is defined by the "LIX capping", which correlates with an underlying, near vertical, porphyry system that is developed to depths in excess of 2,000 metres. Furthermore, the width of the system increases from some 700 metres near surface, to in excess of 1,000 metres at a vertical depth of 1,500 metres as defined by drill holes CD27 and CD31. Both drill holes ended in strong mineralization. Results from CD31 indicate the existence of significant mineralization close to surface over a reasonably large width which may enhance the early cash flows of any possible future development at the Los Calatos Project.

Five drill rigs are currently operating on site, with a further drill rig being requested in order to expedite the completion of the phase 3 drill program of which 12 holes have been completed for a total of 18,200 metres (Table 1). Four drill holes are in progress for a further 6,400 metres, and a further 9 drill holes are planned, totalling 13,200 metres to define the mineralization limits for a total of 37,800 metres for the phase 3 drill program. This program is expected to be completed by the end of 2011.

The Company will complete the current drill program to test the full strike length of the porphyry system (delineated by the "LIX capping"), as well as the broad geometry of the system and associated mineralization.

On completion of these drill holes, Metminco expects to be in a position to commence an in-fill drill program of the mineralized porphyry system with a view to completing an updated Mineral Resource estimate during 2012. On completion of this drill program the Company will then commission a pre-feasibility study on the project.

Please click the following link to view a diagram of the Surface geological plan showing the "LIX capping" and location of planned drill holes, and a diagram of the porphyry zone, alteration halo, and drill holes with associated assay data. http://www.rns-pdf.londonstockexchange.com/rns/7212M_-2011-8-19.pdf

Chilean Projects Update

In Chile, Metminco has commenced a drilling program comprising 2,000 metres of RC drilling and 3,000 metres of diamond drilling at the Mollacas Project to provide ore for further metallurgical testwork and additional information for a final resource estimate. Two drill rigs are currently operating at Mollacas with a third scheduled to commence during August 2011. On completion of the Mollacas drilling, 14,000 metres of RC drilling and 9,000 metres of diamond drilling will be completed at the Vallecillo, Camaron and La Piedra projects. These drill programs are expected to be completed by the first quarter 2012.

A geophysical survey comprising IP and ground magnetics has recently been initiated at Camaron to assist in refining existing drill targets. A similar geophysical program will be conducted at the Vallecillo Project prior to the commencement of drilling.

Drilling Programs Fully Funded

The Los Calatos, Mollacas, Vallecillo, Camaron and La Piedra drilling programs are fully funded from existing cash reserves. As announced in the Company's June 11 Quarterly, the Company had cash reserves of $A31.5 million as at 30 June 2011.

Table 1: Los Calatos Project: Summary of Phase 3 drill hole results (20 August 2011).

Table 1: Los Calatos Project: Summary of Phase 3 drill hole results (20 August 2011)

(Continued)

William Howe

Managing Director

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 926 million tonnes, comprising Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo, and an Inferred Resource of 815 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 30years) which is relevant to the style of mineralization, 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: +27 11 82 651 3358

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