Half Year Report

HIGHLIGHTS

Los Calatos Project:

Optimisation work confirms robust project economics including:

· Production rates of 100,100 tonnes per annum of copper and 5,000 tonnes per annum of molybdenum in concentrate over a mine life of 34 years

· Life of mine cash operating cost of US$1.06/lb after by-product credits

· Open pit life of 14-years treating 362 million tonnes at 0.39% Cu and 0.026% Mo at a strip ratio of 3.36:1 (cut-off grade 0.15% CuEq)

· Underground mine life of 21 years treating 449 million tonnes at 0.56% Cu and 0.035% Mo (cut-off grade 0.35% CuEq)

· Total tonnes treated of 811 million tonnes at 0.48% copper and 0.03% molybdenum

· Life of mine metal production of 3.4 million tonnes copper; 169,000 tonnes molybdenum; 547,000 oz gold; 18.4 million oz silver and 405 tonnes rhenium

· Pre-production capital of US$1,320 million

Peruvian Government expands Project of National Interest designation:

· Metminco is able to acquire surface title to the Los Calatos Project tenements by direct purchase from the Peruvian government

· Area increased from 2,800 hectares to 12,700 hectares to accommodate surface infrastructure required for development of Los Calatos

· Designation only applies in certain circumstances where a project's feasibility and economic benefit for the country can be demonstrated to the Peruvian government

Planning of Pre-Feasibility Study

· Selection and preparation of geo-metallurgical samples for metallurgical testwork for pre-feasibility study completed

· Planning of pre-feasibility metallurgical testwork program inclusive of grinding and flotation test work, as well as the use of sea water, underway

Mollacas Project:

· Metallurgical testwork at feasibility study level in progress

Corporate:

· Cash position of A$12.6 million (US$11.5 million), as at 30 June 2013

· Restructuring of the Group together with other corporate initiatives have resulted in a considerable reduction in expenditure

· Company continues negotiations with respect to securing funding for the development of the 100% owned Los Calatos project

· Exploration write-off of A$31.7 million recorded following the Company's decision to focus on the Los Calatos and Mollacas projects

Executive Commentary:

William Howe, Managing Director commented:

"During the half year to June 2013, Metminco made significant progress in advancing Los Calatos and Mollacas closer to production whilst simultaneously restructuring its operations to conserve cash in this difficult economic climate.

At Los Calatos, robust results from the recently completed optimisation work together with the increase by the Peruvian government of the area designated as a Project of National Interest to facilitate development of Los Calatos, are major achievements and further de-risk the project.

Column leach testwork at Mollacas, which is scheduled for completion in the first quarter of 2014, is progressing favourably with copper recovery and acid consumption indicators all pointing to a positive outcome for the development of the project."

For the full press release, please click on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/9553M_-2013-9-2.pdf