Los Calatos: Drilling Update

Level 6, 122 Walker St

North Sydney, NSW 2060

Australia

T +61 (0)2 9460 1856

F +61 (0)2 9460 1857

For immediate release 19 October 2011

LOS CALATOS: DRILLING UPDATE

CONFIRMING A WORLD CLASS COPPER PROJECT

Latest drilling results from Metminco Limited's 100% owned Los Calatos copper/molybdenum project in Peru provide further confirmation that it is indeed a world class project with intersections demonstrating mineralisation from surface to vertical depths of approximately 2,000 metres.

Metminco has now received all assay data for drill holes CD-34 to CD-39 and incomplete assay data for drill hole CD-40, which is currently being drilled. Significant cumulative intersections for CD-38, CD-39 and CD-40 holes are summarised below:

·; CD-38 1,158 metres @ 0.33% Cu and 165ppm Mo)

(EOH 1,457 metres) (intersection from 56 metres to 1,310 metres down hole)

·; CD-39 1,242 metres @ 0.32% Cu and 269ppm Mo

(EOH 1,611 metres) (intersection from 333 metres to 1,590 metres down hole)

·; CD-40 607 metres @ 0.49% Cu and 170ppm Mo 1

Including 112 metres @ 0.78% Cu and 338ppm Mo

(intersection from 328 metres to 959 metres down hole)

( 1 - drill hole in progress and assays outstanding)

To see the full press release including the surface geological plans of Los Calatos please download the following pdf:

http://www.rns-pdf.londonstockexchange.com/rns/4193Q_-2011-10-18.pdf

Los Calatos Project 

The main area of interest at Los Calatos is defined by the "LIX capping" (Figure 1), 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 700 metres near surface, to in excess of 1,000 metres at a vertical depth of 1,500 metres as defined by drill holes CD-27, CD-31, CD-38 and CD-39 and demonstrated in figures 2, 3 and 4.

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 21 holes have been completed or are close to completion for a total of 24,700 metres completed to date (Table 2). Five drill holes are in progress and a further 5 drill holes are planned for the Phase 3 drill program, totalling 9,000 metres to define the mineralisation limits. This program is expected to be completed by the end of 2011.

The current drill program (Figure 1) will 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. Figures 2, 3 and 4 graphically depict key geological attributes of the porphyry system, in addition to some of the drill hole results returned to date.

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, to be completed by the end of 2012. This drill program will be undertaken in 2 phases:

·; Phase 1 in-fill program: approximately 30,000 metres of diamond drilling with drill hole spacing to 100m X 200m to be completed by April 2012 (interim resource estimation completed by mid 2012).

·; Phase 2 in-fill program: approximately 70,000 metres of diamond drilling with drill hole spacing to 100m X 100m to be completed by end 2012 (updated resource estimation completed early 2013).

On completion of this drill program Metminco will commission a pre-feasibility study on the Los Calatos Project.

Chilean Projects Update

In Chile, Metminco has completed a drilling program comprising 1,154 metres of Reverse Circulation (RC) drilling and 2,250 metres of diamond drilling at the Mollacas Project to provide ore for further metallurgical testwork and additional information for a final resource estimate.

Drilling has commenced at the Company's Vallecillo project where 9,000 metres of diamond drilling (2 drill rigs) will test the La Colorada deposit and La Colorada type geochemical anomalies and 4,000 metres of RC drilling (1 drill rig) is testing the Cu/Au porphyry system. On completion of the Vallecillo drilling, 10,000 metres of RC drilling will be completed at the Camaron and La Piedra projects. These drill programs are expected to be completed during first quarter 2012.

A geophysical survey comprising IP and ground magnetics has recently been initiated at Vallecillo to assist in refining existing drill targets. A similar geophysical program is being planned for the Camaron and La Piedra projects prior to the commencement of drilling.

Drilling Programs Fully Funded

The current phase of drilling programs at the Los Calatos, Mollacas, Vallecillo, Camaron and La Piedra projects are fully funded from existing cash reserves. As announced in the Company's June 11 Quarterly Report, Metminco had $A31.5 million as at 30 June 2011.Table 2: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 2011).

Table 2: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 2011)

(Continued)

Table 1: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 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 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) 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