Market Update - Quinchia Gold Project

Metminco Limited ("Metminco" or the "Company") (ASX: MNC; AIM: MNC) announces that it is on track to complete the acquisition of Minera Seafield SAS (Minera Seafield) from RMB Resources Australia Limited by the end of May 2016.

The Company has appointed SRK Consulting (U.S.) Inc. (SRK), based in Denver, to provide Metminco with an updated JORC 2012 compliant resource model/resource statement for the Miraflores Project. In addition to the resource model, SRK will develop an updated underground only mining scenario with paste backfill. The mining plan will be indicative of a Feasibility Study level design for the mining, with lower level estimates for backfill and will give Metminco confidence that this approach to mining is reasonable.

SRK has also been engaged to review and collate the original studies undertaken by individual consultants and perform a Gap Analysis of key information required to progress the project forward to completion of a Feasibility Study. The Feasibility Study work previously undertaken by Minera Seafield was ended abruptly due to a receiver being appointed over its parent (Seafield Resources Limited) in late 2014. Prior to entering receivership compilation and review of the work completed to that date had not been completed.

SRK were retained by Seafield Resources Limited as the engineers for the Feasibility Study which commenced in 2013.

Mr William Howe, Managing Director, commented: "The Company will be in a position to appoint an engineer to complete the Feasibility Study immediately following settlement of the transaction with RMB. The Company has retained SRK to provide the Company with a JORC 2012 compliant resource statement which will form the basis for an updated underground only mine plan to Feasibility Study level.

SRK will also provide the Company with a Gap Analysis of existing and required data for the completion of the Feasibility Study."

William Howe

Managing Director

Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ''anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.