Quarterly Activity Report

Level 6

122 Walker St

North Sydney

NSW 2060, Australia

T +61 (0)2 9460 1856

F +61 (0)2 9460 1857

31 October 2011

qUARTERLY ACTIVITIES REPORT & APPENDIX 5B, 3 MONTHS TO SEPTEMBER 2011

HIGHLIGHTS

·; Drilling results (summarised below) provide further confirmation that the Los Calatos copper/molybdenum project is a world class project with intersections demonstrating mineralisation from surface to vertical depths greater than 1,700 metres.

·; Los Calatos Project declared a ¨Project of National Interest¨ by Peruvian government, which will facilitate land acquisition for development

·; Mollacas Project diamond and reverse circulation (RC) drilling programs totalling 3,404 metres completed enabling completion of  the metallurgical testwork and a final resource estimate

·; At the Vallecillo Project a total of 13,000 metres of drilling is underway to upgrade the existing resource at La Colorada, test the adjoining polymetallic targets and evaluate the important Cu-Au porphyry target

·; On completion of drilling at Vallecillo, 10,000 metres of RC drilling is planned for the Camaron and La Piedra projects, to be completed by the end of the first quarter 2012

To view the full Quarter activity report press release including images and maps please download the following pdf document http://www.rns-pdf.londonstockexchange.com/rns/1090R_1-2011-10-30.pdfOPERATIONS - PERU

Los Calatos Project

The current (Phase 3) drilling program at Los Calatos (Figure 1) is specifically designed to provide detailed information on the extent of the alteration system at Los Calatos, as well as the width and depth potential of the mineralisation associated with the porphyry system.

Figure 1: Location of Los Calatos

The main area of interest is defined by the "LIX capping" (Figure 2), which correlates with an underlying, near vertical, porphyry system. 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, CD31, CD38 and CD39 (Figures 3, 4 and 5). By comparison, the block model used in the estimation of the Mineral Resource announced in July 2010 included drill holes to a vertical depth of 1,100 metres, and a width of mineralisation of up to 500 metres.

Five drill rigs are currently operating on site with 26,000 metres being completed in 21 drill holes (Table 1). Five drill holes are in progress, and a further 5 drill holes are planned for the remainder of the Phase 3 drill program, totalling 9,000 metres. This program is expected to be completed by the end of 2011.

The broad spaced Phase 3 drill program 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 3, 4 and 5 depict key geological attributes of the porphyry system, in addition to providing some of the drill hole results returned to date.

On completion of the Phase 3 drill program, Metminco expects to be in a position to commence an infill drill program, which is to be completed by the end of 2012. This drill program will be undertaken in two phases, namely:

·; Phase 1 infill program: This will comprise approximately 30,000 metres of diamond drilling with a drill hole spacing of 100m x 200m, to be completed during the second quarter of 2012, followed by a further resource estimate to be completed by mid-2012.

·; Phase 2 infill program: This will involve 70,000 metres of diamond drilling at a drill hole spacing of 100m x 100m to be completed by the end of 2012, followed by the conduct of a further resource estimate (to be completed early 2013)

On completion of the infill drill program the Company will then commission a pre-feasibility study on the project.

Figure 2: Los Calatos Project: Surface geological plan showing the "LIX capping" and location of phase 3 drill holes.

Figure 3: Los Calatos Project: Section 10,300W showing the porphyry zone, alteration halo, and drill holes with associated assay data.

Figure 4: Los Calatos Project: Section 10,000W showing the porphyry zone, alteration halo, and drill holes with associated assay data.

Figure 5: Los Calatos Project: Section 9,800W showing the porphyry zone, alteration halo, and drill holes with associated assay data.

Table 1: 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)

OPERATIONS - CHILE (Figure 6)

Figure 6: Location of projects in Chile

At the Mollacas Project, a drilling program comprising 1,154 metres of RC drilling and 2,250 metres of diamond drilling, totalling 26 holes was completed during the quarter.

The objective of the diamond drilling was twofold, namely to provide ore for further metallurgical testwork , and to provide additional information for the derivation of a final resource estimate. The objective of the RC drilling was to provide clearance for the planned infrastructure, and for hydrogeological studies.

The drilling campaign was completed in September 2011 and paves the way for a final resource estimate and initiation of feasibility study. Base line environmental studies have commenced in support of the planned feasibility study, which is to be initiated in early 2012.

The Company has purchased the land it requires for the planned development.

Vallecillo Project

A drilling program comprising 9,000 metres of diamond drilling and 4,000 metres of RC drilling is currently in progress at the Vallecillo Project.

6,000 metres of infill diamond drilling has been scheduled for the La Colorada deposit, aimed at converting the presently defined mineral resource into measured and indicated resource categories, ahead of a pre-feasibility study. A further 3,000 metres of diamond drilling will test several Au-Pb anomalies in the vicinity of the La Colorada deposit (Figure 7).

A first phase RC drilling program comprising 4,000 metres will test the upper part of the identified Cu-Au porphyry system to the west of La Colorada (Figure 7) for supergene Cu enrichment, and to provide some indication of the potential of the primary zone.

A geophysical survey comprising IP and ground magnetics has been undertaken to assist in refining existing drill targets.

Figure 7: Vallecillo Project - Geochemical targets (V1 to V7)

Camaron and La Piedra Projects

On completion of the Vallecillo drilling, 5,000 metres of RC drilling will be undertaken at each of the Camaron (Figure 8) and La Piedra (Figures 8 and 9) projects, which is expected to be completed during the first quarter 2012.

At Camaron the drilling will test the main Au soil geochemistry anomalies identified from surface geochemistry and also the Cu - Mo geochemical anomaly (Figure 8) in the south of the project area, whereas at La Piedra the drilling will focus on Zone 'B' (Figure 9) in an endeavour to test the identified Cu-Au-Mo anomalism.

The drilling at Camaron and La Piedra will be preceded by IP and ground magnetic geophysical surveys to help refine drill targets.

Figure 8: Camaron Project - Alteration system and associated Au anomalism (including associated Cu & Mo)

Figure 9: La Piedra Project - Tenement map and zones of hydrothermal alteration

Figure 10: La Piedra Project - Zone of hydrothermal alteration (Zone B) and rock chip assay data

CORPORATE

Los Calatos Project declared a ¨Project of National Interest¨

On 11 July 2011 the Company announced that the Los Calatos Project had been declared a "Project of National Interest" by the Peruvian Government.

A "Project of National Interest" is an exceptional designation that allows Metminco's wholly owned subsidiary, Minera CN SAC, to acquire surface title to the Los Calatos project tenements, which are located on State-owned barren lands, by direct purchase from the Peruvian government. The general rule is that State-owned property can only be transferred by a public auction.

This designation only applies in circumstances where the project's feasibility and economic benefit for the country can be demonstrated to the Peruvian government.

Metminco believes the designation of the project as a ¨Project of National Interest¨ will significantly assist the Company in procuring the relevant surface rights.

Option to acquire La Piedra Project

Early July 2011, wholly owned subsidiary Minera Hampton Chile Limitada, entered into an option agreement to purchase a 100% interest in the La Piedra Project (Option Agreement).

The Option Agreement, as it relates to the acquisition of the La Piedra tenements, includes the following payments:

• US$350,000 on signing the Option Agreement;

• US$350,000 per annum in advance for 2 years to 30 June 2013;

• US$1,000,000 on or before 30 June 2014; and

• US$28 million in cash, or US$14 million in cash and US$14 million in Metminco shares (at Metminco´s election), on or before 30 June 2015, should the Company elect to purchase 100% of the La Piedra tenements.

The Option Agreement will provide the Company with sufficient time to evaluate the prospectivity of the tenements, and to delineate Mineral Resources, ahead of the option expiry date of 30 June 2015.

Cash Position

The current phase of drilling programs at the Los Calatos,Vallecillo, Camaron and La Piedra projects (to be completed during first quarter of 2012) are fully funded from existing cash reserves.

As at 30 September 2011, Metminco had cash reserves of $A26.5 million.

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 JORC compliant resource of 926 million tonnes, consisting of an Indicated Resource 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 JORC compliant resource of 17 million tonnes consisting of an Indicated Resource of 7.2 million tonnes at 0.56% copper and an Inferred Resource of 9.8 million tonnes at 0.52% copper (at a 0.2% copper cut-off grade); and the Vallecillo gold zinc project with JORC compliant resource of 10.1 million tonnes consisting of an Indicated Resource of 7.9 million tonnes at 1.14g/t Au; 11.4g/t Ag; 1.32% Zn; 0.29% Pb and an Inferred Resource of 2.2 million tonnes at 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 mineralisation and type of deposit under consideration and to the activity which he is under taking 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 - GM 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 (0) 386 889 100

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

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

Joint Broker - Liberum Capital Limited

Michael Rawlinson / Clayton Bush Ph: +44 (0) 203 100 2227

Financial Public Relations Consultant - Buchanan

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