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## WINGELLINA MINING AGREEMENT 

In July 2010 Metals X signed a mining agreement (“the Agreement”) with the traditional owners and granted native title holders of the Wingellina Project area through their representative bodies being the Yarnangu Ngaanyatjarraku Parna Aboriginal Corporation, the Ngaanyatjarra Land Council (Aboriginal Corporation), and the Ngaanyatjarra Council (Aboriginal Corporation). 

The Agreement provides consent for the grant of a Mining lease, and subsequent mining operations over the project, which subject to other regulatory approvals allows Wingellina to be developed. In addition the agreement allows for the granting of additional project titles for water, pipelines, roads and other infrastructure over an area in excess of 19,000 km 2 . 

The landmark agreement was the first, and remains the only mining agreement to be successfully negotiated in the Ngaanyatjarra Lands and the associated Aboriginal Reserves. Whilst the detail of the Agreement remains confidential, the agreement includes reasonable and appropriate cash payments as project milestones are met, a gross royalty interest in line with current Western Australian and national industry standards, and employment and training initiatives for the local people. 

The finalization of the Agreement was a major milestone in the development of Wingellina and an important focus for financial and social development within the Ngaanyatjarra lands. The Agreement reflects a willingness by the Ngaanyatjarra people to work together with mining companies in the development of resource projects providing commercial and financial benefits to all stakeholders, whilst maintaining the respect of cultures, beliefs and traditions of the traditional owners. 

## CLAUDE HILLS PROSPECT 

Claude Hills is located approximately 25kms to the East of Wingellina and is one of a number of areas within the Company's exploration titles where outcropping nickeliferous limonite similar to Wingellina is known. Metals X completed an extensive drilling campaign at the Claude Hills prospect to complement the drilling campaign carried out in late 2008 and has defined an Inferred Resource as follows: 

<img src='content_image/174402.jpg'>

A total of 264 holes (16,514m) have been drilled by Metals X to date over a strike length of approximately 11.5km. The Claude Hills resource straddles the wholly owned tenement EL4751 and the Mt Davies JV tenement EL3932, of which approximately 50% of the resource is located within EL4751 and the remainder in EL3932. Mineralisation extends over a 5km strike length with widths of 50 to 250m and ore thicknesses of 12 to 60m, and lies below a remobilised cover of 5-20m. The grades obtained are similar to Wingellina for nickel, cobalt and magnesium, but the aluminium content is considerably lower. It is anticipated that the metallurgical behaviour of the ore will be as favourable as Wingellina as a result of the low magnesium and alumina grades. 

The presence of well developed nickeliferous limonite at Claude Hills is an exciting development in the understanding of the Giles Complex, and the Company will continue to explore for additional resources to complement the Wingellina Project. The likelihood of further developing additional resources outside of the Wingellina deposit is considered to be high. 

## “AN ADDITIONAL 33.3 Mt $^{ @ 0.81% Ni}$” 

## CLAUDE HILLS 

