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## CHAIRMAN’S STATEMENT 

## Dear Shareholders 

It is my pleasure to present you the Metals X Limited Annual Report for the period ending 30 June 2011. 

The past year has seen Metals X make steady progress on a number of fronts. 

Our Joint Venture tin operations in Tasmania maintained consistent and profitable performance, although the operations performance is currently at levels below our internal expectations. The increased focus on brownfields exploration was very successful in providing extension to the mining reserves and the overall resource base with the highlight being a number of bonanza tin results from the Area 4 zone within the Renison Mine. Suffice to say that the future of this mine has never been brighter throughout our seven years of ownership. 

The Company has also made considerable progress in advancing the Wingellina Nickel Project toward development. Most of the pre-development and logistical aspects required prior to development have been completed and a landmark native title agreement with the key stakeholders was signed during the year that paves the way for the development of this globally significant project. 

Discussions continue with potential participants and financiers to provide funding for the development of the Wingellina Nickel Project. An agreement was reached to swap Jinchuan’s 12.9% equity in Metals X for a direct 20% interest in the Central Musgrave Project which will occur under a selective share buy-back process to be voted on by shareholders and should complete by year end. 

Our strategy to make strategic investments in assets via equity participation in other companies has paid dividends with the partial divestment of our Jabiru Metals Limited stake into a takeover offer by Independence Group NL resulting in the crystallisation of a substantial profit for the Company. We still hold a significant shareholding in Independence and will do so until the Company believes its full market value is recognised. 

We continued this strategy and have made further investments in the frontier resource countries of Mongolia and Madagascar. In Mongolia we have acquired a 17% position in ASX-listed Mongolian Resource Company Limited. While in Madagascar we acquired a 25% interest in Aziana Limited, an unlisted explorer who is at the forefront of an exploration rush in Madagascar and we will assist this Company to list in the ensuing months. 

We supported the consolidation of our gold investments during the year with the takeover of Aragon Resources Limited by Westgold Resources Limited and we retain a 25% interest in the merged group. We believe that Westgold has excellent assets and the potential to build into a major participant in the Australian gold producer ranks. 

On the financial front, our Company is in a strong position with substantial cash and investments with no debt. The Company booked an after-tax profit for the year of $62.3m up 429% on the $12.5m for the previous year. 

Metals X continues to struggle to gain market recognition for the value of its diverse asset base as reflected in its share price. In the year forward, it is a major objective of the Board and I, to ensure this value is recognised. 

The previous year witnessed a significant turn-around in our fortunes and this has been further enhanced in the 2011 year. The sound footing on which the Company now stands is a direct outcome of strong and committed leadership of the Board coupled with the energy, drive and dedication of our executive team and their support staff. On behalf of all shareholders, I acknowledge and thank all our staff for their dedication. 

On behalf of my Board I thank all shareholders, internal and external stakeholders for their continued support and belief in the Company during the year past. 

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02 CHAIRMAN’S STATEMENT 

