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## MT DAVIES JOINT VENTURE 

Metals X through its wholly owned subsidiary Austral Nickel Pty Ltd (“Austral”) entered into a farm-in agreement with Rio Tinto Exploration Pty Ltd (“Rio Tinto”) in July 2009 to earn an initial 51% interest in the South Australian exploration license E3932 (Mt Davies). This tenement is encapsulated within Metals X’s 100% owned tenement E3555, which is adjacent to the Wingellina deposit and hosts part of the Claude Hills deposit. Austral can increase its interest to 70% ownership by sole funding exploration and development expenditure to the completion of a pre-feasibility study. Rio Tinto can elect to contribute following the earn-in phase to retain a 49% interest and can elect to earn-back up to 70% ownership within 60 business days after the delivery by Austral of the pre-feasibility study, through the sole funding of a feasibility study. To date only a small percentage of the mineralisation system has been tested and there are numerous other limonite occurrences known to exist within the Mt Davies license. In addition there is also significant potential for the discovery of nickel and copper sulphides within the area. 

## COMMUNITY INVOLVEMENT 

The CMP is located in a relatively remote part of Australia, where mutual respect, assistance, and understanding are key factors in successfully achieving our goals. Our Western Australian leases lie within Aboriginal Reserve 17614, an area that is subject to a 99 year lease to the Ngaanyatjarra Land Council. Our South Australian lease lies on a freehold aboriginal land granted to the Anangu Pitjantjatjara Yankunytjatjara (“APY”). 

Metals X has maintained a full time presence at the project since 2005 and has been welcomed into the region by members of the various communities, as evidenced by the completion of the mining agreement for Wingellina. The Community support that the Company has attained on the Aboriginal lands has been born out of the open and mutually beneficial relationship that has been developed since 2005. 

Metals X has directly employed many local people in all on ground exploration and feasibility activities undertaken in the area, and sees the training of local people as a critical factor in the future development of the Wingellina operation. 

Metals X has made its exploration camp available to accommodate service personnel working in the local communities, and continues to support local community development initiatives. 

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