Palomino Project Update

27 October 2017

MetalNRG plc

("MetalNRG" or the "Company")

Palomino Project Update

MetalNRG plc (NEX:MNRG), the natural resource investing company traded on the NEX Exchange Growth Market in London, has noted the recent announcements from companies with projects in the Pilbara region of Australia.

The Company has also received enquiries from investors about MetalNRG’s potential interests in the Pilbara region, which currently comprise one project area under application (Palomino Project) and one further project area under application (Palomino North) which is the subject of a forthcoming ballot (i.e. another company has also submitted an application in respect of the same ground applied for by MetalNRG’s Australian working partner and thus a ballot is held to determine the successful applicant, unless the parties reach suitable agreement as to how the joint application is to be handled prior to the ballot). As announced on 12 October 2017, the Company will update shareholders as and when it is known that the application, for Palomino North has been successful or not.

As outlined within our Strategic Business Update announcement on 12 October 2017, whilst the Company originally submitted the applications with a cobalt focus, and cobalt remains a key target metal for both projects, due to their geographic location within the Pilbara region of Western Australia, the application areas may also be prospective for gold, as a number of companies are reported to have discovered potentially significant gold bearing conglomerates elsewhere in this largely underexplored region.

MetalNRG has been monitoring developments in respect of the Pilbara region and notably in respect of companies holding interests in close proximity to our own potential interests, including the results of exploration work and analysis conducted by those companies.  This includes London listed Greatland Gold (LON:GGP), which released a detailed update on 24 October 2017 in respect of its Panorama Project, which consists of two adjoining exploration licence applications one of which is also adjoining MetalNRG’s potential Palomino Project.

MetalNRG is working with its Australian partner and its own technical team to assess the technical information and findings of those in proximity to our potential interests and forming a view as to how this may impact the prospectivity of the Palomino Project.  We will update the market on our findings at the earliest opportunity.

Paul Johnson, Chief Executive Officer of MetalNRG commented: “We are grateful to be in a potentially fortunate position.   In the case of the Pilbara region, our licence applications originally submitted with a cobalt focus now need to be seriously assessed for their gold potential. Based on recent announcements by our neighbours and other companies operating in the region, it seems clear that the Eastern Pilbara is prospective for gold. Indeed, there is gathering excitement surrounding more and more of the companies operating in the broader Pilbara region.

MetalNRG, like many others, is highly intrigued by what is unfolding in the region.  That said, we want to maintain a calm perspective and focus on building our technical knowledge, helped tremendously by information released into the public domain by our peers.  We will report to the market the findings of our technical review in due course.”

Transaction background – Palomino Project

As noted in the announcement of 29 June 2017, to secure the right to acquire 100% of the Palomino application, when it becomes a granted licence and subject to the normal regulatory approvals needed for licence transfers, MetalNRG has agreed to cover the direct costs of the vendor up to circa A$15,000 and to issue one million MetalNRG shares to the vendors at a deemed price of 1.5p per new ordinary MetalNRG share. If the Palomino application is granted, MetalNRG will issue a further two million shares to the vendors at a deemed price of 1.5p per new MetalNRG ordinary share.

Additional Share Based Payment

In recognition of the additional work that has been undertaken by our Australian partner, Redstone Metals Pty Limited (“Redstone”), the Company has agreed to issue 500,000 new ordinary MetalNRG plc shares to Redstone at a deemed price of 1.5p which reflected the share price at the time the work was undertaken.  This is separate and in addition to the original terms agreed for the right to acquire Palomino as outlined above and detailed originally within our announcement of 29 June 2017.

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who acts as Competent Person. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by MetalNRG PLC to provide technical support.

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), following completion of the above Additional Share Based Payment the issued ordinary share capital of MetalNRG will consist of 139,326,404 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, MetalNRG under the DTRs.

The Directors of the Company accept responsibility for the contents of this announcement.

Contact details:

MetalNRG plc    Paul Johnson (Chief Executive Officer)	[phone]
NEX Exchange Corporate Adviser PETERHOUSE CORPORATE FINANCE LIMITED Guy Miller Mark Anwyl Corporate Broker [phone] SI CAPITAL Nick Emerson Andy Thacker	[phone]

Notes for Editors:

MetalNRG is traded on the NEX Exchange Growth Market in London with the stock code MNRG and is a natural resource investing company.

NEX Exchange:

Investors wishing to consider trading in NEX Exchange Growth Market quoted shares can access this market from numerous brokers, a full list of which can be accessed through the following link:

http://www.nexexchange.com/for-investors/find-a-broker/

The list accessed through the link above includes certain brokers offering online trading of NEX Exchange quoted shares.

The Investing Policy of the Company is as follows:

The Company’s Investing Policy is to invest in and/or acquire companies and/or projects within the natural resources and/or energy sector with potential for growth and value creation, over the medium to long term. The Company will also consider opportunities in other related sectors if the Board considers there is an opportunity to generate an attractive return for Shareholders. This will include natural resource technologies and fintech opportunities offering leverage to resource identification, processing, recording, storage and trading businesses.

Where appropriate, the Board may seek to invest in businesses where it may influence the business at a board level, add their expertise to the management of the business, and utilise their significant industry relationships.

The Company’s interests in a proposed investment and/or acquisition may range from a minority position to full ownership and may comprise one investment or multiple investments. The proposed investments may be in either quoted or unquoted companies; be made by direct acquisitions or farm-ins; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or projects.

The Board may focus on investments where intrinsic value can be achieved from the restructuring of investments or merger of complementary businesses. The Board expects that investments will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders. The Board will place no minimum or maximum limit on the length of time that any investment may be held. The Company may be both an active and a passive investor depending on the nature of the individual opportunity.

Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings, but may do so if appropriate. Investments in early stage assets are expected to be mainly in the form of equity, with debt potentially being raised later to fund the development of such assets. Investments in later stage assets are more likely to include an element of debt to equity gearing. The Board may also offer new Ordinary Shares by way of consideration as well as cash, thereby helping to preserve the Company’s cash for working capital and as a reserve against unforeseen contingencies including, for example, delays in collecting accounts receivable, unexpected changes in the economic environment and operational problems.

The Board will conduct initial due diligence appraisals of potential business or projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. The Proposed Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence. The Company will not have a separate investment manager. The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate.