Gold Project

Metals Exploration PLC
02 February 2005


FOR IMMEDIATE RELEASE                                          2 FEBRUARY 2005


                              Metals Exploration plc

                                   Announcement

The board of Metals Exploration Plc (LSE code 'MTL') is pleased to announce that
the Company has signed an option agreement in the Philippines over the Runruno
Project. The agreement allows the Company to earn up to 70% economic interest in
the project fully owned by FCF Mining Corporation by the issuance of cash and
shares over a three year period totalling US$210,000 and 1,600,000 shares to its
two shareholders, Filminera Resources Corporation and Christian Mining, Inc.

The Runruno Project has been reviewed by Mr Gary Powell, a director of the
Company, as an advanced project having potential for the definition of further
gold and copper resources. During a visit to the Philippines in November, 2004,
Mr Powell carried out field investigations and due diligence activities at the
project. The Runruno project has had previous exploration conducted over it but
has never been advanced due partly to the property being the subject of numerous
legal disputes lasting several years, which have now all been legally resolved.

The Runruno gold and copper deposit, covered by a granted Exploration Permit EP
No 11-000013,  is located approximately 190 aerial kilometres North-Northeast
from Manila in Northern Luzon and covers some 3,091 hectares.

The board of Metals Exploration views the Runruno Project as a unique
opportunity to enter an advanced project with numerous data and potential for
the increase of its already known resource.


Project History

From 1969 to 1972, a local mining company (Fil-Am) completed a total of 69
diamond drill holes for a total 7,300 meters and developed three exploratory
adits totaling approximately 800 metres. Using the results from this program,
Fil-Am calculated an estimated 13.4 Million tonne resource at an average grade
of 1.41 g/t gold, and 0.8 g/t gold cutoff, for a total contained 607,500 ounces
gold.

In 1974, Consolidated Goldfields of Australia Ltd. optioned the property from
Fil-Am for one year, and in 1975 drilled 9 widely spaced diamond drill holes
totalling 1,373 metres and excavated 142 test pits, 2-3 metres deep, over the
more prospective areas of the property. Approximately 9,000 metres of drilling
has now been completed at Runruno.

In mid-1978, Fil-Am contracted two Japanese companies, Kurimoto Ironworks,Ltd.
and Nissho Iwai and Co. Ltd. to conduct a feasibility study for its property
based on the available diamond drill hole data. Kurimoto sub-contracted the
geological, mining and metallurgical aspects of the feasibility study to Dowa
Engineering Co. Ltd. The Japanese companies reportedly found that the Fil-Am
property was economically viable with an estimated resource to be about 450,000
ounces gold mineable by block-caving method.

In November 1980, Golden Arrow Mining Company, a subsidiary of Apex Mining
Company took an option over the property and reportedly completed 17 diamond
drill holes totalling 1,819 metres. No further work was carried out until they
relinquished the option in 1987 due to financial and internal management
problems.

On August 28, 1995, Base Metal Mineral Resources ('BMMR'), a subsidiary of
London Fiduciary Trust Plc ('LFTP'), executed a Mines Operating Agreement
('MOA') with Fil-Am allowing the former exclusive rights to explore, develop and
operate the property. In 1996, LFTP engaged the services of ACA Howe
International Ltd ('ACA Howe') to calculate a resource estimate for the
property. In their report, ACA Howe estimated an Inferred Resource containing
607,000 ounces gold, and that the resource might be understated by up to 30% due
to poor core recovery. (Hodgson, M. J., June 1996, Geology and ore reserves of
the Runruno gold deposits: unpublished report prepared for London Fiduciary
Trust Ltd by ACA Howe International Ltd.)

During 1996, Newmont Philippines, Inc. conducted a field investigation and
evaluation of the property, but did not elect to take an interest in the
property. Later, additional tenements were incorporated into a joint venture
agreement with three other parties, which in 2000, was then joint ventured to
Greenwater Mining Corporation, an 80%-owned subsidiary of Placer Greenwater Pty.
Ltd. of Singapore (100%-owned subsidiary of Placer Dome Exploration of Canada).
The project then covered some 12,390 hectares of land area, of which the current
property formed the central portion. Unpublished reports, including ones by by
Greenwater Mining Corporation, who have been involved with the project over the
years, suggest that with further work a 2 million oz gold resource is
achievable. Diamond drill core samples of the low-grade resource investigated by
Placer, which the company undertook with no exploration of the high-grade quartz
veins being mined by the artisan miners, were inspected by Mr Powell during the
due diligence visit, and were found to be stored in a safe and secure manner.
The quality of the work carried out by Placer was found to be of a very high
standard and therefore their results can be regarded as not requiring any
substantial verification process.

The Company has also taken account of the fact that the property is situated to
the northwest of Climax Mining Ltd's Didipio Project (20.34M tonnes of Proven
and Probable Ore Reserves @ 1.7 g/t Au and 0.65% Cu - contained within a global
resource of 121 million tonnes, grading 0.97 g/t Au and 0.39% Cu, for contained
gold of 3.8 million ounces of gold and 470,000 tonnes of copper.). see
www.climaxmining.com.au/project_didipio.htm


Commission

Under an arrangement entered into in December 2004 with East West Drilling (L)
Limited,a major drilling company in the Philippines, (' EWD') agreed to use its
reasonable endeavours to introduce the Runruno Project to the Company in
consideration of the payment of a success fee of £45,000. The Company also
agreed to accept the subscription by EWD for 1.5m shares at 3p per share and to
issue 2m warrants to subscribe for ordinary shares at 3.25p per share. Under the
same arrangements, EWD has introduced one other project to the Company, in
respect of which negotiations are well advanced and which, if completed, will
result in the payment to EWD of a further £45,000, and the subscription by EWD
for a further 1,500,000 shares at 3p per share and 2,000, 000 warrants to
subscribe for shares at 3.25p per share.

Gary Powell

Mr Gary Powell is a consulting geologist who has been involved in gold and
copper exploration projects for over 20 years. He has a Bachelor of Science
degree in geology and is a member of the Australasian Institute of Mining and
Metallurgy. He has compiled, read and approved the technical disclosure in this
announcement.

Mr Powell does not have any economic interest in the above mentioned property.
He is a Non- Executive Director of the Company and receives separate
remuneration for the provision of his technical services.



Contact:   Steven Smith, Chairman                07797 721 858
           Jonathan Anderson, Investor Relations 07950 410 680 or 00639162267575




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