Issue of Equity

Metals Exploration PLC
18 October 2006


18 October 2006


Metals Exploration plc ('Metals Ex' or 'the Company')


Issue of Equity


Placing to raise £5 million


HIGHLIGHTS


£5 million raised (before expenses) through an institutional placing.

Funds will be used primarily to advance the Company's Runruno gold-molybdenum
project in the Philippines, which, as previously announced, has a preliminary
JORC compliant Inferred Mineral Resource totalling an estimated 23 million
tonnes at an average grade of 2.3 g/t gold and 0.07% molybdenum for a total
contained 1.7 million ounces of gold and 34 million pounds (15.4kt) of
molybdenum.

Company strategy to move into development of a 150,000-200,000 oz/yr gold mining
operation at Runruno.

Recent appointment of Jonathan Beardsworth as CEO complements management team
with extensive corporate experience and proven track record in mineral
exploration, project development, feasibility studies and mining finance.

Metals Ex is an AIM-quoted gold and copper exploration company with a focus on
the Philippines.

The Company is pleased to announce that it has raised £5 million (before
expenses) through a placing (the 'Placing') of new ordinary shares of 1 pence
each at 25 pence per ordinary share (the 'Placing Shares') through its broker
Collins Stewart. The Placing Shares have been issued at a discount of 22.5% to
the closing price of the shares at 32.25p on 16 October 2006.

Application will be made for the Placing Shares to trade on AIM and it is
expected that dealings in the Placing Shares will commence on 24 October 2006.

The Placing Shares will rank pari passu in all respects with the existing shares
in issue. The number of shares in issue following the Placing will be
75,862,167.

The majority of the funds will be used to conduct further drilling operations at
Runruno with a view to increasing the size of the resource to the Company's
medium term target of 2.5m oz Au by mid 2007.  Funds will also be used to
improve the definition of the resource, to conduct metallurgical testing and
preliminary environmental studies, and to prepare for the commencement of a
bankable feasibility study starting around mid 2007.

Jonathan Beardsworth, CEO, said: 'We are delighted with the support shown by
existing major shareholders, and pleased to welcome important new institutional
shareholders to the Company.  Runruno is an exciting gold / moly project which
already has a resource capable of sustaining a 150,000-200,000 ounce per year
gold mining operation.  The Placing gives us the opportunity to increase the
resource and move towards development.'


Qualified/competent persons

Gary Powell (a Director of the Company) has been involved in the mining and
exploration industry for more than 20 years. He has a Bachelor of Applied
Science degree in geology and is a member of the Australasian Institute of
Mining and Metallurgy and the Australasian Institute of Geoscientists. Gary
Powell is the Qualified Person for the purposes of the AIM Guidance Note on
Mining, Oil and Gas Companies dated March 2006. He has compiled, read and
approved the technical disclosure in this regulatory announcement.


Enquiries:

Jonathan Beardsworth, Chief Executive                [phone]
Jonathan Anderson - Investor Relations               [phone]
                                                     + 63 (0) 917 560 6654
Adrian Hadden, Collins Stewart                       [phone]




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