Gold Exploration Project

Metals Exploration PLC
23 December 2004


FOR IMMEDIATE RELEASE 23 DECEMBER 2004

                             Metals Exploration plc

The board of Metals Exploration Plc (LSE code 'MTL') announces the completion of
a due diligence investigation of a gold exploration project, the Masapelid
Project, located in the Western Pacific islands of the Philippines. The project
was identified by Mr Gary Powell, (Metals Exploration Plc - director) as having
potential for the definition of gold (+/-copper) resources. During a visit to
the Philippines in November, 2004, Mr Powell carried out field investigations
and due diligence activities at the project to verify the existence of previous
mining and exploration activities.

The Company has subsequently concluded and signed an Agreement with the
claimowner of the Masapelid Project, San Manuel Mining Corporation ('SMMC'). The
Agreement allows the Company to earn 70% economic interest in the property from
San Manuel Mining Corporation ('SMMC') by completing the following Payment
Schedule

US         Issue to SMMC of fully paid shares in  Date of payment
dollars    MTL

  25,000                               250,000    30 days after signing of
                                                  Agreement
  25,000                               250,000    1 year after signing of
                                                  Agreement
  25,000                               250,000    2 years after signing of
                                                  Agreement
  30,000                               500,000    3 years after signing of
                                                  Agreement

The Company is able to withdraw from the Agreement at any time, without any
encumberances or further liabilities, in return for relinquishing any earned
interest.

The Masapelid Project encompasses an island of the same name just off northeast
coast of Surigao del Norte Province. The project is located in a well
mineralised corridor of present-day and historical mining operations, being 6
kilometres northeast of the former gold+copper mining operations of Manila
Mining Corporation (Placer) and 15 kilometres northeast of the Anglo American's
recent Boyongan discovery where hole TSD-38 returned 366 m @ 1.66% copper & 4.49
g/t gold.

The Masapelid Project has had previous exploration conducted over it by several
major mining companies since the 1970s and the Company believes that there
exists good potential to delineate gold (+/-copper) resources.

Previous mining on Masapelid Island dates back to Spanish colonial times. In the
1930s, the northeast trending Layong vein at Layab was developed with reports of
21,000 tonnes of ore extracted at grades of 16 to 24 g/t Au. Other parallel
veins were identified but not mined reportedly because of difficult ground
conditions. Development down to the 300 level (-100 metres below surface) was
recorded, but deeper development on the 400 level apparently did not take place.
Outbreak of World War II stopped all mining activities and no formal mining
activities were resumed after the war.

During the 1980s, artisanal gold miners worked the Layab and Gumod areas. After
the discovery of the rich Diwalwal gold mining area on Mindanao Island, all
artisanal mining ceased on Masapelid Island.

Exploration has been sporadic since the 1970s. During the 1980s, sampling of the
quartz veins from within some of the historical underground workings and
artisanal diggings returned gold assays ranging up to 15g/t Au with occasional
high-grade values up to 426 g/t Au.

During the early 1990s, a major international mining company, Western Mining
Corporation ('WMC'), carried out a regional soil sampling program and some
diamond drilling, thus generating a comprehensive data base covering the whole
island. The soil geochemistry program highlighted the Layab-Looc corridor as
containing the best potential for the discovery of gold mineralisation in
addition to the previously mined deposits. The most significant soil gold
anomalies (>200ppb Au) occur over areas of 1,100 metres x 600 metres and 1,400
metres x 1,000 metres.

Best results from the limited drilling program returned 4 metres @ 2.32 g/t Au
from the Looc area. No drilling was carried out in the vicinity of the Layab
area where the previous mining operations took place. The remainder of the
drilling program was primarily targeting porphyry-style copper mineralisation
outside of the main area of interest to Metals Exploration Plc.

Other Projects

The Company is continually reviewing various projects and opportunities in
accordance with the corporate strategy as defined in the AIM Admission document.

Qualified Person

Gary Powell has been involved in gold exploration projects for over 20 years. He
has a Bachelor of Applied Science degree in geology, and is a member of the
Australasian Institute of Mining and Metallurgy ('AusIMM'). He has compiled,
read and approved the technical disclosure in this announcement.

Principal references used in the preparation of this announcement:

BHP Engineering, 1987, Report on Benguet Exploration Properties: unpublished
report prepared by BHP Engineering on behalf of New Australian Resources NL

O'Brian, P.M., 2000, Independent Geologist's Report on the Mineral Exploration
Property Interests of Templar Resources Limited: Report prepared for Templar
Resources Ltd.

Garling, R., 1987, Geological Report of Masapelid Gold Project: Unpublished
report prepared for the Eric Alexander Group.

Various extracts of letters and reports by individuals.

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



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