Raise £6.3m Via Placing & Convertible Note

19 July 2007

                       METALS EXPLORATION PLC

            RAISE £6.3M VIA PLACING AND CONVERTIBLE NOTE


The Board of Metals Exploration  PLC ("the Company") (AIM: MTL),  the
UK based precious and base metals exploration company focused in  the
Pacific Rim  Region  is  pleased  to  announce  that  it  has  raised
£6,305,000 (before expenses) by  way of a  £4,305,000 placing by  the
Company  of  new  ordinary  shares  (the  "Placing")  and  £2,000,000
Convertible Note Issue.

FUND RAISING HIGHLIGHTS:
*               £6,305,000 gross proceeds raised
*              £4,305,000 raised through the placing of 10,762,500
  new ordinary shares ("Placing Shares") at a placing price of 40
  pence per ordinary share ("Placing Price"), representing a 4%
  discount to the closing mid-price on Wednesday, 18th July 2007 of
  41.75 pence
*                £2,000,000 Convertible Note Issue with a coupon of
  9% per annum and a conversion price of 52 pence per ordinary share,
  representing a 30% premium to the Placing Price


Following the  recent  positive  metallurgical  testwork  and  infill
drilling results at  the Company's  flagship Runruno  project in  the
Philippines, the Company intends  that proceeds from the  fundraising
will be directed  primarily towards  continuing to add  value to  the
Runruno project.

The injection  of funds  also gives  the Company  the flexibility  to
pursue additional projects in the Pacific Rim Region.  The Company is
currently  actively  reviewing   corporate  opportunities  with   the
potential to  add  value to  the  Company and/or  provide  near  term
cashflow.  The Company will keep investors updated in the event  that
these opportunities materialise.

Funds will  also  be used  to  finance the  general  working  capital
requirements of the Company.


Jonathan Beardsworth, CEO of Metals Exploration Plc commented:

"This fundraising  gives  the Company  the  flexibility it  needs  to
pursue its corporate objectives, and builds on the steady improvement
in the share price so far this year.  We are grateful for the support
of existing  shareholders,  and  pleased  to  welcome  important  new
investors.

"Our previous  announcement  demonstrated  that  infill  drilling  at
Runruno is proceeding well, and that we have received some  extremely
encouraging metallurgical  test results  showing 94.7%  overall  gold
recovery from a composite  sample of primary sulphide  mineralization
subjected to pressure  oxidation tests,  as well as  the presence  of
some solubilised molybdenum.

"We will continue  to focus on  adding value at  Runruno, as well  as
exploring other corporate and project opportunities."


Jonathan Beardsworth
Chief Executive Officer


Placing details

The Company has raised £4,305,000 through a placing by the Company of
10,762,500 new ordinary shares at 40  pence per ordinary share.   The
Placing was not made on a pre-emptive basis.

Application will be  made for the  Placing Shares to  be admitted  to
trading on AIM and it is expected that admission and dealings in  the
Placing Shares will commence on 24 July 2007.

The Placing Shares  will rank  pari passu  in all  respects with  the
existing shares in issue.

The number of ordinary  shares in issue  following completion of  the
Placing will be 89,009,837.


Convertible Note Issue Details

The key terms of the Convertible Note are:

+-------------------------------------------------------------------+
| Lender            | City Natural Resources High Yield Trust plc,  |
|                   | and New City High Yield Fund Limited;         |
|-------------------+-----------------------------------------------|
| Amount            | £2 million pounds sterling                    |
|-------------------+-----------------------------------------------|
| Coupon            | 9% per annum payable quarterly in arrears     |
|-------------------+-----------------------------------------------|
| Escrow            | The first 12 months interest payments to be   |
|                   | reserved and paid in accordance with the      |
|                   | terms of the Loan Notes                       |
|-------------------+-----------------------------------------------|
| Conversion        | The Loan Notes may be convertible at the      |
|                   | option of the Loan Note holder at any time    |
|                   | prior to the close of business on 1 August    |
|                   | 2011 into 3,846,154 Ordinary Shares           |
|-------------------+-----------------------------------------------|
| Conversion Price  | 52p per share                                 |
|-------------------+-----------------------------------------------|
| Change of Control | Upon a change of control involving the        |
|                   | acquisition of voting control of over 50% or  |
|                   | more of the shares of the Company, the Loan   |
|                   | Notes holders will have the right to require  |
|                   | the Company to redeem the Loan Notes, in      |
|                   | whole or in part, at a price equal to 101% of |
|                   | the principal amount and unpaid interest      |
|                   | accrued thereon                               |
+-------------------------------------------------------------------+



For more information:


Jonathan Beardsworth CEO                          + 44 (0) 20 7927
                                                  6690
Jonathan Anderson    Investor Relations           + 44 (0) 20 7927
                                                  6690
Adrian Hadden        Collins Stewart Europe       +44  (0) 20 7523
                     Limited                      8350
Charles Vivian       Pelham PR                    +44  (0) 20 7743
James MacFarlane     Pelham PR                    6672
                                                  [phone]
                                                  6375

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