Results of Concept Study

Metals Exploration PLC
15 April 2008

                             Metals Exploration PLC


                        Runruno Concept Study Completed
                  Ausenco appointed as Engineering Contractor



15 April 2008



Metals Exploration PLC ('Metals Ex' or 'the Company') (AIM: MTL), the natural
resources exploration and development company with assets in the Pacific Rim
region, is pleased to announce the results of its Concept Study into the
economic viability of its 100% controlled Runruno gold-molybdenum (Au-Mo)
project located in the Philippines.


The Company is also pleased to report the appointment of Ausenco, an Australian
based engineering and project management company, to the Scoping Study team.


Highlights:



  • 190,000 - 210,000 ozs/year gold production planned
  • Additional 1.8m - 2.1m lbs/year by-product Mo production targeted
  • Project is robust on a stand alone gold development basis
  • Capital cost of US$160m - US$210m (includes Mo circuit)
  • Gross average annual cash costs of US$350 - US$400 per oz Au (falling to
    US$190 - US$320 per oz Au net of Mo credits at US$15/lb)
  • Internationally renowned engineering firm Ausenco appointed to assist in
    completion of Scoping Study by mid-2008





The Company recently completed Stage 1, or Concept Study stage, of the Runruno
detailed Scoping Study.



The Concept Study has been prepared by the Company using its own resources but
with input from a number of external consultants; and has been undertaken by
contrasting and comparing the sub-elements of a number of similar mine and
processing operations to design a conceptual development and operations model
for Runruno.  To refine this model further, many of the elements have been
checked against the local Philippine operating environment and the model
adjusted accordingly.



By its nature the output of the Concept Study can only be considered as a guide
to a possible development at Runruno.  However, it provides an important
framework on which the Company can base the full Scoping Study, which is being
undertaken to a greater level of detail and using external consultants and which
will provide the basis for the Company to commit the Project to a full
feasibility study.



The Scoping Study, involving a technical and economic assessment of the
viability of developing a mining and processing operation at Runruno, is
designed to consider the available development options for the Project, and to
estimate possible capital and operating costs and production rates for a mine
and processing operation based on the March 2008 mineral resource estimate
(Announced 4 March 2008).






Concept Study



The Company is encouraged to report that the results of the Concept Study
indicate that the Runruno Project appears robust on a stand alone gold
development basis.



A summary of the results of the Concept Study is provided below.  The Study has
considered two scenarios:



  • The first for a stand alone gold development recovering no molybdenum
    by-product;
  • The second for a gold operation recovering a molybdenum by-product.



The Study has been prepared in this manner to reflect the status of the current
metallurgical testwork programmes into both gold and molybdenum recoveries.  Two
alternative gold processing routes have already been successfully identified.
Work to recover a molybdenum product is still ongoing. (Announced 8 April 2008).




It is the Company's belief, based on the positive results of the most recent
molybdenum testwork, that a molybdenum circuit is likely to be identified.
However, this remains to be demonstrated.  Significantly, a circuit to recover
molybdenum will be a modular addition to the primary gold processing circuit,
and work to identify such a process will not delay the overall progress of the
gold project.



Appointment of Ausenco



The Company is pleased to announce that Ausenco has been appointed to the
Runruno Scoping Study and is responsible for undertaking the design of a process
flow sheet and preparing a capital and operating cost estimate for the
processing plant.  Ausenco has detailed experience of all aspects of the likely
process routes and has extensive Asian experience which includes current
Philippine experience.  Ausenco commenced work last week with a visit to site at
Runruno.





Jonathan Beardsworth, Chief Executive Officer of Metals Ex, commented:



'The results of the Runruno Concept Study crystallise the transformation the
Company has made in the last few months from pure explorer to explorer/
developer.



'We already knew that we have 2.1 Mozs Au at Runruno, of which 775,000 ozs are
currently in the JORC Indicated category.  We also knew from previous
metallurgical testwork that we can recover approximately 90% of the gold, and
have recently received encouraging results from the molybdenum testwork.



'This Concept Study draws together all the elements that go in to creating a
project and demonstrates that, even on a stand alone gold basis, the Project is
robust in any realistic forward looking gold price environment.  Importantly, we
are increasingly confident of being able to deliver a saleable moly product
which, if it occurs, will strengthen the Project economics still further.



'The Concept Study report will now form the basis for the completion of the more
detailed Scoping Study, due at the end of July this year.  We are also pleased
to announce the appointment of Ausenco to assist in its preparation and view it
as a considerable endorsement of our project that a company of the quality and
reputation of Ausenco has agreed to work with us at Runruno.'




                        Summary of Concept Study Results




                                     Gold Only Project              Gold Project with Molybdenum by
                                                                                product
Geological Resource             Resource      Tonnes             Gold              Molybdenum
Estimate (March 2008)           Category     (million)     g/t        Ozs         %         lbs
                                                                                         (million)
                                                                     (000)
                               Indicated       10.0        2.40       775       0.084      18.6
                               Inferred        17.0        2.41      1,320      0.048      18.0
                               TOTAL           27.0        2.41      2,100      0.062      36.6

Average dilution                            10%                                   10%
Resource loss                               10%                                   10%
Mining cut off grade                     0.5 g/t Au                            0.5 g/t Au
Annual mining rate ore                3,000,000 tonnes                      3,000,000 tonnes
Total annual mining rate       22,500,000 - 27,000,000 tonnes        22,500,000 - 27,000,000 tonnes
(ore + waste)
Average strip ratio                      6.5-7.0:1                             6.5-7.0:1
Annual treatment rate                 3,000,000 tonnes                      3,000,000 tonnes
Average head grade               2.20 - 2.40 g/t Au, 0% Mo        2.20 - 2.40 g/t Au, 0.058-0.062 % Mo
Average recovery rate                   88-92% gold                           88-92% gold

                                           0% Mo                               40-50% Mo
Annual production rate           190,000 - 210,000 ozs gold            190,000 - 210,000 ozs gold

                                                                      1,800,000 - 2,100,000 lb Mo
Average annual operating             US$65 - 85 million                    US$68 - 87 million
cost
Average cost per ounce of           US$350 - 400 per oz                     US$40-235 per oz
gold net of Mo

(USD 30 / lb)
Average cost per ounce of           US$350 - 400 per oz                    US$190-320 per oz
gold net of Mo

(USD 15 / lb)


Total Capital Cost:                 US$150 - 200 million                  US$160 - 210 million

Represented by:



•   Infrastructure                          21%                                   20%

•   Mine *                                   5%                                    4%

•   Processing                              64%                                   66%

•   Owners Costs                            11%                                   10%


Development timetable                  16 - 20 months                        16 - 20 months



*  Mine operating and capital cost has been estimated on an owner operated
leased  fleet basis.





For more information:



Jonathan Beardsworth                   + 44 (0) 20 7927 6690

CEO                                    + 44 (0) 7747 101 552

Tim Feather / Matthew Johnson
Hanson Westhouse Limited               + 44 (0) 20 7601 6110

Charles Vivian                         + 44 (0) 20 7743 6672

Pelham PR

Klara Kaczmarek                        + 44 (0) 20 3159 4395

Pelham PR





FORWARD LOOKING STATEMENT



By its nature the output of the Concept Study can only be considered as a guide
to a possible development at Runruno.  However, it provides an important
framework on which the Company can base the full Scoping Study, which is being
undertaken to a greater level of detail and using external consultants and which
will provide the basis for the Company to commit the Project to a full
feasibility study.

.



QUALIFIED/COMPETENT PERSONS



Gary Powell (a Director of the Company) has been involved in the mining and
exploration industry for more than 23 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. He has
compiled, read and approved the technical disclosure in this regulatory
announcement.



The information in the table to which this statement is attached that relates to
Exploration Results, Mineral Resources or Ore Reserves is based on information
compiled and reported by Mr Ian Holzberger, who is a technical consultant to the
Company and Project Director for the development of the Runruno Project. Mr
Holzberger has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' (JORC Code). Mr Ian Holzberger consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears.





About Ausenco:



Ausenco is an award winning provider of innovative and high quality engineering
and project management services to the global resource industry. From studies
through to full project execution, operations and maintenance, Ausenco's range
of services covers all aspects of project development.  Ausenco has a proven
track record for innovative process design using the latest technology and
innovation to improve processes and performance.  Ausenco is headquartered in
Brisbane Australia and maintains design and construction offices in Australia,
Asia including China and the Philippines, Africa and North and South America.
For further information about Ausenco, visit their website www.ausenco.com.




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