Company Update

ASX Release – 30 March 2012


• First shipment of AL80 has departed Geelong
• Closed-loop processing continuing, although throughput diminished
due to intricacies of re-treating partly-processed material
• Planned alterations to areas of the circuit to increase throughput,
reduce staffing and greatly simplify process
• Plant will continue operating during planned process changes
• Engineering and environmental permitting progressing very well in the
United States
• Rail spur final design and costing expected imminently
• Management soon to confirm capital cost and drawdown schedule
• Preliminary site works commenced
• US and UK roadshow completed, business case positively received


AUSTRALIAN ALUMINIUM OPERATIONS UPDATE


MHM Metals Limited (ASX:MHM) confirms the first shipment of AL80 has left
Alreco’s Geelong facility, just two weeks after signing a Letter of Intent with
Australia Bandfield Group. AL80 is an aluminium oxide product that results
from the closed-loop salt cake processing technology for which MHM has
exclusive, perpetual global rights.

Established in 1994, Bandfield has exposure to a range of businesses including
ship broking, export/sales of mineral and agricultural products and advisory
services in mining, port infrastructure and investment. Its business includes
advice and evaluation for Australian or Asian companies seeking joint venture
investments and shipping services for Australian companies for Asian markets.

Closed-loop processing continues in Geelong, although Alreco has struggled to reach full capacity due to
processing issues presented by re-processing the partly treated and stockpiled salt cake. The partly
processed material has been generating larger volumes of gases than anticipated, resulting in the need to
blend the stockpile material with the regular salt cake feedstock. Alreco had originally expected that the
partly processed material could be processed without blending, however due to the difficulties the material is
being blended on a ratio of one tonne for every three tonnes of unprocessed salt cake.

Whilst the stockpile of partly-processed material is being reduced, management has designed small changes
to the circuit to enable the plant to increase throughput, reduce staffing levels and greatly simplify the
process. The design will be tested over the next week, with results provided to the ASX. The plant will
continue operating during this period.


US ALUMINIUM OPERATIONS UPDATE


Preparations for building the US plant continue with engineering and environmental permitting activities well
underway. Rail spur design and costing is expected imminently, with the construction of the rail spur a high
priority to facilitate transfer of plant and equipment to the Russellville, Kentucky site.

Management is finalising final plant capital cost including independently verifying the costs, drawdowns and
timeframes for completion. This information will be released to the market when available.

Preliminary site works have commenced and are ongoing.
Assessment of project-financing options is underway and will be finalised when the plant capital cost and
drawdown schedule are confirmed. Management is confident that a number of options will be available. As
always, management wishes to minimise any shareholder dilution to maximise earnings per share and share
price.

A preliminary US and UK roadshow has been completed with positive feedback in every instance. The
purpose of the roadshow was to introduce potential new investors to MHM and generate more support for the
share price during in any market weakness or low news flow.