Further Geelong Plant Performance Information

ASX Release – 2 April 2012


AUSTRALIAN SALT CAKE PROCESSING OPERATIONS

Following numerous shareholder inquiries relating to the  MHM Metals Limited
(ASX:MHM) update lodged on Friday, the company reaffirms that:

1. Alreco’s (MHM subsidiary) Geelong facility is successfully processing all
salt cake delivered to site and stockpiles are reducing. The technology is
working and daily throughputs continue to increase.

2. Processing challenges caused by  the partly processed material
generating larger volumes of gas than expected  will be addressed
through the implementation of production  refinements. The first stage
of this installation has already been completed and is in production
today. A report on its effectiveness of stage one will be forwarded to the
ASX in the near future.  During this process the plant will continue to
run as normal, processing all material delivered to site and reducing
current stockpiles of partly processed salt cake. It is expected that these
changes will not only allow increased production at the Geelong Plant
but will also result in reduced capital and operating costs for the US
Plant.

3. As  previously advised, when reprocessing the stockpile of partly
processed salt cake is completed, Alreco will commence processing
Alcoa’s 160,000 tonne salt cake landfill. When landfill processing
commences Alreco’s earnings are expected to increase to  the forecast
$8 million EBITDA  per  annum. Geelong plant EBITDA forecast remains
unchanged.

4. It is important that Shareholders remain mindful of the magnitude of MHM’s achievements to date.
The profitable production of AL80, MHM’s  aluminium oxide product, is a world-first and will have
significant implications for the global aluminium industry. Further, MHM’s salt cake processing
technology will revolutionise the US aluminium industry and bring change to long-standing practices
of landfilling salt cake.  This change will be driven by MHM, not increased regulation.