Metals Australia Ltd (ASX:MLS) Research Update – May 2026

Research Highlights:

• Arrowhead is updating its coverage on Metals Australia Ltd (“Metals Australia” or “the Company”) with a fair value bracket of A$0.156 – A$0.191 (Share Price on May 14, 2026: A$0.022) based on the Discounted Cash Flow (DCF) and Relative Valuation (RV) methodologies.
• Metals Australia is an Australian critical minerals exploration and early-stage development company. The Company holds a portfolio of diverse projects in Canada and Australia, with exposure to a range of critical minerals – graphite, vanadium, titanium, copper, gold, silver, nickel, zinc, and iron. Metals Australia is listed on the Australian Stock Exchange under the ticker ASX: MLS and is investigating a joint company listing on the Toronto Ventures Exchange (TSX-V).
• The Company holds four key projects – the Lac Carheil Graphite Project (Flagship Project) and its associated Battery Anode Material (BAM) Refinery, the Corvette River Project, the Manindi Vanadium-Titanium-Magnetite (VTM) Project, and the Warrego East Copper-Gold Project.
• On April 28, 2026, MLS completed a Preliminary Economic Assessment (PEA) for the BAM Refinery in Baie Comeau, Québec, which is designed to produce over 51 Kt per annum (ktpa) of high-purity BAM products sourced from the Lac Carheil feed. The study delivered an after-tax NPV₈ of A$2.0 bn, IRR of 25.6%, and a 4.5 years payback period, with CTM ITC support of up to 30%.
• On September 30, 2025, the Company reported multi-element assay results at the flagship Lac Carheil Graphite Project, identifying gold, silver, gallium, copper, vanadium, nickel, zinc, and iron within the graphite zones for potential co-recovery alongside the 50.0 Mt @ 10.2% TGC resource. The PFS continues to advance, supported by up to C$600,000 in non-dilutive funding from the Québec Ministry of Natural Resources and Forests.
• At the Corvette River Project in Québec’s James Bay region, the Company holds tenements across the Felicie, East and West Pontois, and East and West Eade target areas, with all permits secured for the next phase of trenching and drilling.
• On February 18, 2026, Metals Australia released assay results for a 15-hole, 2,774m RC program at the Manindi West VTM Project, with 13 of 14 Discovery Zone holes returning thick, high-grade magnetite-ilmenite intervals over more than 1,200m of strike length. Metallurgical testwork also confirmed potential to produce high-purity (>97%) TiO₂, which commands a premium to conventional ilmenite.
• On December 19, 2025, MLS reported results from a 34-hole, 3,216m geochemical drilling program at the Warrego East Project, testing 5 Tennant Creek-style targets. Strong Cu-Co-Bi-Zn results with iron levels up to 24% suggest a deeper Cu-Au source similar to the nearby Warrego and White Devil deposits.
• The Company is well-positioned to benefit from the increasing demand for graphite driven by lithium-ion batteries and the broader energy transition through its Québec-based Lac Carheil Graphite Project and the associated BAM Refinery. Its location also provides access to the North American market amid increasing efforts by the U.S. government to localise critical mineral supply chains and Canada’s Critical Minerals Strategy, which targets five graphite mines and five downstream anode facilities by 2040.