Research Initiation – July 2025

Report Highlights:

• Arrowhead is initiating its coverage on Metals Australia Ltd (“Metals Australia” or “the Company”) with a fair value bracket of A$ 0.043 – A$ 0.052 (Share Price on July 14, 2025: A$ 0.017) based on the Discounted Cash Flow (DCF) and Relative Valuation (RV) methodologies.
• Metals Australia is an Australian mineral 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, nickel, vanadium, gold, silver, copper, zinc, titanium, and iron. The Company is listed on the Australian Stock Exchange under the ticker ASX: MLS.
• The Company holds four key projects – the Lac Carheil Graphite Project (Flagship Project), the Corvette River Project, the Warrego East Copper-Gold Project, and the Manindi Vanadium-Titanium-Magnetite Project.
• Metals Australia completed a 9,482m drilling program at its flagship Lac Carheil Graphite Project in March 2025, delivering graphite grades significantly above the current average. An updated MRE and PFS are underway. The project currently hosts a JORC-compliant Mineral Resource of 13.3 Mt @ 11.5% TGC.
• The Company is preparing further resource drilling at the Manindi VTM Project following successful metallurgical tests, which produced two commercial-grade concentrates with a combined recovery exceeding 65%. The project includes three granted Mining Leases and hosts a JORC-compliant Zinc-Copper-Silver Mineral Resource of 1.08 Mt @ 6.52% Zn, 0.26% Cu, and 3.19 g/t Ag.
• Metals Australia has commenced a 3,000m drilling program at the Warrego East Project. At the Corvette River Project, the Company also conducted trenching, which confirmed broad mineralisation across key zones and reinforced earlier high-grade rock chip results.
• 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 Quebec-based Lac Carheil Graphite Project. Its location also provides access to the North American market amid increasing efforts by the U.S. government to localise critical mineral supply chains.