Mt Isa Metals Limited ACN 120 212 017 Level 5, 60 Edward Street Brisbane QLD 4000 Australia

ASX Announcement

1^st June 2010

MET COMMENCES BURKINA FASO GOLD EXPLORATION – EXPANDS EXPLORATION “FOOTPRINT” TO 5,700km² .

Highlights:

• Exploration commenced in gold‐rich Burkina Faso after extensive 6 month research and acquisition program.

• Following recent acquisitions MET gold properties now represent the largest ASX‐listed holding in Burkina Faso by total area, area of greenstone, number of formal artisanal gold sites and strike length of prospective greenstone belt rocks.

• Broadly similar to structurally controlled gold‐rich greenstone belts in the prolific West Australian Eastern Goldfields.

• Priority exploration activities currently underway by MET include first pass sampling of artisanal gold mining sites.

• Planning advanced for a significant ongoing exploration program – including early RC drilling of high potential gold targets.

• Option agreements secured over an additional eleven gold permits with multiple artisanal gold mining sites and formal gold occurrences.

The Board of Mt Isa Metals Limited (MET) is pleased to advise that the company has formally commenced exploration activity in the gold‐rich nation of Burkina Faso, West Africa.

Burkina Faso is regarded by MET as one of the most richly gold endowed areas of sub‐Saharan Africa and is host to current exploration, development and mining operations being advanced by numerous western companies. More than ten gold deposits have been discovered to date in Burkina Faso with a size in excess of one million ounces gold¹ .

Priority exploration activities currently underway include the first pass sampling of artisanal gold mining sites which have been identified at multiple locations within MET’s extensive landholding.

Exploration of artisanal gold mining sites (which typically focus on exploitation of near‐surface quartz lodes) has been widely used in the region as a vector to the successful discovery of major gold deposits.

1 Source JORC and 43‐101 compliant company reports.

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ASX Code: MET

1

The commencement of exploration activities follows a detailed property selection process (commenced by MET in late 2009) which was based on the following target selection criteria:

• presence of prospective Birimian greenstone rocks (akin to WA Eastern Goldfields “greenstones”)

• evidence of potential gold bearing structures in regional‐scale geophysical data

• presence of formal artisanal (small scale) gold mining sites / known gold occurrences

MET has set a minimum exploration budget for Burkina Faso of A$3m to June 2011 to rapidly advance multiple gold targets to significant discoveries. MET intends to commit to RC drilling of high potential targets as soon as appropriate reconnaissance exploration activities are completed.

Given the demonstrated gold endowment of the region MET is seeking to discover gold deposits in Burkina Faso of greater than 1 million ounces of contained gold.

The Company is also pleased to advise that it has recently completed key management appointments to facilitate future exploration success and the ongoing increase in exploration activity. The appointments include an Australian‐based Exploration Manager ‐ Africa and a Geology Manager ‐ Burkina Faso resident in the capital Ouagadougou.

Each of these appointments brings in excess of 25 years of exploration experience to the Company including a considerable background in exploration for gold and exploration in West Africa.

Figure 1 – Artisanal (small scale) gold mining sites on MET optioned permits (Yactibo and Tapoa Project areas) (note the presence of multiple gold‐bearing quartz veins).

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ASX Code: MET

2

MET Exploration “Footprint” Expanded to 5,700km²

As highlighted the Board of Mt Isa Metals is further pleased to advise that it has recently finalised agreements that provide an option to acquire a 100%² interest in a further eleven gold exploration permits in Burkina Faso, West Africa

The new agreements increase MET’s total optioned landholding in Burkina Faso to 5,713km² providing the company with one of the most significant portfolios in the region (figure 2).

MET’s exploration “footprint” in Burkina Faso is now larger than any, and comparable to that of all other, ASX‐listed Australian explorers active in the country – combined (refer table 1).

Comparative Measures3	MET	Combined Total for All Other Listed Australian Explorers4
No. of permits	26	46
Permit area	5,713 km2	8,800 km2
Greenstone area	3,000 km2	4,300 km2
Greenstone strike length	320 km	570 km
Artisanal sites / gold occurrences5	23	30

Table 1: Comparative footprint of MET Burkina Faso optioned gold permits.

The new agreements (which cover 10 granted permits and one permit application) provide for a three year option period and include up‐front payments totalling US$151,000 (to be completed by 24^th June 2010).

The options can be maintained by staged annual cash payments averaging US$39,300 per permit during the first year of the option period, US$41,500 per permit at the end of the second year of the option period, and US$53,900 per permit at the end of the third year of the option period.

If MET elects to participate to the end of the third year 100% ownership of nominated permits will be transferred to MET. MET has a right to withdraw from the agreements at any time. The vendors will be entitled to a 1.0% net smelter royalty over any gold produced from the properties.

Due diligence is currently underway over all optioned permits and is scheduled for completion in approximately four weeks time. At the completion of due diligence MET may elect not to advance certain individual permits on the basis of technical or commercial considerations.

2 Subject to a net 10% Government free carry interest (as is applicable to all exploration permits in Burkina Faso).

3 Comparative data sourced from Burkina Faso Government data (cadastral and geological maps) and company reports.

4 Includes total for Ampella Mining, AusQuest, Blackthorn Resources, Carbine Resources, Gryphon Minerals, Golden Rim Resources and Vital Metals.

5 Represents total number of granted artisanal mining permits plus gold occurrences noted on Government 1:1M geology map.

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ASX Code: MET

3

N
100km

Figure 2: Location of MET Projects / Permits – Burkina Faso.

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ASX Code: MET

4

MET Advances Multiple Project Areas

The exploration permits optioned by MET have been grouped into seven discrete project areas on the basis of geographic location and common geologic features.

The projects provide MET with exposure to a large number of gold exploration targets in a broad range of geologic settings. Many of the permit areas secured by MET have received minimal or what MET considers as ineffective prior exploration.

Summary target criteria for each MET project area is provided in table 2 below and illustrated for selected permit areas in figures 3 to 7.

Project Name	Permit Area	Key Project Criteria
Kongolokoro	1,640 km2	Structural / artisanal targets within the Hounde Greenstone Belt. Multiple permits encompass a range of rock “types” including basalts, andesites , volcano‐sedimentary schists and Tarkwa conglomerates_(figure 3)._ Same greenstone belt as the +2Moz Mana gold deposit.
Villibongo	236 km2	Discrete 30km long greenstone belt. Targeting intersecting structures in mafic volcanic rocks identified in project‐scale magnetic data _(figure 4). _ Proximal to the 1.8Moz Poura Gold deposit.
Ouahigouya	868 km2	Prolific gold district. Pepin application sits within the 80km long Kouple – Sebca gold trend. Multiple gold occurrences _(figure 5)._Kalsaka, Karma and Bissa deposits in the same greenstone belt total >3.5Mozs.
Yactibo	1,062 km2	Targeting dilational structures within a regional NE‐trending fault system and artisanal gold sites. A possible re‐emergence/extension of the +100Moz Ghanaian gold belts_._
Namtenga	686 km2	Targeting structural extensions to known gold deposits within the multi‐ million ounce Essakane‐Taparko‐Bombore‐Kiaka gold corridor_(figure 6)._
Tapoa	500 km2	40km strike length of mafic volcanic rocks within the Diapaga Greenstone Belt. Permits located on the northern limb of possible regional antiform with associated low‐angle structures and artisanal gold sites_(figure 7)_.
Fada	721 km2	Discrete permits overlying the north‐east extension of the Youga Greenstone Belt and associated granitic terrain. Targeting selected artisanal sites.

Table 2: Summary Data for MET Project Areas.

Conclusion

Managing Director Peter Spiers commented, “We are very pleased to have secured this quality portfolio of gold permits in Burkina Faso.”

He added, “We are very encouraged by the strong gold indicators present on the various permits including artisanal mine sites and other formal gold occurrences. These indicators have successfully been used by explorers in the West Africa as vectors to major gold discoveries.”

Mr Spiers concluded, “The large permit area, very high prospectivity, and multiple targets warrant a significant exploration program. We have commenced that program and look forward to providing shareholders with a regular update on our progress.”

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ASX Code: MET

5

N
20km

Figure 3: Kongolokoro Project – Geological setting and images of various artisanal sites

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ASX Code: MET 6