Metals X Limited through its completely owned supplementary Austral Nickel Pty Ltd has entered into a farm-in and joint scheme contract with Rio Tinto Limited subsidiary Rio Tinto Exploration Pty Ltd to get an first 51% interest in South Australian exploration licence E3932. The Mt Davies exploration licence encompasses the bulk of the Giles Complex units proximal to the South Australian face of the WA/SA border. The Giles Complex is careful to be highly potential for nickel and copper sulphides, platinum group elements and for nickel and cobalt limonite deposits.

Approximately 25kms to the east of the Wingellina put down Metals X also holds the superior Claude Hills nickel limonite project, which has been the focus of its new drilling movement. Understanding of drill intersection from historical drilling by Southwest Mining and the Department of Mines suggest that this mineralisation extends into the Mt Davies exploration licence, and it is predictable that the Claude Hills project will considerably add to the resource base at Wingellina once definition drilling is completed.

To date, only a small percentage of the mineralisation scheme has been experienced and there are many additional nickel limonite occurrence known in the Mt Davies exploration licence. There is also important potential for the discovery of nickel and copper sulphide deposit in the area, for which Metals X intend to explore in conjunction with the description of additional nickel oxide deposits during the earn-in period. Subject to approval of conditions model, the agreement requires a smallest amount expenditure of A$500,000 within the first two years, and A$2,000,000 within four years, to earn a 51% interest in the Mt Davies exploration licence.

Austral can boost its interest to 70% ownership by sole funding exploration and development spending to the conclusion of a pre-feasibility study. Rio Tinto can elect to add following the earn-in stage to retain a 49% interest and can elect to earn-back up to 70% ownership within 60 business days after the delivery by Austral of the pre-feasibility study, through the only funding of a bankable viability study.

Metals X finished its Phase 1 viability Study on its huge Wingellina Nickel - Cobalt Project in the Central Musgrave ranges during 2008 and concluded that, subject to financial support and approvals, the project should be developed. The viability study was based on a derived annual manufacture rate of 40,000 tonnes of nickel and 3,000 tonnes of cobalt at an operating cost of less than US$3.50/lb and a mine life of 39 years. Metals X is happening with obtaining ecological and mining approvals while seeking funding opportunity for the development of Wingellina project.