Metallica Minerals (ASX:MLM) Quarterly Report For Period Ending 31 March 2010

Brisbane, May 3, 2010 AEST (ABN Newswire) - In December 2009, Metallica signed an agreement for the 100% purchase the Greenvale and Lucknow tenements for a total of $1.65M, comprising $650,000 cash and 3.33 million Metallica ordinary shares at a deemed price of A$0.30 per share. The transfer of the Greenvale and Lucknow tenements were finalised by the DME on the 1st April 2010 and these tenements are now held 100% by Greenvale Operations Pty Ltd (a wholly owned subsidiary of Metallica Minerals Ltd).

Metallica has issued the 3.33 million shares to Straits Resources (escrowed until 16 June 2010) and Metallica now has a total of 125,074,250 shares on issue.

On 12 April Metallica announced a non-cash selective share buy-back and transfer agreement with its second largest shareholder, Resource Capital Funds (RCF). The agreement, which is subject to Metallica shareholder approval at a shareholders meeting on 31 May 2010, effectively involves RCF exchanging 7.74 million of its shares in Metallica for approximately 3.9 million shares in Cape Alumina Limited (Cape Alumina) which are currently held by Metallica.

The effect of the agreement will be:

Metallica's interest in Cape Alumina
1. Limited will be reduced from 32.9% to 29.9%, Resource Capital Fund's interest 2. in Metallica will be reduced from 12.28% to 6.3%, and The 7.74 million shares bought
3. back from RCF by Metallica will be cancelled reducing Metallica's total issued shares to approximately 117.3M.

Completion of Metallica Corporate Promotional Video, providing information and graphics on the company, its' projects and ASX listed resource and exploration company investments - see Metallica Website www.metallicaminerals.com.au

During the Quarter, Metallica relocated its office to 71 Lytton Road, East Brisbane, Qld 4169.

Metallica has a 47% shareholding of Brisbane based Orion Metals Limited (ASX:ORM). Orion's focus is on gold and rare earth & tech metal projects in Australia. On the 14th April Orion announced a fully underwritten pro-rata rights issue prospectus to shareholders. The Rights Issue opened on 14th April 2010 and closes on the 12th May and will raise $1.235 million.

During the Quarter, Mr James Canning-Ure joined the ORM Board as Managing Director.

Metallica has maintained a strong cash position of approximately $8.78 million with effectively no debt.

Metallica's ASX listed investments and major projects are summarised graphically in Figure 2 - Metallica's Company and ASX Listed Investment Structure.

For the Full Quarterly Report, please view at:
Link: http://www.abnnewswire.net/media/en/docs/62765-ASX-MLM-220302.pdf

Contact

Andrew Gillies Managing Director Metallica Minerals Limited TEL: +61-7-3891-9611