Dear Shareholders

Welcome to our SPP Page. This page gives you access to some of the most recent and relevant information about Metal Storm. Please feel free to also explore our main website.

For the Company, a successful SPP outcome is very important.  Your SPP investment will form a critical bridge by which the Company could offer to extend its existing convertible notes and continue to progress.  For the SPP to be successful we need as many shareholders as possible to participate.

Importantly though, we want to provide an opportunity where shareholders will see clear benefits from participation.  The benefits we see include:

• You are helping to give the Company a path to deliver its incredible technology to allied troops and law enforcement personnel worldwide
• It is a cost effective way to significantly increase your shareholding, reducing your average stock price and reducing the effect of dilution
• Your investment goes directly to the Company to fund final development, qualification, sales and marketing.  You are directly investing in your company's future
• Without a successful SPP there is a real risk that your existing investment will be lost
• We hold money from the SPP in trust.  If, for any reason, we cannot extend the convertible notes, we will give you your money back

Above all, I believe most shareholders not only want to see this technology delivered, but want to finally share in the substantial financial potential that this Company has in the future. Its weapons are world leading and its business model, which sees returns from both weapon and ammunition sales, is an important opportunity to potentially build significant recurring revenue and ongoing growth.  Today's SPP is a critical step for the Company.

Any investment comes with both opportunity and risk.  Please carefully read and understand the Share Purchase Plan offer document.  It provides more detail on the Offer. Please use the links on this page become more familiar with the current position of the company and its products, and gain access to the SPP FAQ.  The recent AGM speeches and presentations are also available, as is the Annual Report, ASX releases and the website. You need to make an informed decision on investment, and if you have any further questions please use the contact information provided.

The Board is very pleased with the progress Metal Storm has made in recent months, but we need help from you, our shareholders, to continue.

I look forward to your careful consideration of this opportunity.

Dr Lee Finniear

Chief Executive Officer