Yup. Nailed it in one. Looks like a 1 Millieme 1938 coin. Worn value is about a buck.
Coin Value: Egypt 1/2 and 1 Millieme 1938 to 1950
You can read the date on the page, by looking at the date stamp to the lower left of the sword, and comparing it to the numbering system shown.
Cheers,
Skippy