CANNINDAH RESOURCES LIMITED — Annual Report 2012

Sep 20, 2012

PLANET METALS LIMITED

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ANNUAL REPORT 2012 12

2

Corporate

direCtory

direCtorS

David K. Barwick (Non-Executive Chairman) Brett O’Donovan (Managing Director) Barry Kelly (Non-Executive Director)

Weipa

Company SeCretary & CFo

John Haley

regiStered oFFiCe

71 Lytton Road East Brisbane Qld 4169

G.P.O. Box 122 Brisbane QLD 4001 Telephone: +61 7 3249 3080 Fax: +61 7 3249 3081 Email: admin@planetmetals.com.au

WebSite:

www.planetmetals.com.au

MOUNT BORIUM Gold Project

Einasleigh

Kidston Oak River Gold Mine Uranium-Gold Project

Share regiStry

Mt Isa

Boardroom Pty Limited Level 7, 207 Kent Street Sydney NSW 2000

StoCk exChange LiSting

Australian Securities Exchange Limited ASX Code: PMQ

auditorS:

Grant Thornton (Qld) Ground Floor, 102 Adelaide Street Brisbane QLD 4000

SoLiCitorS:

Hopgood Ganim Level 8, Waterfront Place 1 Eagle Street Brisbane QLD 4000

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200

0

ANNUAL REPORT 2012

3

10°00'S 20°00'S Queensland QUEENSLAND CAIRNS TOWNSVILLE Mackay Rockhampton GLADSTONE Bundaberg BRISBANE MOUNT CANNINDAH Copper - Gold Project CASUARINA Salt Prospect N proJeCt LoCation map	CORPORATE DIRECTORY 2 PROJECT LOCATION MAP 2 CHAIRMAN’S LETTER 4 KEY ACHIEVEMENTS 5 CORPORATE OVERVIEW 5 PROJECTS 6 Mount Cannindah Copper-Gold 6 Mount Borium Gold 8 Oak River Uranium-Gold 12 Casuarina Salt 13 FUTURE STRATEGY 13 TOP 20 SHAREHOLDERS 14 TENEMENT SCHEDULE 15 ContentS

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150°00'E
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400

PLANET METALS LTD

4

Chairman’S Letter

Dear Shareholder

Over the last twelve months, Planet Metals has delivered on its underlying objective to focus on generating shareholder wealth. This was clearly evident through the capital return to all shareholders which was paid in August 2012. The Company’s Board and management are intent on maintaining this objective in the years ahead. This will be achieved through the timely advancement of the Company’s key gold-copper projects as well as additional asset and/or corporate acquisitions. The Board is constantly reviewing potential acquisitions – from exploration assets to cash-flow businesses.

In a year when many of our peers have been struggling to raise capital and maintain activity, Planet maintained a strong financial position which enabled the Company to progress its current projects and also acquire and farm-in respectively to two additional tenements in Queensland, namely Oak River Uranium-Gold and Casuarina Salt. Preliminary work has been completed on both these projects with further fieldwork and review to be conducted in the near term.

The key behind the Company’s strong financial position related to some prudent decisions made by the Board to dispose of non-core assets at a time when valuations were at much higher levels than now. In fact, since the Company sold the Wolfram Camp assets in May 2011, the ASX Metals/Mining Index has declined over 30% with junior companies, on average, faring much worse. Planet Metals also successfully sold its equity investments, which represented part of the asset sale proceeds, at a share price which was better than expectations.

As a result of these transactions, Planet’s cash position increased to over $6 million. Given the Company had no immediate requirement for such a large cash position relative to its low burn rate, Planet’s Board decided it was timely to give Shareholders the opportunity to vote on whether they would like to participate in an equal return of capital. A capital return of 6.5 cents per share was overwhelmingly supported by shareholders at a General Meeting on 25 July 2012, with a total of approximately $3.9 million paid out to shareholders on 9 August 2012.

The Mount Cannindah project already hosts a resource of 5.5 million tonnes at 0.92% copper and 0.34g/t gold (refer to Table on p7). This project continues to be advanced by Planet’s farm-in partner, Drummond Gold Limited. During the year, Drummond elected to earn up to 51% in the project through the expenditure of an additional $2.5 million before July 2013. Planet is effectively free-carried in this project and eagerly awaits Drummond’s next drill program in coming months.

In May 2012, Planet Metals was finally granted the three Mount Borium gold tenements which were originally applied for in late 2010. The southern tenement boundary is a mere 8km from the historic Kidston gold mine, which produced more than three million ounces. A significant amount of data compilation was undertaken during the application phase which meant that Planet was able to conduct fieldwork immediately upon grant. This fieldwork resulted in key target zones being identified and a drill program has been finalised. Excellent rock chip assays confirm the prospectivity of the project and the Board looks forward to the results from the initial drill program which will be completed before the end of 2012.

In what has been another successful year for the Company, I want to personally thank Brett O’Donovan for his efforts and performance in his role as Chief Executive Officer and, more recently, as Managing Director. I would also like to acknowledge the contribution and support of both Planet’s independent non-executive director, Mr Barry Kelly, and CFO and Company Secretary, Mr John Haley. I would also like to sincerely thank Andrew Gillies, who resigned as a Director in July 2012, for his commitment and expertise over the last three years.

Over the next twelve months, I am confident that shareholders will see additional project and asset acquisitions as well as further advancement of the Company’s current assets. My fellow Directors and I look forward to meeting with you at our Annual General Meeting to be held at 12.00pm on 30 October 2012.

Yours truly

At the time of writing this letter, Planet maintained a cash balance of $1.9 million with its key focus being to progress its two core assets, the Mount Cannindah copper-gold project and the Mount Borium gold project.

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David K. Barwick Chairman

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ANNUAL REPORT 2012

5

key aChieVementS

Mount Cannindah

• Mount Cannindah Mount Borium Corporate Copper-Gold Project Gold Project (100%) • Capital return of 6.5 cents per

• (100% subject to farm-in) Located 10km south of Einasleigh and share to all Shareholders –

• Located near Monto, approx. 100km approx. 370km south-west of Cairns, approx. $3.9 million distributed south of Gladstone, Qld Qld • Acquisition of 100% of the Oak River Uranium-Gold project for

• • Confirmation of a large intrusion • Three contiguous tenements only $65,000 cash

• centred polymetallic porphyry granted in a strategic • Farm-in over the Casuarina Salt

• system approx. 5km in diameter mineralised location project with minimal

• • A geophysical review has • Main prospect located within expenditure in the first 2 years modelled the key intrusives, 25km of historic Kidston gold • Shareholder base broadened

• highlighting several key targets mine (>3M oz Au) with existing shareholders,

• • Revised resource estimate • Rock chip assays up to 7.9g/t directors and new investors completed over one of the gold confirm prospectivity of acquiring Metallica’s stake in

• prospect areas – 5.5Mt @ key target zones Planet 0.92% Cu & 0.34g/t Au • Initial drill program finalised • Actively pursuing additional (refer to Table on p7) with drilling to be completed project opportunities

• • Planet effectively free-carried in before the end of 2012 the near term for a minimum 25% stake

• Capital return of 6.5 cents per share to all Shareholders – approx. $3.9 million distributed

• • Acquisition of 100% of the Oak River Uranium-Gold project for only $65,000 cash

Corporate oVerVieW

As a result of Planet Metals’ strong financial position, the Company did not need to issue additional shares during the year, thus ensuring existing shareholders were not diluted. A small amount of out-of-themoney executive and director options were issued to incentivise key personnel. The Company has 59,717,114 fully paid ordinary shares on issue and 6.5 million options exercisable at prices between 3.5 cents and 8.5 cents per share.

The distribution of a 6.5 cent per share capital return was the most significant corporate event since the issue of last year’s annual report. Shareholders overwhelmingly supported this return and the Board received a positive response from the initiative. The return was paid to all shareholders on 9 August 2012.

The Company’s strong financial position enabled the purchase and farm-in of two new projects, Oak River uranium-gold and Casuarina salt, both located in Queensland. Further details on these projects are included later in this report.

Since year end, the composition of the share register changed significantly as the Company’s largest shareholder, Metallica Minerals Ltd, disposed of its entire shareholding. The Board of Planet Metals was pleased and encouraged that there was significant demand from existing shareholders, directors and new investors to acquire Metallica’s stake. The key advantage of this transaction is that there will be greater trading liquidity in PMQ shares moving forward. It is also worth noting that Jien Mining Pty Ltd increased their stake in the Company to 11%. Jien is a subsidiary of one of China’s largest nickel producers and has a specific interest in gold.

Some minor changes were also made to the Board of Directors with Andrew Gillies resigning and Brett O’Donovan appointed as Managing Director. The Board now comprises David Barwick (Chairman), Barry Kelly and Mr O’Donovan.

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PLANET METALS LTD

6

proJeCtS

mount Cannindah CoppergoLd proJeCt

(MLs 3201-3209; EPMs 14524, 15261 - Planet 100% subject to farm-in)

Over the past twelve months, a combination of field exploration, data compilation and structural modelling has advanced the project. Planet’s farm-in partner, Drummond Gold has successfully modelled the various intrusives within the project’s 6km[2] of granted Mining Leases (MLs) near Monto, approximately 100km south of Gladstone (Qld) as well as extrapolating their interpretation over the 120km[2] of exploration permits surrounding these MLs.

Farm-In Agreement Terms

On 24 December 2010, farm-in terms were agreed whereby Drummond can earn up to 75% of the project by spending $6.75 million over a period of 4 years and 9 months. Under these terms, Drummond satisfied their minimum obligations and have elected to earn-in to the project. From the date of this report, Drummond are required to spend a further approximately $1.4 million prior to 25 July 2013 to earn a 51% stake. A further $3.5 million over an additional two years would need to be spent by Drummond to achieve 75% ownership.

Project Overview

The Mount Cannindah district is an intrusion centred polymetallic porphyry copper-gold-silvermolybdenum hydrothermal system approximately 5km in diameter. The district comprises a number of mineralised bodies/prospects. The Mount Cannindah breccia-hosted copper-gold-silver body hosts a resource of 5.5Mt at 0.92% Cu, 0.34g/t Au and 14.9g/t Ag (refer to Table on p7).

Other mineralised prospects include United Allies (drill intersections over 350mx250m area including 40m @ 0.62% Cu and 8m @ 2% Cu both from surface), Monument-Lifesaver (53m @ 0.5% Cu from 1m) and Cannindah East (36m @ 8.7g/t Au from 2m). The Cannindah and Monument intrusive bodies, which make up the wider Mount Cannindah system, are part of the same magma suite. This magma suite is similar to Cadia and Goonumbla (North Parkes) NSW and to the world class Bingham Canyon and Battle Mountain in the USA.

The various styles at Mount Cannindah are:

• Cu-Au-Mo breccia (Mount Cannindah-Mt Theodore-Little Wonder)

• Cu-Mo stockwork (Monument, United Allies)

• Cu-Au-Mo skarn (Appletree, Dunno, Lifesaver)

• Au – As epithermal veins (Cannindah East, Barimoon)

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DARWIN
7,271,000mN
BRISBANE
PERTH
SYDNEY
To Gladstone ADELAIDE CANBERRA
MELBOURNE
HOBART
MMMM OUOUOO UNTUNTNTNT C C CANNINDAHCANNINDAHANNINDAHANNINDAH
(C(C(C (C u/Auu/Auu/Au u/Au ))) )
BloBlockadeBlBlockade occ kadekade
(A(A( ( Au) Au) u)u)
CANNINDAH EASTCANNINDAH EASTCANNINDAH EASTCANNINDAH EAST LEGEND
(Cu)(Cu)(Cu) (Cu) Triassic Muncon volcanics
A u lo de target Monument Intrusive
7,270,000mN (Au)(Au) Mt Theodore Mt T (Au) (Au) Mt Theodore Mt Thheodoeodorere MidwayMidwayMidwayMidway Cu Skarn Cannidah Intrusive
(Au)(Au)(Au) (Au) Target Carboniferous Sediment
To Kalpowar
Infill Breccia
LLitLLiiti ttle Wonderttle Wondertle Wondertle Wonder UNITED ALLIESUNITED ALLIESUNITED ALLIESUNITED ALLIES Cu Copper
(Au)(Au)(Au) (Au) (Cu/Mo)(Cu/Mo)(Cu/Mo) (Cu/Mo) Mo Molybdenum
Cu-Au-Ag Au Gold
Breccia &
Au Vein target MONUMENTMONUMENTMONUMENTMONUMENT breccia and sheetsSkarn ZonesQuartz veins and quartz vein
7,269,000mN (Cu/Mo)(Cu/Mo)(Cu/Mo) (Cu/Mo) LIFESAVERLIFESAVERLIFESAVERLIFESAVER
(Cu/Mo)(Cu/Mo)(Cu/Mo) (Cu/Mo)
Mount Cannindah
Cu-Au? AppletreeAppletree (Cu/Mo)(Cu/Mo) AppletreeAppletree (Cu/Mo) (Cu/Mo) Copper Gold Joint Venture
Skarn
Target 0 400 800m
SCALE
Mount Cannindah Mining Leases Geology Map
Kalpowar Fault
325,000mE 326,000mE 327,000mE
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ANNUAL REPORT 2012

7

Exploration Activities During the Year

A review in late 2011 by geological modelling consultants, Hellman & Schofield, incorporating all recent drilling, resulted in a better understanding of the geological constraints, and produced a revised Mineral Resource Estimate including Measured, Indicated and Inferred of 5.5 Million tonnes at 0.92% Cu, 0.34g/t Au and 14.9g/t Ag – refer table below.

Mount Cannindah Resource Table (October 2011 Mount Cannindah Minesite Prospect Only

Category	Tonnes (M)	Cu (%)	Au (g/t)	Ag (g/t)
Measured	1.9	0.96	0.39	16.2
Indicated	2.5	0.86	0.34	14.5
Inferred	1.1	0.97	0.27	13.6
Total	5.5	0.92	0.34	14.9

0.5% Cu cut-off, density of 2.7t/m3, minor rounding errors

Apart from this resource review at the Mount Cannindah minesite prospect, field and review work principally focussed on the long purported but poorly explored “blind other half” of the large Mt Cannindah Cu-Au-Ag-Mo Porphyry System. Integral to this work, a geophysical review, including re-processing and inversion modelling of induced polarisation and magnetic data sets has confirmed several strong anomalies, separated by the regional Kalpowar Fault and under younger Muncon Volcanics cover units, immediately northeast of the known mineralisation and resources.

The aforementioned geophysical review and inversion modelling are refining existing and new drill targets across the entire mineralised system, an area covering at least 9km[2] . A more comprehensive structural model is being developed that is better defining the relationship of the Kalpowar Fault splays and displacement, as well as firming the variable thickness of the Muncon Volcanics, and depth to potential targets. This has included better defining the overall structural regime, particularly late stage gold bearing structures trending through known mineralised areas, largely from the Mt Cannindah East gold prospect through Midway and the Little Wonder prospects, a known strike of 2km. Drill target prioritisation will follow completion of this work.

Regional Prospectivity

The exploration permits surrounding the granted Mining Leases include Barimoon (EPM 14524) and Mount Cannindah 2 (EPM 15261). One of the regional targets, the Appletree prospect, is located in an excluded EPM within the south-east corner of the Company’s granted mining leases and is only approximately 200m x 100m in area. Historical workings exist but in comparison to the rest of the mining leases, very little exploration data is available and it appears only limited shallow percussion drilling has been undertaken in the past.

Competent Persons Statement

The data in this report that relates to Mineral Resources for the Mount Cannindah deposit is based on information evaluated by Mr Simon Tear who is a member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

Other technical information contained in this report has been compiled and/or supervised by Mr Brice Mutton BSc (Applied Geology) FAusIMM (Director of Drummond Gold Limited) who is a competent person and member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Mutton has relevant experience to the mineralisation, exploration results and targets and Mineral Resources being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mutton consents to the inclusion of this information in the form and context in which it appears in this report.

Mount Cannindah geophysics - helicopter magnetics

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PLANET METALS LTD

8

mount borium goLd proJeCt

(EPMs 18960, 19009, 19015 - Planet 100%)

Location

The Mount Borium gold project comprises three separate granted tenements located approximately 20km southsouthwest from the town of Einasleigh in North Queensland, Australia. This tenure comprises several promising gold exploration prospects between the historic Einasleigh copper and Kidston gold mines. Past gold production at Kidston exceeded 3 million ounces, with the open pit located 8km from the Mount Borium project tenements’ southern boundary.

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Cairns 367 Km
DARWIN
7,950,000 mN
EEiinnaasslleeiigghhEEiinnaasslleeiigghh
BRISBANE Kaiser Bill
PERTH Forsayth Einasleigh Road
SYDNEY
ADELAIDE CANBERRA
MELBOURNE Coolaba FlatCoolaba FlatCoolaba FlatCoolaba Flat
HOBART
Mount Bo r ium
7,940,000 mN Chloe Cu Gol d Project
Arthurs Gully Borium Extended
EPM 18960
M o unt Borium
EPM 19015 Narrawa
South
7,930,000 mN Moun t Borium
Townsville
382 Km
Oak River Projec t
EP M 1 794 5
Stephanie
7,920,000 mN EPM 19009
LEGEND Stephanie
Planet Metals 100% Brumby
Creek
granted tenements
Planet Metals 100%
granted tenements
Road
River
Railway
Town
MOUNT BORIUM GOLD PROJECT
Prospect KIDSTON GOLD MINEKIDSTON GOLD MINEKIDSTON GOLD MINE
Tenement Location Lo cation of Tenements >3M oz Au>3M oz Au>3M oz Au>3M oz Au
0 7,910, 2 0 00 mN 4 6 8 and Prospects
kilo m etres
Mount Borium tenement map
FISH HOLE CREEK
BIG STOCKMAN CREEKBIG STOCKMAN CREEKBIG STOCKMAN CREEKBIG STOCKMAN CREEK
Gregory Developmental Road
OAK RIVEROAK RIVEROAK RIVEROAK RIVER
BIG STOCKMAN CREEKBIG STOCKMAN CREEKBIG STOCKMAN CREEKBIG STOCKMAN CREEK EINASLEIGH RIVEREINASLEIGH RIVEREINASLEIGH RIVEREINASLEIGH RIVER
SODA CREEK COPPERFIELD RIVERCOPPERFIELD RIVERCOPPERFIELD RIVERCOPPERFIELD RIVER
E
m
180,000 190,000 mE 200,000 mE
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Background Geology & Interpretation

Initial fieldwork has targeted prospective historic geochemistry and drilling intercepts. Of particular focus is the Mount Borium prospect which has a strong auriferous geochemical signature in the soil. Historical references indicated that gold is commonly disseminated and associated with variable silica-pyrite-sericite (phyllic) or chloriteepidote (propylitic) alteration. Mineralisation is commonly associated with greater than 1% visible pyrite and trace amounts of spahlerite (Zn) and/or galena (Pb). Historical drill results so far indicate that gold mineralisation is widespread but low-grade. The zonation of base metals and the presence of sub-aerial lithologies (flowbanded rhyolite) indicate that Mount Borium may represent the upper-part of an Intrusion Related Gold System, and there exists potential for significant mineralisation at depth.

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ANNUAL REPORT 2012

9

Recent Rock Chip Sampling

Complete results from all rock chip samples completed during the first two phases of fieldwork have been received with notable assays recorded in the table below. A total of 49 rock chips were assayed with a mix of samples based on either pre-determined geological assessment or scout field sampling. Full results of all samples and locations are included within ASX release dated 13 July 2012.

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Fieldwork at Lucky Trail prospect Mount Borium rock chip assayed 6.7g/t Au & 112g/t Ag

Notable Assays from May/June 2012 Rock Chip Samples

	Notable Assays from May/June 2012 Rock Chip Samples	Notable Assays from May/June 2012 Rock Chip Samples	Notable Assays from May/June 2012 Rock Chip Samples	Notable Assays from May/June 2012 Rock Chip Samples	Notable Assays from May/June 2012 Rock Chip Samples
	(Note: 1,000ppm = 0.1%)
	Sample	Au (g/t)	Ag (g/t)	Cu (ppm)	Pb (ppm)	Zn (ppm)
	780507	0.81	4.1	5	21	12
	780512	0.10	3.0	133	4020	354
	780516	0.02	25.4	506	7030	627
	780517	4.96	119	641	695	815
	780518	6.69	112	852	976	1100
	780519	0.11	7.2	114	348	3670
	780521	5.69	56.4	1050	693	611
	780547	0.10	29.7	53	2970	390
	780549	7.87	0.3	10	16	32
	780571	6.21	46.8	38	721	365

All rock chip samples which returned good gold grades (between 4-8g/t Au) were associated with either quartzpyrite breccias (rock chip samples 780517, 780518 and 780521) or associated with significant pyrite (rock chip samples 780549 and 780571). It is noted that most significant gold intercepts in historic drill holes were associated with greater than 1% visible pyrite.

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PLANET METALS LTD

10

Target Zone A

Mount Borium geology map including key rock chip assays and main target zones

Significant gold mineralisation was identified at the Lucky Trail prospect, with five of eight recent rock chip samples within the vicinity of some old near surface gold workings containing anomalous gold. In particular, three samples (mullock) assayed between 4.96g/t Au and 6.69g/t Au. Gold mineralisation at Lucky Trail is in the form of a massive quartz-pyrite breccia. No evidence suggests that this zone has ever been directly targeted by historical drilling. As a result, this is a priority target zone with future drilling aimed at intersecting the zone near surface, along strike and at depth, where it is possible mineralisation could become more extensive than what has so far been identified at surface.

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ANNUAL REPORT 2012

11

Target Zone B

Analysis of historical drill results focused Planet’s attention on this particular Target Zone. In 1989, Hunter Resources drilled a pair of scissored holes targeting a strong gold soil anomaly (refer below image). One of these holes, MBRC-2 averaged 0.38g/t Au over its entire 102m length with a best intercept of 9m at 1.63g/t Au from 27m. Importantly both holes terminated whilst still in gold mineralisation. Lower grade mineralisation at Mount Borium is commonly cryptic and difficult to identify, which may explain why these holes were terminated. Planet aims to test this depth potential in its next drill program. Recent rock chip samples further highlight the priority of this target zone with two of four trench mullock samples in the immediate vicinity returning gold assays of 6.21g/t Au and 7.87g/t Au.

Target Zone C

This zone is of interest as it includes historical hole MBAT-1 which was drilled by Hunter Resources in the late 1980s. Past data highlights an intersection of 4m at 4.2g/t Au from 10m. Directly above this intersection, there are old workings delineated by a trench that bores into the side of the hill. It is presumed that these workings represent the surface expression of this particular intercept. Other nearby shallow holes returned reasonable gold results including 22m at 0.5g/t Au from 4m. Planet’s proposed drilling will target the areas highlighted by historical drill assays but will also be of considerably greater depth.

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9,800mE 9,850mE 9,900mE
MBRC3 (6.21g/t Au)
(7.87g/t Au) MBRC2
102m @ 0.38g/t
575mRL
granodiorite ?
550mRL
?
9m@1.63 g/t Au
3m@1.90 g/t Au
quartz feldspar porphyry
525mRL
6m@1.03 g/t Au
500mRL
?
Au assays 3m interval
0.2g/t 6m composite
0.5g/t 6m composite
1.0g/t 6m composite
0 10 20
metres
Historical Cross Section within Target Zone B
MBRC-3 (105m)
MBRC-2 (102m)
rhyolite
andersite
rhyolite
rhyolite
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Proposed Drill Program Logistics

Drill collars have been proposed for an initial program of between 1,000m and 1,500m. The location of drill pads and access tracks has been finalised with earthworks and drilling expected to be completed before the end of 2012. Cultural Heritage clearance has been completed with no issues identified.

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PLANET METALS LTD

12

oak riVer uranium-goLd proJeCt

(EPM 17945 - Planet 100%)

As part of a consolidation of its exploration portfolio, Planet purchased this tenement from Callabonna Uranium earlier this year for $65,000 cash. Oak River directly adjoins the Mount Borium gold project to the west, hence providing Planet with a sizeable contiguous tenement holding between the historic Kidston gold mine (>3 million ounces of gold) and Einasleigh region copper mines.

The Oak River tenement area covers the south eastern margin of the Newcastle Range Volcanics where they sit within the Wirra Cauldron, a volcanic subsidence structure. Limited exploration has been undertaken on the tenement in recent years. Planet has identified a number of target areas through an extensive GIS data compilation – these areas continue to be a focus of field exploration.

Fieldwork is set to target existing uranium anomalies at the Chinaman Creek prospect with an investigation into historical drilling completed by German company, Urangesellschaft, in the late 1970s. Re-sampling of some of this drill core is planned. Examples of secondary uranium phosphates, torbernite and autunite have been documented and identified in fieldwork to date. A review of all geophysical data is also underway.

Key intercepts of previous uranium drilling included 0.79m @ 0.304% U3O8 from 88.84m and 2.35m @ 0.067% U3O8 from 87.56m. This drilling also outlined a mineralised palaeo-channel structure at Chinaman Creek, delineated by an argillaceous conglomeratesandstone-siltstone lens.

Competent Persons Statement

The compilation of technical information relating to the Mount Borium and Oak River projects contained in this report has been undertaken and supervised by Dr Louis Schurmann, a specialist geological consultant employed by Salva Resources. Salva has been engaged by Planet Metals to provide technical and field exploration services relating to the Mount Borium and Oak River projects. Dr Schurmann is a competent person and member of the Australian Institute of Mining and Metallurgy (AusIMM) and has relevant experience to the mineralisation, exploration results and targets and Mineral Resources being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Schurmann consents to the inclusion of this information in the form and context in which it appears in this report.

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Oak River Uranium bearing rock samples

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Oak River landscape

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ANNUAL REPORT 2012

13

CaSuarina SaLt proSpeCt

(EPM 18232 – Planet earning-in up to 95%)

Located 50km north of Gladstone in Central Queensland, the tenement is adjacent to the large Port Alma salt fields operated by Cheetham Salt (owned by Ridley Corporation) and in an area where significant infrastructure investigations are taking place such as Port Alma and the Fitzroy and Balaclava Island coal terminals. The tenement was granted in April 2012.

A review of past drilling and subsequent chemical testwork is continuing. Extensive data sets have been identified with work focusing on digitising and collating this information into a format amenable to project specific investigations later this year. Under the terms of the farm-in agreement, Planet Metals must first meet its initial expenditure commitment of $50,000 before April 2013. A further $105,000 is required to be spent in the second year to earn 51%. Planet can ultimately earn 95% if it meets further expenditure commitments within 5 years.

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Rockhampton
(10 Km)
23° 30' S CURTIS IS
EPM18232
CASUARINA SALT
�
PT ALMA
23° 35' S �
BALACLAVA
IS
�
23° 40' S
Mining Leases
Access Rd (Cheetham Salt Limited)
Bajool-Pt Alma
Gladstone
(50 Km)
0 2 4 6 8 10 Km
1:250,000
MAJOR INFRASTRUCTURE
� Port Alma Bulk Loading & Storage (Gladstone Ports Corp.) Ammonium Nitrate, Explosives, Petroleum Products,Bulk Cargoes CASUARINA SALTEPM18232
� Balaclava Island Coal Export Terminal - BICET (Xstrata)
Casuarina Salt Prospect
� Fitzroy Coal Terminal Project (Mitchell Group)
Incorporating rail spur to Port Alma COMPILED BY B. O'DONOVAN MAY 12 SCALE 1: 500,000 FIGURE
DRAFTED BY K.J.CORRIE MAY 12 Proj.: LATLONG (GDA 94) 2
REVISED DWG No :
Bruce Highway
150° 30' E 150° 35' E 150° 40' E 150° 45' E 150° 50' E 150° 55' E 151° 00' E
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Casuarina Tenement Map and Nearby Infrastructure

Future Strategy

Planet’s Board and management are focused on generating shareholder wealth. This will be achieved through the timely advancement of the Company’s key gold-copper projects as well as additional asset acquisitions and taking advantage of other corporate opportunities.

Assessment of such opportunities continues with reviews being undertaken both within and outside of Australia. The Company’s recent successes and proven corporate expertise bodes well for future potential value accretion. With a low market capitalisation relative to the Company’s cash position and project value, Planet Metals offers shareholders significant leverage to future successes.

The Board looks forward to reporting such success in the 2013 Annual Report and we appreciate the support received to date from all our shareholders.

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PLANET METALS LTD

14

top 20 SharehoLderS

FuLLy paid ordinary ShareS aS at 17th September 2012

SharehoLder	SharehoLder		no oF ShareS	no oF ShareS	%
Jien Mining Pty Ltd			6,570,892		11.00
Chivas Group Pty Ltd			5,000,000		8.37
APC Management Services Pty Ltd (Colrain Super Fund)			2,550,000		4.27
Corporate Property Services Pty Ltd (K W Share)			2,500,000		4.18
CBD Plaza (AUST) Pty Ltd			2,225,087		3.72
Park Road SF Pty Ltd			2,170,000		3.63
Clodene Pty Ltd			1,927,608		3.22
Golden Breed Pty Ltd			1,754,000		2.93
Mr Jeffrey Howard Latimer & Mrs Judith Ann Latimer (Latimer S/F) 1,300,000					2.17
Mr Brett O’Donovan			1,100,000		1.84
Mr Bernard Francis O’Neill (Wynfo Superannuation AC)			1,055,001		1.76
C	B D Plaza (AUST) Pty Ltd		1,000,000		1.67
Mr Matthew David Critchley			1,000,000		1.67
Calama Holdinigs Pty Ltd (Mambat Super Fund)			996,247		1.66
BT Portfolio Services Limited (Warrell Holdings S/F)			968,368		1.62
Tardis Victoria Pty Ltd			883,054		1.49
Mrs Lili Dai			610,060		1.02
B2B Holdings Pty Limited			550,000		0.92
Doloc Pty Ltd (Clive Briggs PRSL S/F)			500,000		0.83
Perryvale Investments Pty Ltd			500,000		0.83
Top 20 Holdings			35,160,317		58.9
Other			24,556,797		41.1
Total			59,717,114		100
	anaLySiS oF hoLdingS	aS at 17/09/12
	Holdings Ranges	Holders	Total Units	%
	1-1,000	513	205,887		0.35
	1,001-5,000	366	980,501		1.64
	5,001-10,000	126	968,444		1.62
	10,001- 100,000	193	6,835,692		11.45
	100,001+	85	50,726,590		84.94
	Totals	1,283	59,717,114	100.00

The company also has 6,500,000 CEO options issued under an Employee Share Scheme. There are no unlisted shares on issue.

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ANNUAL REPORT 2012

15

tenement SCheduLe

TENEMENT NO.	HOLDER	SIZE
EPM 15261	Mt. Cannindah Mining Pty Ltd	14 sub-blocks
EPM 14524	Mt. Cannindah Mining Pty Ltd	19 sub-blocks
ML 3201	Mt. Cannindah Mining Pty Ltd	3.97 hectares
ML 3202	Mt. Cannindah Mining Pty Ltd	8.094 hectares
ML 3203	Mt. Cannindah Mining Pty Ltd	8.094 hectares
ML 3204	Mt. Cannindah Mining Pty Ltd	47.44 hectares
ML 3205	Mt. Cannindah Mining Pty Ltd	118.8 hectares
ML 3206	Mt. Cannindah Mining Pty Ltd	122.2 hectares
ML 3207	Mt. Cannindah Mining Pty Ltd	55.39 hectares
ML 3208	Mt. Cannindah Mining Pty Ltd	64.01 hectares
ML 3209	Mt. Cannindah Mining Pty Ltd	128 hectares
EPM 18960	Planet Metals Limited	45 sub-blocks
EPM 19009	Planet Metals Limited	8 sub-blocks
EPM 19015	Planet Metals Limited	17 sub-blocks
EPM 17945	Planet Metals Limited	62 sub-blocks

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Appletree Prospect - Mt Cannindah Cu-Au Project

PLANET METALS LTD

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71 Lytton Road East Brisbane Qld 4169 G.P.O. Box 122 Brisbane Qld. 4001 Telephone: +61 7 3249 3080 Fax: +61 7 3249 3081 Email: admin@planetmetals.com.au