CANNINDAH RESOURCES LIMITED — Capital/Financing Update 2011

May 18, 2011

ASX RELEASE 19 May 2011 ASX Code: PMQ

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STRONG FINANCIAL POSITION & COPPERGOLD FOCUS FOR FUTURE GROWTH

HIGHLIGHTS

• Strong financial position

• Cash & Equity investments represent 12.6 cents per share

• Diamond drilling underway at Mount Cannindah Cu-Au project Mount Borium Au project GIS data compilation commenced Renewed corporate focus and additional opportunities being pursued

KEY POINTS

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• Following last week’s sale of its interest in the Wolfram Camp project (refer ASX Release dated 11 May 2011), Planet Metals is currently in a strong financial position.

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• Cash at hand is in excess of $4 million with the Company also effectively holding a further $3.5 million worth of equity investments. This equity investment includes 180,500 Deutsche Rohstoff AG shares listed on the Frankfurt Stock Exchange with deferred settlement of these shares on 1 September 2011. These shares last traded at €14.49. Cash of $3.5 million in lieu of the settlement of shares is also a possibility, as previously disclosed.

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• Based on the Company’s current issued capital of 59.7 million shares, cash and equity investments (based on deferred settlement) represent 12.6 cents per share, compared with yesterday’s closing share price of 10 cents per share.

• In addition, Planet Metals’ current projects also offer considerable exploration and development upside within the Queensland copper-gold sector. The Company’s Mount Cannindah project is currently the subject of a 3,000m drill program to test extensions to existing porphyry coppergold style mineralisation. This is being funded by Drummond Gold as part of a farm-in agreement signed at the end of last year.

• With regard to this drilling program, four pre-collars have been completed and diamond drilling is now underway. First results are expected before the end of June.

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• A GIS data compilation has commenced over the tenements under application within the Company’s Mount Borium gold project. These tenements are located between the historic Kidston gold and Einasleigh copper mines in North Queensland. Further information, as it becomes available, will be released to the market before the end of June.

71 Lytton Road (Cnr Stafford St), East Brisbane Qld 4169 GPO Box 122, Brisbane Qld 4001 T 61 7 3249 3080 F 61 7 3249 3081 ABN 35 108 146 694

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• The CEO of Planet Metals, Mr Brett O’Donovan, stated, “Planet Metals has the platform and funding to advance its current gold-copper projects and to also pursue additional opportunities in the sector, with a predominant gold-copper focus. Management is committed to build shareholder wealth in the long term.”

For further information, please contact:

Brett O’Donovan Chief Executive Officer Ph: 61 7 3249 3080

About Planet Metals Limited

Planet Metals (ASX Code: PMQ) is a Brisbane-based ASX-listed resource and exploration company, with a focus on copper and gold. The Company’s key operations are the 100% owned Mount Cannindah copper-gold project (subject to a farm-in agreement with Drummond Gold) and the Mount Borium gold project (located between Kidston and Einasleigh, Qld - tenements presently under application). The Company’s major shareholder is Metallica Minerals (ASX Code: MLM) with a 76% shareholding. As at the date of this release, Planet Metals has 59.7 million shares on issue as well as 1.5 million unlisted options. The Company had over $4 million cash on hand as at the date of this release.