CANNINDAH RESOURCES LIMITED — Capital/Financing Update 2011

Apr 5, 2011

ASX RELEASE 6 April 2011

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ASX Code: PMQ

SHARE SALE AGREEMENT SIGNED FOR $7 MILLION SALE OF WOLFRAM CAMP TUNGSTEN PROJECT

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• Planet Metals Ltd is pleased to announce that it has entered into a Share Sale Agreement (“Agreement”) with Deutsche Rohstoff AG (“Deutsche Rohstoff”) to sell its 100% owned subsidiary, Wolfram Camp Mining Pty Ltd (“WCMPL”) for a total sale price of $7 million, comprising $3.5 million cash and $3.5 million worth of Deutsche Rohstoff shares. The Agreement is subject to conditions including satisfactory due diligence by Deutsche Rohstoff and all regulatory and shareholder approvals obtained.

• WCMPL is the holding company which has an 85% stake in the Wolfram Camp tungstenmolybdenum project, located west of Cairns (Qld). The project’s assets comprise:

  • 150,000tpa commercial scale processing plant – purpose built in 2008 and currently on care and maintenance

  • Spares and equipment related to the plant and mine site

  • Total resource estimate of 1.42Mt @ 0.60% WO3 and 0.12% Mo within granted mining leases (MLs 4935, 5117, 20486, 20534). This comprises 0.78Mt @ 0.56% WO3 and 0.13% Mo in the Indicated Resource category and 0.64Mt @ 0.65% WO3 and 0.11% Mo in the Inferred Resource category.

  • $817,627 (excl. gst) in financial assurance held as security by DEEDI (Qld Mines Dept) Exploration permits (EPMs 8884, 16050, 16395 and EPMAs 18253, 18254, 19109) Farm-in agreement (earn up to 85%) on EPM 14028 (Bamford Hill)

  • All documentation and intellectual property associated with, but not limited to, resource estimates, mining studies and processing plant commissioning.

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Key terms relating to the purchase include:

• Non-refundable deposit of $200,000 paid by Deutsche Rohstoff at the time of signing the Agreement. Deutsche Rohstoff has until 9 May 2011 to carry out its due diligence. If Deutsche Rohstoff decides to complete the transaction, an amount of $3,300,000 cash is required to be paid on 10 May 2011.

• The balance purchase price, being $3,500,000, will be issued in 180,500 Deutsche Rohstoff AG shares on 1 September 2011.

• Deutsche Rohstoff has an option to pay the balance purchase price in cash if it notifies Planet of this intention before 31 July 2011. The deal is structured to also provide Planet with some downside protection by means of a supplementary cash payment if Deutsche Rohstoff’s share price as at 1 September 2011 is more than 20% lower than the agreed equivalent share price on the date of signing the Share Sale Agreement.

• Deutsche Rohstoff AG is a diversified German resources company with a focus on gold and hitech metals such as rare earths, tin and tungsten. It is listed on the Frankfurt Stock Exchange and has a market capitalisation of approximately A$85M equivalent, based on a share price of €14.30 as at 4 April 2011. The 52 week high/low for the shares is €6.40/€19.13. Operations include a producing gold mine near Georgetown (north-west Queensland) and various exploration assets in Canada and Germany. Deutsche Rohstoff has an intricate understanding of the Australian resources sector with a team of experts and consultants based in Brisbane and North Queensland. Additional details regarding Deutsche Rohstoff's operations can be obtained from their website at www.rohstoff.de/index-en.shtml.

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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• Mr Brett O’Donovan, Chief Executive Officer of Planet Metals Ltd, said, “Planet Metals reviewed a number of proposals from interested parties regarding the future funding and recommissioning of the Wolfram Camp project. After due consideration, the Company considered Deutsche Rohstoff’s offer fair and reasonable and viewed this transaction as the most timely means for the mine to ultimately resume production.”

• Planet Metals is constantly reviewing opportunities within the metals sector, primarily in copper and gold. Funds from the sale of WCMPL will enable Planet to more aggressively target such opportunities. This would complement the Company’s Mount Cannindah Cu-Au project.

For further information, please contact:

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

Competent Persons Statement

The Wolfram Camp Resource estimate is based upon and accurately reflects data compiled or supervised by Dr Andrew Richmond, Principal Geostatistician, who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of Martlet Consultants. Dr Richmond has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr. Richmond consents to the inclusion of this information in the form and context in which it appears in this report.

About Planet Metals Limited

Planet Metals (ASX Code: PMQ) is a Brisbane-based ASX-listed mining development and exploration company, with a focus on copper, gold, tungsten and molybdenum. Key operations include the Mount Cannindah copper-gold project (100% owned) and the Wolfram Camp tungsten-molybdenum project (85% owned) – both located in Queensland. 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 $907,000 cash on hand as at 31 December 2010.

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Wolfram Camp’s existing 150,000tpa processing plant