CANNINDAH RESOURCES LIMITED — Capital/Financing Update 2012

Aug 9, 2012

Capital Return Finalised & Appendix 3B

A capital return of 6.5 cents per share was yesterday distributed to all Planet Metals Limited (ASX-PMO) shareholders who were registered on the record date of 2 August 2012. The company notes that as a result of the return of capital and in accordance with ASX Listing Rules, the exercise price of PMQ's existing options have been reduced as shown in the attached Appendix 3B.

For more information, please contact

John K. Haley Company Secretary Planet Metals Limited

Office telephone: 07 3249 3000 Mobile phone: 0414 018 831

About Planet Metals Limited

Planet Metals (ASX Code: PMQ) is a Brisbane-based ASX-listed resource and exploration company, with a focus on gold and copper. The Company's key operations are the 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). Planet also recently entered into a farm-in agreement over the Casuarina Salt Prospect, near Gladstone, Central Queensland. Planet Metals has 59.7 million shares on issue as well as 6.5 million unlisted options. As at 10 August 2012, the Company had cash at hand of \$2.0 million. Cash backing represents approximately 3.3 cents per share.

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

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

PLANET METALS LIMITED

ABN

35 108 146 694

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 issued

⁺Class of ⁺securities issued or to be | Existing Unlisted Options to acquire ordinary shares

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• $\overline{3}$ Principal terms of the ⁺securities (eg, if options, exercise price and expiry date; if partly paid ⁺securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Not Applicable

Exercise price adjustment of existing options as a result of return of capital

⁺ See chapter 19 for defined terms.

4	Do the + securities rank equally in all respects from the date of allotment with an existing + class of quoted +securities?	N/A
	If the additional securities do not rank equally, please state: the date from which they do which the extent to they participate for the next dividend, (in the case of a trust. distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5	Issue price or consideration
		Exercise price adjustment of existing options as a result of return of capital
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Exercise price adjustment of existing options as a result of return of capital
7	Dates of entering + securities into uncertificated holdings or despatch of certificates	7 August 2012
8	Number and + class of all +securities quoted ASX on (including the securities in clause 2 if applicable)	+Class Number 59,717,114 Fully Paid Ordinary Shares

⁺ See chapter 19 for defined terms.

		Number	+Class
9	$\sigma$ f Number and + class all + securities not quoted on ASX		Exercise price	Expiry Date
	(including the securities in clause 2 if applicable)	500,000 unlisted options	3.5 cents	01/03/2013
		250,000 unlisted options	6 cents	01/03/2013
		750,000 unlisted options	8.5 cents	01/03/2013
		500,000 unlisted options	4.5 cents	31/08/2013
		500,000 unlisted options	6 cents	31/08/2013
		2,000,000 unlisted options	4.5 cents	07/11/2013
		2,000,000 unlisted options	6 cents	07/11/2013

Dividend policy (in the case of a $\sqrt{\frac{n}{a}}$
trust, distribution policy) on the $10\,$ increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11	holder approval security Is required?
12	Is the issue renounceable or non- renounceable?
13	Ratio in which the + securities will be offered
14	+ Class of + securities to which the offer relates
15	determine $+$ Record date to entitlements

⁺ See chapter 19 for defined terms.

Appendix 3B
New issue announcement

16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has + security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.
19	of Closing date for receipt acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee or commission
22	Names of any brokers to the issue
23	Fee or commission payable to the broker to the issue
24	Amount of any handling fee payable to brokers who lodge acceptances
	on behalf of renunciations or *security holders
25	If the issue is contingent on
	*security holders' approval, the date of the meeting
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27	If the entity has issued options, and
	the terms entitle option holders to participate on exercise, the date on
	which notices will be sent to option holders
28	Date rights trading will begin (if applicable)

⁺ See chapter 19 for defined terms.

• 29 Date rights trading will end (if applicable)
• $30$ How do ⁺security holders sell their entitlements in full through a broker?
• 31 How do ⁺security holders sell part of their entitlements through a broker and accept for the balance?
• 32 How do ⁺security holders dispose of their entitlements (except by sale through a broker)?

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities (tick one) Securities described in Part 1 $(a)$ All other securities $(b)$ Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

If the 'securities are 'equity securities, the names of the 20 largest holders of the additional ⁺securities, and the number and percentage of additional ⁺securities held by those holders

36	If the + securities are + equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ $10,001 - 100,000$ 100,001 and over
37	A copy of any trust deed for the additional +securities

incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

35

⁺ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

• 38 Number of securities for which ⁺quotation is sought
• 39 Class of ⁺securities for which quotation is sought
• 40 Do the ⁺securities rank equally in all respects from the date of allotment with an existing ⁺class of quoted +securities?

If the additional securities do not rank equally, please state:

• the date from which they do
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and ⁺class of all ⁺securities quoted on ASX (including the securities in clause 38)

Number	+Class

the control of the state of
Service Controller Controller
Contract Contract Contract
. Contract Contract

⁺ See chapter 19 for defined terms.

Quotation agreement

• *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may $\mathbf{1}$ quote the ⁺securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the ⁺securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the ⁺securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any 'securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the ⁺securities be quoted.
• We will indemnify ASX to the fullest extent permitted by law in respect of any 3 claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• We give ASX the information and documents required by this form. If any $\overline{4}$ information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Halv

Date: 10 AUGUST 2012

Sign here: ................................... (Company Secretary)

Print name:

......JOHN HALEY....................................

⁺ See chapter 19 for defined terms.