CANNINDAH RESOURCES LIMITED — Capital/Financing Update 2012

Feb 1, 2012

==> picture [210 x 63] intentionally omitted <==

ASX RELEASE 2 February 2012 ASX Code: PMQ

Torchlight Drill Results & Cash Update

Key Points

• Planet Metals has received all assays from the recent drill program at the Torchlight gold prospect (near Georgetown in North Queensland). Details of the program were outlined in the Company’s quarterly report released to the ASX on 24 January 2012.

• No significant results were received from this scout program and the Company will now review its farm-in agreement with Callabonna as to its future involvement. Planet Metals has completed its minimum obligations with respect to this agreement and has the right to withdraw at any time without further cost.

• Less than $200,000 has been spent on the Torchlight exploration program, and despite intersecting anomalous gold up to 0.17g/t Au, none of the intercepts were considered significant. The targeted zone, being the contact between the granite and metadolerite, was consistently intersected by each drill hole. This zone was represented by a silicified fault with disseminated sulphides throughout the hanging wall, however assay results showed that this zone was relatively barren.

• The Company continues to aggressively pursue opportunities within the metals sector, both within and outside of Australia, primarily in gold and copper.

• Planet’s cash position has been boosted through the further sale of part of its shareholding in Frankfurt-listed Deutsche Rohstoff AG since its December quarterly cash flow report. As at 1 February 2012, Planet Metals had $5.3 million in cash, which equates to 8.9 cents per share.

• In addition, the Company holds over $1.0 million worth of Deutsche Rohstoff AG shares at current prices and will be continuing to realise the value of this investment in coming months.

• Cash and equity investments total $6.3 million, representing 10.6 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

Torchlight Gold Prospect	Torchlight Gold Prospect	Drill Collar Details –no significant intercepts recorded	Drill Collar Details –no significant intercepts recorded	Drill Collar Details –no significant intercepts recorded	Drill Collar Details –no significant intercepts recorded	Drill Collar Details –no significant intercepts recorded
Hole ID	East	North	RL	Depth (m)	Dip (o)	Azi (GDA)	Azi (Magentic)
TLRC005	772828	7990864	314	226	-90	270	263.3
TLRC006	772821	7990864	321	80	-60	270	263.3
TLRC007	772754	7990866	315	172	-60	90	83.3
TLRC008	772757	7990945	315	222	-60	90	83.3
TLRC009	772759	7990905	316	166	-60	90	83.3
TLRC010	772745	7990826	311	220	-60	90	83.3

==> picture [403 x 578] intentionally omitted <==

Historical and Recent Drill Collars

TLRC005-TLRC010 were completed in December 2011 with no significant results

For further information, please contact:

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

Competent Persons Statement

Technical information contained in this report has been compiled and/or supervised by Mr Andrew Gillies B.Sc (Geology) M.AusIMM (Director of Planet Metals Limited and Managing Director of Metallica Minerals Limited, Planet’s major shareholder) who is a competent person and member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Gillies 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 Gillies 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 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), the Mount Borium gold project (located between Kidston and Einasleigh, Qld - tenements currently being offered for grant) and the recently announced farm-in agreement over the Delaney gold project, near Georgetown, North Queensland. The Company’s major shareholder is Metallica Minerals (ASX Code: MLM) with a 37% shareholding. As at the date of this release, Planet Metals has 59.7 million shares on issue as well as 6.5 million unlisted options. The Company had cash at hand of $5.3 million with a further $1.0 million in Deutsche Rohstoff shares listed in Germany. This means Planet Metals has cash and equity investments amounting to approximately $6.3 million, representing 10.6 cents per share.

==> picture [199 x 242] intentionally omitted <==

==> picture [278 x 242] intentionally omitted <==

==> picture [304 x 19] intentionally omitted <==

----- Start of picture text -----

Tenement Map highlighting the tenements subject to the farm-in as well
as Planet’s existing Mount Borium group of tenements
----- End of picture text -----

==> picture [115 x 9] intentionally omitted <==

----- Start of picture text -----

Project Location Map
----- End of picture text -----