EMETALS LIMITED — Capital/Financing Update 2010

Oct 20, 2010

WEST PEAK IRON LIMITED ACN 142 411 390

UPDATED STATEMENT OF COMMITTMENTS (BASED ON ACTUAL FUNDS RAISED - $2,600,000)

Based on the amount raised under the Prospectus ($2,600,000), the Company confirms that it intends to apply these funds as follows:

	d h id d h P	2600000 h C fi h i	2600000 h C fi h i	2600000 h C fi h i
	e on te amount rase uner te rosnds to al these funds as follows:	pectus ($,,), te ompany conrms tat t
	ppy
		Total ($)
Ite	m		Total ($)
Exp
	enses of the Offer		225,000
Pay	ment to vendors		110,000
Exp	loration expenditure - Santy Well		575,000
Exp	loration expenditure – Pinyalling (Thun	dallara Prospect)	670,000
Exp	loration expenditure – Pinyalling (War	riedar Prospect)	255,000
Ad	ministration costs		600,000
Pro	t ti & ki itl		165000
	jec generaon worng capa		,
Total	al		2,600,000

Notes:

1. Further details on the exploration and evaluation programs are set out in the Independent Geologist’s Report in Section 9 of the Prospectus.

2. A detailed breakdown of the expenses of the Offer is outlined in Section 12.7 of the Prospectus.

3. Administration costs and general working capital includes wages and superannuation of employees, consultants and directors, rent and outgoings, accounting fees, legal fees, ASX listing fees, auditing fees, insurance, share registry fees, travel expenses and all other items of a general administrative nature.

The above table is a statement of current intentions as of the date of lodgement of this prospectus with ASIC. As with any budget, intervening events (including exploration success or failure) and new circumstances have the potential to affect the ultimate way funds will be applied. The Board reserves the right to alter the way funds are applied on this basis.