EMETALS LIMITED — Capital/Financing Update 2011

Oct 9, 2011

WEST PEAK IRON

ASX announcement

10 October 2011

ACN: 142 411 390

T: 08 6460 4960

F: 08 9324 3045

E: admin@westpeakiron.com.au

Suite 9, 1200 Hay Street

West Perth WA 6005

PO Box 281

West Perth WA 6872

www.westpeakiron.com.au

Directors & Management

David Parker:
Executive Chairman

Graham Marshall:
Non-Executive Director

John Royle:
Non-Executive Director

Shane Tomlinson:
Exploration Manager

Sonu Cheema:
Company Secretary

Issued Capital

24,000,001 ordinary Shares

12,000,000 unlisted options exercisable at 20 cents each on or before 30 June 2013

500,000 unlisted options exercisable at 30 cents each on or before 30 June 2013

ASX Code: WPI

WEST PEAK IRON LTD

COMPANY UPDATE

The Board of West Peak Iron Ltd ('West Peak' or the 'Company') is pleased to provide the following Company update.

Key Points

• Mandate letter to raise up to $490,000 through the issue of 3,500,000 shares at $0.14
• Funds to be used to complete a detailed geophysical survey on Liberian iron ore licenses
• Exploration Update
• Appointment of Company Secretary

PLACEMENT

West peak has entered into a mandate to place up to $490,000 (pre-costs) through the placement of 3,500,000 shares at $0.14, including a free one for two unlisted Company Option (up to 1,750,000) exercisable at 20 cents on or before 30 June 2013 (which is subject to shareholder approval) on a best endeavours basis. The placement is to sophisticated investors of Alto Capital (AFSL No: 279099) and does not require shareholder approval as it is under ASX Listing Rule 7.1. The Company Options will be subject to approval by shareholders, which will be sought at the upcoming Annual General Meeting. The board is pleased to have received this capital raising mandate given the ongoing volatility in equity and capital markets. An Appendix 3B will be lodged once the placement has been completed.

The funds raised will be used to fly a detailed geophysical survey on the Liberian iron ore licenses and for general working capital.

EXPLORATION UPDATE

Liberia

Since the announcement of the high grade hematite rock chips on the 18 of August 2011, West Peak's consultants have carried out Project Brief's for Bomi South and Grand Bassa projects, as required under the Liberian environmental act to support a work program involving ground disturbing activities. The Project Brief is designed to identify environmental and social issues, which will form the basis of West Peak's community focussed programs. Using the project briefs, West Peak will be initiating social works, including new water pumps and lavatories and the provision of school supplies and renovations in the Bomi South and Grand Bassa license areas.

A program of works consisting of non ground disturbing activities was submitted to the Liberian Ministry for Lands, Mines and Energy seeking the approval for a detailed aeromagnetic survey. Approval has been received and the survey is planned to be executed later in the year, upon the completion of the wet season, the general elections to be held in October/November and availability of the contractor.

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WEST PEAK IRON

Company Update

Liberia continued...

West Peak has also scheduled a maiden field visit to the Mount Koklun, Bobo Creek and Dig Creek projects to assess the iron potential of each project in the coming month, as the initial field work focused on the exploration licences. These are reconnaissance licences, which carry an initial six month term until October 2011 and as such additional six month extensions are being sort for each.

Upon review of the information obtained from the June 2011 field trip to the Grand Bassa licences, West Peak has moved to reduce the size of the Grand Bassa project to focus on the key areas for iron potential. The original exploration licence has been reduced and the reconnaissance license, which is due to expire in October 2011, will not be renewed. This strategy is in keeping with the Liberian Ministry of Land Mines and Energy's desire to have ground being actively explored, while it also reduces the ongoing expenditure commitment of the Grand Bassa project.

Western Australia

Pinyalling Project

With the identification of iron enrichment from very encouraging rock chip assays at the Warriedar prospect in August 2011, with iron grades returned were above 55% Fe, West Peak is in the process of seeking all necessary approvals to carry out a drill program.

Dandaraga Project

West Peak is currently investigating a heritage survey to be carried out to support a program of works application to test the identified magnetite bearing iron target.

Santy Well

West Peak has been successful in gaining cofunding from the state governments Exploration Incentive Scheme (EIS) to explore for gold and base metals across the under explored northern limb of the Tallering Greenstone Belt. A program of works has been granted and a heritage survey is currently being organised. This work is being carried out under the terms of the Farmin agreement with Cohiba Minerals Limited. The Company has provided an extension to the Farm-in Agreement with Cohiba Minerals Ltd, the Farmin Agreement conditions precedent must be met prior to 30 November 2011.

APPOINTMENT OF COMPANY SECRETARY

West Peak is also pleased to announce the appointment of Mr Sonu Chemma as Company Secretary, effective immediately, replacing Mr David Parker who remains as the Executive Chairman. Sonu Cheema is an accountant and company secretary who has worked for mineral exploration companies with interests in Australia, Africa and Mongolia.

For further information contact:
David Parker; Executive Chairman, West Peak Iron Ltd.
Telephone: +61 8 6460 4960
Email: david@westpeakiron.com.au

COMPETENT PERSONS' STATEMENT

Scientific or technical information in this news release has been prepared under the supervision of Mr Shane Tomlinson, an employee of the Company and a Member of the Australian Institute of Geoscientists (AIG). Mr Tomlinson has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Mr Tomlinson consents to the inclusion in this report of the Information, in the form and context in which it appears.

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WEST PEAK IRON

Company Update

FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS

Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "intends", "potential", "prospective", "seek" and similar expressions.

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WEST PEAK IRON

Company Update

ABOUT WEST PEAK

West Peak Iron Ltd (West Peak) is an exploration company with a focus on iron ore exploration.

West Peak has focused on increasing its licence holdings through direct tenement applications both in Western Australia and Liberia since floating on the ASX in 2010. West Peak's strategy is to actively explore its land holding to identify and focus on those projects which are believed to have the greatest potential for economic iron mineralisation through staged exploration programs. The Company's activities are dependent on the maintenance of appropriate licences, permits and regulatory consents which may be withheld, withdrawn or made subject to limitations.

ASX code - WPI	Market Cap @ 14 cps - $3.36m
Issued shares - 24.0m	Cash - $1.18 (circa @ at end of Sep Qtr)
Unlisted Options - 12.5m

LIBERIA

West Peak has 1,007 km² of granted tenure prospective for iron ore in Liberia through a combination of reconnaissance and exploration licences for iron ore in the Grand Bassa, Bomi, Bong and River Cess counties. All licences contain identified iron-bearing formations and are located close to port, rail and road infrastructure (both existing and currently being upgraded to meet iron ore industry requirements). Following on from the success of the initial field work the Company now plans to undertake a detailed aeromagnetic survey, follow the wet season and subject to finalisation of a contractor.

WESTERN AUSTRALIA

West Peak has built up a land holding comprising 15 granted tenements and 28 tenement applications, several being subject to ballot, in the emerging Mid West and Yilgarn Iron Provinces. High grade rock chip results have been received from the Warriedar tenement and indicate the potential for DSO type mineralisation. A magnetite target has been identified at the Dandaraga tenement from mapping and rock chip sampling of an outcropping BIF.