EMETALS LIMITED — Capital/Financing Update 2011

May 23, 2011

WEST PEAK IRON

ASX announcement

24 May 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

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

DANDARAGA TENEMENT GRANTED AND INITIAL ROCK CHIP RESULTS RECEIVED

The Board of West Peak Iron (West Peak or the Company) is pleased to announce that it has been granted the 100% owned Dandaraga tenement (E57/0839) which covers a total area of 133 km² in the Yilgarn region of Western Australia. Results from initial rock chip sampling taken during a reconnaissance visit have also been received.

Key Points:

• The Dandaraga tenement contains 2 km of outcropping BIF in the emerging Yilgarn Iron Province.
• Outcropping BIF is coincident with a 7 km long aeromagnetic anomaly. This anomaly forms part of a broader, 27 km long magnetic feature extending the length of the tenement.
• Initial rock chip sampling has returned assay results of 32.56% to 58.34% Fe, which includes traverse samples of:
• 163 metres at 38.87% Fe
• 136 metres at 37.11% Fe
• 119 metres at 35.84% Fe
• Detailed mapping and further sampling is planned to assess the iron potential within the tenement area.
• Two additional tenements, forming part of the Dandaraga Project, remains under application.

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WEST PEAK IRON

Dandaraga tenement granted and initial rock chip results received

OVERVIEW

The Directors of West Peak are pleased to announce that the 100% owned Dandaraga tenement (E57/0839) covering a total area of 133 km² in the Yilgarn region of Western Australia has been granted. The Dandaraga Project also includes two tenement applications and is located approximately 70 km north of the Cashmere and Mount Forrest Iron Projects (Figure 1).

West Peak Executive Chairman, David Parker said, "we are pleased to have been granted the Dandaraga tenement in the emerging Yilgarn Iron Province and look forward to building on the initial field work and unlocking the potential of the project area".

Figure 1. Regional location of the Dandaraga Project showing the existing and planned infrastructure and other iron ore projects in the area.

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WEST PEAK IRON

Dandaraga tenement granted and initial rock chip results received

EXPLORATION PROGRAM

West Peak has carried out an initial field reconnaissance visit which involved confirming the presence of outcropping banded iron formation (BIF) identified on published regional maps. The outcropping BIF is coincident with a strong aeromagnetic anomaly with a strike length of $7\mathrm{km}$ . This anomaly forms part of a broader magnetic feature which spans the entire length of the tenement, approximately $27\mathrm{km}$ .

Initial field work included broad-scale mapping of the BIF sequence and rock chip sampling including eight traverses. Traverse sample lines were completed at $250\mathrm{m}$ intervals along strike, as shown in Figure 2.

Following a full review of these first pass results, West Peak intends to commence a second phase of work comprising detailed mapping and additional rock chip sampling with a view to delineating an initial target for drill testing.

Figure 2. Outcropping BIF and rock chip traverse sampling lines.

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WEST PEAK IRON

Dandaraga tenement granted and initial rock chip results received

RECONNAISSANCE ROCK CHIP SAMPLING RESULTS

Rock Chip Point Samples

Sample ID	Easting	Northing	Fe %	SiO₂ %	Al₂O₃ %	P %	LOI %	Description
WP071	754420	6881187	37.65	41.54	0.5	0.024	3.68	BIF, Magnetite
WP074	754550	6880924	58.34	4.25	1.38	0.113	10.59	BID, Goethite
WP075	754531	6880804	37.87	39.66	0.81	0.121	4.18	BIF, Magnetite
WP076	754507	6880803	40.56	35.22	0.79	0.077	5.3	BIF, Magnetite
WP079	754494	6880432	45.98	27.76	0.08	0.046	6.27	BID, Goethite
WP081	754436	6880215	42.82	36.25	0.3	0.03	2.14	BIF, Magnetite
WP082	754499	6880217	50.86	18.99	0.71	0.165	7.21	BID, Goethite

Rock Chip Traverse Samples

Sample ID	Start Easting	Start Northing	Length (m)	Bearing (degree)	Fe %	SiO₂ %	Al₂O₃ %	P %	LOI %	Description
WP072	754412	6881258	44	76	38.7	40.94	0.53	0.066	2.71	BIF, Magnetite
WP073	754556	6880986	136	99	37.11	43.14	0.62	0.04	2.65	BIF, Magnetite
WP077	754571	6880742	163	93	38.87	40.91	0.38	0.059	2.53	BIF, Magnetite
WP078	754522	6880494	119	94	35.84	45.09	0.45	0.039	2.85	BIF, Magnetite
WP080	754427	6880217	96	79	36.81	43.26	0.54	0.036	2.98	BIF, Magnetite
WP083	754529	6879482	93	79	32.56	49.5	0.44	0.059	2.65	BIF, Magnetite
WP084	754553	6879745	80	76	34.35	48.08	0.42	0.046	2.42	BIF, Magnetite
WP085	754471	6879977	69	79	40.02	38.93	0.24	0.037	3.1	BIF, Magnetite

Coordinates are in GDA94 MGA Zone 50. BID = Bedded Iron Deposit. All samples were analysed by X-Ray Fluorescence Spectrometry (XRF). Loss of Ignition (LOI) values were determined using Thermo-Gravimetric Analyses at 1000°C.

Rock chip traverse sampling method involved collection of a sample weighing approximately 2 to 3 kg by hammering surface outcrop at nominal 10 metre spacing, generally across the strike of the BIF.

"END"

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.

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

Dandaraga tenement granted and initial rock chip results received

ABOUT WEST PEAK

West Peak Iron Ltd (West Peak) is a new 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. The Company is now in the process of initiating exploration activities over these tenements.

ASX code - WPI	Market Cap @ 22 cps - $5.3m
Issued shares - 24.0m	Cash - $1.5m (approx.)

LIBERIA

West Peak has 1,692 km² of granted tenure prospective for iron ore in Liberia through a combination of reconnaissance and exploration licences 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). The Company is currently preparing to carry out a field program involving mapping and rock chip sampling to identify prospective targets for drill testing later in 2011.

WESTERN AUSTRALIA

West Peak holds nine granted tenements and 32 tenement applications, of which five are subject to ballot, in the emerging Mid West and Yilgarn Iron Provinces. 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 holding economic iron mineralisation.