EMETALS LIMITED — Capital/Financing Update 2012

Aug 12, 2012

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13 August 2012

Dear Optionholder

West Peak Iron Limited - pro-rata non-renounceable rights issue

As announced on 30 July 2012 West Peak Iron Limited (ACN 142 411 390) ( Company ) is undertaking a 1 for 1 pro rata non-renounceable rights issue ( Rights Issue or Offer ) of approximately 32,250,000 fully paid ordinary shares ( New Share ) to raise approximately $1,612,500. The price of New Shares under the Offer is $0.05 each ( Issue Price ). The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 9 August 2012.

The Offer is fully underwritten by Truestone Capital Limited ( Underwriter ). The Company must pay the Underwriter an underwriting fee of 5% of the total amount raised pursuant to the Offer as well as an initiation fee of $50,000. The Company must also reimburse the Underwriter for costs incidental to the Offer.

The funds raised from the Offer are being used for:

• (a) continued exploration on the Company’s Western Australian and Liberian mining tenements;

• (b) expenses incurred in undertaking the Offer; and

• (c) general working capital.

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5.00pm (WST) on 20 August 2012, whose registered address is in Australia or New Zealand.

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue.

Following completion of the Offer, the Company will have issued approximately 32,250,000 New Shares resulting in total Shares on issue of approximately 64,500,000.

Optionholders

The terms and conditions of the options you currently hold do not entitle you to participate in the Rights Issue unless you exercise your options in time for new shares to be allotted and to be entered on the Company’s register of members on or before 5.00pm (WST) on 20 August 2012 ( Record Date ).

To exercise your options and thereby participate in the Rights Issue, you will need to deliver the following to the Company at Suite 9, 330 Churchill Avenue, Subiaco, WA 6008:

Registered Office Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Telephone +61 8 6489 1600 Facsimile +61 6489 1601 Website westpeakiron.com.au Email admin@westpeakiron.com.au ABN 71 142 411 390

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• (a) a notice of exercise of options (attached to this letter);

• (b) an option certificate (where the options are certificated) or a copy of a holding statement (where the options are uncertificated) in respect of those options to be exercised; and

• (c) payment for the exercise price in respect of those options to be exercised by way of a cheque made payable to “West Peak Iron Limited – Share Issue Account”.

To ensure that your new shares are allotted prior to the Record Date, the above must be received by West Peak Iron Limited no later than 30 June 2012 . If received after this date, allotment of new shares prior to the Record Date cannot be assured.

Before deciding whether to exercise any or all of your options, you should read the Prospectus in its entirety.

This notice is important and requires immediate attention. If you have any queries concerning the Rights Issue, please contact your financial adviser or the Company Secretary on +61 8 6489 1600.

Yours sincerely

Mathew Walker Executive Director

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Registered Office Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Telephone +61 8 6489 1600 Facsimile +61 6489 1601 Website westpeakiron.com.au Email admin@westpeakiron.com.au ABN 71 142 411 390