EMETALS LIMITED — Capital/Financing Update 2012

Aug 12, 2012

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13 August 2012

Dear Shareholder

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 31,250,000 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.

Ineligible shareholders

A Shareholder who has a registered address outside Australia and New Zealand ( Ineligible Shareholder ) will not be eligible to participate in the Offer.

You are not eligible to participate in the Offer and you will not be sent a copy of the Prospectus. This decision has been made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules after taking into consideration the costs of complying with legal and regulatory requirements in jurisdictions outside of Australia and New Zealand compared with the small number of Ineligible Shareholders and the number and value of New Shares to which they would otherwise be entitled.

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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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