EMETALS LIMITED — Capital/Financing Update 2012

Aug 12, 2012

==> picture [145 x 92] intentionally omitted <==

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 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.

A copy of the Prospectus is available on ASX’s and the Company’s website. Eligible Shareholders will be mailed a Prospectus together with an Entitlement and Acceptance Form no later than 24 August 2012. Your entitlement will be set out on the personalised Entitlement and Acceptance Form accompanying the Prospectus.

For the purposes of calculating each Eligible Shareholders’ entitlement, fractions of entitlements have been rounded up to the nearest whole number of New Shares.

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

==> picture [145 x 92] intentionally omitted <==

Actions required of Eligible Shareholders

There are a number of actions Eligible Shareholders may take:

• You may wish to accept all of your rights to subscribe for New Shares pursuant to the Prospectus ( Entitlement ). To take up all or some of your Entitlements you will need to ensure your application money for the Entitlements you wish to take up is received by Security Transfer Registrars Pty Limited ( Share Registry ) by no later than 5.00pm (WST) on 20 August 2012, by completing and returning your Entitlement and Acceptance Form together with your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for the amount indicated on the Entitlement and Acceptance Form or making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form.

• You may wish to accept part of your Entitlement. To take up part of your Entitlement you will need to ensure your application money for the Entitlements you wish to take up is received by the Share Registry by no later than 5.00pm (WST) on 20 August 2012, by completing and returning your Entitlement and Acceptance Form by filling in the number of New Shares you wish to accept in the space provided on the Entitlement and Acceptance Form together with your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for the appropriate application monies or making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form (at $0.05 per New Share).

• You may do nothing. If you choose to do nothing with your Entitlements, while you will continue to hold the same number of Shares, your interest in the Company will be diluted and you will receive no value for your Entitlement.

Key dates for the Offer

You may do nothing. If you choose to do nothing with your Entitlements while	You may do nothing. If you choose to do nothing with your Entitlements while	You may do nothing. If you choose to do nothing with your Entitlements while	You may do nothing. If you choose to do nothing with your Entitlements while	You may do nothing. If you choose to do nothing with your Entitlements while	You may do nothing. If you choose to do nothing with your Entitlements while
,you will continue to hold the same number of Shares your interest in the
Company will be diluted		and you will receive no valu	,e for your Entitlement.
y dates for the Offer
	Event			Proposed Date
	Prospectus and Appen	dix 3B lodged with ASX		9 August 2012
	Notice of Rights Issue sent to security holders			13 August 2012
	Existing shares quoted	on an ‘ex’ basis		14 August 2012
	Record date			20 August 2012
	Despatch of Rights Issu	e Documents to Eligible Share	holders	24 August 2012
	Offer Period Opens

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

==> picture [145 x 92] intentionally omitted <==

Offer Period Closes	7 September 2012
Securities quoted on a deferred settlement basis.	10 September 2012
Notification of under-subscriptions to ASX (if any)	12 September 2012
Shares IssuedHolding statements despatched	13 September 2012

If you have any queries concerning the Rights Issue, or the action you are required to take to subscribe for New Shares, please contact your financial adviser or the Company Secretary, on +61 8 6489 1600.

Yours sincerely

Mathew Walker Executive Director

==> picture [182 x 224] intentionally omitted <==

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