EMETALS LIMITED — Capital/Financing Update 2012

Jan 31, 2012

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ASX announcement

1 February 2012

ACN: 142 411 390

WEST PEAK IRON LTD

DETAILED AEROMAGNETIC SURVEYS IDENTIFY SIGNIFICANT MAGNETIC ANOMALIES IN LIBERIAN PROJECTS

Highlights include:

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

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• Significant aeromagnetic anomalies identified in all four project

• areas (Bomi South, Grand Bassa, Bobo Creek and Mt Koklun)

• Magnetic anomalies coincident with confirmed iron formations

• and high grade hematite/ goethite "DSO" type mineralisation

• Collectively 58.5 km strike length of anomalous magnetic response

• Project areas 100% West Peak Iron owned

• Projects located close to port, rail and road infrastructure, both

• existing and with proposed upgrades to meet iron ore industry requirements.

Directors & Management

David Parker: Executive Chairman

Graham Marshall: Non-Executive Director

John Royle: Non-Executive Director

Shane Tomlinson: Exploration Manager

Sonu Cheema: Company Secretary

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Issued Capital

27,500,001 ordinary Shares

13,750,000 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

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ASX Code: WPI

The Directors of West Peak Iron Ltd (“West Peak” or the “Company”) are pleased to announce the identification and confirmation of significant iron ore targets following the completion of four detailed airborne magnetic and radiometric surveys carried out across the company’s 100% owned Bomi South, Grand Bassa, Bobo Creek and Mt Koklun Iron Projects in Liberia, West Africa.

West Peak Executive Chairman David Parker said, “The results from the detailed aeromagnetic surveys coupled with the previously released high grade rock chip results continue to demonstrate the potential for our projects to contain significant iron mineralisation. Our strategy is to continue to build on our exploration activities with the goal of creating a strong iron ore business in Liberia”.

During November and December 2011, West Peak engaged the services of Aeroquest Airborne to carry out the geophysical surveys over its four prospects in Liberia, which cover some 977 km[2] . The surveys were flown at 100 m line spacing at a nominal height of 50 m and collected both magnetic and radiometric data. Processing of the data has been completed by Southern Geoscience Consultants (SGC) of Australia. SGC is now carrying out modelling of the data to aid in the delineation of an exploration tonnage target for each project.

The geophysical surveys were undertaken to provide a cost effective method to delineate magnetic responses which could be directly attributed to the presence of iron formations. Using a combination of the historic U.S. Geological Survey compiled geology base maps and the field visits conducted by West Peak, magnetic anomalies have been found to be coincident with identified iron formations.

Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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BOMI SOUTH PROJECT

The Bomi South project is located approximately 60 km NNE of Monrovia and is accessed by sealed road to the western tenement boundary and a sealed road 2 km from the eastern boundary (Figure 2). The geology is predominantly comprised of composite gneiss with generally E-W-striking itabirite units. These units outcrop intermittently over the tenement as ridges with strike lengths of up to 4 km and elevations up to 100 m, but generally averaging 30-50 m. Surface iron enrichment has been identified in the form of a hematite/goethite-rich cap interpreted to overlie itabirite units.

The geophysical survey has identified five main areas of magnetic anomalism which range in strike length from 5 km to 10 km with varying orders of magnetic response. The aeromagnetic survey has also identified key structures which could provide focus points for supergene enrichment and areas where potential structural thickening of the iron formation may be present.

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Figure 1. Vertical integral of analytical signal aeromagnetic image for Bomi South.

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Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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Figure 2. Bomi South project location with respect to infrastructure and iron projects.

Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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GRAND BASSA PROJECT

The Grand Bassa Project consists of an exploration licence, and is located approximately 10 km east of Buchanan, as shown in Figure 6. The project area is accessed by an unsealed road which runs parallel to the operating railway line servicing ArcelorMittal’s Yekepa Iron mine to the operating port of Buchanan.

The aeromagnetic survey has identified two strong magnetic responses over a strike length of approximately 3 km. From a previous field trip, surface iron enrichment in the form of a hematite/goethite-rich cap is coincident with the magnetic anomalies which are interpreted to be the response of the magnetite-bearing itabirite units.

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Figure 3. Vertical integral of analytical signal aeromagnetic image for Grand Bassa project.

Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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BOBO CREEK PROJECT

The Bobo Creek project is located approximately 70 km east of the port town of Buchanan (Figure 6). The project area covers 200 km[2] and is accessed by a well maintained unsealed road that is used to service the logging industry.

The aeromagnetic survey has identified a significant magnetic response over a strike length of approximately 15 km. Previous field visits to the project have identified surface iron enrichment in the form of a hematite/goethite-rich cap overlying itabirite units which are coincident with the magnetic anomaly.

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Figure 4. Vertical integral of analytical signal aeromagnetic image for Bobo Creek Project.

MT KOKLUN PROJECT

The Mt Koklun project is located 100 km inland from the port of Buchanan and covers an area of 129 km[2] , as shown in Figure 6. Access to the project area is via well maintained unsealed roads which originate from the deep water port town of Buchanan. These roads service the logging industry and also act as the service road for the operating railway line that links ArcelorMittal’s Yekepa Iron mine to Buchanan.

The survey has identified magnetic anomalies in an interpreted fold nose (Figure 5) where a brief field visit identified surface iron enrichment in the form a goethite/hematite cap interpreted to overlie a magnetite-bearing iron formation.

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Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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Figure 5. Vertical integral of analytical signal aeromagnetic image for Mount Koklun Project.

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Figure 6. Grand Bassa, Bobo Creek and Mt Koklun project locations with respect to infrastructure.

Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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Liberian Geological Setting

The basement geology of Liberia broadly consists of Archaean rocks in the west, representing a portion of the Leo-Man Shield, Palaeoproterozoic rocks in the east, and a Pan-African age domain in the south-west of the country. West Peak’s iron projects are located in the Archaean-aged Liberian province which has been metamorphosed and intruded by plutonic rocks.

Outcrop is limited due to dense vegetation and an intense weathering profile however field observations together with the rock chip results confirm supergene hematite enrichment at surface.

This style of mineralisation is typical of West African iron ore deposits where metamorphism has resulted in recrystallisation of magnetite iron formations (BIFs) to produce “itabirites” with grades ranging from 20% to 40% Fe. These units have then been subjected to supergene processes to produce a hematite/goethite-rich cap overlying the itabirite units where iron grades are enriched to generally greater than 50% Fe.

Canga iron mineralisation has also been observed and represents transported enriched BIF material down slope where it has been re-cemented with an iron rich matrix and grades generally ranging from 40% to 60% Fe.

EXPLORATION WORK PROGRAM

West Peak's geophysical consultants are currently modelling the completed aeromagnetic survey data to aid in the identification of an exploration target size. This work is scheduled to be completed towards the end of February 2012. West Peak is currently investigating the availability of a suitable drill rig to carry out a maiden drill program.

A trenching program has been initiated to help identify the nature and extents of iron enrichment. This program is ongoing and will also be carried out in conjunction with further rock chip sampling and mapping to identify prospective targets for iron enrichment.

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”, “proposed”, “seek” and similar expressions.

Detailed aeromagnetic surveys identify significant magnetic anomalies in Liberia

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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 Issued shares – 27.5m Unlisted Options – 14.25m options

Market Cap @ 19 cps - $5.22m Cash - $1.06m (circa at end of Dec)

LIBERIA

West Peak has 977 km[2] 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).

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.