EMETALS LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

WEST PEAK IRON

ASX announcement

30 April 2014

ACN: 142 411 390

T: 08 6489 1600

F: 08 6489 1601

E: admin@westpeakiron.com.au

Suite 9, 330 Churchill Avenue,

Subiaco WA 6008

PO Box 866,

Subiaco WA 6904

www.westpeakiron.com.au

Directors & Management

Gary Lyons: Chairman

Graham Marshall: Director

Mathew Walker: Director

Jimmy Lee: Director

Teck Wong: Director

Sonu Cheema: Company Secretary

Issued Capital

80,500,000 ordinary shares

2,000,000 unlisted options exercisable at 15 cents each on or before 30 June 2014

ASX Code: WPI

WEST PEAK IRON LIMITED

MARCH 2014 QUARTERLY ACTIVITIES REPORT

KEY POINTS

• The previously announced diamond drilling program at the Company's wholly owned Bong West prospect, Liberia, has been concluded with a total of twenty three (23) diamond holes drilled for 1302 meters.
• Drill holes have been logged and are awaiting despatch for assay, with results expected within 4 weeks.
• The recently completed diamond drilling program of 1308 meters will build on the data obtained from the 2631 meters of RC drilling completed early in 2013, and coupled with recent mapping and pitting, will enable the calculation of the Company's maiden resource estimate in the inferred category, expected within the next 6 weeks.
• A scoping study has been commissioned to determine the economic viability of a small scale iron ore mining operation at the Bong West prospect, results are expected within 6 weeks.
• The Company is targeting a potential resource to support 6-15 years of small scale mine life, assuming an initial mining operation of approximately 100,000 tonnes per month.

The directors of West Peak Iron Limited ("West Peak" or the "Company") are pleased to present its activities report for the March quarter 2014.

EXPLORATION ACTIVITIES

The Company commenced a diamond drilling program at the Company's wholly owned Bong West prospect, Liberia, on 22 February 2014, to support recent trenching and pitting activities and the 2631 meters of RC drilling completed early in 2013. A total of twenty three (23) holes were drilled for 1302 metres, with drilling completed on 16 April 2014. The program will provide additional metallurgical information as well as information on ore body structure and density, and was designed to define a potential friable itabirite resource to a minimum of an inferred category. The program focussed exclusively on the Bong West prospect on the Eastern side of the Bomi South tenement boundary which lies on the same stratigraphic unit as China Union's recently recommissioned Bong Mine.

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WEST PEAK IRON

March 2014 Quarterly Activities Report

Figure 1. The Bong West Prospect on eastern side of the Bomi South Exploration License.

SCOPING STUDY

During the previous quarter the Company resolved to commission a scoping study ("Scoping Study") to determine the economic viability of a small scale iron ore mining operation at the Bong West prospect. The decision followed a November 2013 site visit undertaken by Company representatives who met with various senior government officials from the Ministry of Lands, Mines and Energy, and the Environmental Protection Authority, inclusive of a site visit to the National Port Authority, and various mining contractors and service providers, to discuss the possibility of the Company commissioning a small scale modular processing plant at Bong West and trucking beneficiated product for export through the Port of Monrovia. The Bong West prospect is located approximately 60 kilometres north-east of the Port of Monrovia and is accessed by sealed road to the eastern and western tenement boundaries.

During the current quarter scoping study activities progressed and included further meetings in Liberia with respective mining contractors and service providers. The Company is expecting to receive indicative costing's for the required works within the next two weeks and be in a position to finalise the Scoping Study within 6 weeks.

The objective of the Scoping Study is to determine the economic viability of a small scale iron ore mining operation at the Bong West prospect. The Scoping Study will assume an initial small scale mining operation of approximately 100,000 tonnes per month providing approximately 35,000 tonnes per month of high grade product for sale via the crushing and screening of soft, friable itabirite material. Although the tenement lies between the two historic railway corridors that serviced the Bomi and Bong Mines, the Company believes near term production may be most readily achieved via a trucking alternative on sealed road to the Port of Monrovia.

ADDITIONAL PROJECTS

The Company has a prospect inventory of 18 individual prospects within 7 target areas at Bomi South, and in addition, has wholly owned projects at Mt Koklun, Bobo Creek and Grand Bassa, which to date have only been the subject of limited exploration activity. Please refer to Figure 2.

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WEST PEAK IRON

March 2014 Quarterly Activities Report

Figure 2. West Peak Iron Liberian Project Locations

Mining Tenements - Western Australia

Tenement Reference	Location	Interest at beginning of quarter	Acquired/ Disposed	Interest at end of quarter	Comments
P59/1893	Pinyalling (Western Australia)	0%	Voluntary Relinquishment	0%	This tenement was voluntarily relinquished during the period.
E59/1677	Santy Well (Western Australia)	n/a	Voluntary Relinquishment	n/a	The Company has lodged forms to voluntary relinquish the tenement and the tenement is subject to forfeiture.
E59/1678	Santy Well (Western Australia)	n/a	Voluntary Relinquishment	n/a	The Company has lodged forms to voluntary relinquish the tenement and the tenement is subject to forfeiture.
E59/1622	Pinyalling (Western Australia)	0%	n/a	0%	The Company is in the process of transferring its interest in the tenement as per a previously executed Sale Agreement.
E59/1966	Warriedar (Western Australia)	0%	n/a	0%	The Company is in the process of transferring its interest in the tenement as per a previously executed Sale Agreement.
E59/1967	Ninghan (Western Australia)	0%	n/a	0%	The Company is in the process of transferring its interest in the tenement as per a previously executed Sale Agreement.

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WEST PEAK IRON

March 2014 Quarterly Activities Report

Mining Tenement - Liberia

Tenement Reference	Location	Interest at beginning of quarter	Acquired/ Disposed	Interest at end of quarter	Comments
MEL 12012	Bomi, Montserrado and Bong Counties (Liberia)	100%	0%	100%	N/A
MEL 12013	Grand Bassa County (Liberia)	100%	0%	100%	N/A
MEL 11101	Bobo Creek - River Cess County (Liberia)	100%	0%	100%	N/A
MEL 2346-14	Mt Koklun - River Cess County (Liberia)	100%	0%	100%	Two reconnaissance licenses were converted to exploration licenses during the quarter ending 31 March 2014.

The information contained in the Quarterly Activities Report for the quarter ended 31 March 2014 was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Yours Faithfully

By Order of the Board

Mathew Walker

Executive Director

For further information contact: Mathew Walker; Executive Director, West Peak Iron Ltd.

Telephone: +61 8 6489 1600

Email: admin@westpeakiron.com.au

COMPETENT PERSONS' STATEMENTS

Scientific or technical information in this news release has been prepared under the supervision of Mr Joe Clarry, a consultant to the Company and a Member of the Australian Institute of Geoscientists (MAIG). Mr Clarry 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 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Mr Clarry 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", and "seek", "proposed" and similar expressions.

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Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

WEST PEAK IRON LTD

ABN

71 142 411 390

Quarter ended ("current quarter")

31 March 2014

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter $A'000	Year to date (9 months) $A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development (c) production (d) administration	(274)	(763)
		-	-
		-	-
		(112)	(321)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature received	1	10
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid (GST)	4	21
1.7	Other	-	-
	Net Operating Cash Flows	(381)	(1,053)
	Cash flows related to investing activities	-	-
1.8	Payment for purchases or renewal of: (a) prospects (Tenement Sale Agreement and Tenement Applications) (b) equity investments (c) other fixed assets	-	-
1.9	Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets	-	-
1.10	Loans to other entities	-	-
1.11	Loans repaid by other entities	-	-
1.12	Other (provide details if material)	-	-
	Net investing cash flows	-	-
1.13	Total operating and investing cash flows (carried forward)	(381)	(1,053)

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Appendix 5B
Mining exploration entity quarterly report

1.13	Total operating and investing cash flows (brought forward)	(381)	(1,053)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	-
1.15	Proceeds from sale of forfeited shares	-	-
1.16	Proceeds from borrowings	-	-
1.17	Repayment of borrowings	-	-
1.18	Dividends paid	-	-
1.19	Other (Placement and capital raising fees)	-	-
	Net financing cash flows	-	-
	Net increase (decrease) in cash held	(381)	(1,053)
1.20	Cash at beginning of quarter/year to date	505	1,177
1.21	Exchange rate adjustments to item 1.20/rounding	-	-
1.22	Cash at end of quarter	124	124

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

		Current quarter $A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	84
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of the transactions

Payments of Director remuneration/fees, superannuation and provision of administration/consulting services.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 1

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Appendix 5B

Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

| | Amount available
$A'000 | Amount used
$A'000 | |
| --- | --- | --- | --- |
| | | 300 | 0 |
| 3.1 | Loan facilities | 300 | 0 |
| 3.2 | Credit standby arrangements | - | - |

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	$A'000
		200
4.2	Development	-
4.3	Production	-
4.4	Administration	50
Total		250

Reconciliation of cash

| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | | Current quarter
$A'000 | Previous quarter
$A'000 |
| --- | --- | --- | --- |
| 5.1 | Cash on hand and at bank | 124 | 171 |
| 5.2 | Deposits at call | - | 250 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | 84 |
| Total: cash at end of quarter (item 1.22) | | 124 | 505 |

Changes in interests in mining tenements

6.1	Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
		E59/1893	WA Tenement Applications Deaths	100%	0%

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

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Appendix 5B
Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased
| MEL 2346-14 (Mt Koklun - River Cess County (Liberia) | Conversion from reconnaissance licenses to exploration licenses | 0% | 100% |
| --- | --- | --- | --- |

Issued and quoted securities at end of current quarter*

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference
*securities (description)	-	-	-	-
7.2	Changes during quarter	-	-	-	-
7.3	*Ordinary securities	80,500,000	80,500,000	-	-
7.4	Changes during quarter, increases through	-	-	-	-
7.5	*Convertible debt securities (description)	-	-	-	-
7.6	Changes during quarter	-	-	-	-
7.7	Options (description and conversion factor)	2,000,000	Nil	Ex price 15 cents	Expiry date 30/06/14
7.8	Issued during quarter	-	-	-	-
7.9	Exercised during quarter	-	-	-	-
7.10	Expired during quarter	-	-	-	-
7.11	Debentures (totals only)	-	-
7.12	Unsecured notes (totals only)	-	-

• See chapter 19 for defined terms.

30/9/2001
Appendix 5B Page 1

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Appendix 5B

Mining exploration entity quarterly report

Compliance Statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2. This statement does give a true and fair view of the matters disclosed.

Sign here: (Director)
Date: 30 April 2014

Print name: Mathew Walker

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001