EMETALS LIMITED — Interim / Quarterly Report 2013

Jan 30, 2014

WEST PEAK IRON LIMITED

ASX announcement

31 January 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

DECEMBER 2013

QUARTERLY ACTIVITIES REPORT

Key Points:

• A scoping study has been commissioned to determine the economic viability of a small scale iron ore mining operation at the Company's wholly owned Bomi South tenement in Liberia.
• As part of this study, 1500 metres of additional diamond drilling has been commissioned to define a potential friable itabirite resource to a minimum of an inferred category at the Bong West prospect. Drilling is expected to commence on or about 10 February 2014.
• Community approvals have been obtained and access road works have commenced.
• Additional pitting and mapping has been completed to optimize the drilling program.
• A potential resource to support 6-15 years of small scale mine life is being targeted, 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 December quarter.

During the quarter the Company announced it had resolved to commission a scoping study ("Scoping Study") to determine the economic viability of a small scale iron ore mining operation at its wholly owned Bomi South tenement in Liberia. The decision follows a site visit during the quarter 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 Bomi South and trucking beneficiated product for export through the Port of Monrovia. The Bomi South project 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.

Scoping Study Objectives

The objective of the Scoping Study will be to determine the economic viability of a small scale iron ore mining operation at Bomi South. 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

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WEST PEAK IRON

December 2013 Quarterly Activities Report

readily achieved via a trucking alternative on sealed road to the Port of Monrovia.

Members of the delegation to accompany West Peak to Bomi South have extensive experience in the design and operation of iron ore beneficiation plants. A bulk metallurgical sample was collected from previously drilled RC samples on the eastern side of the tenement boundary and has been despatched to China for test work.

Additional Exploration

In support of the Scoping Study and a Mineral Development Agreement with the Government of Liberia, the Company will undertake additional exploration activities within the current quarter. A program has been designed to define a potential friable itabirite resource to a minimum of an inferred category. The program will include a diamond drilling program for the first time of approximately 1500 metres, which will provide additional metallurgical information as well as information on structure and density. The program will build on the data obtained from the 2631 meters of RC drilling completed early in 2013 on the Bong West prospect on the Eastern side of the tenement boundary and on the same stratigraphic unit as China Union's recently recommissioned Bong Mine. The diamond drilling for this additional program will be limited to the Bong West prospect and aim to establish a resource to support 6-15 years of small scale mine life. Please refer below to Figure 1.

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

Although it is the Company strategy to limit this additional drilling for this program to the Bong West prospect in support of the Scoping Study, it is noted that following field activities in the December quarter across the entire Bomi South project, including geological mapping, test pitting, and trenching, rock chip sampling and hand auger drilling, the Company now has a prospect inventory of 18 individual prospects within 7 target areas at Bomi South. In addition, the Company 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 Figure 2).

Funding and Timing

The Company will fund the proposed Scoping Study and exploration activities for Bomi South from existing cash reserves and aims to have the Scoping Study completed in the June quarter 2014.

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WEST PEAK IRON

December 2013 Quarterly Activities Report

Figure 2. West Peak Iron Liberian Project Locations

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 December 2013

Consolidated statement of cash flows

| Cash flows related to operating activities | | Current quarter
$A'000 | Year to date
(6 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 | (206) | (489) |
| | | - | - |
| | | - | - |
| | | (90) | (209) |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature received | 4 | 9 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid (GST) | (4) | 17 |
| 1.7 | Other | - | - |
| | Net Operating Cash Flows | (296) | (672) |
| | 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) | (296) | (672) |

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Appendix 5B
Mining exploration entity quarterly report

1.13	Total operating and investing cash flows (brought forward)	(296)	(672)
	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	(296)	(672)
1.20	Cash at beginning of quarter/year to date	801	1,177
1.21	Exchange rate adjustments to item 1.20/rounding	-	-
1.22	Cash at end of quarter	505	505

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	79
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 | |
| --- | --- | --- | --- |
| | | - | - |
| 3.1 | Loan facilities | - | - |
| 3.2 | Credit standby arrangements | - | - |

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	$A'000
4.2	Development	180
4.3	Production	-
4.4	Administration	70
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 | 171 | 461 |
| 5.2 | Deposits at call | 250 | 260 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details)¹ | 84 | 80 |
| | Total: cash at end of quarter (item 1.22) | 505 | 801 |

¹This is an environmental security bond held in West Peak Iron Liberia Ecobank account. This environmental security bond is required by the Ministry of Land, Mines and Energy in Liberia.

Changes in interests in mining tenements

| | | Tenement reference | Nature of interest
(note (2)) | Interest at
beginning of
quarter | Interest
at end of
quarter |
| --- | --- | --- | --- | --- | --- |
| 6.1 | Interests in mining tenements relinquished, reduced or lapsed | E59/1380 | WA Tenement | 100% | 0% |
| | | E59/1487 | Applications | 100% | 0% |
| | | E59/1620 | 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

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: 31 January 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