EMU NL — Capital/Financing Update 2012

Dec 27, 2012

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ISSUE TO DIRECTORS @ $0.07 & RIGHTS ISSUE

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Emu Nickel NL ABN 50 127 291 927

ASX Code: EMU

10 Walker Ave West Perth, WA 6005

M +61 41798 1814 E info@emunickel.com.au

PO Box 1112 West Perth, WA 6872

Issued Capital : Shares - Quoted: 34,642,856 fully paid shares

Options – Unquoted:

4,596,438 exercisable at $1.0878 by 27.2.2013 841,148 exercisable at $0.5874 by 22.12.2014 82,736 exercisable at $0.4266 by 21.12.2015

Cash: $3 million

Directors:

Peter Thomas (Nonexecutive Chairman)

Greg Steemson (Managing Director)

George Sakalidis & Gavin Rutherford (Non-Executive Directors)

Messrs Thomas and Steemson, two of Emu’s directors, have elected to subscribe for 7,142,856 ordinary fully paid shares at $0.07 per share (effectively representing the current market price for the securities) pursuant to the authority in that regard conferred by the approval of shareholders given at the 2012 annual general meeting of Emu thereby injecting an additional $500,000 of working capital.

As foreshadowed in the 2012 Annual Report and more recently in the September 2012 Quarterly Report, Emu Nickel NL has been and is currently assessing several advanced mining projects. While none of these opportunities has crystallised, it is the Board’s intention to pursue this strategy until a project meeting the Board’s criteria of early cashflow is realised. To enable the Company to move quickly should such an event occur, the Board has resolved to proceed with a Rights Issue which offers existing shareholders the opportunity to participate in the growth of Emu.

The Rights Issue will:

• top up Emu’s working capital position for general purposes;

• place Emu in a stronger position to pursue its goal of securing a current or near term cash producing mining asset;

• help fund its current activity (consistent with said goal) of investigating numerous mining and development opportunities (principally in Africa) including diamond operations (including a number of discrete and entirely separate unrelated primary kimberlite, tailings retreatment and alluvial operations) and tantalite exploration/development projects;

• provide shareholders with a well priced leveraged opportunity to address the oft expressed concern of shareholders that placements to sophisticated and professional investors deny ordinary shareholders the opportunity to subscribe for new issues at wholesale prices thus diluting their interests;

• seek to avoid, within the constraints thrust upon the Company by the regulators, the usual pattern of the price of ordinary fully paid shares drifting down to meet the rights issue offer price;

• provide a seamless, albeit limited, mechanism for future capital raising.

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The offer will extend the right to participate in an issue of contributing shares on the basis of one contributing share for each ordinary fully paid share held as at the Record Date. Shareholders will be advised as to the Record Date once set. Three cents per contributing share will be payable on application. A further 3 cents will be required to convert the shares to ordinary fully paid shares at a time to be nominated by the Company but in any event no call will be made before the first anniversary of the issue of the shares.

Further details regarding the offer will be sent to shareholders in the near future.

In another development, the Board has finalised its restructuring plan with the recently announced appointment of Mr Gavin Rutherford’s appointment and today’s appointment of Mr Greg Steemson as Managing Director replacing Mr George Sakalidis who now serves as a Non-executive Director.

For more information on the company visit www.emunickel.com.au For further information contact the Company’s managing director, Greg Steemson, on Mobile: +61 41798 1814

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