EMU NL — Capital/Financing Update 2013

Dec 29, 2013

EMU NL ABN 50 127 291 927

SUPERKOLONG UPDATE

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SUPERKOLONG UPDATE 30[th] DECEMBER 2013

As advised in the September quarterly report (29[th] October 2013), Superkolong’s operations near the town of Kimberley, South Africa, have been adversely affected by poor quality and inadequate process water supply. The supply of clean process water from 4 million dam, which was Superkolong’s supply for the past eight years, was first interrupted in June 2013 and then terminated in early September. Superkolong was then left with the sole option of sourcing water from Dutoitspan. Prolonged unseasonable dry weather conditions resulted in this supply being reduced to low volumes of sludge. This situation also affected the other diamond operations in the area.

As documented in the September quarterly report, to enable KMF, Petra and De Beers to have access to sufficient and suitable quality water supplies, a long term water supply strategy was instigated. The implementation of this strategy is now largely complete and the various components that have been installed are operating and water is flowing to 4 million dam and Dutoitspan. The main outstanding task to be completed so that water can be pumped at the optimum pressure (and therefore volume) is the replacement of part of the existing supply pipeline (which is in poor condition and for various reasons is to be relocated in part). Planning for this upgrade is well advanced and this work should be completed by the end of February 2014. In the meantime, the current regime will ensure a consistently satisfactory supply.

While the upgrade to the water supply will provide sufficient and acceptable water for all parties, Superkolong’s supply will remain subject to De Beers’ operational imposts.

In addition to the upgraded water supply, in the past few weeks the Kimberley area has received good rains which has added to the water level in Dutoitspan. Since 8[th] December there has been sufficient quantity and quality water for Superkolong to resume normal operations resulting in an immediate improvement in diamond recoveries and operating efficiencies.

In the period 8[th] to 19[th] December, Superkolong processed 37,908 tonnes and recovered 1,992 carats with a grade of 5.25 cpht, a significant improvement on the previous two months. Additional diamonds will be recovered from stockpiled tailings in due course which will improve the recovered grade.

The diamond production for October and November was lower than budget resulting in lower sales revenues. Superkolong sells most of its production via tender. Tenders operate from January to November each year. The November tender closed on 21[st] November. The proceeds from the January 2014 tender will not be received until the last week of January.

Superkolong does, however, undertake some direct marketing and in December sold R2.9 million (US$279,500) worth of goods.

Because of the events over the last few months and the timing of receipts from sales, the operating entity does not have sufficient cash reserves to meet commitments for the period until end January. The shareholders (Emu and Batla) have been requested to advance

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EMU NL ABN 50 127 291 927

SUPERKOLONG UPDATE

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additional funding to the holding company Itakane Trading 243 (Pty) Ltd in the amount of R4.0M (R2.0M each) to meet the forecast cashflow requirements. Emu and Batla have agreed to fund their respective shares.

30[th] December 2013

For more information on the company visit www.emunl.com.au

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EMU NL ABN 50 127 291 927

SUPERKOLONG UPDATE

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Emu NL

ABN 50 127 291 927

ASX Code: EMU

10 Walker Ave West Perth, WA 6005

T +61 8 9226 4266 E info@emunl.com.au PO Box 1112 West Perth, WA 6872

Issued Capital : Shares - Quoted: 39,693,856 fully paid shares 35,652,856 contributing shares

COMPETENT PERSON’S STATEMENT

The details contained in this report that pertain to exploration results, mineral resources and mineral reserves are based upon information compiled by Mr. Greg Steemson, Managing Director of Emu NL. Mr. Steemson is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience in 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” (JORC Code). Mr. Steemson consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

Options – Unquoted:

~~841,148 exercisable at $0.5874~~ by 22.12.2014 82,736 exercisable at $0.4266 by 21.12.2015

Directors: Peter Thomas Chairman Greg Steemson Managing Director Gavin Rutherford NonExecutive Directors

FORWARD LOOKING STATEMENT

This report contains forward looking statements concerning the projects owned by Emu NL. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

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