EMU NL — Capital/Financing Update 2013

Jan 14, 2013

EMU NICKEL NL ABN 50 127 291 927

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14 January 2013

Dear Shareholder

Emu Nickel NL Non-Renounceable Rights Issue

On 28 December 2012, Emu Nickel NL ( Company ) announced that the Company would be undertaking a pro-rata non-renounceable rights issue ( Rights Issue or Offer ) pursuant to a prospectus lodged with ASX on 10 January 2013 ( Prospectus ).

The Offer is a non-renounceable rights issue to Eligible Shareholders (as defined below) of up to approximately 34,642,856 Contributing Shares in the capital of the Company on the basis of 1 Contributing Share for every 1 Share held at 5.00 pm (WST) on 21 January 2013 ( Record Date ). Each Contributing Share is to be partly paid on application as to $0.03 with the unpaid amount being $0.03.

The Rights Issue will raise approximately $1,039,280 (before expenses), if all of the entitlements are taken up (excluding any Shares that may be issued as a result of any options that are exercised prior to the Record Date).

By this Prospectus the Company also invites investors identified by the Directors to apply for up to 1,000 Shares at an issue price of $0.07 per Share to raise $70 (before expenses) ( Placement Offer ). The primary purposes of the Placement Offer is to remove any trading restrictions that may have attached to Shares issued by the Company prior to the Closing Date.

Underwriting of the Offer

The Offer is not underwritten.

Eligibility

The Rights Issue will be made to all registered shareholders on the Record Date other than a Nonqualifying Foreign Shareholder ( Eligible Shareholders ).

Shareholders with a registered address outside Australia and New Zealand at the Record Date may be eligible to participate in the Offer, depending on the securities laws of their country of residence and their individual circumstances.

It is the responsibility of any applicant to ensure compliance with any laws of a country relevant to their application. Return of a duly completed Entitlement and Acceptance Form will be taken by the Company as a representation that there has been no breach of such laws and that the Applicant is an Eligible Shareholder.

Use of Funds

The Company intends to apply the funds raised under the Offer to:

• (a) augment the Company’s working capital for purposes generally;

• (b) place the Company in a stronger position to pursue its goal of securing a current or near term cash producing mining asset;

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

• (d) and as stated in the Company’s ASX Announcement dated 28 December 2012.

10 Walker Avenue, West Perth, WA 6005, PO Box 1112, West Perth, WA 6872 T +61 8 9226 4266, E info@emunickel.com.au, www.emunickel.com.au

Emu Nickel NL Non-renounceable Pro Rata Offer

It is important to recognise that the use of funds may be subject to change in line with results, circumstances and other opportunities.

Depending upon the likely impact of any proposed acquisition upon the nature or scale of the Company’s activities, Listing Rule 11 may be invoked the consequences of which are in the discretion of the ASX but include the quotation of the Company’s securities being suspended and the Company having to meet the requirements in Chapters 1 and 2 of the Listing Rules as if the Company were applying for admission to the official list which the Company could avoid by voluntarily removing itself from the official list. The Rights Issue Offer is not contingent on the continuing quotation of the Company’s securities.

Prospectus and Entitlement Offer Details

Details of the Offer including the rights attaching to the Contributing Shares together with all other relevant information are set out in the Prospectus which was lodged with ASX on 10 January 2013. The Prospectus is available on the Company’s website www.emunickel.com.au or on the ASX website.

A copy of the Prospectus together with the Entitlement and Application Form will be sent to shareholders on or about 23 January 2013.

The Offer is non-renounceable which means that the entitlement to participate in the Rights Issue are not transferrable and cannot be traded on the ASX or any other exchange or privately transferred. So Eligible Shareholders will not receive any benefit if they do not take up their Entitlements.

The maximum number of Contributing Shares issued pursuant to the Prospectus will be 34,642,856 (assuming no existing options are exercised prior to the Record Date).

The terms of the Rights Issue will create a new class of securities in the Company, being the Contributing Shares, which will, in essence, rank equally with existing fully paid ordinary shares in the Company other than as set out in section 4.1 of the Prospectus. Upon the Contributing Shares becoming fully paid they shall rank equally in all respects with existing fully paid shares in the Company.

Shareholder approval of the Offer is not required.

The Company does not have a dividend policy. Payment of future dividends will depend on future profitability and the financial position of the Company.

Key Dates

The proposed timetable for the Offer is as follows:

Event	Date
Announcement of Rights Issue Offer and Placement	28 December 2012
Lodgment of Appendix 3B and Prospectus	10 January 2013
Notice Rights Issue sent to Shareholders	14 January 2013
Ex Date	15 January 2013
Record Date to determine Entitlements	21 January 2013
Opening Date of Offer and Dispatch of Prospectus and Application Form	23 January 2013
Closing Date of Offer at 5:00pm (WST)	8 February 2013
Notify ASX Of Shortfall Securities	13 February 2013
Allotment and issue of Contributing Shares and Shares	18 February 2013
Dispatch of Holding Statement	18 February 2013

Emu Nickel NL Non-renounceable Pro Rata Offer

The above dates are indicative only and subject to change. The Company reserves the right, subject to the Corporations Act and the Listing Rules, to extend these dates without prior notice including extending the last date for receipt of the Entitlement and Acceptance Form, or to delay or withdraw the Offer at any time without prior notice. If withdrawn, all Application Monies for Contributing Shares which have not been issued will be refunded (without interest) as soon as practicable.

Should you have any queries please contact the Company on +61 8 9389 2111 or the Company’s Share Registry on +61 8 9315 2333.

Yours sincerely,

Greg Steemson Managing Director