EMU NL — Interim / Quarterly Report 2008

Apr 29, 2008

==> picture [170 x 70] intentionally omitted <==

QUARTERLY REPORT For the Quarter Ended 31 March 2008

___________

SUMMARY

• $10 million raised from the Emu Nickel IPO in February.

• Significant alignment of off-hole EM conductors at Emu Lake point to a 150m-long conductor below previous high-grade nickel intersections, open at depth. Drilling of this attractive target is in progress.

• 10 strong airborne EM conductors identified in favourable settings for nickel at Kambalda West.

• Nickel-copper geochemical anomalies outlined at Koolyanobbing warranting further follow-up sampling.

• Several areas of ultramafic rocks confirmed by aircore drilling at Woongaring with nickel prospectivity currently being assessed.

• VTEM surveys completed at Dingo Dam, Beetle Lake and Bronzite.

INITIAL PUBLIC OFFERING

Emu Nickel’s initial public offering raised $10 million following which the Company was admitted to the Official List of ASX on 25 February 2008 with quotation of the Company’s securities commencing on 27 February 2008.

The listing triggered a joint venture with Image Resources NL under which Emu may earn an 80% interest in Image’s interest in a 2,500sq km package of tenements in Western Australia. In the event that Emu earns an 80% interest in the tenements, it may elect to earn the remaining 20% of Image’s interest, with Image returning a 1% gross royalty interest. The location of the projects is shown in Figure 1.

==> picture [322 x 416] intentionally omitted <==

Figure 1 Location Map

EMU LAKE (Emu earning 33⅓%)

Jubilee Mines (now Xstrata Nickel) has completed six diamond drill holes in the current programme at the Binti Gossan Zone to test extensions of previously intersected high grade nickel sulphide mineralisation. Results received to date, including previously reported drill hole ELD27, are summarised as follows:

2

Hole Number	Collar Coordinates (local)	Collar Coordinates (local)	From m	To m	Interval m		Grade	Grade
	E	N				Ni%	Cu%	PGEg/t
ELD27	50440	48500	480.89	482.52	1.63	1.62	0.97	na
		including	481.65	482.52	0.87	2.45	1.73	na
			485.90	488.40	2.50	1.11	0.07	na
ELD28	50300	48450				nsr	nsr	na
ELD29*	50441	48500	551.05	551.55	0.50	3.76	0.23	na
ELD30	50422	48450	513.00	513.44	0.44	1.33	0.07	na
ELD31A	50353	48392	430.19	430.51	0.32	1.11	0.08	na
ELD37	50450	48550	465.08	465.50	0.42	1.37	0.89	na
			466.56	467.38	0.82	1.13	0.07	na
			476.83	477.00	0.17	3.84	0.91	na
			478.43	478.58	0.15	2.37	0.03	na

Holes drilled on grid azimuth approx 270°, dip -60° unless otherwise shown

• dip -67° nsr – no significant result na – assays not yet available

==> picture [380 x 382] intentionally omitted <==

Figure 2 Binti Gossan Zone – Longitudinal Projection

The drilling has confirmed the presence of nickel sulphide mineralisation on the basal ultramafic contact in four out of six holes in the current programme as shown in the longitudinal projection in Figure 2 and the cross section in Figure 3. The best intersections include 0.87m @ 2.45% Ni, 1.73%Cu in ELD27; 0.5m @ 3.76% Ni, 0.23% Cu in ELD29 and 0.17m @ 3.84% Ni, 0.91% Cu in ELD37. Platinum-group

3

element (PGE) results have yet to be received. In addition, narrow high-grade nickel sulphide mineralisation previously intersected at the base of what appears to be a stratigraphically higher ultramafic remains open down plunge.

Down-hole electromagnetic (DHEM) surveys have now confirmed the presence of off-hole DHEM conductors in all six of the recently completed holes as shown in Figure 2. Significantly, the DHEM conductors from drill holes ELD27, ELD29, ELD30 and ELD37 align on a 30° south-plunging trend between these drill holes over a distance of at least 150m, open down plunge. The position of this zone of conductors is also shown in Figure 3. Drilling of this attractive target commenced in early April.

The combination of ore-grade nickel sulphide intersections and associated coherent DHEM anomalies at the Binti Gossan Zone continues to support the view that a significant nickel sulphide system may exist at Emu Lake.

==> picture [284 x 391] intentionally omitted <==

Figure 3 Binti Gossan Zone – Section 48525N

KAMBALDA WEST (Emu earning 30%)

A 1,266 line-km Versatile Time Domain Electromagnetic (VTEM) was flown by Mincor Resources over several target areas within the Kambalda West Joint Venture tenements in December 2007. Emu’s analysis of the results of this extensive survey has identified 10 strong VTEM anomalies each with characteristics consistent with

4

the presence of a significant sulphide source. VTEM is an airborne electromagnetic technique recently introduced into Australia, which can detect a highly conductive body such as massive sulphides down to two hundred metres in depth.

Emu considers that two of the 10 anomalies are very strong and the remaining 8 anomalies are strong. The location of the anomalies is shown in Figure 4. In all cases the VTEM anomalies occur on or adjacent to interpreted ultramafic contact zones indicated by aeromagnetic anomalies and would be in a favourable setting for Kambalda-style nickel sulphides if at the basal contact of the unit. In some cases, komatiites (a favourable ultramafic host rock) are known to occur nearby as evidenced from previous mapping and drilling.

==> picture [332 x 399] intentionally omitted <==

Figure 4 Kambalda West JV VTEM Anomalies

Significantly, historic drill intersections grading up to 4% Nickel in sulphides have been reported at the nearby Queen Victoria Rocks prospect confirming the nickel potential of this underexplored district where very little previous exploration has been reported on the Joint Venture tenements. Mincor is planning to field validate each VTEM anomaly in the near future. Once all the necessary permitting has been completed, a reconnaissance drilling program will be undertaken with the aim of assessing the significance of the VTEM anomalies and determining regional stratigraphy.

5

As previously reported, Emu has the right to earn up to a 100% interest in a tenement package including the Kambalda West tenements where Mincor Resources may earn up to a 70% interest by expenditure of $1.5 million by May 2012.

KOOLYANOBBING (Emu earning up to 100%)

Wide-spaced geochemical sampling has outlined elevated nickel values over a cumulative strike length of 5km along one margin of the project area. Nickel values of 5-20 x background together with some anomalous copper values up to 6 x background indicate the presence of ultramafic rocks with potential for nickel sulphides. Nickel sulphide-bearing ultramafics are known to occur some 20km north west along strike from these anomalies adding to the prospectivity of this area. follow-up sampling to define the nickel anomalies is scheduled during May.

WOONGARING (Emu earning up to 100%)

As previously reported (Exploration Update 31 January 2008) a 125-hole, 4,269m aircore drilling programme commenced over several nickel and gold targets in the Woongaring greenstone belt. The drilling intersected sediments, mafic and ultramafic rocks and banded iron formation, frequently intruded by granitic rocks. Elevated nickel values were encountered in several drill holes summarised as follows:

Drill Hole Number	Collar Coordinates	Collar Coordinates	From m	To m	Interval m	Grade % Ni
	East	North
WGAC 04	47400	52612	12	20	8	0.33
WGAC 26	54550	59799	24	36	12	0.25
WGAC 53	59292	69389	20	24	4	0.31
WGAC 56	59446	69390	12	16	4	0.31
WGAC 57	59495	69395	12	20	8	0.52
	including		12	16	4	0.79
WGAC 96	58704	91453	40	48	8	0.32

4m composite samples, vertical drill holes. Samples analysed using an aqua regia digestion and ICPMS determination.

The elevated nickel values appear to be related to lateritic enrichment however further analyses are being carried out to characterise the nature of the ultramafic rocks and assess nickel sulphide prospectivity.

DINGO DAM, BEETLE LAKE AND BRONZITE (Emu earning up to 100%)

776 line-km of VTEM airborne EM surveys were flown over aeromagnetic targets at Dingo Dam, Beetle Lake and Bronzite. The surveys were designed to test for nickel sulphide conductors associated with interpreted ultramafic rocks. No pronounced anomalies were detected, however the final data has yet to be received and fully assessed.

For more information on the company visit www.emunickel.com.au Please direct enquiries to:

Roger Thomson	George Sakalidis
Technical Director	Managing Director
Phone (08) 9226 4266	Phone (08) 9226 4266
Mobile 0419 969 183	Mobile 0411 640 337
Email roger@emunickel.com.au	Email george@emunickel.com.au

The information in this report that relates to exploration results is based on information compiled or reviewed by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is a consultant to Emu Nickel NL. Roger Thomson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.

6