EMU NL — Interim / Quarterly Report 2012

Oct 30, 2012

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QUARTERLY REPORT for the Quarter Ended 30 September 2012

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Emu Nickel NL ABN 50 127 291 927

ASX Code: EMU

Level 2 16 Ord Street West Perth, WA 6005

T +61 8 9226 4266 F +61 8 9485 2840 E info@emunickel.com.au

PO Box 1112 West Perth, WA 6872

Issued Capital : Shares - Quoted: 27,500,000 fully paid shares

EMU LAKE (Emu 30.3%)

This advanced nickel exploration project 70km NE of Kalgoorlie is jointly held by Emu Nickel (30.3%), Image Resources (7.6%) and Xstrata Nickel Australasia (62.1%). To date a total of 15 drill intersections in excess of 3% Ni, some with significant platinum and palladium credits, have been made along a 1200m long mineralised contact zone. Emu is currently in discussion with interested parties regarding the divestment of its interest in this advanced project.

WINDY KNOB (Emu 51%)

The Windy Knob joint venture tenements are situated 55km south of Meekatharra, adjacent to the Austin volcanogenic massive sulphite (VMS) discovery made by the Silver Swan Group. Emu is seeking to divest its interest in this project.

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: $2.65 million

KAMBALDA WEST (Emu 30%)

Mincor Resources completed a single RC drill hole (WRC017) to 250m to test a magnetic anomaly (collar coordinates 6537325N, 277775E, dip 60°, azimuth 180°). The anomaly is located on the margin of a felsic granitoid intrusion where previous drilling by the joint venture intersected anomalous copper, silver and iron mineralisation. Two 6m-thick banded iron formation units were intersected at depths of 46m and 110m. No anomalous base metal or precious metal values were identified.

Directors:

Peter Thomas Chairman

George Sakalidis Managing Director Greg Steemson Non-Executive Director

SALMON GUMS (Emu 100%)

Follow up sampling to define the extent of gold-in-soil anomalies in the Lake Pyramids area have been analysed in two size fractions, with interpretation of results in progress.

NEW PROJECTS

Emu is currently examining new opportunities with potential to add significant value to the company.

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

Greg Steemson George Sakalidis Director Managing Director Phone: (08) 9226 4266 Phone (08) 9226 4266 Mobile: 0417 981 814 Mobile 0411 640 337 Email: gsteemson@bigpond.com Email george@emunickel.com.au

The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a director of Emu Nickel NL. George Sakalidis 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

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