EMU NL — Interim / Quarterly Report 2012

Jul 30, 2012

QUARTERLY REPORT for the Quarter Ended 30 June 2012

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ANCOA NL

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

Options – Unquoted:

4,596,438 exercisable at $1.087850 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: $2.799 million

Directors:

Peter Thomas Chairman

George Sakalidis Managing Director

Greg Steemson Executive Director

During the quarter the Company’s proposed transaction to acquire all the issued capital of ANCOA NL, an unlisted public company holding rights to purchase the Hillgrove antimony-gold mine in NSW, was terminated (EMU ASX release 8 May 2012).

EMU LAKE (Emu earning 33.3%)

Nickel specialists Newexco are currently reviewing the drilling and geophysical data on the 1,200m-long mineralised contact zones at Binti Gossan and Binti South where high grade nickel sulphide mineralisation has been identified. To date a total of 15 drill intersections in excess of 3% Ni, some with significant platinum and palladium credits, have been made on the mineralised contact zone.

The Newexco study is designed to identify locations for contact parallel drill holes which could be used for deep downhole EM surveys to test for massive nickel sulphides on these prospective contacts. This technique has proved successful in discovering significant nickel sulphide resources in Western Australia including Silver Swan (30km west of Emu Lake) and at Flying Fox near Forrestania.

WINDY KNOB (Emu 51%)

The Windy Knob joint venture tenements are situated 55km south of Meekatharra, adjacent to the Austin Volcanogenic massive sulphide (VMS) discovery made by the Silver Swan Group. As previously reported, a 40 hole, 1612m aircore drilling programme was completed over a 3km-long gold anomaly identified by soil sampling along the Fedeal Bassett shear zone.

Four lines of drilling about 1km apart intersected a sequence of weathered mafic volcanic sediments and felsic rocks. Hole WKAC98 on the northern most line intersected anomalous gold (42m @ 78ppb Au) from surface including 8m @ 0.23g/t Au from 4m. Adjacent hole WKAC99 intersected anomalous gold (4m at 61ppb Au from 32m) at the base of the hole. Consideration is being given to following up these anomalous results.

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KAMBALDA WEST (Emu 30%)

Mincor Resources has completed site access to the Woolgangie magnetic anomaly in preparation for RC drilling of this target, interpreted to be a banded iron formation or possibly a magnetite skarn. Drilling is anticipated to start in the next month.

SALMON GUMS (Emu 100%)

Follow up soil sampling (371 samples) were carried out doing the quarter to define the extent of gold-in-soil anomalies identified in the Lake Pyramid area, on the interpreted southern extension of the Tropicana gold trend. The sampling identified several discrete areas of elevated gold values in the range of 5 to 25 times background. Further sampling has been carried out (220 samples) to test the extent of the strongest anomaly and to infill low density sampling over other target areas. Sample analyses are in progress.

CORPORATE

Following the termination of the agreement to acquire the Hillgrove antimony-gold mine, Emu is carrying out a review of all its projects and is examining new opportunities with potential to add significant value to the Company.

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 or reviewed 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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