ENERGY METALS LTD — Annual Report 2007

Oct 14, 2007

Energy Metals Limited ABN 63 111 306 533 Level 2 18 Kings Park Road West Perth WA 6005 PO Box 1033 West Perth WA 6872 Western Australia Telephone: (08) 9322 6904 Facsimile: (08) 9321 7950 Email: enquiry@energymetals.net Web: www.energymetals.net

15 October 2007

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Company Announcements Office Australian Stock Exchange Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000

Via electronic lodgement

2007 ANNUAL REPORT

Energy Metals Limited is pleased to provide its 2007 Annual Report as attached.

The Annual Report will be available on the Company’s website and will be despatched to shareholders on 16[th] October together with the Notice of Annual General Meeting and proxy form.

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LINDSAY DUDFIELD Executive Director.

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ABN 63 111 306 533
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A N N U A L R E P O R T 2 0 0 7

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A N N U A L R E P O R T 2 0 0 7

Corporate Details 1 Chairman’s Report 2 Review of Activities 3 Directors’ Report 17 Corporate Governance Statement 23 Financial Statements 26 Directors' Declaration 46 Auditor’s Independence Declaration 47 Auditor’s Report 48 Additional Information 50

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C O R P O R A T E D E T A I L S

Directors

Donald Ross Kennedy (Chairman) Lindsay George Dudfield (Executive Director) Oscar Aamodt (Non-Executive Director)

Company Secretary Patricia Anne Farr

Registered Office

Level 2 18 Kings Park Road WEST PERTH WA 6005 Telephone: 61 8 9322 6904 Facsimile: 61 8 9321 7950 Email: enquiry@energymetals.net Web: www.energymetals.net

Auditor

BDO Kendalls Audit & Assurance (WA) Pty Ltd

128 Hay Street SUBIACO WA 6008

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153 Telephone: 61 8 9315 2333 Facsimile: 61 8 9315 2233

Stock Exchange Listing

The Company's shares are listed by the Australian Stock Exchange Limited (“ASX”) ASX Code EME. The home exchange is Perth.

Bankers

National Australia Bank Limited

50 St Georges Terrace PERTH WA 6000

Solicitors

Blakiston & Crabb

1202 Hay Street WEST PERTH WA 6005

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C H A I R M A N ' S R E P O R T

Dear Fellow Shareholder

Financial year 2006/2007 has been most rewarding for our shareholders with the share price moving up from $1.81 at 1 July 2006 to $6.64 at 30 June 2007. This movement has been in part due to the surging uranium price but also to the excellent drill results being obtained from our flagship Bigrlyi Project in the Northern Territory.

Current (March 2007) JORC compliant resources at Bigrlyi (53.3% owner, and operator) are 4.53 million tonnes at 1.4 kg/t U3O8 and 1.6kg/t V2O5, at the 0.5 kg/t U3O8 cut-off. This figure translates to 14.3 million pounds (lbs) of U3O8 and 16.3 million lbs of V2O5.

A substantial drilling program currently underway at Bigrlyi is aimed mainly at extending the deposits beyond the envelopes which capture the current resources. Results to date have been very encouraging, including many high-grade intercepts, and a significant increase in the resources at Bigrlyi is expected to be completed in the June 2008 quarter.

Exploration will progressively increase on the surrounding 100% owned ground where a number of high quality uranium targets have been identified from detailed radiometric data, including some targets parallel to the Bigrlyi zone.

In Western Australia the various 100% owned calcrete uranium projects, near the giant Yeelirrie deposit, are being systematically detailed by shallow drilling such that Energy Metals is ready to carry out feasibility studies once the current uranium policy in WA changes.

We are in the fortunate position of controlling a high grade uranium deposit located in a jurisdiction (NT) where all levels of government (local and Federal) encourage new uranium mines and at a time of unprecedented demand for this metal. The forthcoming period should be a very exciting one for Energy Metals shareholders as we approach Bankable Feasibility and Decision to Mine at Bigrlyi.

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D. ROSS KENNEDY

Chairman

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R E V I E W O F A C T I V I T I E S

Energy Metals is a dedicated uranium explorer with eight projects located in the Northern Territory (NT) and Western Australia covering over 4,000 km[2] . Most of the projects contain uranium mineralisation discovered by major companies in the 1970’s, including the advanced Bigrlyi project (NT), which is characterised by relatively high uranium grades (with vanadium credits) and excellent metallurgical recoveries.

Australia has significant uranium endowment with the continent containing approximately 40% of the world’s known uranium resources. Despite this natural endowment unfavourable politics and a depressed uranium price have resulted in minimal uranium exploration in Australia since the mid 1980’s.

However there have been several positive developments recently including:

• the uranium price increasing from US$10 per pound early 2003 to $85 currently,

• public opinion (and the political landscape) becoming increasingly supportive of uranium mining, driven in part by the threat of global warming,

• the Australian Labor Party recently abandoning its opposition to uranium mining, meaning the development of new uranium mines now has bi-partisan support at the federal level, and

• the Northern Territory government reversing its previous position and confirming its support for new uranium mines in NT.

Energy Metals is in a prime position to take advantage of the favourable outlook for the metal. In addition to advancing the projects currently in the portfolio the Company is also reviewing new uranium opportunities in Australia.

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REVIEW OF ACTIVITIES Continued

NORTHERN TERRITORY

BIGRLYI (EME 53.3%)

The Bigrlyi project comprises 10 granted exploration retention licences located approximately 390 km northwest of Alice Springs. The project, which is a joint venture with Paladin Resources subsidiary Valhalla Uranium (41.7%) and Southern Cross Exploration (5%), was subject to significant exploration activity in the period 1974 to 1982, including over 400 drill holes, resource calculations and metallurgical testwork. The project was put on care and maintenance in 1983 following the adoption by the Labor government of the “Three Mines” policy that, together with low uranium prices, stifled the development of new uranium projects in Australia.

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WORK COMPLETED IN 2005/06

Energy Metals listed on ASX in September 2005 and re-commenced field activities at Bigrlyi in November 2005, some 23 years after the project had been mothballed. Work undertaken during the 2005/06 period included a detailed environmental assessment and installation of appropriate radiation monitoring procedures, evaluation of the drilling and assay data generated by previous explorers and re-assaying of historic drill core.

Both historical data and results from the re-assaying program were validated and incorporated into a new digital database, with resource consultants Hellman and Schofield (H&S) providing independent advice on modeling methods, geostatistics and wireframe modelling of the mineralisation domains. In July 2006 Energy Metals announced initial uranium and vanadium resources at Bigrlyi (summarised below):

INDICATED AND INFERRED RESOURCES – JULY 2006

Cut Off Grade	Tonnes	U3O8	V2O5	U3O8	U3O8	V2O5	V2O5
(%)		(%)	(%)	(Kt)	(Mlb)	(Kt)	(Mlb)
0.10	1,835,000	0.21	0.22	3.8	8.4	3.99	8.8
0.05	3,763,000	0.14	0.17	5.6	11.4	6.3	14.1

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WORK COMPLETED IN 2006/07

Following completion of aboriginal heritage surveys, a reverse circulation (RC) and diamond drilling program commenced at Bigrlyi in October 2006 and continued until the end of the field season in mid December 2006. Some 43 holes were completed in this period, with most holes intersecting significant uranium mineralisation. Uranium and vanadium resource models were recalculated incorporating results from this drilling with the updated resource estimate (summarised below) released in March 2007:

INDICATED AND INFERRED RESOURCES – MARCH 2007

Cut Off	Tonnes	U3O8	V2O5	U3O8	U3O8	V2O5	V2O5
(%)		(%)	(%)	(Kt)	(Mlb)	(Kt)	(Mlb)
0.10	2,430,000	0.21	0.20	5.00	11.2	4.95	10.7
0.05	4,530,000	0.14	0.16	6.50	14.3	7.41	16.3

Tonnes are metric (2204.62 pounds, Kt may not total due to round-off errors).

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The resources were estimated by H&S using ordinary kriging and are shown at 0.10% and 0.05% U3O8 cut-off grades. Energy Metals considers that the 0.05% U3O8 lower cut-off grade best approximates the economic cut-off grade considering the style of the mineralisation and the current uranium price.

At a cut-off grade of 0.05% U3O8 the Bigrlyi resource now totals 14.3 million pounds (lbs) of U3O8 and 16.3 million lbs of V2O5, representing a 26% increase in uranium and a 17% increase in vanadium compared with the previous (July 2006) resource. Furthermore the price of uranium has increased from US$45.5/lb in July 2006 to US$85/lb currently, with most market observers anticipating the uranium price to remain strong for years to come.

Although not directly comparable the Bigrlyi resources have been converted to gold equivalents to assist shareholders better understand the potential value of the mineralisation outlined to date:

Cut Off	Tonnes	Gold	Equivalent*
(%U3O8)		Moz	Grade (g/t)
0.10	2,430,000	1.37	17.6
0.05	4,530,000	1.79	12.3

*Au $US730/oz, U3O8 $US85/lb, V2O5 $US6/lb

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REVIEW OF ACTIVITIES Continued

Early 2007 the Bigrlyi Joint Venture partners approved a substantial drilling program (262 holes for 51,255m) for the 2007 field season, with most of the proposed holes to be drilled outside of current resource envelopes. Drilling commenced late April 2007 with two rigs (one diamond and one RC) drilling around the clock.

To date results have been announced from 91 holes with uranium mineralisation intersected in 69 holes. Significant uranium intercepts recorded from downhole radiometric logging (eU3O8 values), and, where available, confirmatory geochemical uranium assays (U3O8 values) are summarised in the following table:

**DEPOSIT **	HOLE	FROM	INTERCEPT	U3O8	U3O8	V2O5	eU3O8 INTERCEPT
		(m)		%	lbs/t	%
A2	B07005			Geochemical assays		pending	1.15m@ 0.10 from 53.15m
	B07009			Geochemical assays		pending	1.15m @ 0.10 from 43.70m
							1.70m @ 0.14 from 58.45m
	B07010			Geochemical assays		pending	3.15m @ 0.15 from 103.24m
A4	B06024	271.0	1.0m @	0.33	7.28	0.15	1.65m @ 0.14 from 269.26m
	B07118	185.0	2.0m @	0.33	7.28	0.11	2.95m @ 0.12% from 183.34m
	B07086	225.0	1.0m @	0.34	7.50	0.23	2.10m @ 0.10 from 223.98m
	B07087			Geochemical assays		pending	3.20m @ 0.12 from 138.19m
							3.35m @ 0.20 from 141.84m
	B07120	191.5	9.5m @	0.52	11.46	1.22	6.75m @ 0.24% from189.96m
							2.15m @ 0.21% from 197.16m
	B07124	151.5	1.0m @	0.15	3.31	0.30	1.10m @ 0.06 from 150.83m
		157.5	1.5m @	0.60	13.23	0.79	1.80m @ 0.20 from 156.53m
	B07127	281.0	4.0m @	0.14	3.09	0.81	4.65m @ 0.07 from 280.42m
		289.0	4.0m @	0.33	7.28	2.18	9.25m @ 0.12 from 288.42m
		293.0	7.0m @	0.05	1.10	0.22
	B07128	81.0	3.0m @	0.83	18.30	2.97	4.15m @ 0.25 from 80.97m
		131.0	2.0m @	0.11	2.43	0.05	0.30m @ 0.01 from 130.87m
		135.0	4.0m @	0.20	4.41	0.48	3.40m @ 0.08 from 134.92m
	B07129	304.0	1.0m @	0.02	0.44	0.23	3.90m @ 0.27% from 306.72m
		307.5	4.5m @	0.79	17.42	3.17
		313.0	1.5m @	0.15	3.31	0.62
	B07130A	152.5	3.5m @	0.23	5.07	0.41	1.85m @ 0.19 from 151.06m
	B07131	210.0	1.0m @	0.11	2.43	0.27	1.55m @ 0.08 from 134.92m
	B07132	70.0	1.0m @	0.14	3.09	0.95	1.0m @ 0.04 from 69.59m
	B07133	254.0	8.0m @	0.41	9.04	1.37	6.25m @ 0.24 from 254.78m
		270.0	2.0m @	0.91	20.06	0.75	5.0m @ 0.17 from 268.43m

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	**DEPOSIT **	HOLE	FROM	INTERCEPT	U3O8	U3O8	V2O5	eU3O8 INTERCEPT
			(m)		%	lbs/t	%
	A4	B07135	110.0	1.0m @	0.23	5.07	0.85	No significant probe results
			115.0	1.0m @	0.12	2.65	0.73	No significant probe results
		B07143	133.0	2.0m @	0.16	3.53	0.23	1.90m @		0.14 from 131.62m
			258.0	3.0m @	0.20	4.41	0.59	2.55m @		0.21 from 257.12m
		B07144	267.0	3.0m	0.49	10.80	0.12	2.20m @		0.20 from 267.59m
		B07147	258.0	3.0m @	0.18	3.97	1.08	2.75m @		0.17 from 257.32m
		B07160			Geochemical assays		pending	1.75m @		0.24 from 56.08m
								1.85m @		0.13 from 58.48m
		B07165			Geochemical assays		pending	1.40m @		0.15 from 126.92m
		B07181			Geochemical assays		pending	1.85m @		0.27 from 87.31m
								1.65m @		0.20 from 89.76m
								2.60m @		0.36 from 98.31m
		B07186			Geochemical assays		pending	3.35m @		0.10 from 215.67m
								3.25m @		0.12 from 258.57m
	A7	B07197			Geochemical assays		pending	3.30m @		0.45 from 201.51m
	A15	B07233A			Geochemical assays		pending	1.90m @		0.32 from 172.82m
		B07235			Geochemical assays		pending	2.35m @		0.43 from 119.76m
		B07237	390.5	0.5m @	0.13	2.87	0.26	1.25m @		0.04 from 389.49m
		B07239	100.5	1.5m @	0.69	15.21	0.62	2.1m @	0.22 from 99.93m
		B07240	344.0	1.0m @	0.20	4.41	0.24	1.35m @		0.07 from 344.05m
			346.5	2.0m @	0.46	10.14	0.50	2.45m @		0.15 from 346.30m
		B07241	393.5	0.5m @	0.18	3.97	0.33	0.85m @		0.05 from 391.83m
			396.0	0.5m @	0.20	4.41	0.36
		B07242	338.5	0.5m @	0.28	6.17	0.02	1.05m @		0.05 from 337.66m
		B07255			Geochemical assays		pending	1.80m @		0.15 from 195.70m

Assays based on core sampled at 0.5m intervals and analysed by ALS Chemex (Brisbane). U analysed by XRF; V by XRF (<1000 ppm) and ICP (>1000 ppm).

It is important to note that a comparison of the chemical assay and radiometric equivalent grades over 16 different mineralised zones in 11 different drill holes at Bigrlyi has revealed that radiometric grades (eU3O8) are consistently lower than the chemical grades (U3O8) for approximately the same interval. This suggests that the uranium mineralisation at Bigrlyi may not be in equilibrium, resulting in the downhole probe underestimating the amount of uranium present in the system.

Energy Metals will continue to compare chemical assay data to radiometric probe data to gain an overall understanding of radiometric disequilibrium throughout the deposits. It is likely that the radiometric calibration factors will be changed in time to reflect new data comparisons, however until sufficient data can be analysed, Energy Metals plans to err on the side of caution when reporting radiometric results.

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A N N U A L R E P O R T 2 0 0 7

REVIEW OF ACTIVITIES Continued

Highlights from the current drilling program include the discovery of multiple, often shallow, lenses at the Anomaly 4 deposit and the confirmation of extensions to the west of the Anomaly 15 deposit. Energy Metals is very encouraged by the results to date and has proposed follow up drilling to be completed prior to the end of the 2007 field season. The Company is confident that there will be a significant increase in the resource base at Bigrlyi, with this new resource likely to be released in the March 2008 quarter.

An economic scoping mining study encompassing an open pit optimisation, underground design and whole project study at Bigrlyi commenced earlier this year and is nearing completion with reportable results expected late September. The study has utilised the current (March 2007) JORC resource model and does not include any data generated from the current drilling program that commenced in April 2007. Design and costing of the milling process is complete for this level of study including operating and capital costs. A total of 8 pits have been designed and optimised (A15 – 1, A4 – 6, A2-1) with underground design work complete at Anomaly 15 and nearing completion at Anomaly 4.

Compilation of mine capital requirements and finalisation of the reports are also nearly completed. It is anticipated that once the scoping study results are finalised, a decision will be made shortly thereafter on the commencement and scope of a full feasibility study. This study will likely be based on the substantially larger resource expected early 2008, which has further positive implications for the Bigrlyi project.

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Anomaly 4 Long Section showing
Current Resources (orange) and
2007 Drilling.
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Anomaly 15 Long Section showing
Current Resources (orange) and
2007 Drilling.
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NGALIA REGIONAL (EME 100%)

The Ngalia Regional project comprises ten 100% owned exploration licences (E’s) (total area 2,840 km[2] ) located in the Ngalia Basin, between 180 and 350 km northwest of Alice Springs in the Northern Territory. Seven of these tenements are contiguous and enclose the Bigrlyi project as well as containing a number of uranium occurrences including the Malawiri prospect (EME 52%) and the Walbiri prospect (EME 42%). The remaining 3 tenements cover discrete uranium anomalies, with no evidence of previous exploration, located southwest of the Bigrlyi deposits.

Energy Metals is pleased to report that 7 of the 10 Ngalia Regional Exploration Licences initially applied for by the Company have now been granted by the Northern Territory Department of Primary Industry, Fisheries and Mines (DPIFM). The remaining 3 applications (E’s 24450, 24462 and 24805) are located on Aboriginal Freehold land and the consent of the Traditional Owners is required before the tenements can be granted. Energy Metals has been negotiating with the Traditional Owners through the Central Land Council (CLC) and is confident that the Company will gain access to these areas.

Work undertaken during the 2007 field season included first pass exploration in areas west and east along strike from Bigrlyi. No drilling has been completed so far this year as work has involved preparing site access, mapping compilation, heritage

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Ngalia Regional Tenements
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clearances and DPIFM approvals. A detailed (100m line spacing) airborne radiometric and aeromagnetic survey over E’s 24804, 24806, 24533, 24453, 24807 and 24463 commenced in September 2007, with a similar survey encompassing E24451 due to commence in October 2007. This detailed data will provide valuable information prior to finalising first pass drill programs in these areas.

Heritage clearances have been completed for proposed drilling programs at E’s 24463 and 24451 with further surveys on E’s 24804, 24806, 24533, 24453 and 24807 due to commence in September 2007. Negotiations on land access/compensation agreements regarding ground disturbing exploration activity are ongoing with the CLC, with dialogue for agreements on E’s 24804, 24806, 24807, 24533, 24453, 24463 and 24451 well advanced. It is expected that agreements for exploration access on most of the tenements will be completed by late November 2007.

Initial ground based work to follow up discrete aerial uranium channel anomalies located on E’s 24804 and 24806 verified that anomalies can be reproduced at the sites. E24804 contains substantial drainage related anomalies with minor calcrete, shallow lake systems and dune sand prominent. E24806 contains radiometric anomalies related to outcropping reduced and oxidised sandstones similar to the stratigraphy found at Bigrlyi.

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REVIEW OF ACTIVITIES Continued

WESTERN AUSTRALIA

LAKE MASON (EME 100%)

This project comprises one granted exploration licence (E 57/590) with an area of 64 km[2] centred 25 km north-northeast of Sandstone and 80 km southwest of the Yeelirrie deposit. Previous exploration by BP Minerals in the 1970’s discovered shallow carnotite mineralisation in valley calcretes associated with the Lake Mason drainage system.

A 330 hole shallow aircore drilling program was completed at Lake Mason in July 2007. Holes were drilled 100m apart on 200m spaced traverses (refer figure below) with the drilling designed to generate sufficient data density to allow the generation of an initial resource estimate. Smoothed radiometric probe results are pending for 143 holes and these are expected by the end of September after which further geochemical sampling and assaying can take place. Significant intercepts (average >200ppm/ metre U3O8) from the first 187 holes of this program are summarized below:

HOLE	**FROM **	**INTERCEPT **	U3O8	V2O5
	(m)		(ppm)	(ppm)
LMAC-096	1.5	2.5	151	289
LMAC-097	2.0	2.0	115	352
LMAC-099	0.0	3.5	194	400
LMAC-100	0.5	2.5	124	442
LMAC-101	0.0	4.5	250	339
LMAC-102	2.5	3.0	192	349
LMAC-103	3.0	2.5	350	354
LMAC-105	3.0	2.0	132	247
LMAC-113	0.5	2.5	95	148
LMAC-122	0.5	2.5	112	401
LMAC-123	0.5	2.5	126	381
LMAC-124	1.5	2.5	108	508
LMAC-126	2.0	3.0	208	434
LMAC-127	3.0	3.0	194	401
LMAC-128	3.0	2.5	162	332
LMAC-131	3.0	3.0	141	331
LMAC-141	0.0	5.0	108	300
LMAC-142	0.0	4.5	132	374
LMAC-144	0.0	2.5	104	355
LMAC-146	0.0	3.5	201	245
LMAC-147	0.0	2.5	98	217
LMAC-148	3.5	2.5	184	366
LMAC-151	3.5	2.0	142	374
LMAC-154	3.0	3.0	126	317
LMAC-222	3.0	3.0	118	362
LMAC-224	3.5	2.0	191	280
LMAC-226	3.0	2.0	128	328
LMAC-229	3.0	2.5	190	442
LMAC-242	1.5	4.0	153	343
LMAC-245	0.0	5.5	104	266

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Lake Mason Project – 2007 Drilling over Radiometrics

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ANKETELL (EME 100%)

The Anketell project is located 100 km east of Mt Magnet and comprises two granted exploration licences (E’s 58/289 & 58/292) with a total area of 165 km[2] . The tenements contain shallow calcrete hosted carnotite mineralisation discovered by Western Mining (WMC) in 1972. The mineralisation is similar in style to the Yeelirrie deposit, also discovered by WMC in the same year and located 150 km to the northeast.

Sixty three vertical aircore holes (total 945m) were drilled at Anketell during the period. The holes were collared 200m apart on 1 km spaced traverses. The drilling confirmed the presence of uranium mineralisation in calcrete and calcareous clays with most traverses recording anomalous intercepts.

All holes were cased with PVC and surveyed using a downhole gamma logging probe to estimate uranium grades (eU3O8) with samples from anomalous intervals submitted for assay to determine the chemical or assay grade (U3O8). Significant intercepts (average >200ppm/metre U3O8) returned from chemical assays are summarized below. Generally the correlation between radiometric data and chemical assays is reasonable although it should be noted that the drill sample volume is relatively small compared to the area of influence represented by the radiometric data.

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HOLE	**FROM **	**INTERCEPT **	U3O8	V2O5
	(m)		(ppm)	(ppm)
AAC-03	5.5	9.0	126	147
AAC-05	6.0	2.0	102	181
AAC-06	3.0	3.0	117	141
AAC-09	1.5	5.0	223	129
AAC-10	1.0	6.5	100	91
AAC-11	6.0	3.5	289	74
AAC-12	1.0	11.5	147	75
AAC-13	0.0	10.0	181	72
AAC-18	0.0	5.0	520	14
AAC-20	0.5	8.5	195	36
AAC-21	0.5	8.5	250	27
AAC-22	6.0	2.5	170	86
AAC-26	1.0	2.0	153	50
AAC-27	0.5	2.5	186	37
AAC-30	6.0	3.0	168	91
AAC-39	0.5	3.0	161	66
AAC-40	1.0	2.0	104	56
AAC-60	1.5	4.0	99	53
AAC-61	2.5	3.5	217	27

Further work will be undertaken to determine the level of radiometric equilibrium at Anketell as the project moves towards an initial resource estimation. This will likely involve more definitive test drilling and bulk sampling to provide larger sample volumes to compare to radiometric grades.

Anketell Project – 2007 Drilling over Radiometrics

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A N N U A L R E P O R T 2 0 0 7

REVIEW OF ACTIVITIES Continued

MOPOKE WELL (EME 100%)

The Mopoke Well project comprises two exploration licences (E 29/568 & ELA 29/623) located 55 km west of Leonora and covers an area of 160 km[2] . E 29/568 was granted early January 2006 and contains two historic uranium deposits (Peninsula and Stakeyard Well), with a third deposit (Raeside) located on the western edge of the tenement. All three deposits are hosted by valley calcretes associated with the Lake Raeside drainage system. ELA 29/623, which abuts E 29/568 to the west, ranks behind competing applications as a result of a ballot to determine priority held in August 2007.

A gravity survey designed to better define paleochannels likely to host uranium mineralisation was completed during the period. Results of this survey are being assessed prior to commencing follow up work.

Energy Metals’ exploration efforts have strong support from the aboriginal claimants for the area. However due to the presence of the Lake Reyside (Lake Raeside) Aboriginal sacred site and Department of Indigenous Affairs curtilage that covers almost the entire tenement, it will be necessary for the Company to obtain permission from the Minister of Aboriginal Affairs prior to commencing follow up drilling.

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Mopoke Well Project over Radiometrics
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LAKESIDE (EME 100%)

The Lakeside project is located in the Murchison district 20 km west of Cue and comprises granted exploration licence E 21/120 (area 75 km[2] ). This project was acquired to follow up previously discovered carnotite mineralisation hosted by valley calcretes associated with major saline drainages.

First pass aircore drilling (97 holes for 970m) designed to infill known mineralisation and to seek extensions buried beneath transported cover was completed during the period. Holes were mostly collared on a grid density of 100m x 500m, and were cased with PVC and surveyed using a downhole gamma logging probe to estimate uranium grades (eU3O8).

The drilling and subsequent geochemical assaying has confirmed the presence of uranium mineralisation in calcrete and calcareous clays with most traverses recording anomalous intercepts, with significant intercepts (average >200ppm/metre U3O8) from this program, as determined by chemical assays, summarised below.

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Lakeside Project – 2007 Drilling over Radiometrics

HOLE	**FROM **	**INTERCEPT **	U3O8	V2O5
	(m)		(ppm)	(ppm)
LAC-026	1.5	2.0	174	431
LAC-027	0.0	5.5	309	511
LAC-028	0.0	5.5	301	596
LAC-033	0.0	2.0	266	468
LAC-034	1.5	1.0	69	373
LAC-038	0.5	3.0	182	344
LAC-039	1.5	2.0	202	348
LAC-040	1.5	1.5	368	539
LAC-043	0.5	2.0	217	459
LAC-063	1.0	3.0	106	466
LAC-066	4.5	0.5	59	546
LAC-068	4.5	0.5	55	536
LAC-069	2.0	3.5	197	615
LAC-070	0.0	4.0	127	505
LAC-071	0.0	3.5	62	232
LAC-073	0.5	4.0	69	280
LAC-074	1.0	3.5	271	692
LAC-088	1.5	2.5	114	420

Initial radiometric probe results (eU3O8) compare reasonably well to geochemically derived results (U3O8) and at this stage provide valuable information on the location of anomalous material. As is the case with the Lake Mason and Anketell projects further work will be undertaken to determine the level of radiometric equilibrium at Lakeside prior to calculating an initial resource. This will include substantial extensional and infill drilling of prospective zones, bulk sampling and ore characterisation work.

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A N N U A L R E P O R T 2 0 0 7

REVIEW OF ACTIVITIES Continued

MANYINGEE (EME 100%)

The Manyingee exploration licence (E 08/1480) is located 85 km south of the port of Onslow. The tenement (total area 86 km[2] ) was granted early February 2006 and surrounds the mining leases containing Paladin’s Manyingee resource, a stacked series of paleochannel hosted roll front uranium deposits.

Work completed by Energy Metals during the period included a review of previous exploration and interpretation of available regional data sets (aeromagnetic, radiometric, gravity and satellite imagery) from the area.

A helicopter borne electromagnetic (HEM) survey scheduled to be completed during the March 2007 quarter was delayed due to weather restrictions and contractor availability, and is now scheduled to commence late September 2007. This survey, which will cover the entire tenement, is expected to identify extensions of the Manyingee paleochannels for drill follow-up early in 2008.

RAWLINSON (EME OPTION TO ACQUIRE 100%)

The Rawlinson Project comprises four exploration licence applications (total area of 1,450 km[2] ) located in the Gibson Desert, approximately 950 km northeast of Kalgoorlie and 60 km west of the NT border.

The tenements cover strong uranium channel anomalies revealed by a recent (1998) government airborne geophysical survey. The Company can acquire a 100% interest in ELA’s 69/2281 to 69/2283 (inclusive) by reimbursing the vendor for initial costs and issuing Energy Metals shares and options within 3 years of grant and approval of access for exploration. In addition the Company has made application for a further exploration licence (ELA 69/2303) adjacent to the three existing licence applications.

The area is part of the Central Australia Aboriginal Reserve and due to the remote location and restricted access the geology of the area is poorly understood. However it appears that the main uranium anomalies are associated with mid Proterozoic age metasediments unconformably overlain by younger sedimentary rocks with potential for unconformity and roll-front style uranium deposits, as well as surficial uranium mineralisation. There is no evidence of previous uranium exploration in the area.

The Rawlinson project provides Energy Metals with a low cost option to control untested outcropping uranium anomalies with the potential to represent a completely new uranium province. Negotiations with the Ngaanyatjarra Land Council, the body representing the traditional owners, are continuing and Energy Metals is confident that access for exploration will be granted to the Company.

Rawlinson South Project over Radiometrics

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CORPORATE

Several potential acquisitions were examined and rejected during the period. Management continues to review opportunities to grow the Company, including mergers where appropriate.

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Note: Uranium mineralisation grades through this report annotated with a sub-prefix ‘e’ have been reported as uranium equivalent grades derived from down-hole gamma ray logging results and should be regarded as approximations only.

Gamma logging or “total count gamma logging” (the method used by Energy Metals) is a common method used to estimate uranium grade where the radiation contribution from thorium and potassium is very small. Sandstone and calcrete hosted deposits are usually of this type. Gamma logging does not account for energy derived from thorium and potassium (as does spectral gamma logging) and thus the result is expressed as an equivalent value or eU308. The gamma radiation from potassium, uranium and thorium is dominated by gamma rays at specific energy levels. These energy levels are sufficiently well separated such that they can be measured independently of each other. They are typically measured as narrow energy bands that contain the specific energy levels. Bands are used because the measuring systems do not have the resolution to target a specific energy wavelength. There is some scattering of higher energy gamma radiation, e.g. thorium, into lower energy radiation, e.g. uranium and potassium. This scattered radiation can be calculated from suitable calibration procedures and removed from the lower energy level measurements. This method is commonly termed spectral gamma logging.

Energy Metals uses gamma probes which are initially calibrated at the PIRSA (Primary Industry & Resources South Australia) test pits and then subjected to annual recalibration to ensure the integrity of the probe instrument. Furthermore, Energy Metals runs regular checks to validate the accuracy of probe data using calibrated test holes located on site.

The information in this report relating to mineral resources is based on information compiled by Lorry Hughes and Arnold van der Heyden BSc, MAusIMM. Both Mr Hughes and Mr van der Heyden have more than five years relevant experience in estimation of mineral resources and the mineral commodity uranium. Mr Hughes is a full time employee of Energy Metals Limited and takes responsibility for the quality of the data and geological interpretations, including the data provided to H & S. Mr van der Heyden is a full time employee of H & S and takes responsibility for the resource estimation.

Mr Hughes and Mr van der Heyden have sufficient experience relevant to the assessment of this style of mineralisation to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code”. Each of the above named consents to the inclusion of the information in the report in the form and context in which it appears.

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A N N U A L R E P O R T 2 0 0 7

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D I R E C T O R S ’ R E P O R T

The Directors present their report on the consolidated entity (referred to hereafter as the Group) of Energy Metals Limited for the year ended 30 June 2007.

DIRECTORS

The following persons were directors of Energy Metals Limited during the whole of the financial year (or as disclosed) and up to the date of this report:

• Lindsay George Dudfield

• Oscar Aamodt

• Donald Ross Kennedy

PRINCIPAL ACTIVITIES

The principal activity of Energy Metals throughout the year was uranium exploration. During the financial year there was no change in the nature of this activity.

FINANCIAL RESULTS

The consolidated loss of the Group after providing for income tax for the year ended 30 June 2007 was $1,827,825 (2006: loss $1,195,221).

DIVIDENDS

No dividends have been paid or declared and no dividends have been recommended by the Directors.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There has been no significant change in the state of affairs of the Group during the year.

REVIEW OF OPERATIONS

Following the successful listing of the Company on the ASX, the Company has conducted uranium exploration activities on its various projects with the major focus being on the Bigrlyi Project in the Northern Territory.

Full details of the Company’s exploration activities during the year are included within the Review of Activities section of the Annual Report.

FINANCIAL POSITION

The net assets of the Group were $7,883,902 at 30 June 2007 (2006: $7,430,470).

Cash and assets utilised by the Company for the period ended 30 June 2007 is consistent with the Company’s business objectives since listing on the Australian Stock Exchange on 9 September 2005.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL PERIOD

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Company in future financial years.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years that are not already disclosed in this report.

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A N N U A L R E P O R T 2 0 0 7

DIRECTORS’ REPORT Continued

INFORMATION ON DIRECTORS

Name	Director’s Experience	Special Responsibilities
Mr Donald Ross Kennedy	Mr Kennedy is a qualified geologist with 43 years experience in	Chairman
BSc (Hons)	gold and base metals exploration, both in Australia and overseas.	Non-executive
	As Managing Director, then Exploration Director, of Resolute Limited	Director
	he was the leader of one of the most successful exploration teams
	in Australia, leading to the development of gold mines at Marymia,
	Chalice, Higginsville and Challenger in Australia and Nkran and
	Golden Pride in Africa. Fellow of the AusIMM and member of the
	AIG, GSA, MICA and AICD.
	Other public company directorships held by Mr Kennedy over the last
	three years are:
	• Jindalee Resources Limited – current
	• Uran Limited – current
	• Vital Metals Limited – current
	• Great Western Resources Limited -current
	• Lach Drummond Resources Ltd (January 2004 – July 2004)
	• Paladin Resources Ltd (December 2002 – March 2003).
Mr Lindsay George Dudfield	Mr Dudfield is a qualified geologist with 28 years experience exploring	Executive Director
BSc	for gold and base metals in Australia and overseas, including close
	involvement with a number of greenfields discoveries. Member of the
	AusIMM, SEG, AIG and GSA.
	Other public company directorships held by Mr Dudfield over the last
	three years are:
	• Jindalee Resources Limited – current
	• Horizon Global Limited (October 1994 – June 2005)
Oscar Aamodt	Mr Aamodt is a member of the Institute of Chartered Secretaries	Non-executive
FCIS	and Administrators and has more than 22 years experience in the	Director
(appointed 6 July 2005)	administration and management of mining and exploration listed
	companies in Australia and overseas. He has held a number of
	directorships in Australian mining and exploration companies and
	was previously employed as Chief Financial Officer of a large mining
	company with operations in Australia and Africa. From February 2002
	until June 2004 he was a director and Company Secretary of Abelle
	Limited and most recently Company Secretary of Bluestone Tin
	Limited and Metals Exploration Limited.
	Other public company directorships held by Mr Aamodt over the last
	three years are:
	• Independence Group NL – current
	• Abelle Limited (February 2002 – June 2004)
	• Brumby Resources Limited – (February 2006 – October 2006)

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DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY

The particulars of Directors’ interest in shares and options are as at the date of this report.

		30c Options	Unlisted 35c Options
	Ordinary Shares	Expiring 30/06/2008	Expiring 30/06/2010
D R Kennedy	36,000	8,000	500,000
L G Dudfield	1,372,000	686,000	500,000
O Aamodt	75,000	-	250,000

MEETINGS OF DIRECTORS

The following table sets out the number of meetings of the Company’s Directors held during the year ended 30 June 2007 and the numbers of meetings attended by each Director.

	Number Held	Number
	Whilst in Office	Attended
D R Kennedy	7	6
L G Dudfield	7	7
O Aamodt	7	7

As at the date of this report, the Company did not have an Audit Committee of the Board of Directors. The Board considers that due to the Company’s size, an audit committee’s functions and responsibilities can be adequately and efficiently discharged by the Board as a whole, operating in accordance with the Company’s mechanisms designed to ensure independent judgement in decision making.

COMPANY SECRETARY INFORMATION

Ms Patricia Farr was appointed Company Secretary on 9 May 2005. She is an experienced company administrator, having previously worked for Resolute Mining Ltd, and is currently employed by Jindalee Resources Limited.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.

REMUNERATION REPORT (Audited)

The information provided in the Remuneration Report include remuneration disclosures that are required under Accounting Standard AASB 124 Related Party Disclosures. The Directors have reviewed the disclosure requirements to identify key management personnel and as a result of the assessment the only key management person is the Executive Director. The references within the Directors’ Report therefore also relate to key management personnel.

These disclosures have been transferred from the Financial Report and have been audited.

REMUNERATION POLICY (AUDITED)

The remuneration policy of the Company has been designed to align Directors’ objectives with shareholder and business objectives. The Board of Energy Metals Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the Company, as well as create goal congruence between directors, executives and shareholders.

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A N N U A L R E P O R T 2 0 0 7

DIRECTORS’ REPORT Continued

The Board’s policy for determining the nature and amount of remuneration for board members of the Company is as follows:

The remuneration policy, setting the terms and conditions for the Executive Director and specified executives, was developed and approved by the Board. All executives receive either consulting fees or a salary, part of which may be taken as superannuation, and from time to time, options. Options issued to Directors are subject to approval by shareholders. The Board reviews executive packages annually by reference to the Company’s performance, executives performance and comparable information from industry sectors and other listed companies in similar industries. An Employee Share Option Plan was adopted by the Company following approval by shareholders at the Company’s Annual General Meeting held on 24 November 2006.

Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase payments towards superannuation.

All remuneration paid to Directors and specified executives is valued at the cost to the company and expensed. Options are valued using the Black-Scholes methodology.

The Board policy is to remunerate non-executive Directors at commercial market rates for comparable companies for their time, commitment and responsibilities. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive Directors are not linked to the performance of the Company. Non-executive Directors’ remuneration may also include an incentive portion consisting of options, subject to approval by shareholders.

REMUNERATION LINK TO COMPANY PERFORMANCE (AUDITED)

The following table shows the share price and the market capitalisation of the Company at the end of the financial year. No

dividends have been paid during the period.

dividends have been paid during the period.
	At 30 June 2006	At 30 June 2007
Share Price	$1.81	$6.64
Market Capitalisation	$45M	$178M

(Note that the Company was first listed on the Australian Stock Exchange on 9 September 2005 and consequently there was no share market capitalisation of the company prior to 30 June 2006).

DIRECTORS AND EXECUTIVES (KEY MANAGEMENT PERSONNEL) EMOLUMENTS (AUDITED)

The Company’s policy for determining the nature and amount of emoluments of Board members is that Directors are to be paid consulting fees at commercial rates for professional services performed.

Details of the nature and amount of each element of the emoluments of each Director of Energy Metals Limited are set out in the following tables.

NON-EXECUTIVE DIRECTORS OF ENERGY METALS LIMITED

		Short-term	benefits	Post-employment	Share-based payment
		Directors Fees	Consulting Fees	Superannuation	Options	Total
Name		$	$	$	$	$
D R Kennedy	2007	10,000	35,723	-	-	45,723
	2006	10,000	25,400	-	267,950	293,350
O Aamodt	2007	25,000	-	-	-	25,000
	2006	25,000	-	-	133,975	158,975

On 1 July 2005 the Company entered into an agreement appointing Mr Kennedy as a Non-Executive Director and pursuant to the terms of the agreement, during the year the Company paid Little Tagon Pty Ltd, a company related to Mr Donald Ross Kennedy, $10,000 being Directors Fees and $35,723 for the provision of technical and management services provided by Mr Kennedy.

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EXECUTIVE DIRECTORS OF ENERGY METALS LIMITED

		Short-term benefits		Post employmentShare-based payment	Post employmentShare-based payment
		Salary	Vehicle Hire	Consulting Fees	Superannuation	Options	Total
Name		$	$	$	$	$	$
L G Dudfield	2007	-	-	114,708	-	-	114,708
	2006	-	640	84,900	-	267,950	353,490

On 6 July 2005 the Company entered into a consultancy agreement with Executive Director Mr Dudfield and Jopan Management Pty Ltd trading as Western Geological Services whereby Western Geological Services has agreed to provide Mr Dudfield’s services for not less than 50 hours per month. In consideration for providing Mr Dudfield’s services the Company will pay Western Geological Services a retainer of $4,000 per month.

OPTIONS GRANTED AS PART OF REMUNERATION

								Total value	%
			Value per	Value of	Value of	Value of	Value of	of options	remuneration
			option	options	options	options	options	granted,	consisting
			at	granted	vested	exercised	lapsed	exercised	of the
Name	Grant	Grant	grant	during	during	during	during	and lapsed	options for
30 June 2007	Date	Number	date	the year	the year	year	year	during year	the year
L G Dudfield	-	-	-	-	-	-	-	-	-
D R Kennedy	-	-	-	-	-	-	-	-	-
O Aamodt	-	-	-	-	-	-	-	-	-
								Total value	%
			Value per	Value of	Value of	Value of	Value of	of options	remuneration
			option	options	options	options	options	granted,	consisting
			at	granted	vested	exercised	lapsed	exercised	of the
Name	Grant	Grant	grant	during	during	during	during	and lapsed	options for
30 June 2006	Date	Number	date	the year	the year	year	year	during year	the year
L G Dudfield	06/12/05	500,000	$0.5359	267,950	267,950	-	-	267,950	75.870
D R Kennedy	06/12/05	500,000	$0.5359	267,950	267,950	-	-	267,950	88.370
O Aamodt	06/12/05	250,000	$0.5359	133,975	133,975	-	-	133,975	84.270

For details on the valuation of the options, including models and assumptions used, please refer to Note 22. There were no alterations to the terms and conditions of options granted as remuneration since their grant date.

DIRECTORS AND OFFICERS INSURANCE

The Company has paid a premium to insure the directors and officers of the Company for the period 22/08/06 to 22/08/2007 against those liabilities for which insurance is permitted under section 199B of the Corporations Act 2001. Details of the nature of the liabilities insured for and the amount of the premium are subject to a confidentiality clause under the contract of insurance.

SHARE OPTIONS

The details of the options on issue at the date of this report by the Company are as follows:

	Number	Exercise Price	Expiry Date
Quoted	9,933,284	$0.30	30 June 2008
Unquoted	400,000	$0.30	30 June 2008
Unquoted	1,250,000	$0.35	30 June 2010
Unquoted	165,000	$1.00	30 June 2011
Unquoted	200,000	$2.00	30 June 2011
Unquoted	330,000	$3.00	30 June 2011

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A N N U A L R E P O R T 2 0 0 7

DIRECTORS’ REPORT Continued

SHARES ISSUED ON EXERCISE OF OPTIONS

There were 3,127,374 shares issued on exercise of options during the year and up to the date of this report. No amounts are unpaid on any of the shares.

Date options granted	Issue price	Number of
	of shares	shares issued
18 May 2005	$0.30	750,000
25 November 2005	$0.30	2,322,374
22 December 2006	$1.00	35,000
5 January 2007	$3.00	20,000
		3,127,374

ENVIRONMENTAL REGULATION

The Company is subject to significant environmental regulation in respect of its exploration activities. Tenements in the Northern Territory and Western Australia are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the approval of the relevant government agencies and with rehabilitation required on completion of exploration activities.

Energy Metals Limited conducts its exploration activities in an environmentally sensitive manner and the Company is not aware of any breach of statutory environmental conditions or obligations.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is included on page 47 of this report.

NON-AUDIT SERVICES

The external auditor did not perform any non-audit services during the year ended 30 June 2007.

This report which includes the accompanying Corporate Governance Statement is signed in accordance with a resolution of the Directors.

14th day of September 2007, at Perth, Western Australia

L G DUDFIELD

Executive Director

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C O R P O R A T E G O V E R N A N C E S T A T E M E N T

FOR THE YEAR ENDED 30 JUNE 2007

It is the responsibility of the Board of Directors of Energy Metals Limited to monitor the business affairs of the Company and to protect the rights and interests of the shareholders. The corporate governance practices in place throughout the reporting year ended 30 June 2007 have aimed to ensure the implementation of a strategic business plan and an integrated framework of accountability over the Company’s resources, functions and assets.

In accordance with the ASX Corporate Governance Council’s best practice recommendations, the Corporate Governance Statement contains specific information, and also reports on the Company’s adoption of the Council’s best practice recommendations on an exception basis, whereby disclosure is required of any recommendations that have not been adopted by the Company, together with the reasons why they have not been adopted. The Company’s corporate governance principles and policies are therefore structured with reference the Corporate Governance Council’s best practice recommendations, which are as follows:

Principle	1	Lay solid foundations for management and oversight
Principle	2	Structure the board to add value
Principle	3	Promote ethical and responsible decision making
Principle	4	Safeguard integrity in financial reporting
Principle	5	Make timely and balanced disclosure
Principle	6	Respect the rights of shareholders
Principle	7	Recognise and manage risk
Principle	8	Encourage enhanced performance
Principle	9	Remunerate fairly and responsibly
Principle	10	Recognise the legitimate interests of stakeholders

The Company’s corporate governance practices were in place throughout the year ended 30 June 2007. With the exception of the departures from the Corporate Governance Council recommendations in relation to the independence of the Board, the nomination committee and audit committee as detailed below, the corporate governance practices of the Company were compliant with the council’s best practice recommendations.

THE BOARD

The Board is responsible for the overall Corporate Governance of the Company including the strategic direction, establishing goals for management and monitoring the achievement of these goals. Due to the size of the Board, all issues are considered by the full Board. The Board has established a framework for the management of the Company including an overall framework of internal control, director nomination, risk management and ethical standards.

The Directors of the Company in office at the date of this statement are:

Name	Age	Position	Special Expertise
Donald Ross Kennedy	68	Non-Executive	Chairman Resource Industry
Oscar Aamodt	61	Non-Executive Director	Company Management
Lindsay George Dudfield	50	Executive Director	Resource Industry

The Company’s Executive Director has the responsibility for guiding management in effectively carrying out tasks and achieving Company objectives.

The Board comprises of a non-executive Chairman, one other non-executive Director and one executive Director. The Board believes this structure is effective for the current range of duties of the Board to be properly discharged.

The Directors may, in fulfilling their duties, obtain independent professional advice at the Company’s expense, however prior notification by the Director to the Board is required.

At every Annual General Meeting one third of the Directors must retire and sit for re-election.

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A N N U A L R E P O R T 2 0 0 7

CORPORATE GOVERNANCE STATEMENT Continued

INDEPENDENCE

Corporate Governance Council Recommendation 2.1 requires that the majority of the Board are independent directors. In addition, Recommendation 2.2 requires the chairperson of the company to be independent. The Corporate Governance Council defines independence as being free from any business or other relationships that could materially interfere with, or could reasonably be perceived to materially interfere with, the exercise of unfettered and independent judgement.

In accordance with this definition, two of the Directors making up the Board as at year end are not considered to be independent when applying the Council’s definition of independence, either by virtue of their substantial shareholdings in the Company or because they are on the Board of a company which is a substantial shareholder of the Company. The Company considers industry experience and specific expertise to be important attributes of its Board members. The Board is conscious of the need for independence and ensures that directors who have interests in specific transactions or potential transactions do not receive Board papers related to those transactions or potential transactions, do not participate in any part of a Directors’ meeting which considers those transactions or potential transactions and asks that those Directors do not discuss those transactions or potential transactions with other Directors.

NOMINATION COMMITTEE

Recommendation 2.4 requires listed entities establish a nomination committee. During the year ended 30 June 2007, Energy Metals Limited did not have a separately established nomination committee. However, responsibilities of the full Board include the duties and responsibilities typically delegated to such a committee and given the size of the Company the Board does not believe that any marked efficiencies or enhancements would be achieved by the creation of a separate nomination committee.

AUDIT COMMITTEE

Recommendation 4.2 requires listed entities establish an audit committee. During the year ended 30 June 2007 Energy Metals Limited did not have a separately established audit committee. The Board considers that due to the Company’s size, an audit committee’s functions and responsibilities can be adequately and efficiently discharged by the Board as a whole, operating in accordance with the Company’s mechanisms designed to ensure independent judgement in decision making.

The Board considers and deals with matters which would ordinarily be attended to by an audit committee including:

• setting policy and long and short term strategic planning;

• communicating strategy to relevant parties for implementation;

• monitoring the Company’s performance against strategy;

• approving and monitoring all significant or major business transactions;

• designing and implementing an appropriate organisational structure;

• appointing and monitoring the conduct and performance of management and personnel and overseeing all remuneration, development and succession;

• approving and monitoring financial reporting and compliance;

• identifying and monitoring the principal risks and opportunities of the Company’s business;

• ensuring appropriate risk management systems are established and reviewed;

• overseeing control and accountability systems;

• ensuring that the Board remains appropriately skilled to meet Company needs;

• reviewing and approving corporate governance systems; and

• delegating authority to management where appropriate.

The Executive Director is accountable to the Board for management of the Company within authority levels approved by the Board and is subject to the supervision of the Board.

REMUNERATION

The Company is required to disclose in its annual report details of remuneration to Directors. A detailed explanation of the basis and quantum of Directors’ remuneration is set out in the Directors’ Report.

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REVIEW OF BOARD PERFORMANCE

There is currently no formal process for performance evaluation of the Board, individual directors or the Executive Director.

CONTINUOUS DISCLOSURE

The Company must comply with the continuous disclosure requirements of the ASX Listing Rules and Corporations Act 2001. The Company is required to disclose to the ASX any information which a reasonable person would expect to have a material effect on the price or value of the Company’s securities unless certain exemptions from the requirements apply. To ensure it meets its continuous disclosure obligations, the Board has nominated the Executive Director and Company Secretary as responsible for all disclosure matters. Their role is to collate and, where appropriate, disclose share price sensitive information.

IDENTIFICATION AND MANAGEMENT OF SIGNIFICANT BUSINESS RISK

The Board has identified the significant areas of potential business and legal risk to the Company. The identification, monitoring and, where appropriate, the reduction of significant risk to the Company is the responsibility of the Executive Director. The Board reviews and monitors the parameters under which such risks will be managed.

ETHICAL STANDARDS

The Company recognises the need for Directors and employees to observe the highest standards of behaviour and business ethics when engaging in corporate activity.

The Company’s officers and employees are members of their appropriate professional bodies and are required to act in accordance with the law and with the highest ethical standards.

Directors and staff of Energy Metals Limited are not permitted to engage in trading of the Company’s shares during a period when they are in possession of price sensitive information which is not currently available to the market. This includes the period leading up to the release of periodic reports.

Where a conflict of interest may arise, the relevant Director(s) leave the meeting to ensure a full and frank discussion of the matter(s) under consideration.

SHAREHOLDER COMMUNICATION

In the Company’s current stage of development, matters of crucial importance arise regularly. The Executive Director will discuss significant issues with Board members and jointly will make a decision on the timely release of factual and balanced information concerning the Company’s activities.

The Board of Energy Metals Limited endeavours to ensure that shareholders are informed of all the activities affecting the Company. Information is conveyed to shareholders via the annual report, quarterly reports and other announcements which are delivered to the Australian Stock Exchange and posted on the Company’s website (http://www.energymetals.net). Shareholders with access to the internet are encouraged to submit their email addresses to receive electronic copies of information distributed by the Company. Hard copies of this information are available on request.

The Board encourages the attendance and participation of shareholders at the Annual General Meeting and specifically convened General Meetings by holding those meetings in a location accessible by a large number of shareholders.

EXTERNAL AUDITOR

The Company’s policy is to appoint external auditors who clearly demonstrate quality and independence. It is the auditor’s policy to rotate engagement partners on listed companies at least every five years.

The auditor is required to attend the Annual General Meeting of Shareholders. The Chairman will permit shareholders to ask questions about the conduct of the audit and the preparation and content of the audit report, in accordance with section 250T of the Corporations Act 2001.

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I N C O M E S T A T E M E N T

FOR THE YEAR ENDED 30 JUNE 2007

Note	Consolidated Company 2007 2006 2007 2006 $ $ $ $
Revenue from continuing operations 3a Depreciation expenses 3b Exploration expenditure written off 3b Employee benefits expenses 3c Corporate and regulatory expenses Joint Venture costs Other administrative expenses Profit (Loss) before income tax Income tax expense 24 Profit (Loss) after income tax Profit (Loss) attributable to members of Energy Metals Limited Earnings per share for profit (loss) attributable to the ordinary equity holders of the company: Basic earnings (loss) per share (cents per share) 14 Diluted earnings (loss) per share (cents per share) 14	995,766 - 995,766 169,852 (37,546) - (37,546) (11,180) (45,055) - (45,055) (41,588) (1,990,105) - (1,990,105) (806,862) (82,246) - (82,246) (271,449) (285,281) - (285,281) - (383,358) - (382,701) (233,994)
	(1,827,825) - (1,827,168) (1,195,221) - - - -
	(1,827,825) - (1,827,168) (1,195,221)
	(1,827,825) - (1,827,168) (1,195,221)
	(0.0698) - (0.0698) (0.058) (0.0698) - (0.0698) (0.058)

The above income statement should be read in conjunction with the accompanying notes.

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B A L A N C E S H E E T

AS AT 30 JUNE 2007

Note	Consolidated Company 2007 2006 2007 2006 $ $ $ $
CURRENT ASSETS Cash and cash equivalents 13 Trade and other receivables 12 Total Current Assets NON-CURRENT ASSETS Property, plant and equipment 6 Exploration and evaluation expenditure 7 Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 8 Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 9 Reserves 22, 23 Accumulated losses 20 TOTAL EQUITY	2,314,678 - 2,314,578 6,082,087 1,482,265 - 1,483,022 232,916
	3,796,943 - 3,797,600 6,315,003
	238,682 - 238,682 127,323 4,123,721 - 4,123,721 1,003,922
	4,362,403 - 4,362,403 1,131,245
	8,159,346 - 8,160,003 7,446,248
	275,444 - 275,444 15,778
	275,444 - 275,444 15,778
	275,444 - 275,444 15,778
	7,883,902 - 7,884,559 7,430,470
	8,539,427 - 8,539,427 8,007,395 2,419,100 - 2,419,100 669,875 (3,074,625) - (3,073,968) (1,246,800)
	7,883,902 - 7,884,559 7,430,470

The above balance sheet should be read in conjunction with the accompanying notes.

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C A S H F L O W S T A T E M E N T

FOR THE YEAR ENDED 30 JUNE 2007

Note	Consolidated Company 2007 2006 2007 2006 $ $ $ $
Cash flows from operating activities Payments to suppliers and consultants Joint Venture fees received Joint Venture costs Interest received Net cash inflow (outflow) from operating activities 11 Cash flows from investing activities Payments for exploration, evaluation and development expenditure Payments for property, plant and equipment Net cash inflow (outflow) from investing activities Cash flows from financing activities Proceeds from issue of shares and options Repayment of borrowing Net cash inflow (outflow) from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 11	Inflows Inflows Inflows Inflows (Outflows) (Outflows) (Outflows) (Outflows) (1,933,291) - (1,933,391) (640,725) 628,427 - 628,427 - (285,281) - (285,281) - 367,339 - 367,339 129,990
	(1,222,806) - (1,222,906) (640,725)
	(3,164,854) - (3,164,854) (550,558) (148,905) - (148,905) (135,691)
	(3,313,759) - (3,313,759) (556,259)
	532,031 - 532,031 7,639,499 - - - (360,431)
	532,031 - 532,031 7,279,068
	(4,004,534) - (4,004,634) 6,082,084 6,082,087 - 6,082,087 3
	2,077,554 - 2,077,453 6,082,087

The above cash flow statement should be read in conjunction with the accompanying notes.

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S T A T E M E N T O F C H A N G E S I N E Q U I T Y

FOR THE YEAR ENDED 30 JUNE 2007

	Consolidated Company 2007 2006 2007 2006 $ $ $ $
Total equity at the beginning of the year Loss for the year Total recognised income and expense for the year Transactions with equity holders in their capacity as equity holders Contributions of equity net of transaction costs Share options expense Total equity at the end of the year Total recognised income and expense for the year is attributable to: Members of Energy Metals Limited	7,430,470 - 7,430,470 316,317 (1,827,825) - (1,827,168) (1,195,221)
	(1,827,825) - (1,827,168) (1,195,221)
	532,032 - 532,032 7,639,499 1,749,225 - 1,749,225 669,875
	2,281,257 - 2,281,257 8,309,374
	7,883,902 - 7,884,559 7,430,470
	(1,827,825) - (1,827,168) (1,195,221)

The above statement of changes in equity should be read in conjunction with the accompanying notes.

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N O T E S T O A N D F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S

FOR THE YEAR ENDED 30 JUNE 2007

1. CORPORATE INFORMATION

The financial report of Energy Metals Limited for the year ended 30 June 2007 was authorised for issue in accordance with a resolution of directors on 14 September 2007.

The financial report covers the Group of Energy Metals Ltd and controlled entities, and Energy Metals Ltd as an individual parent entity. Energy Metals Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Stock Exchange.

The nature of the operations and principal activities of the Company are described in note 19.

Unless otherwise stated, policies adopted in the preparation of the financial report are consistent with those of the previous year.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In order to assist in the understanding of the accounts, the following summary explains the material accounting policies that have been adopted in the preparation of the accounts.

(a) BASIS OF PREPARATION/ACCOUNTING.

The financial report is a general purpose financial report prepared in accordance with Australian equivalents to International Financial Reporting Standards (“AIFRS”), other authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretation and the Corporations Act 2001. The Financial Report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

(b) STATEMENT OF COMPLIANCE

The Financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (“AIFRS”). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (“IFRS”).

(c) IMPAIRMENT OF ASSETS

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s values in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds it’s recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

As assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had the impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

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(d) SHARE BASED PAYMENT TRANSACTIONS

SHARE BASED PAYMENTS

Under AASB 2 Share Based Payments, the Company must recognise the fair value of options granted to directors, employees and consultants as remuneration as an expense on a pro-rata basis over the vesting period in the income statement with a corresponding adjustment to equity.

The Company provides benefits to employees (including directors) of the company in the form of share based payment transactions, whereby employees render services in exchange for shares or rights over shares (“equity-settled transactions”). The cost of these equity-settled transactions with employees (including directors) is measured by reference to fair value at the date they are granted. The fair value is determined using a binomial model.

(e) PRINCIPLES OF CONSOLIDATION

The consolidated financial statements comprise the financial statements of Energy Metals Limited and all of it’s controlled entities. A controlled entity exists where Energy Metals Ltd has the capacity to dominate the decision making in relation to the financial and operating policies of another entity so that the other entity operates with Energy Metals Ltd to achieve the objectives of Energy Metals Ltd. A list of controlled entities is contained in Note 4 to the financial statements.

All inter-company balances and transactions between entities in the group, including any unrealised profits of losses, have been eliminated on consolidation.

Where controlled entities have entered or left the group during the year, their operating results have been included from the date control was obtained or until the date control ceased.

• (f) PROPERTY, PLANT AND EQUIPMENT

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation is calculated using the diminishing value and prime cost methods and is brought to account over the estimated economic lives of all buildings, plant and equipment. The rates used are based on the useful life of the assets and range from 10% to 40%.

(g) INCOME TAX

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

• When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• When the deductible temporary difference is associated with investments in subsidiaries, associates or interest in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

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N O T E S T O A N D F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S C o n t i n u e d

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued

(g) INCOME TAX Continued

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority

OTHER TAXES

Revenues, expenses and assets are recognised net of the amount of GST except:

• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flow arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(h) EXPLORATION AND EVALUATION EXPENDITURE

The Company’s policy with respect to exploration and evaluation expenditure is to use the area of interest method. Under this method exploration and evaluation expenditure is carried forward on the following basis:

• i) Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or write off exploration and evaluation costs.

• ii) Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to tenure of the area of interest are current and that one of the following conditions is met:

• such evaluation costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sale; or

• exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing.

Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct expenditure.

• (i) CASH AND CASH EQUIVALENTS

• For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand, cash in bank accounts, money market investments readily convertible to cash within two working days, and bank bills but is net of outstanding bank overdrafts.

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(j) EMPLOYEE ENTITLEMENTS

The Company’s liability for employee entitlements arising from services rendered by employees to balance date are recognised in other payables. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, and annual leave which will be settled within one year, have been measured at their nominal amount and include related on-costs.

(k) EARNINGS PER SHARE

• (i) BASIC EARNINGS PER SHARE

Basic earnings per share is determined by dividing the operating loss attributable to the equity holder of the Company after income tax by the weighted average number of ordinary shares outstanding during the financial period.

(ii) DILUTED EARNINGS PER SHARE

Diluted earnings per share adjusts the figures used in determination of basic earnings per share by taking into account amounts unpaid on ordinary shares and any reduction in earnings per share that will arise from the exercise of options outstanding during the period.

(l) REVENUE

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax.

(m) INTEREST IN A JOINTLY CONTROLLED OPERATION

The Company has an interest in a joint venture that is a jointly controlled operation. A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. A joint controlled operation involves the use of assets and other resources of the venturers rather than establishment of a separate entity. The Company recognises its interest in the jointly controlled operation by recognising the assets that it controls and the liabilities that it incurs. The Company also recognises the expenses that it incurs and its share of the income that it earns from the sale of goods or services by the jointly controlled operation.

(n) TRADE AND OTHER RECEIVABLES

Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Current receivables for GST are due for settlement within 30 days and other current receivables within 12 months. Cash on deposit is not due for settlement until rights of tenure are forfeited or performance obligations are met.

(o) TRADE AND OTHER PAYABLES

Trade payables and other payables are carried at cost and represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30 days of recognition.

(p) CONTRIBUTED EQUITY

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

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N O T E S T O A N D F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S C o n t i n u e d

3a. REVENUE Revenue from continuing operations includes the following revenue items: Interest received from other parties Joint Venture administration fees 3b. EXPENSES Profit (Loss) includes the following specific expenses: Depreciation Exploration expenditure written off 3c. EMPLOYEE BENEFITS EXPENSES Share based payment expense - Employees - Directors Wages & superannuation Directors fees Consultants		Consolidated Company 2007 2006 2007 2006 $ $ $ $
		367,339 - 367,339 129,990 628,427 - 628,427 39,862
		995,766 - 995,766 169,852 37,546 - 37,546 11,180 45,055 - 45,055 41,588 1,749,225 - 1,749,225 - - - - 669,875 135,402 - 135,402 36,923 35,000 - 35,000 35,000 70,478 - 70,478 65,064
		1,990,105 - 1,990,105 806,862

4. CONTROLLED ENTITIES

% held State of Date of 2007 2006 Class Incorporation Incorporation	Investment at Cost 2007 2006
Parent Entity Energy Metals Limited Ord WA 08/10/2004 Controlled Entities NT Energy Pty Ltd 100% 0% Ord VIC 15/11/2006	- - 100 -
	100 -

The date of acquisition of the controlled entities was on the date of incorporation. The fair value of net assets acquired at the date of acquisition was nil.

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5. KEY MANAGEMENT PERSONNEL

• (a) Details of Directors (Key Management Personnel)

The following persons were directors of Energy Metals Limited during the financial year:

• Mr D R Kennedy - Chairman

• Mr L Dudfield - Executive Director

• Mr O Aamodt - Non-Executive Director

There were no other key management personnel during the year ended 30 June 2007.

• (b) Key Management Personnel Compensation

Key Management Personnel Compensation
	Consolidated Company 2007 2006 2007 2006 $ $ $ $
Short-term employee benefits -directors Post-employment benefits Share-based payments – directors	185,431 - 185,431 145,940 - - - - - - - 669,872
	185,434 - 185,431 815,815

The Company has utilised the relief provided by Corporations Regulations 2M.6.04 and has transferred the detailed remuneration disclosures to the Directors’ Report. The relevant information can be found in the remuneration report within the Directors’ Report.

• (c) Equity Instrument Disclosures Relating to Directors and Employees

• (i) Options provided as remuneration and shares issued on any exercise of such options

Details of options provided as remuneration and shares issued on any exercise of such options to Directors, together with terms and conditions can be found within the Directors’ Report in the Remuneration Report.

• (ii) Share and option holdings

The number of shares and options over ordinary shares in the Company held during the financial year by each Director of Energy Metals Limited, including their personally related parties, are set out below:

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N O T E S T O A N D F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S C o n t i n u e d

5. KEY MANAGEMENT PERSONNEL Continued

SHAREHOLDINGS

Aggregate numbers of shares and options of the Company held directly, indirectly or beneficially by Directors of the Company at the date of this report:

2007	Balance at	Received during	Other changes	Balance at
	at the start	the year on exercise	during	the end of
Name	of the year	of options	the year	the year
Mr D R Kennedy
Ordinary fully paid shares	36,000	-	-	36,000
Listed Options (ASX Code EMEO)	18,000	-	(10,000)	8,000
Unlisted Options (ASX Code EMEAM)	500,000	-	-	500,000
Mr L G Dudfield
Ordinary fully paid shares	1,372,000	-	-	1,372,000
Listed Options (ASX Code EMEO)	686,000	-	-	686,000
Unlisted Options (ASX Code EMEAM)	500,000	-	-	500,000
Mr O Aamodt
Ordinary fully paid shares	50,000	-	-	75,000
Listed Options (ASX Code EMEO)	25,000	25,000	-	-
Unlisted Options (ASX Code EMEAM)	250,000	-	-	250,000

2006
Mr D R Kennedy
Ordinary fully paid shares	-	-	36,000	36,000
Listed Options (ASX Code EMEO)	-	-	18,000	18,000
Unlisted Options (ASX Code EMEAM)	-	-	500,000	500,000
Mr L G Dudfield
Ordinary fully paid shares	-	-	1,372,000	1,372,000
Listed Options (ASX Code EMEO)	-	-	686,000	686,000
Unlisted Options (ASX Code EMEAM)	-	-	500,000	500,000
Mr O Aamodt
Ordinary fully paid shares	-	-	50,000	50,000
Listed Options (ASX Code EMEO)	-	-	25,000	25,000
Unlisted Options (ASX Code EMEAM)	-	-	250,000	250,000

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(d) Other Transactions with Key Management Personnel

• i) Pursuant to a Consulting Agreement dated 6 July 2005 between the Company and Jopan Management Pty Ltd (“Jopan”), the Company paid a total of $114,708 during the year to Western Geological Services (a division of Jopan). The fees were for the provision of technical and management services provided to the Company by Mr Lindsay Dudfield. Mr Dudfield’s spouse is the major shareholder of, and sole director and company secretary of Jopan.

• ii) During the year the Company paid Little Tagon Pty Ltd, a company related to Mr Donald Ross Kennedy, $10,000 being Directors Fees and $35,723 for the provision of technical and management services provided by Mr Kennedy.

• iii) During the year the Company paid a total of $120,000 to Jindalee Resources Limited for provision of registered and serviced offices and the provision of staff (employed by Jindalee) to provide administrative, secretarial, corporate compliance and reception services. During the year the Company reimbursed Jindalee Resources a total of $32,999 being reimbursement for goods purchased by Jindalee on behalf of Energy Metals. Jindalee Resources is a substantial shareholder in Energy Metals holding 10,000,000 shares escrowed until 09/09/2007. Lindsay George Dudfield and Donald Ross Kennedy are also directors of Jindalee Resources Limited.

6.		Consolidated Company 2007 2006 2007 2006 $ $ $ $
	NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT Plant and equipment – at cost Less accumulated depreciation Motor vehicle – at cost Less accumulated depreciation	236,973 - 236,973 117,432 (42,074) - (42,074) (11,012)
		194,899 - 194,899 106,420
		50,727 - 50,727 21,364 (6,944) - (6,944) (461)
		43,783 - 43,783 20,903

	Plant & equipment Motor vehicle Total $ $ $
Reconciliation of the carrying amount of property plant and equipment: Carrying amount at 1 July 2006 Additions Depreciation expense Carrying amount at 30 June 2007	106,420 20,903 127,323 119,542 29,363 148,905 (31,063) (6,483) (37,546)
	194,899 43,783 238,682

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N O T E S T O A N D F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S C o n t i n u e d

7.	Consolidated Company 2007 2006 2007 2006 $ $ $ $	Consolidated Company 2007 2006 2007 2006 $ $ $ $
	NON-CURRENT ASSETS – EXPLORATION AND EVALUATION EXPENDITURE Balance at beginning of the year 1,003,922 - 1,003,922 494,952 Exploration expenditure incurred 3,164,854 - 3,164,854 550,558 Exploration expenditure written off (45,055) - (45,055) (41,588) Balance at the end of the year 4,123,721 - 4,123,721 1,003,922
		4,123,721 - 4,123,721 1,003,922

The balance carried forward represents projects in the exploration and evaluation phase.

Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial exploitation, or alternatively, sale of respective areas

8.	CURRENT LIABILITIES – TRADE AND OTHER	PAYABLES
	Other payables	38,320	-	38,320	15,778
	Bank overdraft (unpresented cheques)	237,124	-	237,124	-
		275,444	-	275,444	15,778
9.	CONTRIBUTED EQUITY
	Share capital
	26,871,579 ordinary shares, fully paid (2006: 25,179,802)	8,539,427	-	8,539,427	8,007,395
	Balance at the beginning of the year	8,007,395	-	8,007,395	9,977,594
	Movements:
	1,656,777 fully paid ordinary shares @ 30 cents
	each on the exercise of options on various dates	497,032	-	497,032	53,941
	35,000 fully paid ordinary shares @ $1 each on the
	exercise of options on 07/02/2007	35,000	-	35,000	-
	less: transaction costs	-	-	-	(24,140)
	Balance at the end of year	8,539,427	-	8,539,427	8,007,395

Ordinary shares participate in dividends. On winding up of the company any proceeds would be distributed in proportion to the number of the shares held. At shareholder meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholders has one vote on a show of hands.

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10. PERFORMANCE BONDS AND SECURITY DOCUMENTS

In support of titles granted to or operated by the Company, various securities have been submitted to the Department of Industry and Resources. These consist of unconditional performance bonds, securities or Form 32 security documents with a total potential liability of $30,000.

11. 12. 13.		Consolidated Company 2007 2006 2007 2006 $ $ $ $
	RECONCILIATION OF PROFIT (LOSS) AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Profit (Loss) after income tax Exploration expenditure written off Depreciation Share based payment expense Change in operating assets and liabilities during the financial year: (Increase) decrease in trade and other receivables Increase (decrease) in trade and other payables Net cash (outflow) from operating activities Reconciliation of cash balance comprises: Cash and cash equivalents Bank overdraft (unpresented cheques) TRADE AND OTHER RECEIVABLES Trade receivables Other receivables Share of Joint Venture receivables CASH AND CASH EQUIVALENTS Term deposits Cash at bank Share of Joint Venture cash	(1,827,825) - (1,827,168) (1,195,221) 45,055 - 45,055 41,588 37,546 - 37,546 11,180 1,749,225 - 1,749,225 669,875 (1,249,349) - (1,249,449) (46,524) 22,452 - 22,452 8,367
		(1,222,806) - (1,222,906) (510,735)
		2,314,678 - 2,314,578 6,082,087 (237,124) - (237,124) -
		2,077,554 - 2,077,454 6,082,087
		1,447,008 - 1,447,008 186,392 - - 757 46,524 35,257 - 35,257 -
		1,482,265 - 1,483,022 232,916
		1,999,341 - 1,999,241 5,503,081 - - - 579,006 315,337 - 315,337 -
		2,314,678 - 2,314,578 6,082,087

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14.	Consolidated 2007 2006 $ $	Company 2007 2006 $ $
	EARNINGS PER SHARE Earnings used in calculation of basic and diluted earnings per share (1,827,825) - Basic earnings (loss) per share (cents per share) (0.0698) - Diluted earnings (loss) per share (cents per share) (0.0698) -	(1,827,168) (1,195,221) (0.0698) (0.058) (0.0698) (0.058) 2007 2006 Number Number
	Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share. Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share	26,173,108 20,430,747
		26,173,108 20,430,747

15. CONTINGENCIES

CONTINGENT LIABILITIES

CLAIMS OF NATIVE TITLE

To date the Company has been notified by the Native Title Tribunal of native title claims which cover some of the Company’s licence holdings. Until further information arises in relation to the claims and its likelihood of success, the Company is unable to assess the likely effect, if any, of the claims.

		Consolidated			Company
		2007	2006	2007	2006
		$	$	$	$
	COMMITMENTS
	TENEMENT EXPENDITURE COMMITMENTS:
	The Company is required to maintain current rights of
	tenure to tenements, which require outlays of expenditure
	in 2007/2008. Under certain circumstances these
	commitments are subject to the possibility of
	adjustment to the amount and/or timing of such
	obligations, however, they are expected to be fulfilled
	in the normal course of operations.
	Estimated expenditure on mining, exploration
	and prospecting leases for 2007/2008.	499,500	-	499,500	530,700

16. COMMITMENTS

Capital Commitments

There are no capital expenditure commitments for the Company as at 30 June 2007.

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	Consolidated Company 2007 2006 2007 2006 $ $ $ $
REMUNERATION OF AUDITORS Amounts received or due and receivable at 30 June 2007 by the auditors for: Audit and review of the financial reports	20,582 - 20,582 10,106
	20,582 - 20,582 10,106

17. REMUNERATION OF AUDITORS

18. FINANCIAL RISK MANAGEMENT

(a) Credit Risk Exposure

The Company has no significant concentrations of credit risk.

(b) Interest Rate Risk Exposure

The Company’s exposure to interest rate risk arises from assets and liabilities bearing variable interest rates. The

weighted average interest rate on cash holdings was 4.35% at 30 June 2007. All other financial assets and liabilities are non interest bearing. The net fair value of the Company’s financial assets and liabilities approximates their carrying value.

19. SEGMENT INFORMATION

Business Segment

During the financial year the Company operated in one segment, the mining exploration and prospecting industry.

Geographical Segments

During the financial year the Company operated within Australia only, specifically the Northern Territory and Western Australia.

20. ACCUMULATED LOSSES

Accumulated losses at the beginning of the financial year Net profit (loss) attributable to members of the Company Accumulated profits (losses) at the end of the financial year	(1,246,800) - (1,246,800) (51,579) (1,827,825) - (1,827,168) (1,195,221)
	(3,074,625) - (3,073,968) (1,246,800)

21. EVENTS OCCURRING AFTER BALANCE SHEET DATE

There are no events subsequent to the end of the financial year that would have a material effect on the financial report.

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22. SHARE BASED PAYMENT TRANSACTIONS

Share based payments transactions are recognised at fair value in accordance with AASB 2. The adoption of AASB 2 is equity-neutral for equity-settled transactions. The expense in the year was $1,749,225 (2006: $669,875).

EMPLOYEE OPTION PLAN

The establishment of the Energy Metals Employee Share Option Plan was approved by shareholders at the 2006 annual general meeting. The Employee Share Option Plan is designed to provide eligible employees, executive officers and directors of the Company an opportunity, in the form of Options to subscribe for Shares in the Company. An “eligible employee” is a person who is at the time of an offer under the plan, a full or part time employee or director of the Company or an associated body corporate of the Company. Any offer of options to Directors will be subject to shareholder approval.

Under the plan, the Board may offer to eligible persons the opportunity to subscribe for such number of Options in the Company as the Board may decide and on the terms set out in the rules of the plan. Options granted under the plan will be offered to participants in the plan on the basis of the Board’s view of the contribution of the eligible person to the Company. When exercisable, each option is convertible into one ordinary share. Options granted under the plan carry no dividend or voting rights.

Set out below are summaries of options granted under the plan:

			Balance	Granted	Exercised	Forfeited	Balance	Vested and
			at the	during	during	during	at end	exercisable
	Expiry	Exercise	start of	the	the	the	of the	at end of
Grant Date	Date	Price	the year	year	year	year	year	the year
			Number	Number	Number	Number	Number	Number
Consolidated	and parent entity	- 2007
22/12/2006	30/06/2011	$1.00	-	200,000	35,000	-	165,000	-
22/12/2006	30/06/2011	$2.00	-	200,000	-	-	200,000	-
05/01/2007	30/06/2011	$3.00	-	350,000	20,000	-	330,000	-
Weighted average exercise price			-	$2.20	$1.73	-	$2.23	-
Consolidated	and parent entity	- 2006
-	-	-	-	-	-	-	-	-
Weighted average exercise price		-	-	-	-	-	-

Fair Value of share options and assumptions

The fair value of services received in return for share options granted to employees is measured by reference to the fair value of options granted. The estimate of the fair value of the services is measured based on Black-Scholes option valuation methodology. The life of the options and early exercise option are built into the option model.

The assumptions used for the options valuation are as follows:

Exercise Price	$1.00	$2.00	$3.00
Expected Life	4.49 years	4.49 years	4.49 years
Share Price at time of issue	$3.60	$3.60	$3.95
Expected volatility	70%	70%	68%
Dividend yield	0%	0%	0%
Risk free interest rate	5.75%	5.75%	6.27%
Option value	$2.989	$2.592	$2.5227

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23. 24.		Consolidated Company 2007 2006 2007 2006 $ $ $ $
	RESERVES Share-based option reserve Balance at the beginning of the year 699,875 - 669,875 - Options expense (Note 22 & 3) 1,749,225 - 1,749,225 669,875 Balance at the end of the year 2,419,100 - 2,419,100 669,875 Nature and purpose of the reserve: The share-based payments reserve is used to recognise the fair value of options issued but not exercised. TAXATION The reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Company’s applicable income tax rate is as follows: Loss before income tax (1,827,825) - (1,827,168) (1,195,221) Income tax (benefit) @ 30% (548,347) - (548,150) (358,566) Tax effect of amounts which are not deductible in calculating taxable income: Share based payments 524,767 - 524,767 200,962 Other costs not deductible 2078 - 2078 115 Temporary differences not recognised - - - 834 Deferred tax assets relating to tax losses not recognised (21,502) - (21,305) 156,655 Total income tax expense - - - - The franking account balance at year end was $nil (2006: $nil). Deferred tax assets and liabilities not recognised relate to the following: Deferred tax assets Tax losses 1,049,788 - 1,049,788 573,760 Other temporary differences - - - 834 Deferred tax liabilities Other temporary differences - - - - Net deferred tax assets 1,049,788 - 1,049,788 574,594	699,875 - 669,875 - 1,749,225 - 1,749,225 669,875
		2,419,100 - 2,419,100 669,875
		1,049,788 - 1,049,788 574,594

Net deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised.

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25. DIVIDENDS

There were no dividends paid or declared by the Company during the year.

26. NEW ACCOUNTING STANDARDS AND UIG INTERPRETATIONS

Certain new accounting standards and UIG interpretations have been published that are not mandatory for 30 June 2007 reporting periods. The directors of the Group have assessed the impact of these new standards and interpretations and have determined that there would be no material impact on the reported results of the Group for the year ended 30 June 2007. The Group has therefore not adopted any of the pronouncement for this reporting period. Where the new standards and interpretations relate specifically to disclosures requirements the directors of the Group will assess all the necessary impacts on future annual reports and provide comparative information.

27. RELATED PARTY TRANSACTIONS

(a) Parent entities

The parent entity within the Group is Energy Metals Limited.

• (b) Subsidiaries

Interests in subsidiaries are set out in Note 4.

• (c) Key Management Personnel

Disclosures relating to key management personnel are set out in Note 5.

• (d) Administrative Services Agreement

Disclosures relating to the Administrative Services Agreement are set out in Note 5d (iii).

28. INTEREST IN JOINT VENTURE OPERATIONS

The Company has the following interest in unincorporated joint ventures:

			% Interest
Joint Venture	Principal Activity	2007		2006
Bigrlyi Joint Venture	Uranium Exploration	53.29		53.29

The joint venture is a contractual arrangement between participants for the sharing of costs and outputs and does not generate revenue and profit. The joint venture does not hold any assets and the Company’s share of exploration and evaluation expenditure is accounted for in accordance with the policy set out in Note 2.

The Company is a participant in the Bigrlyi Joint Venture with a 53.29% interest. The other participants in the joint venture are Valhalla Uranium Limited (41.71%) and Southern Cross Exploration NL (5%).

The company has brought to account its percentage interest of the operating costs of the joint venture in the Income Statement, and its percentage interest of the assets in the Balance Sheet.

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The Company’s share of assets employed in the joint venture is:

The Company’s share of assets employed in the joint venture	is:
	Consolidated Company 2007 2006 2007 2006 $ $ $ $
CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON CURRENT ASSETS Exploration and evaluation expenditure TOTAL NON CURRENT ASSETS TOTAL ASSETS	315,337 - 315,337 - 35,257 - 35,257 -
	350,594 - 350,594 -
	2,282,250 - 2,282,250 - 2,282,250 - 2,282,250 -
	2,632,844 - 2,632,844 -

a) Capital commitments

There are no capital expenditure commitments for the Joint Venture as at 30 June 2007.

b) Contingent liabilities

To date the joint venture has been notified by the Native Title Tribunal of native title claims which cover some of the joint venture licence holdings.

Until further information arises in relation to the claims and its likelihood of success the joint venture is unable to assess the likely impact, if any, of the claims.

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D I R E C T O R S ’ D E C L A R A T I O N

In accordance with a resolution of the Board of Directors, I state that: In the opinion of the Directors:

• (1) (a) the financial statements, notes and audited remuneration disclosures included in the directors’ report of the Company are in accordance with the Corporations Act 2001, including:

  • (i) giving a true and fair view of the Company and consolidated entity’s financial position at 30 June 2007 and of their performance for the year ended on that date: and

  • (ii) complying with Accounting Standards and Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and

• (c) the audited remuneration disclosures set out on pages 6 to 8 of the directors’ report comply with Accounting Standards AASB 124 Related Party Disclosures and the Corporations Regulations 2001.

• (2) This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2007.

On behalf of the Board.

L G DUDFIELD

Executive Director

Perth, Western Australia 14th September 2007.

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A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N

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14th September 2007

The Board of Directors

Energy Metals Limited Level 2, 18 Kings Park Road WEST PERTH WA 6005

Dear Sirs

DECLARATION OF INDEPENDENCE BY BDO KENDALLS TO THE DIRECTORS OF ENERGY METALS LIMITED

As lead auditor of Energy Metals Limited for the year ended 30 June 2007, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Energy Metals Limited and the entities it controlled during the period.

Yours faithfully

BDO Kendalls Audit & Assurance (WA) Pty Ltd

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CHRIS BURTON

Director

Perth, Western Australia

Dated this 14th day of September 2007

BDO Kendalls is a national association of separate partnerships and entities.

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I N D E P E N D E N T A U D I T O R ’ S R E P O R T

TO THE MEMBERS OF ENERGY METALS LIMITED

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Report on the Financial Report and AASB 124 Remuneration Disclosures Contained in the Directors’ Report

We have audited the accompanying financial report of Energy Metals Limited, which comprises the balance sheet as at 30 June 2007, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entity it controlled at the year’s end or from time to time during the financial year.

We have also audited the remuneration disclosures contained in the directors’ report. As permitted by the Corporations Regulations 2001, the consolidated entity has disclosed information about the remuneration of directors and executives (“remuneration disclosures”), required by Accounting Standard AASB 124 Related Party Disclosures, under the heading “Remuneration Report” in pages 6 to 7 of the directors’ report and not in the financial report.

DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL REPORT AND THE AASB 124 REMUNERATION DISCLOSURES CONTAINED IN THE DIRECTORS’ REPORT

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the consolidated financial statements and notes, complies with International Financial Reporting Standards.

The directors of the company are also responsible for the remuneration disclosures contained in the directors’ report.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. Our responsibility is to also express an opinion on the remuneration disclosures contained in the directors’ report based on our audit.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report and the remuneration disclosures contained in the directors’ report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report and the remuneration disclosures contained in the directors’ report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report and the remuneration disclosures contained in the directors’ report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report and the remuneration disclosures contained in the directors’ report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

BDO Kendalls is a national association of separate partnerships and entities.

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INDEPENDENCE

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Energy Metals Limited on 14th September 2007, would be in the same terms if provided to the directors as at the date of this auditor’s report.

AUDITOR’S OPINION ON THE FINANCIAL REPORT

In our opinion:

• (a) the financial report of Energy Metals Limited is in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2007 and of its performance for the year ended on that date; and

• (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

• (b) the consolidated financial statements and notes also complies with International Financial Reporting Standards as disclosed in Note 2.

AUDITOR’S OPINION ON THE AASB 124 REMUNERATION DISCLOSURES CONTAINED IN THE DIRECTORS’ REPORT

In our opinion the remuneration disclosures that are contained in pages 6 to 7 of the directors’ report comply with Accounting Standard AASB 124.

BDO Kendalls Audit & Assurance (WA) Pty Ltd

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CHRIS BURTON

Director

Perth, Western Australia

Dated this 14th day of September 2007

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A D D I T I O N A L I N F O R M A T I O N

The following additional information not shown elsewhere in this report is required by the Australian Stock Exchange Ltd in respect of listed public companies only. This information is current as at 18/09/2007.

SUBSTANTIAL SHAREHOLDERS

The Company has received a notice of substantial holding from the following:

• Jindalee Resources Limited in relation to 11,400,000 ordinary shares (40.27%)

• Kale Capital Corporation in relation to 3,003,507 ordinary shares (10.61%)

• Denison Mines Inc. in relation to 3,000,000 ordinary shares (10.60%)

• Mr Lindsay Dudfield in relation to 1,422,000 ordinary shares (5.02%)

ISSUED SECURITIES

QUOTED SECURITIES

QUOTED SECURITIES
ASX Code	Number of Holders	Security Description	Total Securities
EME	961	Ordinary Fully Paid	28,307,176
EMEO*	240	Options expiring 30/06/2008	8,517,687
		exercisable at 30c
UNQUOTED SECURITIES
ASX Code	Number of Holders	Security Description	Total Securities
EMEAM*	3	Options expiring 30/06/10	1,250,000
		exercisable at 35c
EMEAO*	1	Options expiring 30/06/11	165,000
		exercisable at $1.00
EMEAQ*	1	Options expiring 30/06/11	200,000
		exercisable at $2.00
EMEAS*	3	Options expiring 30/06/11	330,000
		exercisable at $3.00
ASX Code	Name of Holders	Security Description	Total Securities
EMEAK*	Central Pacific Minerals NL	Options expiring 30/06/08	400,000
		exercisable at 30c

VOTING RIGHTS

The voting rights of each class of share are as follows: Fully Paid Ordinary Shares – one vote per share held. *Options – no voting rights are attached to unexercised options.

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DISTRIBUTION SCHEDULE

DISTRIBUTION SCHEDULE
Spread of Holdings	Ordinary Shares Listed Options (EME) (EMEO)
1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over TOTAL HOLDERS	295 26 368 128 173 40 111 37 14 9
	961 240

UNMARKETABLE PARCELS

As at 18/09/2007 there were 23 shareholders holding less than a marketable parcel of shares.

20 LARGEST SHAREHOLDERS

The names of the twenty largest shareholders (ASX Code: EME) are listed below:

		% of Issued	Number of
	Name	Securities	Ordinary Shares
1.	Jindalee Resources Limited	40.27	11,400,000
2.	Kale Capital Corporation	10.61	3,003,507
3.	Denison Mines Inc.	10.60	3,000,000
4.	Lindsay George Dudfield	5.02	1,422,000
5.	Grandor Pty Ltd	4.42	1,250,000
6.	Jopan Management Pty Ltd	1.98	559,500
7.	Teck Cominco Australia Pty Ltd	1.77	500,000
8.	Yandal Investments Pty Ltd	1.28	361,000
9.	Perth Select Seafoods Pty Ltd	1.24	350,000
10.	Ross Asset Management Limited	1.06	299,949
11.	HSBC Custody Nominees Australia Ltd	0.77	217,857
12.	Piranha Nominees Pty Ltd	0.71	200,000
13.	UBS Wealth Management Australia	0.70	197,942
14.	Pan Australia Nominees Pty Ltd	0.46	128,832
15.	Andrew Daniel Gabor Scott	0.35	99,000
16.	ANZ Nominees Ltd	0.31	86,985
17.	Davmin Pty Ltd	0.28	80,000
18.	United Asset Manaagement Ltd	0.27	76,000
19.	Aamodt Oscar & Wendy	0.26	75,000
20.	Nefco Nominees Pty Ltd	0.26	73,293

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20 LARGEST OPTION HOLDERS

The names of the twenty largest holders of listed options (ASX Code: EMEO) are listed below:

		% of Issued	Number of
	Name	Securities	Options
1.	Jindalee Resources Limited	42.26	3,600,000
2.	Kale Capital Corporation	15.49	1,319,654
3.	Lindsay George Dudfield	8.05	686,000
4.	Grandor Pty Ltd	5.87	500,000
5.	Jopan Management Pty Ltd	2.75	234,500
6.	Perth Select Seafoods Pty Ltd	2.58	220,000
7.	Ross Asset Management	2.32	197,479
8.	Yandal Investments Pty Ltd	2.12	180,500
9.	Hoyes-Cock J A & Thorp P	1.06	90,000
10	Nefco Nominees Pty Ltd	0.93	79,000
11.	Peter Trevor Chappell	0.67	57,397
12.	Hendricus Pty Ltd	0.59	50,000
13.	Andrew Daniel Gabor Scott	0.52	44,500
14.	James Farr	0.48	40,750
15.	United Asset Management	0.45	38,000
16.	Lake Argyle Holdings Pty Ltd	0.42	36,000
17.	Scott John Harmer	0.42	35,869
18.	Australian Golf Promotions Pty Ltd	0.40	34,000
19.	Leecorp Pty Ltd	0.34	29,000
20.	Watson N K & Moroney M H	0.32	27,500

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INTERESTS IN MINING TENEMENTS as at 18/09/2007.

WESTERN AUSTRALIA

E08/1480	Manyingee	Granted	E58/292	Anketell	Granted
E21/120	Lakeside	Granted	E69/2303	Rawlinson	Application
E29/568	Mopoke Well	Granted	E69/2281*4	Rawlinson	Application
ELA29/623	Mopoke Well	Application	E69/2282*4	Rawlinson	Application
E57/590	Lake Mason	Granted	E69/2283*4	Rawlinson	Application
E58/289	Anketell	Granted
NORTHERN TERRITORY
ERL46*1	Bigrlyi Project	Granted	MCSA273*1	Ngalia Regional	Application
ERL47*1	Bigrlyi Project	Granted	MCSA274*1	Ngalia Regional	Application
ERL48*1	Bigrlyi Project	Granted	MCSA275*1	Ngalia Regional	Application
ERL49*1	Bigrlyi Project	Granted	MCSA276*1	Ngalia Regional	Application
ERL50*1	Bigrlyi Project	Granted	MCSA277*1	Ngalia Regional	Application
ERL51*1	Bigrlyi Project	Granted	MCSA278*1	Ngalia Regional	Application
ERL52*1	Bigrlyi Project	Granted	MCSA318*1	Ngalia Regional	Application
ERL53*1	Bigrlyi Project	Granted	MCSA319*1	Ngalia Regional	Application
ERL54*1	Bigrlyi Project	Granted	MCSA320*1	Ngalia Regional	Application
ERL55*1	Bigrlyi Project	Granted	MCSA321*1	Ngalia Regional	Application
ELA24450	Ngalia Regional	Application	MCSA322*1	Ngalia Regional	Application
EL24451	Ngalia Regional	Granted	MCSA323*1	Ngalia Regional	Application
EL24453	Ngalia Regional	Granted	MCSA324*1	Ngalia Regional	Application
ELA24462	Ngalia Regional	Application	MCSA325*1	Ngalia Regional	Application
EL24463	Ngalia Regional	Granted	MCSA326*1	Ngalia Regional	Application
EL24533	Ngalia Regional	Granted	MCSA327*1	Ngalia Regional	Application
ERLA41*2	Ngalia Regional	Application	MCSA328*1	Ngalia Regional	Application
ERLA45*3	Ngalia Regional	Application	MCSA329*1	Ngalia Regional	Application
MCSA270*1	Ngalia Regional	Application	MCSA330*1	Ngalia Regional	Application
MCSA271*1	Ngalia Regional	Application	MLNA1952*1	Ngalia Regional	Application
MCSA272*1	Ngalia Regional	Application	MLNA1953*1	Ngalia Regional	Application
EL24804	Ngalia Regional	Granted
EL24805	Ngalia Regional	Application
EL24806	Ngalia Regional	Granted
EL24807	Ngalia Regional	Granted

All of the above tenements are beneficially owned by Energy Metals Limited and percentage interest is 100% unless otherwise stated. ABBREVIATIONS

1 = 53.3% interest 2 = 52.1% interest 3 = 41.9% interest 4 = option to acquire 100% interest

E = Exploration Licence (WA) ELA = Exploration Licence Application (WA) EL = Exploration Licence (NT) ELA = Exploration Licence Application (NT) ERL = Exploration Retention Licence (NT) ERLA = Exploration Retention Licence Application(NT) MCSA = Mineral Claim (Southern) Application (NT) MLNA = Mineral Lease (Northern) Application (NT)

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Level 2, 18 Kings Park Road West Perth WA 6005 Telephone: 61 8 9322 6904 Facsimile: 61 8 9321 7950 Email: enquiry@energymetals.net Web: www.energymetals.net