ENERGY METALS LTD — Capital/Financing Update 2007

Dec 20, 2007

21 December 2007

The Manager Company Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000

Dear Sir

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

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SECONDARY TRADING NOTICE

Energy Metals Limited is pleased to announce that it has completed the allotment and issue of 1,482,287 ordinary shares at an issue price of $3.50 per share (" Shares ") pursuant to the non-renounceable rights issue raising $5,188,004.50 (before costs of the issue). The Company confirms holding statements will be despatched to Shareholders today.

The Company provides the following information in accordance with s708A(5)(e) of the Corporations Act 2001:

Secondary Trading Notice Pursuant to Paragraph 708A(5)(e) of the Corporations Act 2001 (“Act”)

The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A of the Act. By giving this notice, a sale of the Shares noted above will fall within the exemption in section 708A(5) of the Act.

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:

• (a) the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;

• (b) as at 21 December 2007, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and

• (c)

• as at 21 December 2007, there is no information:

• (i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

• (ii) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

  • a. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

  • b. the rights and liabilities attaching to the securities.

Yours sincerely,

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Trish Farr Company Secretary.