ENERGY METALS LTD — Capital/Financing Update 2007

Nov 28, 2007

29 November 2007

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

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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Dear Sir

RIGHTS ISSUE NOTICE UNDER SECTION 708AA OF THE CORPORATIONS ACT 2001 (CTH)

On 12 November 2007 Energy Metals announced to the market that a non-renounceable rights issue ("Rights Issue") of approximately 1,415,866 fully paid ordinary shares ("Shares") at an issue price of $3.50 per Share to raise approximately $4,955,531 (before costs of the Rights Issue) would be offered to all shareholders recorded on the share register at 5.00pm WDT on 28 November 2007 (“Record Date”). The Shares will be offered on the basis of one (1) Share for every twenty (20) Shares held.

The Company confirms the Rights Issue is being made without a disclosure document, pursuant to the exemption granted in section 708AA of the Corporations Act 2001 ("the Act").

Pursuant to section 708AA(7) of the Act, the Company provides the following information:

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

• (b) the Company is providing this notice under paragraph 2(f) of section 708AA of the Act;

• (c) as at the date of this notice, the Company has complied with:

• i. the provisions of Chapter 2M of the Act as they apply to the Company; and

• ii. section 674 of the Act; and

• (d) as at the date of this notice 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:

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

  • the rights and liabilities attaching to the Shares; and

• (e) if all shareholders take up their entitlement under the Rights Issue, the Rights Issue will have no effect on the control of the Company. Assuming no shareholders take up their entitlements under the Rights Issue, the underwriter Hartleys Limited would acquire up to 1,415,866 Shares representing approximately 4.76% of the Company’s voting shares on an undiluted basis.

FURTHER INFORMATION

As stated above, under the Rights Issue, approximately 1,415,866 Shares (subject to rounding) will be issued (this number may have to be increased to 1,958,493 Shares if all existing option holders exercise their options prior to the Record Date). The Shares will be issued for $3.50 each.

The Rights Issue is fully underwritten by Hartleys Limited (“Underwriter”). In consideration for the underwriting, the Company has agreed to pay the underwriter a fee equal to 5% of the amount raised under the Rights Issue.

The Underwriter has entered into sub underwriting agreements with 12 of the Company’s Top 20 shareholders (including some Director and/or Director related entities) representing 77.32% of the Company’s issued capital, whereby they have agreed to take up their respective entitlements (in full) pursuant to the Rights Issue. These shareholders will be paid a fee of 1% of the value of their Shares taken up, which will be paid by the Underwriter out of the underwriting fees.

Upon completion of the Rights Issue, and assuming existing optionholders have not exercised their options, the issued capital of the Company will comprise approximately 29,733,187 Shares, 8,507,542 listed options exercisable at $0.30 each on or before 30 June 2008; 400,000 unlisted options exercisable at $0.30 each on or before 30 June 2008; 1,250,000 unlisted options exercisable at $0.35 each on or before 30 June 2010; 165,000 unlisted options exercisable at $1.00 each on or before 30 June 2011; 200,000 unlisted options exercisable at $2.00 each on or before 30 June 2011 and 330,000 unlisted options exercisable at $3.00 each on or before 30 June 2011.

On 12 November 2007, the Company lodged with the ASX an Appendix 3B applying for quotation of the above mentioned Shares.

Yours sincerely

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Trish Farr Company Secretary.