ENERGY METALS LTD — Capital/Financing Update 2007

Nov 11, 2007

12 November 2007

«Holder_Name» «Address_Line_1» «Address_Line_2» «Address_Line_3» «Address_Line_4» «Address_Line_5»

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 Shareholder

NON-RENOUNCEABLE RIGHTS ISSUE – INFORMATION FOR SHAREHOLDERS

On 12 November 2007 Energy Metals announced to the market a non-renounceable rights issue of fully paid ordinary shares ("Shares") to eligible shareholders holding Shares as at 28 November 2007 (the "Record Date") to subscribe for one (1) Share for every twenty (20) Shares then held at an issue price of $3.50 per Share (“Rights Issue”).

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.

The Rights Issue will result in the issue of approximately 1,415,866 Shares (based on Energy Metals' undiluted share capital) to raise approximately $4,955,531 (before costs of the Rights Issue) to be applied to further the exploration and development of the Company’s Bigrlyi Uranium Project, the Company’s 100% owned projects in both the Northern Territory and Western Australia and to provide additional working capital. The Rights Issue may be increased to 1,958,493 Shares to raise approximately $6,854,726 should existing optionholders exercise all their options prior to the Record Date.

Holdings on difference registers (or subregisters) will not be aggregated for the purposes of calculating entitlements. Fractional entitlements will be rounded down and Shares issued pursuant to the Rights Issue will rank equally with all Shares on issue. Shareholder approval is not required in relation to the Rights Issue.

In accordance with the Listing Rules of the Australian Securities Exchange, the Company has considered the number of shareholders with registered addresses outside of Australia and New Zealand and the size of the shareholdings held by those shareholders. Taking this into consideration as well as the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to shareholders with registered addresses outside of Australia and New Zealand, the Company has formed the view that it is unreasonable to extend the Rights Issue to those shareholders.

Upon completion of the Rights Issue, and assuming existing optionholders do not exercise 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.

Pursuant to new provisions introduced into the Corporations Act 2001, the Company is not required to prepare a prospectus for the Rights Issue. You will shortly receive an Entitlement and Acceptance Form together with a letter of offer. If you are eligible and wish to participate, please read the Entitlement and Acceptance Form when you receive it and carefully follow the instructions. The Rights Issue is expected to close on 13 December 2007.

A summary of key information and an indicative timetable for the Rights Issue is detailed below. A Rights Issue Announcement and Cleansing Statement released to the ASX on 12 November 2007 provide additional information regarding the Rights Issue and are available from the ASX website www.asx.com.au and the Company’s website www.energymetals.net

Key Dates:

A proposed timetable for the Rights Issue is set out below in more detail:

Rights Issue announcement, Appendix 3B and first Section 708AA Notice	12 November 2007
Letter to option holders detailing the Rights Issue	12 November 2007
Notice to security holders of Rights Issue terms	12 November 2007
Ex date	22 November 2007
Record date	28 November 2007
Lodge second Section 708AA Notice and dispatch Entitlement and Acceptance Forms	29 November 2007
Acceptances close at 5.00pm WDT (closing date)	13 December 2007
Allotment of Shares, despatch of holding statements and lodge Section 708A Cleansing Notice	21 December 2007

This timetable is indicative only and may be subject to change, subject to the ASX Listing Rules.

Shareholders should note that as the offer is non-renounceable, entitlements to the shares are not able to be traded on the ASX or otherwise dealt with.

If you are eligible and wish to participate in the Rights Issue, it will be necessary for you to complete your personalised Entitlement and Acceptance Form on receipt and return it, together with the correct application monies, to the Company’s share registry by 5.00pm WDT on 13 December 2007.

If you have any questions in relation to the Rights Issue, please do not hesitate to contact the Company on (08) 9322 6904.

Yours faithfully,

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Lindsay Dudfield Executive Director.