ENERGY METALS LTD — Capital/Financing Update 2013

Nov 18, 2013

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ASX ANNOUNCEMENT

FULLY UNDERWRITTEN NON-RENOUNCEABLE RIGHTS ISSUE

19 November 2013

HIGHLIGHTS

Energy Metals Limited ABN 63 111 306 533

For further information contact:

Weidong Xiang

Managing Director

Phone: +61 8 9322 6904 Fax: +61 8 9321 5240

Website:

www.energymetals.net

Email: enquiry@energymetals.net

Registered Office:

Level 2 8 Colin Street West Perth WA 6005

PO Box 1323 West Perth WA 6872

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• 4 for 11 Rights Issue to be offered to all Eligible Shareholders to raise approximately $9.39 million;

• Issue price at $0.168 per new share. The price represents a 5% discount to the volume weighted average of the closing price over 29 October 2013 to 18 November 2013

• Rights Issue fully underwritten by China Uranium Development Company Ltd

• Funds to be used for further advance EME’s interest in Bigrlyi Uranium Project and Ngalia regional prospects and pursuing acquisition opportunities for uranium resource projects

Energy Metals Limited (“EME” or “the Company”) is pleased to announce a fully underwritten non-renounceable rights issue of 55,915,550 fully paid ordinary shares on the basis of four new shares for every eleven shares held by the Company’s shareholders with a registered address in Australia, New Zealand or China (including Hong Kong) on the record date being 27 November 2013 (“Eligible Shareholder”) at an issue price of $0.168 per new share (“Rights Issue” or “Offer”). The price represents a 5% discount to the volume weighted average of the closing price over 29 October 2013 to 18 November 2013. The Rights Issue will raise approximately $9.39 million.

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The Rights Issue is fully underwritten by the Company’s largest shareholder, CUD, which currently holds a 60.56% interest in EME. If no other shareholders take up their shares under the Rights Issue and all Rights Issue Shares are issued to the underwriter, this will result in CUD increase its holding up to approximately a 71.08% interest in EME.

The proceeds of the Rights Issue will be used to further advance its interests in Bigrlyi Uranium Project and the Ngalia regional prospects in the Northern Territory. This will involve expansive exploratory drilling programs, various investigations, and evaluation studies. The increasing exploration work aims to progress the Bigrlyi Uranium Project towards the feasibility and development stage at a more rapid rate.

The Company also plans to pursue potential acquisition opportunities for additional uranium prospects that it has identified in the current market.

Eligible Shareholders may also elect to participate in the shortfall facility and apply for new shares in excess of their pro rata entitlements under the Rights Issue. Any final shortfall will be subscribed by CUD. Further information on the underwriting arrangements will be set out in the Offer Document.

Full details of the Rights Issue are set out in the Offer Document and Appendix 3B lodged with the ASX and dispatched to Eligible Shareholders in accordance with the below timetable.

Eligible Shareholders who wish to acquire shares under the Rights Issue should consider the Offer Document carefully and must complete the personalised entitlement and acceptance form attached to the Offer Document, a copy of which will be sent to Eligible Shareholders.

Indicative Timetable:

Event	Date
Announcement of Rights Issue	19 November 2013
Offer Document, Cleansing Notice as per section 708AA and Appendix 3B lodged with ASX	19 November 2013
Notices to Shareholders informing the Offer dispatched to Shareholders	19 November 2013
Ex Date - date from which securities commence trading without the entitlement to participate in the Entitlement Issue	21 November 2013
Record Date - date for determining entitlements of Eligible Shareholders toparticipate in the Entitlement Issue	27 November 2013
Offer Document dispatched to Shareholders	28 November 2013
OpeningDate of Offer	29 November 2013
Closing Date	5 pm (WST) 20 December 2013
Securitiesquoted on a deferred settlement basis	23 December 2013
Shortfall notification(if any)	23 December 2013
CUD subscribe anyshortfall(if any)and issues of shortfall shares	24 December 2013
Deferred settlement tradingends	24 December 2013
Normal tradingcommences	27 December 2013

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This timetable is indicative only and subject to change. Subject to the Listing Rules, the Directors reserve the right to vary these dates, including the Closing Date. Any extension of the Closing Date will have a consequential effect on the anticipated date for allotment and issue of the New Shares.

• ENDS -

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