LIBERTY METALS LTD — Capital/Financing Update 2012

Aug 1, 2012

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Traka Resources Limited

ABN: 63 103 323 173

2 August 2012

The Manager Announcements Company Announcements Office ASX Limited PO Box H224 Australia Square SYDNEY NSW 2000

Dear Sir / Madam,

Entitlement Issue: Notice sent to shareholders

Attached is a copy of a letter sent to all shareholders of the Company today setting out information on the recently announced entitlement issue including details of the timetable.

Yours faithfully

Peter Ruttledge Company Secretary

Suite 2, Ground Floor, 43 Ventnor Avenue, West Perth, Western Australia 6005 PO Box 601, West Perth, Western Australia, 6872 Tel: +61 8 9322 1655 Fax: +61 8 9322 9144

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Traka Resources Limited

ABN: 63 103 323 173

2 August 2012

Dear Shareholder,

NOTICE OF NON-RENOUNCEABLE ENTITLEMENT ISSUE OF SHARES

The board of Traka Resources Limited has announced a pro-rata non-renounceable 1 for 3 issue of ordinary fully paid shares (the “New Issue”).

The Prospectus for the New Issue was lodged with the Australian Securities and Investments Commission (ASIC) on 31 July 2012 and will be sent to all eligible shareholders together with a shareholder Entitlement and Acceptance Form (including Shortfall) by 17 August 2012.

The New Issue is non-renounceable which means that there will be no rights trading.

Details of the New Issue are as follows:

• Pro-rata non-renounceable issue of ordinary fully paid shares on a 1 for 3 basis

• Type of Issue

  • 4 cents per share entitlement

• Amount payable

• Up to 23,201,680

• No. of shares to be issued -

  - **Up to $906,067 after costs of the issue** 
  

• Amount to be raised -

  • To fund: further exploration on the Company’s projects, evaluation of new projects, and ongoing administration and overhead expenditure.

• Purpose of this Issue

  • The offer is not underwritten

• Underwriting

  • Shareholders will be able to apply for additional shares arising from any shortfall in acceptances

• Shortfall applications

  - **Application for listing of the New Shares has been made to the Australian Securities Exchange (ASX)** 
  

• Listing

• Important dates -

• 31 July -

• 9 August -

• 15 August -

• 17 August

  - **New Issue announced - Prospectus lodged with ASIC and ASX** 
  
     - **Ex date: shares trade ex-entitlements** 
  
     - **Record date for entitlements** 
  
     - **Prospectus and Entitlement and Acceptance Form (including Shortfall) sent to eligible shareholders** 
  

  • 31 August OFFER CLOSES: Closing date for receipt of Acceptances -

  • 3 September Shares quoted on a deferred settlement basis -

  • 5 September Announcement of undersubscription -

  • 10 September Despatch Date – shares entered in shareholders’ holdings

Yours faithfully

N Tomkinson Chairman

Suite 2, Ground Floor, 43 Ventnor Avenue, West Perth, Western Australia 6005 PO Box 601, West Perth, Western Australia, 6872 Tel: +61 8 9322 1655 Fax: +61 8 9322 9144