SKY METALS LIMITED — AGM Information 2005

May 17, 2005

18 May 2005

The Manager Companies Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

(37 pages by email)

Dear Madam,

RE: PRESENTATION TO THE ANNUAL GENERAL MEETING

I attach a PowerPoint presentation which is to be delivered to the shareholders present at today's Annual General Meeting which is convened to be held at 11.00 am.

Yours faithfully

Peter J. Nightingale Director

pjn3032

ANNUAL GENERAL MEETING FRANCY YOU AND

2002 Adrievencht

• Listing March 2004 raising A$15 million
• JV partners completed East Esponda drilling
• · Quadrupled USA acreage to 41,500 net acres
• · Production commenced at Oriva in November 2004
• · Stratigraphic drill programs at;
  • West Esponda
  • Skull Greek
  • CODSER

tin W

CBM in the USA

Large established industry X

E

• GBM production approx. 1.6 Ter per year (1700 PJ per year)
  • Contributes approx. 8% of US gas production
    • US Natural Cas Wallhead Price

USIN HUILING CHRISTIAN

US natural gas demand is projecte io grow by 40% by 2025

E

Current price USS6.00 USS7.00 O paring

GBM in the Powder River BS5n, Wy

• PRB contains sont of the indicest coat bets in the 2000 - 200
• k Chilian kama kata ya katika Shirika n
• Development moving west n
• Basin produces 900 million cubic feet of CBM per E EEVACIE
• 350 PJ per year (Australian eastern states demand PI for natural gas is approx. 400PJ)

T

Why Piener Gas in the USA

• Conventional completions
• Capital costs significantly less
• · Large established market
• · Advanced service industry and infrastructure
• · Strong gas market fundamentals
• A. USS6.00 USS7.00 gas price

USAPIOTEGS

a ang pangalanganKabupatèn Sulawa mete ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, r anns GESTIN , , , , , , , , , , , , , , , , , , , a a dina dia k EKTERKIK Faine itera n yanan iners Winter Tigi n Ma Developed/hibrard@oment Developed by Western Cas. F. 78. 782 Bash Esponda, Wy m 1452 Rerourdssand Kennedy Oli Induces P1, P2 and P4 reserves. konval WW ERA : B. Barnet 257X Ø Includes 16 potential decider wells. a kiti 24.07 E. Ø BRA 77578 In Development Development antihig to commence West Esponda Wy TERZ30 6 Minis - 74 Sept 01 2005. Initial development arionak A DE KELLET ET ET ETTE TE ET ELLER DE a na mga kalawang mga mga mga mga mga mga mga mga mga mg an sa sa san sa san san san san san san Exploration

Skull@eek, ks

28,598

7451618

One well to be initially production. tested.

ES DONCE PROJECT, WYOMING

• Planet Gas net holdings total ya. 5,026 hectares (12,419 acres)
• Milinie coals Big George A Wasaton
• · Seam thickness in Big George 15-30 metres (drilling to date)
• Net coals up 50 metres P.
• Gas content 100 to 110 Scf/ton
• Permeability very high range 300 to 1500 mD

Friedrich Barbara (1979)

• FESTES DONORRE CAVALOPIE A BY ananK partners Western Gas and Kennedykon
  • Western Gas program 8 wells, Planet holds 20%-25% in each well
  • Kennedy Oil program 12 wells, Planet diluting to a -40% interest
• Gas-In-Place 21.9 Bcf (7.3 Bcf Net) E
  • All wells completed

Œ

• Dewatering advanced n
• Production commencing

EXSURED REPAIRING

• Well cost average US$135,000 to anangKabupatèn drill and complete including Katiculation and Water minganan
• · Forecast production rate at least 300 thousand cubic feet (mcf) per well per day
• Operating cost -US$0.60 per mcf n
• Transport cost ~US$0.50 per mcf n
• Well life 7 to 10 years

Drilling at East Esponda

ESSE Esponde Project

East Esponda Project

Rasil Esponda Projecti

ESSE Esponde Project

Esti Esponda Projecti

ERSC Esponda Projecto

Rakti Raponch Project

SAMARA MARKET STARTED

San Maria (19

WEST ESPONGE PROTECT

• West Esponda 90% of total Esponda acreage Z
• 100% working interest, 80.0% to 87.5% net revenue interest Z
• Stratigraphic drilling complete n
• Net coals ranging 20 to 50 metres thick n
• Go ahead for initial development of 80 wells n
• Potential for an additional ~40 wells C
• Currently permitting- development drilling to commence in Sept. quarter 2005 n
• Drilling costs have increased in the PRB -US$175,000 US$200,000 per well to n THE FILL CONSTRUCT
• Enchceventons O

OIANG MAGAGAGA TAWANG KOLANIA

• M248 acres with almost all of the en de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la postaDe la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta d productive coals of the PRB
• Net coat thickness in 6 targeted 7 Sterin Staling Side in Equates
• 5 pads of 3 wells each (15 wellstotal) completed and are in Ŋ production/dewatering
• Current production 16,000 mcf permonth increasing to 50,000 mcf permonth by second half 2005 (for the H 15 walts
• Further 38 wells planned to 7 Gommenge Septuguarter 2005
• Deeper targets to be assessed(potential further 16 wells) 13

Oriva Throne 75.975% working interest 60.75% net revenue interest Oriva Federal 100% working interest 85.5% net revenue interest

Reference	INEXERY OF CHOSE	Ekristrika
E.	74.74	ín.
第2	1.12.7.4	50.0
Possible	brz	ZKIO
	低落斜	FAOO

SKU SAKARI SA SAKO MARA KATIKA SA

E

• Cherokee Basin with over 20 P Pennsylvanian aged coals

• CBM drill programs to thenorth and west where 3-5 n seams are being targeted

• Conventional oil and gas also BRAINERS

• 7 well stratigraphic drilling O Drogram completed

• Earning a 100% working interest, e OT DYARA TO HE KONGOR DI CAR E LEO KONGO

  • Project covers 28, 598 acres (11,573 hectares) of the Cherokee BENTH
    • One well to be initially production itan Ci

AUSTRALIA

Planciache Projecte 1.Gippsland Basin, VIC 2 Otway Basin, VIC 3 Willechra Basin, SA 4 Fromanga Sain, SA 5 Gunnedah Basin, NSW

en de la componenta

Gibbsteind Beisin

anTaobh

H

E

• 100% interest in granted titles totaling 2222200 Rectares
• Holdings cover Gippsland Cretaceous black coals
• Gretaceous coals; San Juan Basin analog
• Coals aggregate over 10 metres in ENGRY 1633
• Historical coal mining region with good CBM indicators; gassy mines
• Near to Melbourne (-60 km) and pipeline MINICK HOLGIVIC.
• 18 stratigraphic wall program in progress

Gippsichte Besin

Cipistra Basi

March 200

Cipistadersin

Gippsteind Basin

Looking Forward

GET SIGE HAKS HAZOGS

• · Oriva, USA production (15 wells)
• Oriva, USA continued development (initial 38 additional wells)
• East Esponda, USA production commencing (20 wells)
• West Esponda, USA development program commences (initial 80 Wells)
• . Skull Greek, USA production test program commences
• Gippsland, Australia 18 strat, well drill program continues
• Continued acquisition strategy O

PLANETGAS LIMIED

Address

RaxA

Level 8, 261 George Street, Sydney NSW 2000, Australia +61 2 9247 5112 Phone £61.2924727273

WASSICA WWW.Daneras.com ASX Codes PGS