SKY METALS LIMITED — Capital/Financing Update 2004

Nov 11, 2004

12 November 2004

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

(9 pages by email)

Dear Madam

RE: NEW ISSUE ANNOUNCEMENT AND APPLICATION FOR QUOTATION

In accordance with Listing Rule 2.8.2, I attach an Appendix 3B - New Issue Announcement, Application for Quotation of Additional Securities.

This Application for Quotation is for 5,250,000 fully paid ordinary shares which have been released from escrow restriction as announced by the Company on 27 October 2004.

Yours sincerely

Peter J. Nightingale Director

pjn2794

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

PLANET GAS LIMITED

ABN

46 098 952 035

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be issued

$N/A$

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• $\mathfrak{Z}$ Principal terms of the ⁺securities (eg, if options, exercise price and date; if partly paid expiry *securities, the amount outstanding and due dates for payment; if securities. *convertible the conversion price and dates for conversion)

$N/A$

$N/A$

$+$ See chapter 19 for defined terms.

$\overline{4}$ Do the *securities rank equally in all respects from the date of allotment with an existing ⁺class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\bullet$
• the extent to which they $\bullet$ participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration

• Purpose of the issue 6 (If issued as consideration for the acquisition of assets, clearly identify those assets)
• $\overline{\mathcal{I}}$ Dates of entering *securities into uncertificated holdings or despatch $N/A$ of certificates
• $\bf 8$ Number and tclass of al *securities quoted on $AS₂$ (including the securities in claus 2 if applicable)

	Number	+ Class
c	N/A	N/A

$N/A$

$N/A$

$N/A$

$+$ See chapter 19 for defined terms.

• $\overline{9}$ Number and ⁺class of all *securities not quoted on ASX (including the securities in clause 2 if applicable)
• Dividend policy (in the case of a $10¹⁰$ trust, distribution policy) on the increased capital (interests)

Number	+ Class
N/A	N/A

$N/A$

Part 2 - Bonus issue or pro rata issue

11	holder security approval N/A Is required?
$12 \,$	N/A Is the issue renounceable or non- renounceable?
13	Ratio in which the *securities will N/A be offered
14	Class of securities to which the N/A offer relates
15	*Record determine date N/A to. entitlements
16	Will holdings on different registers (or subregisters) be aggregated for N/A calculating entitlements?
17	Policy for deciding entitlements in N/A relation to fractions
18	Names of countries in which the entity has *security holders who N/A will not be sent issue new documents
	Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.

$N/A$

19 Closing date for receipt of acceptances or renunciations

$+$ See chapter 19 for defined terms.

Appendix 3B Page 4

20 Names of any underwriters

• $21$ Amount of any underwriting fee or $N/A$ commission
• 22 Names of any brokers to the issue
• Fee or commission payable to the 23 broker to the issue
• 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of "security holders
• 25 If the issue is contingent on *security holders' approval, the date of the meeting
• Date entitlement and acceptance 26 form and prospectus or Product Disclosure Statement will be sent to persons entitled
• 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
• Date rights trading will begin (if 28 applicable)
• 29 Date rights trading will end (if $N/A$ applicable)
• 30 How do *security holders sell their entitlements in full through a broker?
• $31$ How do "security holders sell part of their entitlements through a broker and accept for the balance?

$N/A$

$N/A$

$N/A$

$N/A$

$N/A$

$N/A$

$N/A$

$+$ See chapter 19 for defined terms.

$N/A$

$N/A$

$N/A$

32	How do "security holders dispose of their entitlements (except by sale $N/A$ through a broker)?
-33	+ Despatch date	N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities $(iick one)$
• Securities described in Part 1 $(a)$
• $(b)$ All other securities $\bar{\mathbf{x}}$

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• If the "securities are "equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders
• 36 If the "securities are "equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1,001 - 5,000$ $5,001 - 10,000$ 10.001 - 100.000 100,001 and over
• A copy of any trust deed for the additional *securities 37

35

$+$ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

38 Number of securities for which ⁺quotation is sought

39 Class of *securities for which quotation is sought

40 Do the *securities rank equally in all respects from the date of allotment with an existing *class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\bullet$
• the extent to which they $\bullet$ participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securities quoted on ASX (including the securities in clause $38$ )

Number Class^- 120,550,000 Fully paid ordinary shares

5,250,000

Fully paid ordinary shares

Yes

End of restriction period

Quotation agreement

• $\mathbf{1}$ *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the "securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those "securities should not be granted *quotation.
• An offer of the ⁺securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.

$+$ See chapter 19 for defined terms.

• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• We give ASX the information and documents required by this form. If any $\overline{4}$ information or document not available now, will give it to ASX before *quotation of the *securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

$== == == == ==$

Sign here:

. . . . . . . . . . . . . . . . . . . . (Director/Company secretary) Peter J. Nightingale

Date: 12 November 2004

Print name:

$+$ See chapter 19 for defined terms.