SKY METALS LIMITED — Capital/Financing Update 2004

Mar 8, 2004

9 March 2004

Stephen Yan Companies Advisor Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Stephen

RE: DISPATCH

Further to your correspondence of yesterday, I confirm that the Planet Gas Limited Convertible Notes ("Notes") have converted into ordinary shares in accordance with the terms and conditions of the Notes.

I also advise that Dispatch has taken place as of 8 March 2004.

Please do not hesitate to contact me if you have any questions.

Yours sincerely

Tuch

Anthony J McClure Director