SKY METALS LIMITED — Capital/Financing Update 2014

Feb 23, 2014

FromSubject	Helen HardyORG expands Cooper Basin gas position through farm-in agreements with	Pages	5
Company	ASX Limited	Date	24 February 2014
To	Company Announcements Office	Facsimile	1300 135 638

Please find attached a release on the above subject.

Regards

Helen Hardy Company Secretary

02 8345 5023 – helen.hardy@originenergy.com.au

ASX/Media Release

24 February 2014

Origin expands Cooper Basin gas position through farmin agreements with Senex Energy

Origin Energy Limited (Origin) today announced the signing of two farm-in agreements with Senex Energy Limited (Senex, ASX:SXY) to acquire exploration interests in two unconventional gas blocks covering more than 1,900 km2 of South Australia's prospective Cooper-Eromanga Basin.

The two gas blocks (Area A and Area B1 ) comprise a number of prospective sub-basins within the Cooper-Eromanga Basin - including the Allunga, Nappamerri and Patchawarra troughs - and provide exposure to multiple unconventional play types including tight sands, shale and deep coal seams.

Following completion of the farm-in agreements, which is expected by around 30 June 2014, Origin will progressively invest $97 million to contribute to an exploration program on each gas block (Stage 1). Upon their completion, Origin will hold a 40 per cent participating interest in Area A and a 30 per cent participating interest in Area B.

Origin will then have the option to increase its working interest in both blocks by 10 per cent via an additional $72 million investment to contribute to a pilot appraisal program in each area (Stage 2). In the event Origin elects not to exercise this option, the company would continue to hold its existing participating interests.

Senex will retain operatorship of Area A and Area B with Origin defining the technical inputs to the work programs. After completion of the pilot appraisal programs Origin would have the option to become operator in each area.

Origin Chief Executive Officer Upstream, Mr Paul Zealand said, "The two farm-in agreements represent an attractive opportunity through which Origin can greatly increase its upside exposure to unconventional gas opportunities in one of the most attractive gas regions in eastern Australia.

"Through Origin's longstanding investment in the Cooper Basin Joint Venture, we have gained a detailed understanding of gas exploration and development potential in the Cooper-Eromanga region. The new farm-ins provide an exciting opportunity through which we can leverage these skills and expertise.

"We are pleased to be working with Senex Energy given its proven track record operating in one of Australia's largest onshore hydrocarbon provinces," Mr Zealand said.

The agreements are subject to certain approvals including registration of interests.

1 Origin's interest in Area B covers the Permian section and all underlying strata only.

Transaction details

The following table summarises Origin's contribution and interest earned under the farm-ins.

	AREA A	AREA B2	Total
Farm-out areas	1,031 km2(255,000 acres)	904 km2(223,000 acres)(Deeps only)
Origin contribution toStage 1 workprogram	$65 million	$32 million3	$97 million
Participating interestearned by Origin	40per cent	30per cent
Origin contribution tooptional Stage 2 workprogram	$40 million	$32 million3	$72 million
Participating interestearned by Origin	10per cent	10per cent
Total Participatinginterest at the end ofoptional Stage 2	50per cent	40per cent
Total Origincontribution to workprograms	$105 million	$64 million	$169 million

The signatories to Area A agreement are Origin Energy Resources Limited and Senex subsidiaries Victoria Oil Exploration (1977) Pty Ltd and Stuart Petroleum Pty Ltd.

The signatories to Area B agreement are Origin Energy Resources Limited and Senex subsidiary, Stuart Petroleum Cooper Basin Oil Pty Ltd.

2 Planet Gas holds a 20 per cent participating interest in Area B.

3 Additional work programs of up to $67 million (gross) may be agreed in Area B over Stage 1 and Stage 2 with participation on an equity basis.

Figure 1. Location of Area A and Area B

For further information please contact:

Media

Stephen Ellaway Senior External Affairs Manager Ph: +61 2 9375 5834 Mobile: +61 417 851 287

Investors

Chau Le Group Manager, Investor Relations Ph: +61 2 9375 5816 Mobile: +61 467 799 642

About Origin Energy

Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 6,000 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with approximately 6,010 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.

In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.

Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.

For more information go to www.originenergy.com.au

About Senex Energy Limited

Senex (ASX: SXY) is an S&P/ASX 200 energy company with a diversified portfolio of oil and gas assets in Australia's Cooper, Eromanga and Surat Basins. The Company is an experienced operator in Australia's oil and gas industry and has attracted a highly qualified team of professionals to grow the business safely and efficiently.

For more information go to www.senexenergy.com.au