SKY METALS LIMITED — Capital/Financing Update 2017

Jun 4, 2017

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5 June 2017

The Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 2000

(3 pages by email)

Dear Madam

SILVER STAR-1 DW-1 EXPLORATION WELL UPDATE 12

The Directors of Planet Gas Limited ('Planet Gas') are pleased to provide an update with regards to the drilling of exploration well ‘Silver Star-1’ within PEL 638 in the South Australian Cooper Basin.

SILVER STAR-1 EXPLORATION WELL

Spud Date: 17 March 2017 Total Depth - Silver Star-1: 3,770 metres as at 2400hrs on 23/04 Horizontal Well - Silver Star-1 DW-1: Commenced 25 April 2017

Operations: Horizontal section of 1,180 metres has been drilled with 5½’’ production casing to be set. Fracture stimulation and testing of the well will then follow.

Participating Interest: Senex Energy Limited (Operator) 53.75% Origin Energy Limited, 33.75% Planet Gas 12.5% (free carried)

Planet Gas Limited[ ABN][ 46 098 952 035]

Level 2, 66 Hunter Street Sydney NSW 2000 Australia T +61 2 9300 3322 F +61 2 9221 6333 W www.planetgas.com

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About Silver Star-1 Exploration Well

The Silver Star-1 well is a high impact exploration well and will target basin centred gas in the Permian sandstones.

The properties of the reservoir have successfully met certain criteria and a horizontal section of 1,180 metres has been drilled. 5½’’ production casing is now to be set. Fracture stimulation and testing of the well will then follow.

The gross drill cost estimate is approximately $15 million with Planet Gas’ 12.5% interest free carried by joint venture partners Senex Energy Limited and Origin Energy Limited.

For further information, contact Peter Nightingale on +61 2 9300 3322.

Yours sincerely

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Peter J. Nightingale Director

pjn8941

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Figure 1: Location of Silver Star-1 Exploration Well

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