SKY METALS LIMITED — Share Issue/Capital Change 2007

Jan 11, 2007

12 January 2007

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

(1 page by email)

Dear Madam

RE: NOTICE UNDER SECTION 708A(5)

Further to the Appendix 3B lodged by the Company on 11 January 2007 relating to the issue of 493,876 fully paid ordinary shares, I advise the following pursuant to Section 708A(5) of the Corporations Act 2001 ('the Act'):

The shares were issued without disclosure to investors under Part 6D.2, in reliance of Section 708A(5) of the Act.

As at the date of this notice, the Company has complied with:

• a) the provisions of Chapter 2M of the Act as they apply to the Company; and
• b) Section 674 of the Act.

As at the date of this notice, there is no 'excluded information' (as defined in Section 708A(7) and (8) of the Act), required to be disclosed by the Company.

Yours sincerely

Peter J. Nightingale Director

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