SUNSHINE METALS LIMITED — Capital/Financing Update 2012

Jan 19, 2012

20 January 2012

FOR IMMEDIATE RELEASE

NOTICE OF UNDERWRITTEN NON‐RENOUNCEABLE RIGHTS ISSUE

Pelican Resources Limited (ASX: PEL) (the “ Company ”) is pleased to advise that it intends to undertake a fully underwritten non‐renounceable rights issue of approximately 60.1 million shares (“ Rights Issue ”).

Under the proposed Rights Issue, eligible shareholders will be entitled to subscribe for one (1) new share (“ New Share ”) for every three (3) shares held at the record date, at the issue price of $0.02 each. Applicants for New Shares will receive one free attaching option for every New Share subscribed for under the Rights Issue (“ New Options ”).

Cunningham Peterson Shabanee Securities Pty Ltd (“ CPS Securities ”) has been appointed to act as Lead Manager and Underwriter to the Rights Issue. The terms of appointment, including fees payable, will be set out in the Prospectus regarding the Rights Issue.

Mr John Palermo Chairman Tel.: +618 9242 1166 Fax: +618 9443 9960 Email: jpalermo@pelicanresources com.au

Mr John Hills Director

Tel.: +618 9242 1166 Fax: +618 9443 9960 Email: jhills@pelicanresources com.au

Mr Mike Bue Director Tel.: +618 9242 1166 Fax: +618 9443 9960 Email: mbue@pelicanresources com.au

The Rights Issue will raise approximately $1.2 million before costs. The proceeds of the Rights Issue are intended to be used to progress the Romblon Nickel Project, for business development activities, offer expenses and general working capital purposes.

The New Options to be issued under the Rights Issue will be exercisable at $0.04 each on or before 30 June 2014. The Company will apply for quotation of the New Options. The terms and conditions of the New Options will be described in the Prospectus.

All shareholders registered as at 5pm (WST) on Monday, 6 February 2012 (“ Record Date ”) with an address in Australia and New Zealand (“ Eligible Shareholders ”) will be given the opportunity to participate in the Rights Issue. A copy of the Prospectus together with an application form will be mailed to all Eligible Shareholders in accordance with the timetable below.

Optionholders are not entitled to participate in the Rights Issue in respect of their options without first exercising their options to be a registered shareholder on the Record Date, in accordance with the terms and conditions of the options.

Registered Office: Level 1, 284 Oxford Street Leederville, Western Australia 6007 Telephone: +61 8 9242 1166 Facsimile: +61 8 9242 5903 www.pelicanresources.com.au

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The proposed timetable for the Rights Issue is as follows:
Lodgement of the offer document with the ASX	25 January 2012
Notice sent to shareholders (information required byAppendix 3B)	30 January 2012
Ex date	31 January 2012
Record date for determining shareholder entitlements(5.00pm WST)	6 February 2012
Prospectus despatched to shareholders	8 February 2012
Offer opens for receipt of Applications	8 February 2012
Closing date of offer (5.00pm WST)	22 February 2012
Shares quoted on a deferred settlement basis	23 February 2012
Notify the ASX of under‐subscriptions	27 February 2012
Despatch date/shares entered into Shareholders’ securityholdings	1 March 2012
Trading of new shares commences	2 March 2012

Note: The Company reserves the right to amend any or all of these events, dates and times subject to the Corporations Act, the ASX Listing Rules and other applicable laws. In particular, the Company reserves the right to extend the closing dates for the offers, to accept late applications either generally or, in particular cases, to withdraw the offers without prior notice. The commencement of quotation of the new shares is subject to confirmation from ASX.

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