TERRA METALS LIMITED — Capital/Financing Update 2012

Dec 18, 2012

19 December 2012

ANNOUNCEMENT

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PARINGA RESOURCES TO COMMENCE OFFICIAL QUOTATION ON ASX ON THURSDAY 20 DECEMBER

Paringa Resources Limited (ASX: PNL) was admitted to the official list of the Australian Securities Exchange on Tuesday 18 December 2012 and will commence official quotation on Thursday 20 December.

The listing follows the successful initial public offer (IPO) which closed fully subscribed earlier this month. The offer raised over $10 million through the issue of 33,333,333 shares at $0.30 per share (Offer) and resulted in a number of domestic institutions and high net wealth individuals joining the Paringa register.

Paringa Managing Director Mr David Chapman said: “We are very pleased with the support from domestic institutions and retail investors, particularly those Silver Lake Resources (Silver Lake) shareholders who have participated through the Priority Offer. The funds raised mean that we can begin roll out of our exploration program and initiate the planned drilling program at Minaçu immediately. We look forward to delivering strong results for our shareholders.”

Silver Lake has supported Paringa since inception and is the Company’s major shareholder.

Paringa’s strategy is to become a premium mineral exploration and development company by:

• building a sound resource base within the current portfolio through exploration and exploitation of its gold and graphite assets in Brazil; and

• leveraging off technical and commercial strengths in Brazil to pursue additional growth opportunities by investing in, and/or acquiring additional gold, copper and strategic minerals resources projects within regions with a history of mining or known mineralisation, strong regional endowment and with nearby infrastructure.

The Company’s primary objective will be to explore its Minaçu Gold Project located in central Brazil, where Paringa has planned a two-phase, two-year exploration program with the goal of defining a significant gold resource.

In conjunction with its planned program at the Minaçu Gold Project, Paringa will be generating a pipeline of priority targets at the São Luis Gold Project within the Proterozoic greenstone sequences in the (100Moz+ Au) Guyana Shield. Paringa will also be exploring both the Santo Antônio de Pádua Graphite Project and the São Fidélis Graphite Project for short-term resource opportunities with the objective of creating a high-margin graphite project with low capital development requirements.

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David Chapman Managing Director

David Griffiths Chairman

E admin@paringaresources.com

Paringa Resources ABN 44 155 933 010

Level 3, Suite 4, South Shore Centre

PO Box 876, South Perth 6951

85 South Perth Esplanade South Perth WA 6151

W www.paringaresources.com