TERRA METALS LIMITED — Capital/Financing Update 2012

Dec 17, 2012

13 December 2012

ASX Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

Statement confirming conversion of Loan

Paringa Resources Limited (ACN 155 933 010) (Company) and Silver Lake Resources Limited (ACN 108 779 782) (Silver Lake) entered into a loan agreement (Loan Agreement) pursuant to which Silver Lake agreed to advance the Company a loan of \$1,200,000 (Loan).

The Loan was unsecured and interest free. The Loan was also convertible into fully paid ordinary shares in the capital of the Company (Shares) at \$0.06 per Share on the date the Company received written approval from the ASX for admission of the Company to the official list of ASX, subject only to customary conditions or conditions which the Company reasonably believes to be capable of fulfilment (Conditional Approval Date).

The Company confirms that:

• $(a)$ Silver Lake converted the Loan in full on the Conditional Approval Date; and
• the Company subsequently issued 20,000,000 Shares to Silver Lake on 12 December $(b)$ $2012,$

in accordance with the terms and conditions of the Loan Agreement.

Yours sincerely

Chapu

David Chapman Managing Director Paringa Resources Limited