TREK METALS LIMITED — Capital/Financing Update 2008

Jul 1, 2008

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ASX Announcement

02 July 2008

Uranium Joint Venture Update

Please find attached an update on exploration progress and results released to the AIM Market of the London Stock Exchange by Lithic Metals and Energy Limited (AIM: LMY), a joint venture partner of Zambezi Resources Limited (“Zambezi”) (AIM: ZRL; ASX: ZRL) on the Oryx Project in Zambia, on 1 July 2008.

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ARBN 124 462 826

Bermuda:

Canon’s Court 22 Victoria Street Hamilton HM12

Australia:

17 Ord Street West Perth PO Box 1796 WA 6872 Tel: (+61-8) 9216 9000 Fax: (+61-8) 9216 9090

Zambia: Mwembeshi Resources Limited Plot 5777N Great East Road Kalundu Lusaka Tel: (+26) (021) 1291 645 Fax: (+26) (021) 1292 411

Stock Exchange Listings: ASX: ZRL AIM: ZRL

Issued Capital: 188,185,279 ordinary shares 12,250,000 options

Directors: Non-Executive Chairman: Brian Rear Managing Director: Julian Ford Exploration Director: Geoff Johnson Non-Executive Director: Jeremy Wrathall Chief Financial Officer: Lloyd Flint

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1[st] July 2008

Lithic Metals and Energy (AIM: LMY)

Oryx project Zambia: Visible uranium mineralisation identified – Diamond drilling assay results awaited

Highlights

• 26 new trenches totalling over 9051 metres of development completed at Oryx

• Uranium values from three adjacent trenches*: Trench 23: 3m at 642 parts per million (ppm) U3O8 Trench 25: 3m at 292 ppm U3O8 Trench 34: 1m at 839 ppm U3O8 1m at 272 ppm U3O8

• First in-situ uranium bearing mineral davidite encountered at several trench locations– sample results awaited

• Completion of 11 diamond drill holes for 1101.64m of core, testing down dip extension of observed occurrences of davidite in trenching intersected elevated zones of scintillometer readings – assay results awaited

* First pass scintillometer calibration sampling

Oryx Trenching

Lithic Metals and Energy (“Lithic”) today announces the completion of 9051 metres of new trenching at its Zambian Oryx prospect, testing peak uranium radiometric anomalies along a 2km strike length. During this programme Lithic encountered uranium mineralisation thought to be davidite; a uranium – titanium – rare earth mineral that at Oryx, is hosted in pegmatite, aplite veins, amphibolite and muscovite - biotite gneiss of the Chalenga Gneiss Basement Complex.

Geological mapping and scintillometer logging (measuring ionizing radiation) of trenches identified visible in-situ davidite for the first time at Oryx in association with high gamma radiation readings. Numerous other zones of elevated scintillometer readings were noted without visible davidite. Assay results from sampling of elevated scintillometer readings are awaited.

To assist in the calibration of field scintillometers, 100 samples were collected from zones of background to elevated scintillometer readings from three adjacent trenches and dispatched to Alfred Knight laboratories of Kitwe, Zambia for sample preparation, and to Alfred Knight Laboratories of Alaska for analysis.

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This initial sampling programme revealed uranium mineralised intervals below:

Trench 23: 3m at 642 ppm U3O8 Trench 25: 3m a 292 ppm U3O8 Trench 34: 1m at 839 ppm U3O8 1m at 272 ppm U3O8

Note:

1. Uranium analysis by 25gm pressed powder XRF by Alfred Knight Laboratories, Kitwe and Alaska

2. Intervals calculated on 100ppm U3O8 cutoff, with no internal waste

3. Metal values (U) converted to oxide values (U3O8) using a factor of 1.179

Diamond Drilling

Following encouraging signs of uranium mineralisation revealed in trenching, 1101.64 metres of diamond drilling over 11 holes was completed, testing the down-dip extension of davidite occurrences in trenching. Drilling intersected multiple zones of elevated scintillometer readings in association with the presence of a mineral Lithic believes to be davidite. Drill core has been sampled and submitted for analysis in conjunction with selected samples collected for confirmatory petrology.

Assays from this drill programme will be released as soon as they become available.

Commenting on these results today, Lithic Metals and Energy Managing Director Jim Kerr said ”Obviously we are encouraged by the early confirmation of uranium mineralisation associated with what we think is in-situ davidite in trenching and in drill core. We look forward to receiving assays from this work in the near future. I believe we have completed the first stage of what will be a rigorous process of delineation as we seek to establish an economic uranium resource.”

Mvula East

At the Mvula East prospect located 35km south west of Oryx, Lithic plans to undertake a 1000 to 1500m scout diamond drilling campaign scheduled to commence in July. Drilling is designed to test the central 2km strike extent of the 8km long Mvula East radiometric high where rock chip sampling returned uranium grades >730ppm U3O8.

Airborne Geophysics

At Mpande, the final 6,700km airborne radiometric programme was completed. A further 5 target areas have been selected for follow-up high resolution 25 metre spaced airborne survey in July.

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For further information, please contact:

Jim Kerr, Lithic Metals & Energy

Tel: +61 8 9322 5804

David Youngman, WH Ireland Limited Tel: +44 (0)161 832 2714 Laurence Read, Threadneedle Communications Tel: +44 (0)20 7936 9696

About Oryx

Oryx was discovered by airborne radiometric survey over the Chumbwe licence, located approximately 80-km south east of the Zambia’s capital city, Lusaka.

Limited exploration activities at Oryx revealed the presence of uranium grades >5% U3O8 associated with the mineral davidite. Initial trenching and surface sampling focussed on a radiometric high in the north of the prospect area, retuning rock chip values to 1500 ppm U3O8. A subsequent detailed radiometric survey refined the original uranium anomaly to a 3km long “hot zone”, which is the current focus of Lithic’s exploration efforts.

Uranium Rights Joint Venture

Lithic Metals and Energy entered into a joint venture with Zambezi Resources (AIM/ASX: ZRL) in May 2008, under which Lithic Minerals and Energy has the right to earn 51% of the uranium rights over 6800km² of four granted exploration licences (Chumbwe, Mpande, Mulungushi and Rufunsa) by spending US$5 million over 2.5 years.

With respect to the four exploration licences Lithic can increase its uranium rights in the Chumbwe licence to 75% by completing a definitive feasibility study over the Oryx prospect. It can also increase its uranium rights to 75% over the other three licences by completing a definitive feasibility study (DFS) on any one uranium resource.

Lithic can move to 100% by sole funding mine development after completion of a DFS, assuming Zambezi Resources elects not to contribute pro rata, in which case Zambezi will dilute to a 2.5% Net Smelter Return royalty.

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