TREK METALS LIMITED — Capital/Financing Update 2012

Aug 20, 2012

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ZAMBEZI RESOURCES LIMITED ARBN: 124 462 826 BERMUDA ZAMBIA AUSTRALIA CANON’S COURT PLOT 5697 LEVEL 1, 17 ORD STREET 22 VICTORIA STREET BEU CRESCENT WEST PERTH, WESTERN AUSTRALIA HAMILTON HM12 KALUNDU AUSTRALIA 6005 LUSAKA TEL: +61 8 6555 1879 TEL: +260 211 292101 FAX: +61 8 9398 4104 EMAIL: INFO@ZAMBEZIRESOURCES.COM PO BOX 1796, WEST PERTH WWW.ZAMBEZIRESOURCES.COM WESTERN AUSTRALIA, 6872

21 August 2012

Dear Shareholder

Zambezi's pro rata non-renounceable rights issue

As announced on 20 August 2012, Zambezi Resources Limited ( Zambezi ) is undertaking a pro rata non-renounceable rights issue ( Rights Issue ) to eligible shareholders on the basis of 2 new Zambezi ordinary shares ( New Share ) for every 3 Zambezi ordinary shares held as at 5:00pm (Perth time) on 28 August 2012 ( Record Date ) at an offer price of $0.004 per New Share. The Rights Issue will seek to raise up to approximately $4.47 million (before costs).

The funds raised under the Rights Issue will be used for working capital, debt servicing and towards a continued drilling program, together with extensive metallurgical test work. These programs will advance the feasibility studies of the proposed Oxide Copper Project, which is Stage 1 of the overall Kangaluwi Copper Project mine development plan.

Overview of Rights Issue

The Rights Issue is being made to all Zambezi shareholders as at 5:00pm (Perth time) on 28 August 2012 whose registered address is in Australia or New Zealand ( Eligible Shareholders ). Shareholders who do not satisfy those criteria will not be eligible to participate in the Rights Issue and will be informed accordingly.

New Shares issued under the Rights Issue will rank equally with all ordinary shares already on issue. Under the Rights Issue, Zambezi will issue up to a maximum of 1,118,708,875 New Shares, resulting in total Zambezi ordinary shares on issue of approximately 2,796,772,188.

For the purposes of calculating each Eligible Shareholder’s entitlements, fractional entitlements to New Shares will be rounded up to the nearest whole number of shares.

Offer document

An offer booklet and an investor presentation detailing the Rights Issue were released on ASX on 20 August 2012 ( Offer Documentation ). Copies of the Offer Documentation are available on Zambezi’s website (www.zambeziresources.com) and on ASX’s website (www.asx.com.au). Eligible Shareholders will be mailed a copy of the Offer Documentation together with an Entitlement and Acceptance Form by 3 September 2012.

It is important that Eligible Shareholders read the Offer Documentation carefully before deciding whether to invest and, if in any doubt as to how to proceed, consult with their professional advisers. If Eligible Shareholders wish to participate, they should follow the directions in the Offer Documentation for the action required of Eligible Shareholders.

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Key dates for the Rights Issue

NOTE : These dates are indicative only. Zambezi reserves the right to change these dates subject to the Corporations Act and the Listing Rules.

Event	Date
Shareholders trade on ‘ex’ entitlement basis	22 August 2012
Record date for determining entitlements to participate in Rights	5.00pm (Perth time)
Issue	28 August 2012
Completion of dispatch of offer documentation and entitlement	3 September 2012
and acceptance form to shareholders
Acceptances close	5.00pm (Perth time)
	17 September 2012
New Shares trade on a deferred settlement basis	18 September 2012
ASX notified of under subscriptions	20 September 2012
Allotment of New Shares and dispatch of holding statements to	25 September 2012
shareholders
Normal trading for New Shares commences	26 September 2012

If you have any questions, please call Zambezi on +61 8 6555 1879.

Yours sincerely

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Frank Vanspeybroeck Chief Executive Officer Zambezi Resources Limited

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