trading halt substantial capital raising, page-20

SIGNATURE METALS LIMITED

Share Placement at 2 cents to raise $5m and a 1:5 renounceable Rights Issue at 2 cents to raise circa $5.42 million.



Signature Metals Limited (SBL or the Company, ASX: SBL) is a Perth based exploration company with a focus on its Konongo Gold Project located on the Ashanti Shear in Ghana West Africa.

Since announcing that it had exercised its option to acquire 70% of the Konongo Gold Project in December 2009, the Company has directed its energy into bringing the project back into production via the refurbishment of the existing plant and near plant exploration to increase the resource.

The current JORC Resources (in the indicated and inferred categories) are 19.6m tonnes @ 2.02g/t Au for a total of 1.27m ounces of contained gold of which 568,000 oz are in the indicated category.

The Company intends raising circa $10.4m via a contemporaneous two tranche placement (Placement) and an underwritten 1:5 rights issue (Rights Issue) both priced at 2 per share.

Patersons has been appointed Lead Manager to the Placement and underwriter to the Rights Issue.

The first tranche of the Placement comprises circa 170m shares @ 2 to raise $3.4m and this tranche will be eligible to participate in the Rights Issue. The second tranche of the Placement comprising circa 80m shares ($1.6m) is subject to shareholder approval and should complete at the same time the Rights Issue stock is issued. Bids for the Placement will be split proportionately between the first and second tranches.

The Rights Issue is renounceable and is being offered on the basis of 1 new share for every five shares held @ 2 per share to raise $5.4m. Sub-underwriters will be paid 1.25% for the amount sub-underwritten.

Should demand for the Placement or sub-underwriting for the Rights Issue vary significantly from the anticipated 50/50 split then the Placement and rights issue amount will be varied accordingly to accommodate demand.

A prospectus will be produced for the Right Issue and for secondary trading purposes for both tranches of the Placement