Magma Takeover – Additional Acceptances and Process for Acceptance

In relation to the off-market takeover bid (“Offer”) by Panoramic Resources Limited (“Panoramic”) for all ordinary shares in Magma Metals (“Magma”), Panoramic is pleased to advise that it has received acceptances in respect of the Magma shares owned or controlled by Magma’s Managing Director. As detailed in the attached Form 604 (Change in Interest of Substantial Shareholder), Panoramic’s relevant interest in Magma, as at 2:00pm (Sydney time) on 1 June 2012, is 76.80%.

Panoramic strongly encourages remaining Magma shareholders, who have not accepted Panoramic’s Offer, to follow the lead of their Managing Director and ACCEPT without further delay - especially taking into consideration that:

The increased Offer of 1 Panoramic Share for every 7 Magma Shares is UNANIMOUSLY RECOMMENDED BY THE MAGMA BOARD and will close at 7.00pm (Sydney time) on Wednesday, 6 June 2012;

There will be NO FURTHER EXTENSIONS OF THE OFFER PERIOD; and

In the Magma Board’s opinion, Magma Shareholders who do not accept the Offer risk being locked in as minority holders after the close of the Offer if Panoramic does not achieve more than 90% acceptances and thereby move to compulsory acquisition. It is likely that the market for Magma Shares on ASX and TSX in those circumstances will be illiquid.