AIM RELEASE 7 December 2007 ASX PRICE QUERY Discovery Metals Limited (AIM:DME) advises that on 6 December 2007, the Company received a Price Query letter from the Australian Stock Exchange ('ASX) noting a price change and increase in the volume of trading of the Company's securities. A pdf version of the ASX Price Query letter is attached to this announcement and it is also available on the Company's website. The following text is the Company's response to the ASX Price Query letter. 6 December 2007 Frances Finucan ASX Limited Level 5 Riverside Centre 123 Eagle Street Brisbane QLD 4000 By email: frances.finucan@asx.com.au Dear Frances Thank you for your letter of 6 December 2007. Using the numbering in your letter, we respond as follows: 1. The Company is not aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company, particularly the price and volume increase on the 5th & 6th December 2007. However, as you are aware, the Company has requested today that its securities be placed in a trading halt pending the release of an announcement. 2. This question is not applicable given our response to Question 1. 3. On 26 November 2007, the Company released its AGM presentation which included (Slide 28) a 'Peer Comparison' between the Company and African Copper Plc and the market may now be recognising some similarities between Discovery Metals and African Copper. In addition, we understand that there has been broker interest (based on the information disclosed to the market) and analyses of the 2 companies and their Projects that may explain the price change and increase in trading volume. The Company however is not aware of any reports, their content or any information being circulated about the Company by any third party or if this is in fact occurring. 4. I confirm that the Company is in compliance with the Listing Rules and, in particular, Listing Rule 3.1. In confirming this, I advise that the Company's external consultants, Snowden Mining Industry Consultants ("Snowden"), are preparing a new resource estimation in respect of the Company's Plutus Prospect on the Maun Copper Project in North West Botswana. This estimation work, though well advanced, is not yet complete. In regard to this estimation work, all drill hole assay data being used has been previously released to the market. The Company has regularly kept the market informed of progress with its projects and drill results including:- * On 25 September 2007, the Company released to the market information regarding the prospect of further expanding the total resources at Discovery Metal's 100% owned Maun Copper Project by more encouraging results from drilling at the Plutus Prospect. * On 30 October 2007, the Company released to the market information regarding new drill results from the Plutus Prospect and the engagement of external consultants to complete a resource assessment. * On 31 October 2007, this information was again contained in the Company's Quarterly Activities Report. * On 26 November 2007, the AGM Presentation, and in particular Slide 20, details the Plutus Prospect and drill results. Yours faithfully Roslynn Shand Company Secretary Discovery Metals Limited NOTE: For further information contact Jeremy Read Managing Director Tel: +617 3218 0202 Mobile: 0409 484322 Email: jeremy@discoverymetals.com.au Jamie Wright RFC Corporate Finance Ltd (Nomad) Tel: +618 9480 2508 Email: Jamie.Wright@rfc.com.au Richard Hail Fox-Davies Capital Ltd (AIM Broker) Telephone: +44(0) 20 7936 5200 Email: Richard.Hail@fdcap.com Further information on the Company is available on its website: www.discoverymetals.com.au ---END OF MESSAGE---