April 27, 2012 QUARTERLY REPORT FOR THE PERIOD ENDED MARCH 31, 2012

Perth, Western Australia - Magma Metals Limited (ASX & TSX: “MMW”) (“Magma” or the “Company”) is pleased to provide its activities and cash flow report for the quarter ended March 31, 2012. Field activities included drilling at the Thunder Bay North (“TBN”) platinum-palladium-copper-nickel project in north-western Ontario, Canada (Figure 1). These activities and plans for further exploration work are described in this report.

ASX & TSX: MMW

HIGHLIGHTS Thunder Bay North Platinum-Palladium Project, Ontario

71,000 platinum-equivalent ounces added to underground resources, a 53% increase to:

Indicated Resources: 1.37Mt @ 3.67g/t Pt-Eq for 162,000oz Pt-Eq Inferred Resources:0.47Mt @ 2.97g/t Pt-Eq for 45,000oz Pt-Eq

This represents a 10% increase in the project’s overall resources to:

Indicated Resources: 9.83Mt @ 2.34g/t Pt-Eq for 741,000oz Pt-Eq Inferred Resources:0.53Mt @ 2.87g/t Pt-Eq for 49,000oz Pt-Eq

A drilling program to test a number of regional ZTEM and magnetic airborne geophysical targets is in progress.

Significant progress was made during the quarter on engineering work to enhance the economics of the project.

Western Australian Projects

Drilling and geochemical surveys have been planned for a number of projects in the June quarter.

Corporate

Panoramic Resources Limited announced an unsolicited conditional all-scrip takeover offer for Magma Metals. Magma’s directors have unanimously recommended that shareholders REJECT the offer.

A$9.8 million cash retained at the end of the quarter.