"They clung on to the upturned hull and rang one of their parents, who called emergency services."
He said Taupo Coastguard and the Taupo Harbourmaster went out, and were assisted by nearby vessels but they couldn't find the boys. Taupo's Greenlea Rescue Helicopter was contacted and found the boys within minutes. They directed the coastguard to their position, 1km from the Whakaipo headland, where they were rescued.
"The boys have done the right thing," Mr McNally said.
"They had the right gear, lifejackets, communication and they stuck with their boat, which was smart. It was easy for the helicopter to spot them."
The boys were taken by ambulance to Taupo Hospital. Last night one had been discharged and the other was being checked out but was also expected to be discharged.
Rescue helicopter pilot Nat Every said it was unlikely the boys would have made it back to shore by themselves because of the strong winds.
"With their direction of travel they were more than 4km from the shore," he said.
The boys had set off in their 12ft dinghy and travelled to Taupo. Around 1.30pm one of the boys phoned his mum and said they were heading back to Kinloch.
As they rounded Rangatira Point, they were met by a 20 knot westerly wind and large waves.
They continued for a distance but their small boat took on water quickly and began to sink.
One of the boys phoned his mum, provided their approximate location and asked for help. Police were called and a search and rescue operation commenced.
Lake Taupo Volunteer Coastguard, Lake Taupo Harbour Master and the Greenlea Rescue Helicopter responded.
The pair were quickly located by the helicopter who directed the Coastguard boat to their location.
The boys were pulled from the water and taken to a waiting St John Ambulance. The boys were taken to Taupo Hospital, treated and discharged a couple of hours later.
Mr McNally of the Taupö Area Search & Rescue Squad said "this is a timely reminder for all boaties to obtain a current weather forecast before heading out, understand the capabilities of their vessel and tell someone where they are going. We are glad this incident had a happy ending".