Series 001 S$110,000,000 7.45 per cent. Notes due 2016 (ISIN: SG6TF6000008) (the “Notes”) issued under the S$350,000,000 Multicurrency Debt Issuance Programme of AusGroup Limited established on 22 September 2014

Update Announcement Relating to the Remedy of the Potential Event of Default

AusGroup Limited (the “Company”) refers to the consent solicitation exercise launch announcement dated 13 September 2016 (the “Launch Announcement”), the notice of meeting published in The Business Times and released in conjunction with the Launch Announcement on 13 September 2016 (the “Notice of Meeting”), the consent solicitation statement dated 13 September 2016 (the “Consent Solicitation Statement”) issued by the Company to the holders of the Notes (the “Noteholders”) for the purposes of the consent solicitation (the “Consent Solicitation”) launched by the Company in connection with the Notes, the results of meeting announcements dated 5 October 2016 and 6 October 2016, the extension of documentation date announcement dated 7 November 2016 (the “Documentation Date Extension Announcement”), the execution of supplemental trust deed and security documents announcement dated 21 November 2016, the announcement of a potential event of default under the Notes dated 23 December 2016 (the “Potential Event of Default Announcement”) and the announcement of the potential event of default being remedied dated 13 January 2017 (“PEOD Remedied Announcement”). Capitalised terms used but not otherwise defined in this announcement shall have the same meanings ascribed to them in the Consent Solicitation Statement.

Subsequent to the Minister’s consent, the Company signed various documents (including a deed of variation of the general security deed and a second deed of variation of the deed of mortgage) and, accordingly, the Company is of the view that there is no Event of Default or Potential Event of Default relating to the Notes that is continuing or that has not been waived.

Shareholders are advised to exercise caution in trading their Shares and Noteholders are advised to exercise caution in trading their Notes. Shareholders and Noteholders are advised to read this announcement and any further announcements by the Company carefully. Shareholders and Noteholders should consult their stock brokers, bank managers, solicitors or other professional advisors if they have any doubt about the actions they should take.

By Order of the Board
AusGroup Limited