ADVANCED BRAKING TECHNOLOGY LTD — Capital/Financing Update 2011

Oct 6, 2011

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6 October 2011

AUSTRALIAN STOCK EXCHANGE LIMITED

Electronic Lodgement

Dear Sir or Madam,

– Advanced Braking Technology Ltd ASX waiver from listing rules 10.13.3 & 10.13.5

Attached please find below an extract from a letter from the ASX dated 6 October 2011, setting out the conditions of their waiver from listing rules 10.13.3 and 10.13.5 in respect of the issue of shares to Directors of the Company.

Yours faithfully,

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Clare Madelin Company Secretary

Terms of ASX Waivers from listing Rules 10.13.3 and 10.13.5 dated 6 October 2011

1.1 The Notice states the following.

1.1.1 The shares will be issued to Mr Humann, Professor Richmond and Mr Slack (or their respective nominees) bi-annually in respect of 6 monthly periods ending 30 June and 31 December of each year that Mr Humann, Professor Richmond and Mr Slack remains a director.

1.1.2 The number of shares to be issued to Mr Humann, Professor Richmond and Mr Slack (or their respective nominees) in respect of any half year will be calculated by dividing the amount owed to each director in respect of their director’s fees for the half year by the volume weighted average trading price of the Company's shares on ASX in the 30 day period prior to 30 June or 31 December, as applicable, with any fractions of a share to be rounded down to the nearest whole number; save that if Mr Humann, Professor Richmond or Mr Slack should cease to be a director on a date other than 30 June or 31 December, the calculation of the number of shares to be issued to each director will be performed by substituting the date that Mr Humann, Professor Richmond or Mr Slack ceases to be a director for a reference to 30 June or 31 December.

1.2 The Company releases the terms of the waivers to the market immediately.

1.3 The shares are issued within 30 days of 30 June and 31 December of each year.

1.4 The shares approved by shareholders may only be issued in respect of entitlements to directors’ fees accrued by Mr Humann, Professor Richmond and Mr Slack up to 31 December 2012.

1.5 The Company’s annual report for any period during which the shares are issued to Mr Humann, Professor Richmond or Mr Slack (or their respective nominees), discloses details of the number of shares that were issued to each of them, including the percentage of the Company’s issued capital represented by those shares.

1. ASX has considered listing rules 10.13.3 and 10.13.5 only and makes no statement as to the Company’s compliance with other listing rules.