ADVANCED BRAKING TECHNOLOGY LTD — Capital/Financing Update 2012

Apr 30, 2012

1[st] May 2012

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Company Announcement Office Australian Stock Exchange Limited 20 Bond Street Sydney NSW 2000

Dear Sirs

ISSUE OF ADVANCED BRAKING TECHNOLOGY LTD SECURITIES - SECONDARY TRADING NOTICE PURSUANT TO PARAGRAPH 708A (5) (e) OF THE CORPORATIONS ACT 2001 ("Act")

On the 1[st] May 2012 Advanced Braking Technology Limited ("Company") issued 125,700,000 ordinary fully paid shares in the capital of the Company ("Securities") at an issue price of $0.017 each.

Secondary Trading Exemption

The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A. By the Company giving this notice, sale of the Securities noted above will fall within the exemption in section 708A(5) of the Act.

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:

• (a) the Company issued the Securities without disclosure to investors under Part 6D.2 of the Act;

• (b) as at the date of this notice the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and

• (c) as at the date of this notice there is no information:

  • (a) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing rules; and

  • (b) that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

    • (i) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

    • (ii) the rights and liabilities attaching to the Securities.

Yours faithfully

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Clare Madelin Company Secretary