ADVANCED BRAKING TECHNOLOGY LTD — Capital/Financing Update 2016

Aug 3, 2016

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4 August 2016

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

Dear Sirs

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

On 4 August 2016 Advanced Braking Technology Limited ("Company") issued 385,950,008 ordinary fully paid shares in the capital of the Company ("Securities") at an effective issue price of $0.007 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.

An Appendix 3B and an announcement with respect to the issue of the Securities have been lodged with the ASX.

Yours faithfully

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Neville Walker Company Secretary