ASPERMONT LIMITED. — Management Reports 2014

Nov 26, 2014

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Dear Fellow Shareholders,

It has been a busy start to the financial year as we see the impact of key new management implementing the technological changes necessary to introduce upgraded digital platforms for our traditional print titles. These changes are transformational, are happening now and will firmly establish Aspermont as a digitally based global resources media business.

In this shareholder update Robin Booth, our new global head of publishing, provides a review of Aspermont as a publisher to better explain our progress. Over the coming months we will feature reviews by the key executives of our other business divisions.

Highlights

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• Successful completion of our Rights Issue (100% take up from initial offering and issuance of shortfall)

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• UK Operations continue to recover through increased Subscriptions revenue and cost savings

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• Centralisation of IT, Production and Marketing functions now in completion phase with significant savings on the cost base of business

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• Launch of successful IMARC, resources conference in Melbourne, with a three-fold increase in yearon-year attendance

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• Relaunch of Mining Journal and Mining Magazine onto new digital platform, with new websites and workflow systems

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• Restructure of Executive team and reporting lines.

Performance update

We are forecasting a turnaround from the poor performance of last year, with an improvement this year to circa $2.2 million once $750,000 of restructure costs are added back, accelerating to $4.5 million in Media EBIDTA in two years based on:

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• Completion of our restructure within the cost base, allowing stronger margins to return

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• Launch of our new suite of digital assets to drive significant new revenue opportunities from existing assets

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• Streamlined management and project delivery, including a reduction in size of the executive team with a global focus.

3 Year view of performance:

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Aspermont Limited 613-619 Wellington St, Perth, Western Australia 6000 T: +61 8 6263 9100 F: +61 8 6263 9148 E: contact@aspermont.com www.aspermont.com

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In October the company completed the 100% take up of the recent Rights Issue, this was followed up with the agreement to retire $2.267 million of related party debt in November, subject to approval in our December EGM.

Debt target position by end of FY2014/15 will be reduced by 45%:

Debt:	FY2013/14	FY2014/15
Bank	$3.2m	$1.8m
Other	$4.9m	$2.6m
Total	$8.1m	$4.4m

Trading outlook

Aspermont has made a positive start to quarter one, notwithstanding very tough market conditions and ongoing pressure on revenue. The first quarter saw a year-on-year increase of 10% in Digital, offset with a 25% drop in Print, while our events division, due to the inaugural Melbourne IMARC event, was up 60%.

Q1 was ahead of budget, and our year-on-year forecast is to exceed last year’s Media EBITDA (neg. $850,000) by more than $2 million; we anticipate having approximately $750,000 of one-off costs to the end of this financial year, as we complete the restructure of the group.

This has been a critical quarter as we further transition from print delivery to digital delivery through investment in state-of-the-art technologies.

In terms of our full year view, we expect revenues to be slightly lower within publishing but anticipate a strong year-on-year recovery in our Media EBITDA, our Australian division is under pressure with revenue given local conditions, and continues to maintain a strict control on costs, while the UK division is to date achieving close to budget forecasts.

Performance of our Events division will be dependent on the success of Mines & Money Hong Kong , with the London event showing an encouraging result in the context of the market conditions, with now more than 2,000 attendees registered which is on par with last year.

At the corporate level we have further streamlined the executive structure; all Board Members both executive and non-executive directors have voluntarily reduced their remuneration by 15%.

Transformation programme – growing revenue

With key product launches currently being implemented we anticipate an acceleration of digital revenue into FY2015/16, as we continue to transition print revenue to our digital channels, our approach to development this year has been far more streamlined and each phase is being delivered ahead of time. Phase one includes:

Digital Relaunch	Progress
Mining Journal	Completed
Mining Magazine	Completed
Australia’s Mining Monthly	In Progress
MiningNews.net	In Progress
MiningNewsPremium.net	In Progress
InternationalCoalNews.com	Q4 – delivery
MiningNews Brazil	Q4 - delivery
EnergyNews.net	Q4 - delivery
EnergyNewsPremium.net	Q4 - delivery

Aspermont Limited 613-619 Wellington St, Perth, Western Australia 6000 T: +61 8 6263 9100 F: +61 8 6263 9148 E: contact@aspermont.com www.aspermont.com

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Impacts of our Digital Publishing Strategy is already improving our product offering in terms of meeting growing customer demand across topics including:

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• Client driven content

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• Interactive advertising campaigns

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• Lead generation revenue models

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• Target products within subsectors of the industry audiences

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• Enhanced Subscriptions offering

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• Surveys, Guides and Webinars.

Supported by our new cloud-based infrastructure; digital marketing teams; and improved content workflow, the new implementations will continue to maintain our dominant position in the resources sector.

We continue to target increased databases to drive our Subscription and Advertising leads, with a full database and brand review due to commence in Q3. This will not only assist in identifying opportunities for further cross and upselling within our existing extensive database; it will also serve to drive further product launches into sub-sectors within our database with targeted news, advertising campaigns and data services.

Mining Journal has been published since 1835 and Mining Magazine since 1909 while Australia’s Mining Monthly , MiningNews.net and Noticias de Mineracao Brasil are the leading titles on their respective continents.

Aspermont is in transformation, as the respected traditional print titles are progressively going online to give readers access to informed comment and opinions, and the most extensive database in the industry by the medium of their choice whether it be print, desktop or tablet/smartphone.

Aspermont’s advantage:

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• Titles are subscription based and are industry leaders with global reach, communicating content across all issues relevant to the resources sector.

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• A business-to-business media model, which establishes a market-place where the readership comprises the buyers and sellers of mining products, mining equipment and related services.

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• The market is huge, with global mining machinery demand estimated at $135 billion for 2017 and demand for associated services, recruitment, safety and supplementary engineering such as water treatment or construction is likely to be of a similar order. There is a major advantage in being a global publisher with trusted brands.

FOCUS AREA: Group Publishing

Aspermont is an international media group which addresses the global mining and energy market, publishing highly regarded titles with global reach.

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Robin Booth is responsible for Aspermont’s publishing in the UK, Australia and Brazil. Robin is based in London and joined in April 2014 from Incisive Media where he was Group Publishing Director.

Robin explains the role of the publisher is to take the content provided by editorial staff and deliver this content to the readership by the medium of their choice.

Aspermont Limited 613-619 Wellington St, Perth, Western Australia 6000 T: +61 8 6263 9100 F: +61 8 6263 9148 E: contact@aspermont.com www.aspermont.com

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Our content strategy must be driven by and match the changing behaviours of our audience. Our audiences use a wide range of media to access content throughout the day whether by print, online or tablet/smartphone, they are almost always ‘digitally on’.

Mining Journal editorial staff provides continuous and objective commentary on global trends and political issues, Mining Magazine communicates the latest information and opinions on equipment and services and Australia’s Mining Monthly or Noticias de Mineracao de Brasil target specific sectors or markets with content on global issues relevant to the mining industry on each continent being shared.

Our key focus is for improvement within our UK publishing operations with the strong cashflow annuity that comes through our subscription models, initially with the improvements to Mining Journal .

Over the course of the year we anticipate similar improvements to all our subscription based products, this will be driven by a combination of:

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• Improved resourcing

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• Enhanced products

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• Better understanding of the customer experience

With the relaunch of Mining Journal online and a new subscription package we anticipate further accelerated growth within this area:

Being able to make our trusted content and respected opinions available on desktop, mobile and tablet as well as in print allows our corporate clients access to our content across their organisation, substantially expanding Aspermont’s reach into the most influential businesses in the resources sector – Robin Booth

Print and digital editions very naturally complement each other. Each platform must play to its strengths offering a different content experience:

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• Print is primarily a browsing experience, online is searching; an ideal delivery mechanism for indepth content, comment and analysis.

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• The immediacy of online publishing is well suited to rapid news delivery. It allows us to interact with our audiences in many new and valuable ways, we can engage, interact, provoke, debate; offer resources, data, tools, sharing experiences and opinions; make connections and introductions with peers, advisers and providers.

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I look forward to updating you in future newsletters on various aspects of the business and performance, throughout the year.

Regards,

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Colm O’Brien, Group CEO

Aspermont Limited 613-619 Wellington St, Perth, Western Australia 6000 T: +61 8 6263 9100 F: +61 8 6263 9148 E:

contact@aspermont.com

www.aspermont.com

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