AUSTAL LIMITED — Capital/Financing Update 2021

Jun 17, 2021

COMPANY ANNOUNCEMENT 18 JUNE 2021

==> picture [98 x 63] intentionally omitted <==

AUSTAL AUSTRALIA DELIVERS 11TH GUARDIAN CLASS PATROL BOAT

Austal Limited (Austal) (ASX: ASB) is pleased to announce Austal Australia has delivered the eleventh Guardian -class Patrol Boat (GCPB) to the Australian Department of Defence.

The vessel, the RKS Teanoai II, was then gifted by the Australian Government to the Government of the Republic of Kiribati at a certificate signing ceremony held at Austal Australia’s Henderson shipyard. The ceremony was attended by Mr Vince Connelly MP, Member for Stirling, Rear Admiral Wendy Malcolm, Head of Maritime Systems within the Department of Defence Capability Acquisition and Sustainment Group (CASG), Air Commodore Fiona Dowse, Senior ADF Officer WA, Ms Fleur Davies, Assistant Secretary, New Zealand, Polynesia and Micronesia at the Department of Foreign Affairs and Trade; and Honorary Consul-General of Kiribati, Mr Paul Wenham.

The vessel is the first Guardian -class Patrol Boat to be delivered to Kiribati under the Pacific Patrol Boat Replacement Project (SEA3036-1), part of the Australian Government’s Pacific Maritime Security Program; and replaces the original RKS Teanoai, a Pacific -class Patrol Boat delivered in 1994.

Austal Chief Executive Officer Paddy Gregg said the latest delivery of the Pacific Patrol Boat Replacement Project highlighted the resilience, flexibility and efficiency of the teams collaborating from Austal Australia and the Department of Defence.

“The Teanoai II was originally scheduled for delivery in the middle of 2020, but due to the COVID19 pandemic was postponed until such time as we could get the Kiribati crew safely into Australia,” Mr Gregg said.

“While the delivery of this particular vessel was postponed, it did not affect, delay or hinder the construction or delivery of subsequent Guardian- class Patrol Boats and we remain on track to deliver all 21 vessels by the end of 2023.

Page 1 of 5

“The Austal Australia and SEA3036-1 Project teams have worked together successfully to maintain productivity and meet the objectives of the Pacific Patrol Boat Replacement Project, throughout the COVID19 pandemic.

“Our warmest congratulations go to the President of Kiribati, His Excellency Taneti Maamau; Commissioner of Kiribati Police Service, Mr Ioeru Tokantetaake; Superintendent of Police and Commanding Officer of the RKS Teanoai II, Tom Redfern; and the people of the Republic of Kiribati on the handover of this outstanding new patrol boat.”

Faster, with improved seakeeping, better amenities and an enhanced mission capability – including an integrated RHIB stern launch and recovery system – the Guardian -class Patrol Boats provide the Kiribati Police Force with a much improved naval asset to carry out border patrols, regional policing, search and rescue, and many other operations domestically and internationally.

The Pacific Patrol Boat Replacement (PPB-R) Project was awarded to Austal in May 2016, with an additional contract option awarded in April 2018, taking the program to 21 vessels, valued at more than A$335 million.

Twelve Pacific Island nations including Papua New Guinea, Fiji, the Federated States of Micronesia, Tonga, Solomon Islands, Cook Islands, Kiribati, Marshall Islands, Palau, Samoa, Tuvalu, Vanuatu and Timor Leste will receive the vessels through to 2023.

The Pacific Patrol Boat Replacement Project supports more than 200 direct jobs at Austal Australia and more than 200 indirect jobs nationally through Australian businesses contracted by Austal.

Austal Australia’s expanded service centre in Cairns, incorporating a 1,200 tonne (80 metre LOA) slipway and a 1,120 tonne mobile boat hoist, continues to provide in-service support to the growing Guardian -class Patrol Boat fleet; with more than 100 people now employed in a variety of engineering and sustainment roles in the Far North Queensland city.

The 39.5 metre steel monohull patrol boat – designed, constructed and sustained by Austal Australia – is based on a proven design platform that has included the 38 metre Bay-class, 56 metre Armidale-class and 58 metre Cape-class patrol boats that are in service with the Australian Border Force and Royal Australian Navy.

This ASX announcement has been approved and authorised for release by Paddy Gregg, Austal Limited’s Chief Executive Officer.

Page 2 of 5

==> picture [397 x 300] intentionally omitted <==

RADM Wendy Malcolm CSM RAN and Superintendent of Kiribati Police Service and Commanding Officer of RKS Teanoai II, Tom Redfern at the certificate signing.

==> picture [400 x 293] intentionally omitted <==

Mr Vince Connelly MP, Member for Stirling, with Superintendent of Kiribati Police Service and Commanding Officer of RKS Teanoai II, Tom Redfern at the certificate signing.

Page 3 of 5

==> picture [371 x 296] intentionally omitted <==

Superintendent of Kiribati Police Service and Commanding Officer of RKS Teanoai II, Tom Redfern, Mr Vince Connelly MP and RADM Wendy Malcolm CSM RAN at the ribbon cutting for RKS Teanoai II.

==> picture [366 x 270] intentionally omitted <==

From left: Austal CEO Patrick Gregg, RADM Wendy Malcolm CSM RAN, Honorary Consul General to Kiribati Mr Paul Wenham, Superintendent of Police and Commanding Officer of RKS Teanoai II, Tom Redfern, Mrs Ilona Wenham, Mr Vince Connelly MP, Member for Stirling and Air Commodore Fiona Dowse, Senior Officer ADF Western Australia, with the crew of the RKS Teanoai II at Austal’s Henderson Western Australia shipyard (images: Austal)

Page 4 of 5

- ENDS -

Media Contact:

Cameron Morse +61 433 886 871 cameron.morse@fticonsulting.com

About Austal:

Austal is Australia’s global shipbuilder and defence prime contractor designing, constructing and sustaining some of the world’s most advanced commercial and defence vessels.

For more than 30 years Austal has contracted more than 340 vessels for over 121 commercial and defence operators in 59 countries, worldwide.

Austal is Australia’s largest defence exporter and first ASX-listed shipbuilder. Austal has industryleading shipyards in Australia, the United States of America, Philippines and Vietnam with service centres worldwide, including the Middle East.

Austal delivers iconic monohull, catamaran and trimaran commercial vessel platforms – including the world’s largest trimaran ferry and multiple defence programs such as the Littoral Combat Ship (LCS) and Expeditionary Fast Transport (EPF) for the United States Navy.

Austal is the only foreign-owned prime contractor designing, constructing and sustaining ships for the US Navy.

Austal has grown to become the world’s largest aluminium shipbuilder and is Australia’s largest defence exporter.

Austal Limited ACN 009 250 266 100 Clarence Beach Road Henderson, Western Australia 6166

Page 5 of 5