BABYLON PUMP & POWER LIMITED — Share Issue/Capital Change 2018

Jan 7, 2018

Our Ref: BPP020118

5 January 2018

BABYLON PUMP & POWER LIMITED LEVEL 40 140 WILLIAM STREET MELBOURNE VIC 3000

Dear Sir/Madam

RESTRICTED SECURITIES

Under 9.5 (b) of the ASX Listing Rules, we have imposed a “Holding Lock” on 100,000,000 restricted IMIOA Options expiring 31 March 2019 at $0.04 Fully Paid Shares and 28,000,000 Performance Rights.

IMIOA OPTIONS EXP31/12/19 AT $0.04	ESCROWED24 MONTHS FROM DATE OF QUOTATION	100,000,000
PERFORMANCERIGHTS A	ESCROWED24 MONTHS FROM DATE OF QUOTATION	4,900,000
PERFORMANCERIGHTS B	ESCROWED24 MONTHS FROM DATE OF QUOTATION	4,900,000
PERFORMANCERIGHTS C	ESCROWED24 MONTHS FROM DATE OF QUOTATION	4,900,000
PERFORMANCERIGHTS D	ESCROWED24 MONTHS FROM DATE OF QUOTATION	4,900,000
PERFORMANCERIGHTS E	ESCROWED24 MONTHS FROM DATE OF QUOTATION	8,400,000

We undertake that the lock will not be removed without ASX written consent.

Issuer Statements and CHESS notices have been despatched on 20 December 2017

Yours faithfully SECURITY TRANSFER AUSTRALIA

Danielle Petch Client Services