BOOM LOGISTICS LIMITED — Capital/Financing Update 2014

Dec 15, 2014

16 December 2014

ASX code: BOL

==> picture [180 x 96] intentionally omitted <==

==> picture [201 x 96] intentionally omitted <==

Boom Logistics Limited Market Update

As noted in the FY14 Full Year Results announcement and during our Annual General Meeting in October, the first half of FY15 has continued to be challenging with market conditions similar to the second half of FY14.

With declining commodity prices, mining and resources customers have continued to apply significant price pressure and on-going demand patterns are volatile. Some customers have indicated lower levels of activity in December and January, such as Glencore which recently announced the closure of 13 mine sites for 3 weeks commencing mid-December.

With the continuation of difficult market conditions throughout calendar year 2014, our trading profitability run rates for the first half of FY15 are anticipated to be at approximately the same level as the second half of FY14.

In the current financial year, we have continued to act to mitigate the impact of adverse market conditions:

• The reduction of 110 Full-Time Equivalent operational positions and 10 overhead positions

• Continued focus on constructively improving the terms and conditions of our Enterprise Agreements

• Stringent labour management over the holiday season in late December and early January when demand volatility is further exacerbated

• On-going fleet utilisation reviews to enable surplus asset sales

• A heightened sales focus on dry hire opportunities to improve asset utilisation, at improved margins

• Targeting short-term, high value projects wherever available

• With the One Boom project to integrate the Boom Sherrin and Crane Logistics businesses, the consolidation of our Mackay and Port Kembla depots.

In line with our capital management strategy, we are focused on further reducing debt to strengthen our balance sheet and improve our earnings leverage. We continue to drive the sale of surplus assets that are no longer required to support on-going operations and are not needed to address opportunities in our sales pipeline.

==> picture [103 x 9] intentionally omitted <==

ABN 28 095 466 961 Boom Logistics Limited Level 6, 55 Southbank Boulevard Southbank VIC 3006

T +61 3 9207 2500 F +61 3 9207 2400

==> picture [197 x 95] intentionally omitted <==

We are currently on-track to achieve our target of $15m of surplus asset sales in FY15. We are also continuing to place substantial focus on improving our receivables position.

Based on these actions we expect, at 31 December 2014:

• A net debt position in the region of $80m, down from $89.5m at 30 June 2014

• An accounts receivable position that is $8m - $10m lower than the $55m balance at 30 June 2014

Boom Logistics Limited’s audited half-year results are expected to be released on 11 February 2015.

Further Information:

Brenden Mitchell Managing Director +61 3 9207 2500

Paul Martinez Chief Financial Officer +61 3 9207 2500

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of Boom Logistics Limited (“Boom”) and certain plans and objectives of the management of Boom. Forward-looking statements can generally be identified by the use of words such as 'project', ‘believe’, 'foresee', 'plan’, 'expect', 'aim', 'potential’, ‘goal’, ‘target’, ‘intend', 'anticipate’, 'believe', 'estimate’, 'may', ‘could’, 'should', 'will’ or similar expressions. All such forward looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of Boom, which may cause the actual results or performance of Boom to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this announcement. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, fluctuations in foreign currency exchange and interest rates, competition, Boom's relationships with, and the financial condition of, its suppliers and customers, or legislative changes, or regulatory changes or other changes in the laws which affect Boom's business. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. Readers should not place undue reliance on forward looking statements. Except as required by law and ASX Listing Rules, Boom undertakes no obligation to update publicly or otherwise revise any forward looking statement as a result of new information, future events or other factors.