CAR GROUP LIMITED — Capital/Financing Update 2011

Dec 21, 2011

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement. application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Carsales.com Ltd

ABN

91 074 444 018

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$+$ Class of $+$ securities issued or to Ordinary Shares $\mathbf{1}$ be issued

$\bar{\mathbf{2}}$ Number of *securities issued or to be issued (if known) or maximum number which may be issued

Principal terms of the +securities | $\overline{\mathbf{3}}$ (eg, if options, exercise price and expiry date; if partly paid *securities. the amount outstanding and due dates for $if$ ⁺convertible payment; securities, the conversion price and dates for conversion)

150,000 ordinary shares

Fully paid Ordinary Shares

⁺ See chapter 19 for defined terms.

Do the + securities rank equally in Yes all respects from the date of allotment with an existing +class
If the additional securities do not they next dividend, (in the case of a trust, distribution) or interest the extent to which they do not rank equally, other than in relation to the next dividend. interest
10,000 options at \$2.15. 140,000 options at \$2.00 Total consideration - \$301,500
Exercise of options issued under the (If issued as consideration for the Company's option plan clearly
5,000 options at $$2.00 - 2nd$ December 11 10,000 options at \$2.15 - 19 th December 11 15,000 options at \$2.00-19 th December 11 120,000 options at \$2.00-21 st December 11
Number + Class
all 233,264,223 Ordinary ASX (including the securities in clause
Dates of entering + securities into or

⁺ See chapter 19 for defined terms.

	Number	+ Class
Number and + class of all *securities not quoted on ASX (including the securities in clause 2 if applicable)	4,520,750	Options adjusted respect of in options 150,000 converted to ordinary shares under the Ltd carsales.com Option plan.

10 trust, distribution policy) on the increased capital (interests)

Dividend policy (in the case of a The shares will rank equally with current shares on issue

Part 2 - Bonus issue or pro rata issue

11	holder security approval Is required?	N/A
12	Is the issue renounceable or non- renounceable?	N/A
13	Ratio in which the + securities will be offered	N/A
14	+ Class of + securities to which the offer relates	N/A
15	+Record determine date to entitlements	N/A
16	Will holdings different on registers (or subregisters) be calculating aggregated for entitlements?	N/A
17	Policy for deciding entitlements in relation to fractions	N/A
18	Names of countries in which the entity has + security holders who will not be sent new issue documents	N/A
	Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.

• See chapter 19 for defined terms.

Appendix 3B
New issue announcement

19	Closing date for receipt of acceptances or renunciations	N/A
20	Names of any underwriters	N/A
21	Amount of any underwriting fee or commission	N/A
22	Names of any brokers to the issue	N/A
23	Fee or commission payable to the broker to the issue	N/A
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of + security holders	N/A
25	If the issue is contingent on + security holders' approval, the date of the meeting	N/A
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	N/A
27	If the entity has issued options, and the terms entitle option holders participate to on exercise, the date on which notices will be sent to option holders	N/A
28	Date rights trading will begin (if $\mid N/A \rangle$ applicable)

÷.

29	Date rights trading will end (if applicable)	N/A
$30^{\circ}$	How do + security holders sell their entitlements in full through a broker?	N/A
31	How do 'security holders sell entitlements of their part through a broker and accept for the balance?	N/A
32	How do + security holders dispose of their entitlements (except by sale through a broker)?	N/A
33	+ Despatch date	N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

Type of securities $34$ $(tick one)$

$(a)$

$(b)$

Securities described in Part 1

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35

If the *securities are *equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

⁺ See chapter 19 for defined terms.

Appendix 3B
New issue announcement

36	If the 'securities are 'equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories
	$1 - 1,000$
	$1,001 - 5,000$
	5,001 - 10,000
	10,001 - 100,000
	100,001 and over
-37	A copy of any trust deed for the additional *securities

Entities that have ticked box 34(b)

38	Number of securities for which + quotation is sought	N/A
39	Class of + securities for which quotation is sought	N/A
40	Do the + securities rank equally in all respects from the date of allotment with an existing + class of quoted + securities?	N/A
	If the additional securities do not rank equally, please state: the date from which they do the extent to which they for the participate next dividend, (in the case of a trust, distribution) or interest payment
	the extent to which they do ۰ not rank equally, other than in relation to the next dividend, distribution interest OT payment
41	Reason for request for quotation now	N/A
	Example: In the case of restricted securities, end of restriction period
	(if issued upon conversion of another security, clearly identify that other security)

$\begin{array}{c} 1 \ 1 \ 1 \end{array}$

⁺ See chapter 19 for defined terms.

	Number	$\lceil \cdot \rceil$ ass
Number and $\pm$ class of all $N/A$ 42 + securities quoted on ASX (including the securities in clause 38)

Ouotation agreement

• ⁺Quotation of our additional ⁺securities is in ASX's absolute discretion. ASX $\mathbf{1}$ may quote the *securities on any conditions it decides.
• We warrant the following to ASX. $\overline{\mathbf{z}}$
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the 'securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any 'securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the 'securities be quoted.
• We will indemnify ASX to the fullest extent permitted by law in respect of any $\overline{\mathbf{3}}$ claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• We give ASX the information and documents required by this form. If any $\overline{4}$ information or document not available now, will give it to ASX before ⁺quotation of the ⁺securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

⁺ See chapter 19 for defined terms.

Appendix 3B New issue announcement

5 Secttic Date: 221211 Margare Sign here:

Company secretary

MARGARET BEATTIE Print name:

$\Rightarrow$ $\Rightarrow$ $\Rightarrow$ $\Rightarrow$ $\Rightarrow$

$\hat{\mathcal{A}}$

⁺ See chapter 19 for defined terms.