COG FINANCIAL SERVICES LIMITED — Net Asset Value 2012

Aug 13, 2012

Armidale Investment Corporation Limited

ABN: 58 100 854 788 Level 11, 139 Macquarie Street Sydney NSW 2000 Tel: 02 8014 1188 Fax: 02 8084 9918

ASX Company Announcements

14 August 2012

The Manager Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Net Tangible Asset Value as at 31 July 2012 on a

Consolidated and Company Basis

Armidale Investment Corporation Limited (AIK) reported on 22 June 2012 that it had exercised its call option over HAL Data Services Pty Limited (HDS), to increase its holding in HDS to approximately ~87%. The date of the allotment of the shares from the exercise of the call option was 29 June 2012. AIK is required under the Accounting Standards to consolidate the financial statements of HDS into its financial and management accounts. This consolidation commenced with the month ended 31 December 2011, being when AIK had the ability to exercise its call option over HDS.

As a result of this, AIK will report its Net Tangible Asset (NTA) Value on both a Consolidated and Company level. Providing the Company NTA will allow comparability to the NTA figures that, prior to the requirement to consolidate HDS, have been reported.

Furthermore it was announced on 22 June 2012 that AIK would purchase, subject to appropriate legal documentation and escrow arrangements being executed and any required regulatory and shareholder approval being obtained, an additional 15% of the ‘Waterfall Arrangement’ through the issue of shares in AIK. It is noted that this transaction was not completed at 31 July 2012 (with likely completion date post the 2012 Annual General Meeting) and therefore any changes to the financial statements which would result from this transaction is not reflected in the 31 July 2012 Net Tangible Asset Value.

The unaudited NTA value per share (after all taxes, fees and expenses) as at 31 July 2012 was:

	Consolidated	Company
Net Assets	$20,112,016	$16,192,414
Intangible Assets	$ 8,404,247	$ 0
NTA	$11,707,769	$16,192,414
NTA per share	7.24 cents	10.01 cents
Intangible Assets comprise:
Intangibles (Software & Residual rights)	$ 5,933,202
Goodwill	$ 2,471,045
Intangible Assets	$ 8,404,247

Refer to Consolidated NTA below for an explanation of the intangible assets

Company NTA

The Company NTA reflects the valuation of AIK’s interests in HDS as announced to the ASX on 24 June 2011 of $13,612,000, being a mid-point of the valuation ranges and adjusted for the receipt of $3.7 million in repayments from HDS as detailed below:

• (i) two repayments of $1.5m each from HDS as announced on 5 August 2011 and 20 December 2011; and

• (ii) a repayment of $0.7m from HDS as announced on 7 February 2012.

As announced on 24 July 2012, a $1.0 million payment of amounts owed by HDS to AIK under the December 2010 Loan Agreement was received. It is noted that this is different to payments received previously as part of the Loan Note Restructure.

This brings the total payments received since 31 July 2011 to $4.7 million, comprising:

(a)	Payments	as part of the Loan Note Restructure	$3.7m
(b)	Payments	under December 2010 Loan Agreement	$1.0m
			$4.7m

For clarity, the repayments noted above have no effect on the Company NTA.

Consolidated NTA

The Consolidated NTA includes consolidation of HDS, which includes intangible assets. An intangible asset is an identifiable non-monetary asset without physical substance that has, identifiability, control over a resource and existence of future economic benefits.

The intangible assets arising from the consolidation of HDS include:

• Software

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees' time spent on the project. Amortisation is calculated on a straight-line basis over periods generally ranging from 2 to 5 years.

 Residual Rights

Residual rights form a key part of a leasing business operation. These are the rights to any inertia lease income that flows through to HDS following the end of a lease term. The fair value of residual rights is present value of the expected future inertia lease income and expected sale proceeds on the sale of the leased asset. At the end of the lease term the residual right (intangible asset) is transferred to property, plant and equipment to reflect the ownership of the physical asset by the HDS.

For further information please contact:

Gabriel Radzyminski David Franks Chairman Company Secretary 02 8014 1188 / 0467 483 005 02 9299 9690

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