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COKAL LIMITED Capital/Financing Update 2016

Dec 20, 2016

64656_rns_2016-12-20_598730dd-5d02-45dd-933f-0a2f5ae3b752.pdf

Capital/Financing Update

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T +61 7 3225 4574 E [email protected]

==> picture [174 x 54] intentionally omitted <==

Level 10, 110 Mary Street, Brisbane QLD 4000 PO Box 7122, Brisbane QLD 4001

ABN 55 082 541 437 (ASX: CKA) www.cokal.com.au

ASX ANNOUNCEMENT 21 December 2016

PLATINUM GROUP DEBT CONVERSION – UPDATE

Cokal Limited ( Company ) advises that since the last update on 2 December 2016, progress had been made with Platinum Partners ( Platinum ) to implement the debt conversion agreement announced on 22 July 2016.

The Company has now become aware that an indictment has been unsealed in a US Federal Court in Brooklyn, New York by US authorities alleging serious misconduct against current and former senior members of the Platinum management team.

The Company is not aware of any allegations made in the indictment that relate to Platinum's dealings with the Company or any conduct involving the Company or its officers.

The Company is in contact with Platinum management to understand the implications of these developments on Platinum's debt conversion agreement with the Company and the process of finalising its implementation.

At this stage, the Company has no reason to believe that Platinum's commitment to the agreement has changed and will continue to work with Platinum's legal representatives and management to progress it. However, the Company now expects there will be material delay to finalisation and implementation of the agreement.

ENDS

Legal/47602849_1