EXPERIENCE CO LIMITED — Capital/Financing Update 2016

Sep 27, 2016

28 SEPTEMBER 2016

==> picture [143 x 72] intentionally omitted <==

SKYDIVE THE BEACH GROUP LIMITED (ACN 167 320 470)

ASX ANNOUNCEMENT

ACQUISITION OF FAR NORTH QUEENSLAND’S LEADING ADVENTURE

TOURISM GROUP

ANNOUNCES A$19.6M EQUITY RAISING

Summary

• Skydive the Beach Group (ASX: SKB) has executed an agreement to purchase the Raging Thunder Adventure Group ( RT )

• RT is Far North Queensland’s leading multi-faceted adventure tourism company, with four activities being white water rafting, canyoning, hot air ballooning and barrier reef cruises

• The RT transaction is expected to be earnings accretive from completion

• Under the agreement SKB will acquire 100% of the shares in RT for a consideration of AUD$15.45m which includes the acquisition of business and repayment of loans for AUD$11.95m, representing a multiple of 3.95x RT’s FY16 normalised EBITDA, and the acquisition of associated land and buildings of AUD$3.5m

• The acquisition is part of SKB’s strategy to ultimately become the largest adventure tourism group in the world

• The acquisition is expected to improve SKB’s annualised EBITDA by $3m

• The acquisition will be funded by a fully underwritten A$19.6m equity raising via a 2 for 21 prorated accelerated non-renounceable entitlement offer launched today

• The transaction is expected to completed by 31 October 2016

Details

Skydive the Beach Group Limited (‘the Company’ or ‘ Skydive’ or ‘SKB’ ) is pleased to announce it has entered into an agreement with the privately owned Raging Thunder Pty Limited Group ( RT ), trading as Raging Thunder Adventures, Far North Queensland’s leading adventure tourism group.

SKB will acquire 100% of the shares in RT for a consideration of AUD$15.45m which includes the acquisition of business and repayment of loans for AUD$11.95m, representing a multiple of 3.95x RT’s FY16 normalised EBITDA, and the acquisition of associated land and buildings for AUD$3.5m.

Transaction close is expected on 31 October 2016.

To fund the acquisition, SKB has launched a fully underwritten AUD$19.6m equity raising via an accelerated non-renounceable entitlement offer ( ANREO ) today. Please see SKB’s separate ASX Announcement.

About RT

RT is Far North Queensland’s leading adventure tourism company, offering activities of white water rafting, canyoning, hot air ballooning and barrier reef cruises.

www.skydive.com.au

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

info@skydive.com.au

T: 1300 663 634 F: 1300 338 803

L E A V E Y O U R W O R L D B E H I N D

RT was founded in 1984, and has remained privately owned by its two founders. RT was formed with the intent to operate the first commercial white water rafting tours on the Tully River and Barron River in North Queensland. The business grew rapidly in response to demand for tourism activities from Cairns and the surrounding regions. RT company website can be found at www.ragingthunder.com.au

Strategic rationale

RT is a strong strategic fit for SKB and the acquisition delivers on three of SKB’s four strategic priorities: acquisitions, diversification and efficiencies.

Investor Presentation

For further information on the RT acquisition, please see the SKB’s Investor Presentation in a separate ASX Announcement made today.

CONTACT INFORMATION

Media

Investors

Justin Kelly, Director Skydive the Beach Group Limited Media & Capital Partners Anthony Ritter p: +61 408 215 858 Company Secretary e: Justin.Kelly@mcpartners.com.au p: 1300 663 634 e: companysecretary@skydive.com.au

ABOUT SKYDIVE THE BEACH GROUP (ASX:SKB)

Skydive the Beach Group Limited ("SKB") is a tandem skydiving and adventure tourism and leisure company. It provides tandem skydiving experiences in locations across four Australian states and on the South Island of New Zealand. From origins in 1999, it is a profitable business with a track record of earnings growth. In March 2015, SKB successfully completed an initial public offer (IPO) and listed on the Australian Securities Exchange and acquired Australia Skydive Pty Ltd. In October 2015 SKB acquired NZone Skydive and in July 2016 SKB acquired Skydive Wanaka and now has 18 dropzones in Australia and New Zealand.

For further information www.skydive.com.au

www.skydive.com.au info@skydive.com.au

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

T: 1300 663 634 F: 1300 338 803

L E A V E Y O U R W O R L D B E H I N D