FINBAR GROUP LIMITED — Capital/Financing Update 2010

Jun 14, 2010

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ASX MARKET & MEDIA ANNOUNCEMENT 14 JUNE 2010

FINBAR REVEALS PLANS FOR FIRST TWO STAGES OF REDEVELOPMENT OF FORMER ABC SITE

Perth, 14 June 2010: Western Australian apartment developer, Finbar Group Limited (ASX: FRI) today released details on the first two stages of the redevelopment of the former ABC site in East Perth.

Subject to development approval, the old ABC News Building on Terrace Road will be demolished to make way for two new buildings.

Stage 1, located at 90 Terrace Road, will become a 23 level building comprising 117 two and three bedroom apartments ranging in size from 105 to 147 sqm. A 343 sqm penthouse and a 265 sqm sub-penthouse will occupy the 22[nd] and 23[rd] levels.

Stage 2, located at 88 Terrace Road, will be developed into a 21 level apartment building comprising 43 premium half floor apartments averaging 172 sqm in size. A 676 sqm penthouse and a 476 sqm sub-penthouse will occupy levels 20 and 21.

Two commercial lots will be located on the ground floor of each project and almost all apartments will enjoy uninterrupted views over Langley Park to the Swan River and beyond.

The new projects, yet to be named, are nestled between two former Finbar projects, The Westralian (completed in 2004) and Reflections (completed in 2009).

Chief Executive Darren Pateman said “This is very familiar territory for us having developed several premium apartment buildings on Terrace Road including Altair, Westralian and Reflections. We have a solid understanding of the Terrace Road marketplace and the challenges involved with developing apartment buildings of this scale.”

Mr Pateman said that the 1.3 hectare former ABC site is the last of the large scale development sites on Terrace Road and this shortage of Terrace Road development land is already being reflected in the escalating values of existing

apartments on the street. “If you want to live a few blocks from the city, enjoy expansive views, and yet be close to the activities and open spaces that can be enjoyed on Langley Park and the foreshore, then Terrace Road provides the city dweller with the best opportunity to combine work convenience and lifestyle.” Mr Pateman said.

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The former ABC site was purchased in 2008 for $37.58 million by joint venture partners Ventrade Australia and is being developed by Finbar in a joint venture arrangement with the land owner.

Under the JV arrangement Finbar is progressively injecting $17.5m as working capital with the balance of the construction to be funded by traditional development finance means. Finbar will receive one half of the development profit along with a management fee.

“In total, Finbar will be injecting one third of the project equity to achieve one half of the development profit which enables Finbar to leverage its intellectual property to seek an excellent return on equity for our shareholders”, Mr Pateman said.

Plans will be lodged with the City of Perth today and, subject to development approval and the finalisation of the scheme amendment process, Finbar anticipates a marketing launch towards the end of 2010.

The total value of the first two stages is expected to be approximately $315 million.

The third and fourth stages will comprise the refurbishment of heritage buildings and the construction of a new 29 storey tower on Adelaide Terrace. Details will be released at a later date.

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ABOVE: Artist impression of the first two stages of the ABC site redevelopment on Terrace Rd.

ENDS

For High Resolution Image:

Ronald Chan - Marketing & Contract Administrator Finbar Group Limited ronald@finbar.com.au

For further information:

Darren Pateman – Executive Director Finbar Group Limited Via email: darren@finbar.com.au

ABOUT FINBAR: Finbar Group Limited (ASX: FRI), its controlled entities and its jointly controlled entities is a property development company whose core business lies in the development of medium to high density residential apartments and commercial property within the State of Western Australia. Please Visit: www.finbar.com.au