First Graphene Ltd. — AGM Information 2008

Nov 17, 2008

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CHAIRMAN’S ADDRESS TO SHAREHOLDERS

AGM TUESDAY 18TH NOVEMBER 2008

Ladies & Gentlemen,

Welcome to this AGM, significant as it marks Tolhurst’s 151[st] year of participation in Australian growth and development, a truly momentous achievement for shareholders, employees and clients.

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The 2008 financial year was one which is difficult to draw comparison, with two strong and different underlying themes. The first half was very fruitful with Tolhurst achieving a record profit result for the period buoyed through completion of the acquisition of InterFinancial and ComCorp and welcoming Macquarie as a major shareholder. Tolhurst also furthered its global links by reaching agreements with MAC Capital in Dubai to develop corporate and commercial activities in the UAE.

However the global volatility highlighted at our 2007 AGM came to emerge as a ‘perfect storm’ scenario in global financial services markets in the second half. For the last few months we have been enduring financial turmoil on a scale not seen in recent history. The sub-prime mortgage crisis in the US has set in train a domino effect resulting in four large investment banks having closed their doors, the largest insurance company in the world has effectively been nationalised by the US Government and the ability and willingness of banks to lend was temporarily halted. World stock markets, of course, fell heavily. In June 2007 none of these events were contemplated nor the magnitude of their impact fully appreciated.

The global uncertainty has played havoc with the aspirations of companies wishing to seek funding from public and private sources and stultified the prospects of hundreds of companies across the globe. Tolhurst is not immune from this global trend and any suggestion, and there were many, that sought to isolate some economies from this global financial upheaval have been found baseless as evidenced by the hastily assembled G20 meetings held in the last week.

The impact of the past 12 months trading will ultimately test the carrying value of our recent acquisitions and with prevailing accounting standards requiring - in effect a “mark to market” of these operational assets, there is potential risk that the carrying value of both ComCorp and IFL may be impaired in the future.

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However, notwithstanding the underlying decline in share market asset values, ComCorp continues to trade profitably, albeit not up to the Board’s expectations whilst the Board’s focus on diversification in the corporate advisory market into mergers and acquisitions through the acquisition of IFL was timely, although access to credit to consummate transactions and the lumpiness of these transactions continues to be challenging. This in part is noted by our Auditors as at June 2008.

Through these very difficult times, the Board has both upheld its focus on diversifying revenue streams and instigating appropriate cost controls.

At an operational level, Tolhurst employees have worked closely with clients through this financial volatility and sought to increase exposure to quality investments which have been a part of the indiscriminate sell-off. We firmly believe that our focus on quality and annuity style income will provide the maximum benefit to shareholders and clients alike when the market again rises.

During recent weeks, we have seen increased commentary from global steel mills and bulk commodity producers regarding the sharp slowdown in Chinese demand being experienced in the current quarter. Importantly, all have maintained their positive medium to long term views on China’s economic growth outlook and have flagged a rebound in demand during 2009. We concur with this view and believe that we are witnessing an emerging economy experiencing a period of short-term volatility within its long-term growth trend.

It is worth noting that the short-term volatility has contracted the average market PE to a single digit for the first time since the 1970’s. We believe this will prove to bring with it exceptional value opportunities for longer-term investors. Whilst the outlook remains somewhat uncertain, we will look to continue to seek opportunities to grow our business in the direction the board clearly identified some time ago.

Tolhurst is only as good as the people that work within it. I would like to take this opportunity to acknowledge their contribution to the business and their value as a critical asset of the organisation.

Finally, I would like to wish you all a safe, happy and vastly more prosperous New Year.

David Browne Executive Chairman

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