FORESTA GROUP HOLDINGS LIMITED — Capital/Financing Update 2012

Nov 21, 2012

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Australian Securities Exchange Announcement

22 November 2012

Gravel Update

Leaf Energy today executed an agreement with WBHO Civil, their joint venture partner, on the Karratha gravel leases. This Agreement finalizes the settlement of the sale of the 500,000 tonnes previously announced.

The joint venture partners have agreed that:

• WBHO will pay Leaf Energy $362,485 as final settlement.

• Leaf Energy’s share of sale proceeds subsequent to the 500,000 tonnes above will be at the rate of $1.88 per tonne.

• This rate will apply to sales of 84,250 tonne recently advised by WBHO Civil.

• Leaf Energy is also liable for 50% of site rehabilitation costs.

Site rehabilitation costs for all mining activities and excavations to date is currently being finalized. It is expected that the Leaf Energy proceeds from the 84,250 tonne sales will be more than sufficient to cover the rehabilitation costs.

Contacts

Ken Richards (Managing Director) 0403 385 051

Jay Hetzel (Chairman) 0413 045 478

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