FORESTA GROUP HOLDINGS LIMITED — Capital/Financing Update 2017

Oct 18, 2017

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Australian Securities Exchange Announcement 19 October 2017

Agreement with HB International on glycerol

• Leaf has signed an exclusive agency agreement with HB International

• Agreement covers the supply of raw glycerol and sale of refined glycerol

• HB International is one of the largest glycerol brokers in the world

• Glycerol is a key input for Leaf’s Glycell[TM] process

• Agreement continues Leaf’s progress toward a commercial project in Malaysia

HB International is a Brokerage and Agency Company specialised in oleochemicals, founded in 1986 with headquarters in Paris, France and with offices in China, USA, India, Argentina, Malaysia and Singapore. Over the past couple of years, HBI has distributed about 400,000 tonnes of glycerol (also called glycerin) per annum.

Leaf Resources (ASX: LER) (“Leaf”) has signed an exclusive agency agreement with HB International for both the purchase of raw glycerol and the sale of refined glycerol. Given that glycerol is a key input into Leaf’s Glycell[TM] process and a significant revenue stream it is highly advantageous for Leaf to have secured an agreement with one of the world’s leading glycerol brokers with an extremely strong presence in Asia.

The commercial terms of the agreement are commercial in confidence, but reflect common market practice and rates. HB International are confident of being able to fulfil Leaf’s requirements for raw input and importantly have stated that they are confident, given their current annual volumes of selling 120,000 MT of refined glycerol at market prices when the project is operational.

This agreement is another key step forward in the company’s progress towards our first operational plant.

Managing Director of HB international Jonathon Hemmings commented:

“I am very pleased that Leaf Resources and HB International will work together on their innovative Glycell[TM ] process plant. Malaysia is a great location for sourcing and selling glycerol given the availability of raw glycerol and transport links with South East Asia and China for refined glycerol.”

LEAF RESOURCES LIMITED I ABN 18 074 969 056 Suite 13, 8 Clunies Ross Court - Level 2, BTP Hub, Eight Mile Plains Qld 4113 I PO Box 3200 Yeronga Qld 4104 t +61 7 3188 9040 I f +61 7 3147 8001 I www.leafresources.com.au

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About HB International

Professionals in oleochemicals

As agents, HBI works exclusively in the interest of a principal with the objective to capture market share in the long term. Our team specifically dedicates their time and experience to ensure your business development. More on http://www.hbi.fr/

Contact:

Jonathon Heming (CEO) P: +33 1 3934 6611

About Leaf Resources Ltd (ASX: LER)

Leaf Resources is one of the world's leading companies in converting plant biomass into fermentable sugars. Our proprietary process for converting biomass-to-functional industrial sugars enable a myriad of downstream technologies for the production of renewable chemicals that will substitute petrochemicals used in manufacturing today. With our project development and continued technical innovation we are building a robust global business centered on renewable carbon containing products to deliver environmental and economic benefits to our shareholders and our planet. More on www.leafresources.com.au

Contacts: Ken Richards (Managing Director) Jay Hetzel (Chairman)

M: +61 403 385 051 M: +61 413 045 478

LEAF RESOURCES LIMITED I ABN 18 074 969 056 Suite 13, 8 Clunies Ross Court - Level 2, BTP Hub, Eight Mile Plains Qld 4113 I PO Box 3200 Yeronga Qld 4104 t +61 7 3188 9040 I f +61 7 3147 8001 I www.leafresources.com.au