FSA GROUP LIMITED — Capital/Financing Update 2009

Sep 29, 2009

FSA GROUP LIMITED

30 September 2009

Placement and Share Purchase Plan

==> picture [123 x 137] intentionally omitted <==

The Directors of FSA Group Limited (“the Company” or “FSA Group”) announce capital raisings of up to $5,000,000 comprising:

• A placement to Institutional and Sophisticated Investors for 10.8 million shares at 37 cents per share to raise $4,000,000 before issue costs (“Placement”); and

• A Share Purchase Plan (“Plan”) to Shareholders at 37 cents per share to raise up to $1,000,000 before issue costs.

“The exiting from the industry of non‐bank and non‐conforming lenders has opened up an opportunity for us to expand our home loan lending division. Our focus over the coming year will be to secure additional funding for the home loan lending division, expand our product range and grow business volumes. The proceeds from the capital raising will strengthen our balance sheet and be applied to growing our home loan lending division,” said Executive Director Tim Odillo Maher.

Placement

The Placement to Institutional and Sophisticated Investors for 10,810,811 shares at 37 cents per share will raise $4,000,000 before issue costs. The Placement has been managed by Chifley Investor Group (“Chifley”) and includes six new institutional investors including Cadence Capital and Glennon Capital.

A management fee of 5% of the Placement amount is payable to Chifley, who have elected to take the management fee as shares at 37 cents per share, resulting in 540,540 shares to be issued to Chifley on completion of the placement.

It is anticipated that the Placement will be completed and shares allotted by 7 October 2009.

Share Purchase Plan

The Directors are keen to ensure that our loyal shareholders are afforded the opportunity to participate in a capital raising on the same terms as the Institutional and Sophisticated Investors.

The Plan will involve the offer of a maximum of 2,702,703 new shares at an issue price of 37 cents to raise up to $1,000,000. The 37 cents issue price represents a discount of 9.0% to the average market price over the last five days of trading of the shares of the Company on the ASX prior to the date of this announcement.

FSA Group Limited Head Office Level 3, 70 Phillip Street Sydney NSW 2000

Phone: (1300) 660 032 Fax: (1300) 660 050 info@fsagroup.com.au

ASX Code: FSA

The Plan will be for all FSA Group Shareholders with registered addresses in Australia (and in any other place where, in the responsible opinion of the Company, it is lawful and practical for the Company to offer and issue shares or interests to that person under the Plan) and registered on the Company’s share register at 7pm on the Record Date (6 October 2009). Please note that due to share settlement periods, the last day of trading FSA Group shares to be on the register at the Record Date, 29 September 2009, has passed.

It is the Company’s intention that such entitled Shareholders will be able to take up, at their election, either:

• $2,000;

• $5,000;

• $10,000; or

• $15,000

of new shares at the issue price of 37 cents per share.

We note that the Company’s ability to accept Applications for $10,000 and $15,000 will be subject to the receipt of an ASX waiver, which the Company will lodge shortly.

The Plan documentation will be dispatched to shareholders on 7 October 2009.

The key indicative dates for the Plan are as follows:

	Last day of trading to be on the register at the Record Date*	Tue 29 September 2009
	Record Date of the Plan	Tue 6 October 2009
	Opening Date of the Plan	Wed 7 October 2009
	Closing Date of the Plan	Fri 6 November 2009
	Issue and Allotment of new shares under the Plan	Wed 11 November 2009

• Settlement on shares is out of the control of the Company. Delays in settlement may result in missing the Record Date .

For and on behalf of the Board Duncan Cornish Secretary

FSA Group Limited Head Office Level 3, 70 Phillip Street Sydney NSW 2000

Phone: (1300) 660 032 Fax: (1300) 660 050 info@fsagroup.com.au

ASX Code: FSA