GALE PACIFIC LIMITED — AGM Information 2011

Oct 27, 2011

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GALE PACIFIC LIMITED

(ASX: GAP)

ASX and Media Release 2011 ANNUAL GENERAL MEETING

CHAIRMAN’S ADDRESS TO SHAREHOLDERS

28 October 2011

CHAIRMAN’S ADDRESS

Before the main business of the meeting, I would like to make a few comments on the Company’s financial performance during the 2010/11 year. Following this, Peter McDonald, our Managing Director and Chief Executive Officer, will give a more detailed presentation on the operations and the current situation of the business.

I am pleased to report that earnings per share for 2010/11 increased by 14% to 2.4 cents per share in what was a difficult trading environment. Dividend per share was increased by 10% to 2.2 cents fully franked.

Strong cash flow was again a feature of the Company’s performance with cash from operations exceeding net profit after tax by 60%.

Having restructured the Company and established a solid platform, our focus is on growth opportunities, both organic and through acquisition. An initial acquisition has been completed with the purchase of the Zone Hardware and Riva Window Fashions businesses in June 2011. This acquisition is expected to generate further profit growth in 2011/12 and beyond.

The Company’s ongoing strong cash generation enabled the funding of the Zone and Riva acquisition and the payment of dividends, while maintaining a conservative balance sheet with net debt to equity at June 30 2011 of 8%. Our objective is to continue to increase earnings per share through undertaking investment which generates strong profitability and cash flow. I am pleased to be able to say that first quarter 2011/12 results have been positive despite a continuing very difficult trading environment and that we currently anticipate a further increase in earnings per share during the current financial year.

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Gale Pacific Limited ASX & Media Release – 28 October 2011

On behalf of the Directors I would like to take this opportunity to congratulate the management team, which is very capably led by our Chief Executive Officer and Managing Director, Peter McDonald, for the results which have been achieved and the progress made.

I will now pass you over to Peter McDonald, who will report on operations and the current activities in more detail.

Thank you.

-END

For further information contact:

Peter McDonald Chief Executive Officer Gale Pacific Limited +61 3 9518 3312 peter.mcdonald@galepacific.com

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Gale Pacific Limited ASX & Media Release – 28 October 2011