GENERATION DEVELOPMENT GROUP LIMITED — Capital/Financing Update 2012

Jun 4, 2012

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ASX Announcement

5 June 2012

Trading Update

• Austock Group is now a focused funds management business with over $850 million in funds under management

• Sale of Securities business effective on 12 March 2012

Following the completion of the sale of Austock Securities, the remaining businesses of Austock Group are Austock Services and, Austock Property and Austock Life which together manage over $850 million in funds.

Austock Property, headed by Nick Anagnostou currently manages $558 million across four funds, including two ASX listed funds.

Austock Life, headed by Ross Higgins continues to show strong fund growth with funds increasing from $263 million at 31 December 2011 to $295 million as at 30 April 2012, an increase of 12%.

Following the sale of the Securities business, the Austock Group now has stable and predictable cash flows. Cash reserves are approximately $7 million and there is no corporate debt.

Full Year FY12 Results Update

The Company has previously reported a net loss after tax for the half year to 31 December 2011 of $11.8 million. This result included non-cash impairment charges of $3.0 million relating to the sale of the Securities business and a de-recognition of deferred tax assets of $5.1 million in relation to carried forward tax losses.

As previously announced, there have been further restructuring costs as a result of the Securities sale including non-cash acceleration of the share based payments expense and corporate structure rationalisation. The combination of the restructuring costs and further trading losses from the Securities business prior to sale completion has resulted in the likely full year result being a net loss after tax of between $15 – $16 million. This may be subject to further change based on the assessment of the carrying value of certain assets at 30 June 2012.

Subsequent to the sale of the Securities business, the new board and management have focussed their attention on the reduction of costs at Group level with significant savings identified and action taken. The Board and Management are now turning their attention to Austock’s strategic direction. The Board expects to be in a better position to brief shareholders on this issue on or before the Company’s Annual General Meeting in October 2012.

For further information please contact:

Bill Bessemer

Chief Executive Officer, Austock Group Limited Telephone: (03) 8601 2027

Travis Butcher

Chief Financial Officer, Austock Group Limited Telephone: (03) 8601 2016

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Austock Group Limited ABN: 90 087 334 370 Level 12, 15 William Street, Melbourne, Vic 3000 Telephone: 61 3 8601 2000 Facsimile: 61 3 9200 2286 Email: investorrelations@austock.com Website: www.austock.com

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About Austock Group:

Austock Group is an independent, publicly listed investment and financial services group. It has a culture and track record of being prepared to invest to build sustainable returns for its clients and shareholders. Founded in 1991, the company now comprises investment management businesses. Austock has offices in Melbourne and Sydney.

Austock is a pooled development fund that invests in and develops financial services businesses under a tax-efficient structure.

Austock Property

Austock Property Funds Management Pty Ltd (Austock Property) is a property funds management business built around non-traditional and niche sub-sectors of the property market. Austock Property offers a mix of listed property, wholesale property and unlisted retail property funds to investors. Current market conditions require a conservative approach and Austock Property aims to ensure investments are secured with longterm cash flows, viable tenants, minimal risk and value growth. Our experienced property team currently manages real estate assets of approximately $558 million.

Austock Property has a successful track record in managing real estate assets and is the responsible entity for the ASX listed Australian Education Trust (ASX:AEU), The Australian Social Infrastructure Fund (ASX:AZF) the unlisted Austock Childcare Fund and the wholesale CIB Fund.

The Funds collectively represent over 5,000 institutional and retail unitholders and own in excess of 400 properties across Australia & New Zealand.

Austock Life

Austock Life is one of the leading specialist issuer of insurance bonds. Its core Imputation Bond product offers investors an expansive investment menu and strategy-based avenues for incorporating "tax-paid" lump sums into financial plans to meet life-event objectives. These include education funding, home ownership and estate planning as an accessible alternative to superannuation.

Austock Life operates as a registered life insurance company under the Life Insurance Act 1995 and also holds an Australian Financial Services Licence under the Corporations Act. As an emerging financial products provider, the company’s business strategy is to use its life office structure to design, manufacture and distribute creative "tax-paid" investment products.

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Austock Group Limited ABN: 90 087 334 370 Level 12, 15 William Street, Melbourne, Vic 3000 Telephone: 61 3 8601 2000 Facsimile: 61 3 9200 2286 Email: investorrelations@austock.com Website: www.austock.com