HAZER GROUP LIMITED — Capital/Financing Update 2016

Mar 20, 2016

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21 March 2016

Dear Optionholder,

NON RENOUNCEABLE RIGHTS OFFER

The Company on 21 March 2016, lodged a Prospectus with ASIC and ASX, seeking to raise up to approximately $161,343 by a non-renounceable rights offer (" Offer ") of up to approximately 16,134,251 entitlement options on the basis of 1 entitlement option for every 4 shares held at an issue price of 1 cent per entitlement option. The entitlement options have an exercise price of 30 cents and an expiry date of 31 December 2018.

Optionholders are not entitled to participate in the Offer . Should optionholders with a registered address in Australia or New Zealand wish to participate in the Offer they should exercise their options in accordance with the terms and conditions of the options in a timely manner and in any event to ensure the exercise and issue of the shares is completed by the Record Date of 29 March 2016.

The funds raised under the Offer will be used as additional working capital and to meet Offer expenses.

The Offer is not underwritten. There is no minimum subscription under the Offer.

The timetable for the Offer is as follows:

Lodgement of Prospectus with ASIC and ASX	21 March 2016
Application to ASX for quotation of options under the Prospectus	21 March 2016
Notice to Shareholders	23 March 2016
Current Shares "Ex" the entitlements issue on the ASX	24 March 2016
Record Dateto identify Shareholders and to determine Entitlements to options under the Prospectus	29 March 2016
Despatch of Prospectus and Entitlement and Acceptance Form (Opening Date)	1 April 2016
Closing Date	20 April 2016
Deferred settlement trading	21 April 2016
ASX notified of undersubscriptions	26 April 2016
Issue Date and end of deferred settlement trading	28 April 2016

Subject to the Listing Rules, the above dates may be changed without notice.

The Offer will be made to the Company's shareholders with a registered address in Australia or New Zealand on the Record Date (" Eligible Shareholders ").

The capital structure of the Company post-completion of the Offer assuming full subscription will be as follows:

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Shares
Existing Shares Shares issued under the Offer Total Shares on issue after completion of the Offer	64,537,002 0
	64,537,002
Options
Series A Options (exercise price 25 cents expiring 31 December 2017)* Series C Options (exercise price 25 cents expiring 31 December 2018) Series D Options (exercise price 40 cents expiring 31 December 2019) Series E Options (exercise price 30 cents expiring 31 December 2018) Entitlement Options issued under this Offer	11,500,000 5,250,000 5,250,000 10,300,000 16,134,251
Total Options on issue after completion of the Offer	48,434,251

• The Series A Options are primary options which upon exercise of each Series A Option result in the issue of one Share and one Series B Option (a secondary option). A Series B Option has an exercise price of 40 cents and an expiry date of 31 December 2020.

It is anticipated that the Prospectus offering entitlement options for subscription will be mailed to Eligible Shareholders on 1 April 2016. The Prospectus may be viewed on the Australian Securities Exchange's website at www.asx.com.au or alternatively on the Company's website at www.hazergroup.com.au.

Application will be made to ASX for official quotation of the options. In the calculation of any entitlement, fractions will be rounded up to the nearest whole number. No shareholder approval is required to the Offer.

If you have any questions please do not hesitate to contact the Company.

Yours faithfully

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Emma Waldon, Company Secretary

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