IMPERIAL PACIFIC LIMITED — Board/Management Information 2012

Jul 25, 2012

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Imperial Pacific Limited

26 July 2012

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- UPDATE -

Although the 2012 accounts will be released towards the end of August your Board thought an update on events might be helpful.

Board Changes

We are pleased to report that Mr David Sutherland agreed to join the Board at the end of May. Mr John C Plummer stood down due to his increasing workloads in other areas. You will see from below that David has had a long and active career in investment and corporate equities. We are confident his input will be very positive.

David’s background has been in the securities markets for over thirty years. He has held senior positions in the sector within merchant banks, stockbrokers and investment houses over this period. In recent times he held the executive position of Investment Manager at HGL Limited for seven years where he had particular experience with corporate equity investments.

Financial Results

Results will be static again this year and a modest loss incurred. However it is the Balance Sheet that has been impacted seriously, mainly by the involvement of 29.5% owned London City Equities Limited in the write-downs on its Penrice Soda Holdings investment. The Board will be deliberating on all these numbers while the audit process is being carried out.

Net Assets

Precise net asset values depend on a number of factors, including the ability of London City to recover Penrice losses and related tax credits. However, at 30 June the unaudited net assets have been estimated at $3.4 million, or around $1.15 per share with 50 cents in cash on deposit.

Penrice Soda

To both London City and Imperial Pacific the Penrice Soda Holdings investment is important. As shareholders know, the investments made in this company in 2008 and 2009 have been surprisingly negative and out of character with our investment philosophies and aspirations for the last decade. We are working very closely with London City on this matter. The success of London City in getting Court access to Penrice documents in 2011 was a positive move. We are now working closely with advisers in assessing the provision of information given by Penrice to investors in 2008 and 2009. This may lead to legal action to try to recover the losses.

MainstreamBPO

We have recently been informed that MainstreamBPO (2% owned) has declared a modest, but helpful, maiden dividend. This should reinforce the present book value of this investment.

On behalf of the Board

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Peter E J Murray Chairman of Directors

Level 10, Fairfax House, 19 Pitt Street, Sydney NSW 2000 (Postal: PO Box R1414, Royal Exchange NSW 1225) Tel: 02 9247 9315 Fax: 02 9247 9336 (ABN 65 000 144 561) IPClhshareholdeJuly12