INVESTSMART GROUP LIMITED — Capital/Financing Update 2013

Aug 14, 2013

Australasian Wealth Investments Limited A.C.N. 111 772 359

Level 4, 1 Alfred Street SYDNEY, NSW 2000

15 August 2013

PO Box R1695, Royal Exchange NSW 1225

Telephone: (612) 9080 2377 Facsimile: (612) 9080 2378

Attention: Company Announcements ASX Limited Sydney NSW 2000

By E-lodgement

Capital Raising and Termination of Investment Management Contract

Capital Raising

Australasian Wealth Investments Limited (“ AWK ” or the “ Company ”) has raised approximately $10 million via a conditional placement of 28.6 million shares at $0.35 per share to domestic professional and sophisticated investors (“ Conditional Placement ”). The Conditional Placement is subject to shareholder approval at an Extraordinary General Meeting expected to be held on (or around) the 18[th] of September 2013.

Bell Potter Securities Limited acted as Lead Manager to the Conditional Placement.

Subsequent to the approval of the Conditional Placement, the Company will offer an entitlement offer to eligible shareholders on the record date of one new share for every three existing shares at $0.35 per share to raise approximately $6.7 million (“Entitlement Offer”).

The proceeds of the Conditional Placement and Entitlement Offer will be used to fund the acquisition of InvestSMART, complete the partial acquisition of van Eyk Research Pty Ltd as announced on 8 April 2013, and provide additional working capital.

The indicative Offer timetable is as follows:

Announcement of Conditional Placement and Entitlement Offer	Thursday 15th August 2013
EGM to consider resolution to approve the issue of Placement shares	Wednesday 18th September 2013
Placement settlement via DvP	Tuesday 24th September 2013
Allotment of Placement (subject to shareholder approval being obtained)	Wednesday 25th September 2013
Record date for Rights Issue	Thursday 3rd October 2013
Dispatch Rights Booklet	Wednesday 9th October 2013
Rights Issue Opens	Thursday, 10th October 2013
Rights Issue Closes	Thursday 24th October 2013
Shortfall Notice lodged with ASX	Wednesday 30th October 2013
Allotment of Entitlement Offer shares	Monday 4th November 2013
Entitlement Offer shares expected to commence trading on ASX on normal settlement basis	Tuesday 5th November 2013

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Termination of Investment Management Contract

The Company has agreed to acquire the Investment Management Contract (“IMC”), which runs until 20 April 2030, from Aurora Funds Management Limited and Andrew Barnes for a cash payment of $900,000. It is Andrew Barnes intention to reinvest these monies into ordinary shares in the Company.

This payment is subject to a majority of shareholders (excluding Aurora Funds Management Limited and Andrew Barnes) voting for the acquisition of the IMC at the Annual General Meeting of the Company which is expected to be held in early October 2013.

The independent Directors (Messrs Brown and Reynolds) have appointed BDO Corporate Finance to prepare an Independent Experts Report opining on whether the acquisition of the IMC on the proposed terms is fair and reasonable.

Following the acquisition of the IMC, the Company intends to retain Andrew Barnes on a fee of $50,000 per annum, and issue him with options, to be agreed by shareholders at the Annual General Meeting

Yours faithfully Australasian Wealth Investments Limited

Richard Matthews Company Secretary