JATCORP LIMITED — Capital/Financing Update 2016

Dec 6, 2016

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7 December 2016

Dear Shareholder

NOTICE TO ELIGIBLE SHAREHOLDER OF NON‐RENOUNCEABLE ENTITLEMENT OFFER

We write to you as the registered holder of shares in Jatenergy Limited (ASX: JAT) (“JAT” or the “Company”) with an address in Australia or New Zealand.

As advised in the Company’s ASX announcement dated 7 December 2016, the Company is undertaking a partially underwritten non‐renounceable pro‐rata entitlement off to eligible shareholders of ordinary fully paid shares in the Company at an issue price of 1.0 cents per share and on the basis of 1 New Share (“New Share”) for every 11 shares (“the Offer”). Pursuant to the Entitlement Offer, the Company will issue up to 15,660,185 shares to raise up to $156,602 before costs (“Rights Issue”).

The Offer will be partially underwritten to $52,381 by related parties of Mr Tony Crimmins, Executive Chairman, who will underwrite $23,674 Mr Wilton Yao, director who will underwrite $6,818 and Mr Adam Hajek, a substantial shareholder who will underwrite $21,889. There will be no fee paid to the underwriters. The underwriters intend to take up their full entitlements.

The Offer is available to all JAT shareholders registered on the Record Date of 12 December 2016 (“Record Date”) whose registered address is in Australia or New Zealand.

The Company has determined it would be unreasonable to extend the Offer to shareholders with a registered address outside of Australia and New Zealand, having regard to the number of shareholders in such places, the number and value of the new shares that would be offered and the potentially substantial costs of complying with the legal and regulatory requirements in those jurisdictions.

Eligible shareholders (other than directors and related parties) may apply for additional shares, over and above their entitlement at 1.0 cents per share. Additional shares will only be available where there is a shortfall between applications received from eligible shareholders, and the number of New Shares proposed to be issued under the Offer. Additional shares will be issued at the discretion of the Directors at the issue price of 1.0 cent per additional share.

Proceeds from the rights issue will be used as general working capital, including the costs of office and corporate administration.

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The indicative timetable for the issue is as follows:

	Announcement of Rights Issue and Lodgement ofAppendix 3B and Section 708AA Cleansing Notice withASX	7 December 2016	7 December 2016
	Notice to security holders containing the informationrequired by Appendix 3B and details of the timetable forissue sent to shareholders	7 December 2016
	“Ex” date from which shares commence trading withoutentitlement to participate in the Rights Issue	9 December 2016
	Record Date	12 December 2016
	Offer and entitlement documents sent to shareholders	13 December 2016
	Opening of Offer	13 December 2016
	Last day to extend the offer closing date	19 December 2016
	Last day for acceptance (close date)	22 December 2016
	Securities quoted on a deferred settlement basis	23 December 2016
	ASX notified of under subscriptions	29 December 2016
	Issue Date (deferred settlement trading ends)	30 December 2016
	Normal trading commences	3 January 2017
	Holding Statements sent to shareholders	3 January 2017

All dates are indicative only and subject to change without prior written notice. Any extension of the Closing Date will have a consequential effect on the date of the Shares under the Offer.

The table below sets out the impact of the Offer on the capital structure of the Company:

Shares	Number
ExistingShares	172,262,035
Maximum number of New Shares to be issued
pursuant to this Offer	15,660,185
Total Shares on issue after Rights Issue	187,922,220

Details of the Offer are contained in the Offer Document. The Offer Document can be accessed from the ASX and JAT websites, www.asx.com.au and www.jatenergy.com respectively.

Copies of the Offer Document and the entitlement and acceptance form will be sent to shareholders on 13 December 2016.

The Directors of JAT urge you to read the Offer Document carefully and seek advice from your financial adviser if you have any queries. This notice is to inform you of the Offer. You are not required to do anything in respect to this letter.

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For all enquiries concerning the Offer Document please contact Tony Crimmins on +61 2 9571 8300.

Yours faithfully

Graeme Hogan Company Secretary