KINGSTON RESOURCES LIMITED — Capital/Financing Update 2003

Jun 23, 2003

ABN 44 009 148 529

Registered Office

Level 1 Westcentre 1260 Hav Street West Perth Western Australia 6005 AUSTRALIA

Mail Address Private Box 1288 West Perth Western Australia 6872 AUSTRALIA

Telephone Facsimile Email Visit us at

$(+618)$ 9415 2212 $(+618)$ 9415 2221 info@synergylimited.com.au www.synergylimited.com.au

Australian Stock Exchange Limited

Company Announcements Office

Electronic Lodgement System

24 June 2003

Dear Sir/Madam

FINANCIAL PERFORMANCE - CURRENT SHARE PRICE

SYNERGY EQUITIES GROUP LIMITED ("SYNERGY" or "the Company")

Over the past ten days the Company has received numerous queries from shareholders concerned about the trading price of securities in the Company.

The shareholders have consistently asked for information concerning the Company's financial performance for the current quarter, and have expressed concern that the Company's financial performance may be contributing to the current share price being lower than the price over recent months.

The Company has resolved to release the following information to the market.

Apart from the presence in the market of an overhang of securities for sale, which itself appears to be generating a downward pressure on the Company's share price, the Company is unaware of any factor in its trading or financial performance that could contribute to a reduced share price.

Full details of the Company's performance for the current quarter will be released in the Company's quarterly report in July. In summary however, cash receipts from trading operations by the Company's wholly owned subsidiary Synergy Business Solutions Australia Pty Ltd ("SYNERGY Australia") to date, for the quarter 01 April 2003 to 30 June 2003 have increased by more than $110\%$ on cash receipts for the third quarter. The Company's quarterly reports for the year to date disclose that cash receipts by SYNERGY Australia from trading operations in the second quarter increased 59% on receipts in the first quarter and in the third quarter increased a further 19%.

The Company believes that it is significant to point out that SYNERGY Australia's cash receipts for the current quarter do not include receipts generated in relation to its Data-inCrypt^® product. Cash receipts in relation to clients intending to contract to use Data-in Crypt^® will commence in the next financial quarter.

ELS057.2003

The Company will report to the market any significant developments in relation to the commercialisation (in the next quarter) of Data-inCrypt^®.

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Yours faithfully SYNERGY EQUITIES GROUP LIMITED

Ronald Moir MANAGING DIRECTOR

information technology $solutions$ for business