MACH7 TECHNOLOGIES LIMITED — Capital/Financing Update 2013

May 1, 2013

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The Company Announcements Office

ASX Limited Via E Lodgement

2 May 2013

EXECUTION OF SHARE SALE AND PURCHASE AGREEMENT (“SSA”)

TO ACQUIRE KISARA GOLD PTY LTD

Safety Medical Products Limited (“ SFP ” or the “ Company ”) is pleased to announce that it has finalised and executed the Share Sale and Purchase Agreement with the shareholders of Kisara Gold Pty Ltd (“ Kisara ”) to acquire 100% of Kisara.

The key terms of this agreement have previously been announced to the ASX, most recently on March 8 2013.

The transaction provides the company access to various exploration tenements in the State of Bahia, Brazil. The tenements provide for three separate projects, Silvina Farm, Itapicuru Norte and Cristais. The latter two overlay greenstone belts and are considered prospective for gold due to the existence of gareimperos workings. More detail on all of these Projects is contained in earlier ASX announcements.

The transaction remains subject to shareholder approval and re-compliance with Chapters 1 and 2 of the ASX Listing Rules.

The Company has been aware of the need to raise capital to conclude the transaction and has been in discussion with various capital providers whilst awaiting execution of the SSA to ensure investors were fully informed.

A summary of the key commercial terms and a timetable to completion are attached.

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Safety Medical Products Limited Level 24, 44 St Georges Terrace, Perth Australia, 6000

ACN 007 817 192

Phone: (08) 6211 5099 Fax: (08) 9218 8875

1. KEY ACQUISITION TERMS

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Milestone	Performance Shares	Ordinary Shares
Vendor Equity		120,000,000
Milestone 1- A JORC compliant Inferred MineralResource of 1 million oz at 1.8g/t Au Eq	90,000,000
Milestone 2- A JORC compliant Inferred MineralResource of 1.5 million oz at 1.7g/t Au Eq	90,000,000
Milestone 3- A JORC compliant Inferred MineralResource of 2 million oz at 1.7g/t Au Eq	60,000,000
Total	240,000,000	120,000,000

NB – The Performance Shares noted above entitle the holder to acquire one share for every performance right held and will be subject to approval by the ASX.

Immediately following the shareholder approval the Company will be required to re-comply with Chapters 1 and 2 of the ASX Listing Rules and will be placed in trading suspension whilst it recomplies.

If shareholder approval is given at the general meeting, the Company will undergo a capital consolidation to assist re-compliance with Chapters 1 & 2 of the ASX Listing Rules at a ratio to be determined prior to the release of the Notice of Meeting. The Consideration Shares and shares to be issued under the capital raising will also be adjusted by the same ratio.

2. PROPOSED TIMETABLE FOR RECOMPLIANCE (indicative, subject to change)

Execution of Share Sale Agreement	1 May 2013
Finalisation of Interim Capital Raising	24 May 2013
Dispatch of Notice of Meeting	24 May 2013
Meeting of Shareholders to Approve Acquisition	19 June 2013
Suspension of Company’s Shares from trading on ASX	19 June 2013
Lodgement of Prospectus with ASIC	20 June 2013
Closure of Prospectus	31 July 2013
Satisfaction of all Requirements of Chapters 1 & 2	9 August 2013
Reinstatement to Trading	15 August 2013

To re-comply with Chapters 1 and 2 of ASX Listing Rules Safety Medical will prepare and issue a prospectus. Funds raised will be used to conduct exploration on the properties to be acquired, and to cover the ongoing administration costs of the Company.

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3. INDICATIVE CAPITAL STRUCTURE (Pre-Reconstruction)

	Number of Shares
Current Issued Capital	396,455,466
Interim Capital Raising (15% shareholder issue)	59,400,000
Ordinary Shares to be issued to Kisara Shareholders	120,000,000
Shares to be issued in capital raising, completed as part ofthe re-compliance with Chapters 1 & 2 of the ASX ListingRules (Assumes capital raising at $0.01 – though shares tobe issued at $0.20 after reconstruction)
	300,000,000
Total Shares on Issue following Completion and re-compliance
	875,855,466
Potential shares to be issued under the Share SaleAgreement (subject to satisfaction of Milestones)
	240,000,000
Total Issued Shares assuming Milestones satisfied	1,115,855,466

The Company is most likely to reconstruct its capital to comply with Chapters 1 and 2 of the ASX Listing Rules which require a capital raising at $0.20 per share. The above Table is based on a share price of $0.01 immediately prior to the issuance of the requisite Notice of Meeting and consequently a reconstruction ratio of one share for every 20 held. However if the share price is at a higher price prior to the issuance of the Notice of Meeting then the reconstruction ratio will be reduced accordingly.

An interim capital raising of 15% of the existing issued capital is considered above. Final details as to quantity of shares and price have not yet been determined and will be released when the interim raising is concluded.

The capital raising considered in the above Table for re-compliance purposes is $3M. The capital raising number may be adjusted through the prospectus dependent upon the final position of the Company’s tangible assets before the capital raising commence and its expenditure obligations within Brazil.