MAGONTEC LIMITED — Capital/Financing Update 2012

Jul 2, 2012

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Office No.10 Level 8 139 Macquarie St Sydney NSW 2000 Australia Ph: 61 2 8231 7085 FAX: 61 2 9252 8960

The Manager Company Announcements ASX Limited 20 Bridge Street Sydney 2000

3 July 2012

SECTION 708A CORPORATIONS ACT CLEANSING STATEMENT ISSUE OF SHARES UNDER PLACEMENT

On 21 June 2012, Magontec Limited ACN 010 441 666 (the Company ) issued 55,435,784 fully paid ordinary shares to a sophisticated and professional investor pursuant to an equity placement to for the purpose of partly funding capital investment and working capital requirements of the Company.

In accordance with the requirements of section 708A(5)(e) of the Corporations Act 2001 ( Act ), under which this notice is given, the Company confirms that:

1. as a disclosing entity, the Company is subject to regular reporting and disclosure obligations;

2. the shares placed are in the same class of ordinary shares as are quoted on the ASX;

3. the Company issued the shares without disclosure to investors under Part 6D.2 of the Act, in reliance on section 708 and that notification is being given under 708A(5)(e) of the Act;

4. as at the date of this notice:

5. a. the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company;

6. b. the Company has complied with section 674 of the Act; and

7. as at the date of this notice there is no excluded information (as that expression is defined in sections 708A(7) and 708(8) of the Act) in relation to the Company.

The Appendix 3B in relation to the issue of the Placement Shares was lodged with the ASX on 21 June 2012.

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John Talbot Company Secretary