MASTERMYNE GROUP LIMITED — AGM Information 2012

Nov 25, 2012

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MASTERMYNE GROUP LIMITED

CHAIRMAN'S ADDRESS TO AGM 26 NOVEMBER 2012

Good morning Ladies & Gentlemen.

My name is Peter Slaughter and it is a pleasure to welcome you today.

I also extend a welcome to my fellow directors and key management personnel present.

Today’s Annual General Meeting marks our third since becoming a listed company and the growth which was a highlight of last year’s results continued into the year ended June 30, 2012. It is clear that the management team now - in place helped us achieve this excellent outcome few in our sector achieved such a noteworthy performance both in terms of safety and financial outcomes.

Towards the close of the financial year there were signs that some aspects of the very high prices in a range of commodities had run their day for the time – being and we saw prices for coking coal and thermal coal fall back not to levels which one would consider unsatisfactory but to ones that tested some Australian export producers in the thermal coal space. Fortunately, shipping freight rates are up to one third of those prevailing in 2007/2008 which is helping sustain reasonable cash margins for coking coal clients.

The disappointing aspect of the coal sector and some other commodity sectors has been the extremely high cost base the industry has found itself in. While this may be a natural outcome of unfettered demand in circumstances of constrained supply, nothing lasts forever and a return to more rational pricing had to occur with the advent of some increases in supply and lower than expected demand increases.

Having said that, it is clear that while China is winding back its growth to more manageable levels it is still growing at rates which are the envy of industrialised countries and recent indications are that steel mills are restocking with coking coal; China’s continued growth means that demand for - fundamental energy commodities will continue for the foreseeable future which in our context is five or six years. The volatility and uncertainty which have characterised European markets continues and a severe and prolonged downturn in Europe would ultimately impact us all.

The high cost issues in the Australian coal sector provide Mastermyne with an opportunity to assist our clients meet the challenges of a lower pricing scenario In adjusting to these circumstances we have been able to suggest meaningful savings to some clients on our own initiatives. It is fair to say that this activity helps stand us in good stead as our actions are aligned with clients needs.

Our experience so far this year is that client companies are continuing to – service aspects of their business that require it to do otherwise would not make sense. So in that context we have seen an increase in some larger tender opportunities and a continuance of smaller ones at usual levels. The key difference is some tightening of margins due to increased competition. Tony will refer further to this in his presentation. While our traditional area of activity continues to provide opportunities, we are looking to complementary business opportunities which will broaden our operating base. We will not embark on activity which in our view fails to add to our EPS and overall shareholder value.

I take this opportunity to thank all our employees for their support and efforts during the past year. Tony Caruso continues to demonstrate a high standard of leadership and deserves credit for your Company’s sound position.

– I will now ask Tony to make his presentation please hold any questions until after he has spoken.

Thank you,

Peter Slaughter

Chairman