MITCHELL SERVICES LIMITED — Regulatory Filings 2012

Jul 29, 2012

25 July 2012

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ASX Compliance Pty Ltd ABN 26 087 780 489 20 Bridge Street Sydney NSW 2000 PO Box H224 Sydney NSW 1215 www.asx.com.au

Telephone 61 2 9227 0125 Facsimile 61 2 9241 7620 www.asx.com.au

Bob Witty Company Secretary Drill Torque Limited 133 Crocodile Crescent St Mount St John QLD 4818

By Email: Bob.Witty@drilltorque.com.au

Dear Bob,

Drill Torque Limited (the “Company ”)

I refer to the Company’s Quarterly Report in the form of Appendix 4C for the period ended 30 June 2012 , released to ASX Limited ("ASX") on 24 July 2012 (the “Appendix 4C”).

ASX notes that the Company has reported the following.

1. Receipts from customers of $7,907,000;

2. Negative net operating cash flows for the quarter of $1,028,000; and

3. Negative cash at end of quarter of $453,000.

In light of the information contained in the Appendix 4C, please respond to each of the following questions.

1. It is possible to conclude on the basis of the information provided that if the Company were to continue to expend cash at the rate for the quarter indicated by the Appendix 4C, the Company may only have sufficient cash to fund its activities for less than 2 quarters. Is this the case, or are there other factors that should be taken into account in assessing the Company’s position?

2. Does the Company expect that in the future it will have negative operating cash flows similar to that reported in the Appendix 4C for the quarter and, if so, what steps has it taken to ensure that it has sufficient funds in order to continue its operations at that rate?

3. What steps has the Company taken, or what steps does it propose to take, to enable it to continue to meet its business objectives Company?

4. Can the Company confirm that it is in compliance with the listing rules, and in particular, listing rule 3.1?

5. Please comment on the Company’s compliance with listing rule 12.2, with reference to the matters discussed in the note to the rule.

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Listing rule 3.1

Listing rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities. The exceptions to this requirement are set out in the rule.

In responding to this letter you should consult listing rule 3.1 and the guidance note titled “Continuous disclosure: listing rule 3.1”.

If the information requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately.

Your responsibility under listing rule 3.1 is not confined to, or necessarily satisfied by, answering the questions set out in this letter.

Under listing rule 18.7A, a copy of this query and your response may be released to the market, so your response should be in a suitable form and separately address each of the questions asked. If you have any concerns about your response being released, please contact me immediately. Your response should be sent to me by email at shannon.hong@asx.com.au or on facsimile number (02) 9241 7620 . It should not be sent to the Company Announcements Office.

Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in any event, not later than half an hour before the start of trading (i.e. before 9.30 a.m. E.S.T. ) on Tuesday, 31 July 2012 .

If you are unable to respond by the time requested you should consider a request for a trading halt in the Company’s securities.

Yours sincerely

(Sent electronically without signature)

Shannon Hong Adviser, Listings

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