OLDFIELDS HOLDINGS LIMITED — Capital/Financing Update 2009

Oct 28, 2009

==> picture [159 x 47] intentionally omitted <==

OLDFIELDS HOLDINGS LIMITED

ACN: 000 307 988

PO BOX 1613, CAMPBELLTOWN NSW 2560 Telephone: 02 4627 0777 Facsimile: 02 46 27 0888

29 October 2009

TRADING UPDATE

The company wishes to provide the following information in relation to the most recent management data in 2009.

Paint Application Division

Trading conditions continue to be soft, though a gradual improvement is emerging. The division’s profitability has been enhanced by the strong Australian dollar which had previously affected this division last year. This has now returned into profitability.

Paint Applications Indonesia

This division is currently trading profitably, and is continuing to win new business in South East Asia.

Garden Sheds

This Division Export revenue is currently adversely effected by the strength in the Australian Dollar compared to its trading partners, the division is performing below expectations but has secured ongoing sales orders for the next period and is currently trading at a loss. We anticipate this will improve in the second quarter.

H & O Products

The 75% owned subsidiary division traded at a loss in the previous financial year and is currently trading at a loss in the first quarter of this current financial year. Although challenges associated with the Division were addressed in the company’s 2009 Annual Review, new product line uptake with larger customers are expected to commence in the second half of this financial year.

The challenges referred to above include in particular a lack of working capital. The company has initiated a rights issue in order to address this issue together with other funding issues. Since that report the Management Information System of the business has been greatly enhanced and a strategy developed to return the division to profitability. Pivotal to this strategy is a machinery upgrade due to be completed in January 2010. Relocation to an integrated site in late 2010 is also currently being considered by the Board.

Aluminium Scaffolding

Local Activity remains subdued, however a gradual improvement is being noted in all states except NSW. The division is a significant contributor to the group. The international section of this Division has a very strong order book in Foshan China. We have won additional overseas supply orders and are currently negotiating additional large orders. The China manufacturing operations is expected to exceed expectations in revenue and profit levels for this year. It is however being constrained by a lack of working capital.

Capital Management

The company is in the process of completing a non-renounceable Rights Issue in order to address the funding issues highlighted above. In view of the current tight working capital situation it is considered unlikely that a Dividend will be able to be paid for the half year ending 31-12-09.