PPK GROUP LIMITED — Capital/Financing Update 2008

Jun 4, 2008

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25-27 WARATAH STREET KIRRAWEE NSW 2232

PO BOX 3006, KIRRAWEE DELIVERY CENTRE NSW 2232 TEL: 61 (2) 9521 8444 ◙ FAX: 61 (2) 9521 4561

5 June 2008

Company Announcements Office Australian Securities Exchange Limited

For Release to the Market

Performance Update

PPK is the holder of a number of strategic investments in publicly listed entities.

In the commentary in the half yearly report for the period ended 31 December 2007 PPK indicated that the significant volatility in the Australian share market could impact on its full year results. That volatility has continued and, based on current share prices, will adversely affect reported earnings for the second half of the 2008 financial year.

While PPK has not realised any losses on its investments, Australian Accounting Standards require significant unrealised losses to be reported through the Profit and Loss Account.

A majority of the unrealised losses will be derived from the investment by PPK in Frigrite Limited (“FRR”). PPK currently holds 7,087,565 (or 13.81% of the issued capital) in FRR which investment it has acquired for an average purchase price of $0.4973 cents per share. While PPK has taken a longer term view of its investment in FRR, the market price for FRR shares as at 30 May 2008 was $0.195 cents per share.

The first half results included profit from investments of $1.75 million after tax. Based on current share prices the loss from investments for the full year will be approximately $200,000 after tax.

As a result of these unrealised losses in the second half, the company anticipates the full year earnings to be under 2 cents per share.

Despite this anticipated outcome, PPK is pleased to report on the improved operating performance of its mining equipment manufacturing business, Rambor, which:

• will deliver a significant improvement in contribution in the second half year having recorded profit of approximately $500,000 for the 5 months ending 31 May 2008 compared to $63,000 achieved in the first half;

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PERFORMANCE UPDATE

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• has received its first orders for delivery of product to its emerging market of China in the first half of the 2009 year which orders are valued at US$507K; and

• is currently finalising the terms of a proposed manufacturing arrangement with a leading Chinese mining equipment manufacturer to facilitate introduction of cost competitive products to the buoyant Chinese and Indian coal mining markets.

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Colin Ryan Chairman

Contact regarding Announcement: Mr David Hoff, Managing Director on (02) 9521-8444

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