PPK GROUP LIMITED — Capital/Financing Update 2009

Jul 12, 2009

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ABN: 65 003 964 181

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

13 July 2009

Australian Securities Exchange Limited

FOR RELEASE TO THE MARKET

Frigrite Limited “Frigrite” PPK Investment Holdings Pty. Ltd. “PPK”

PPK Group Limited is pleased to announce that following consideration of the review undertaken by Frigrite of the impact of a number of recent developments on the Frigrite business, PPK has today signed all required documents to participate in the renounceable rights issue (Rights Issue) and issue of convertible notes by Frigrite.

PPK holds a 14% shareholding in Frigrite.

Frigrite has agreed on terms with its principal lender ANZ Banking Group in relation to a debt reduction and a new funding facility.

Frigrite has announced a 3 for 5 Rights Issue of fully paid ordinary shares at $0.12 per share to all eligible Frigrite shareholders. PPK has agreed to underwrite $2,000,000 of the Rights Issue (inclusive of PPK's entitlements).

Frigrite has also announced the issue of 8,000,000 convertible notes with attaching options. PPK has subscribed for 2,500,000 convertible notes. The convertible notes have a term of 3 years, are issued at $1.00 and convert to five ordinary Frigrite shares. The convertible notes pay interest at the rate of 12.5% per annum. The attached options are at an exercise price of $0.20.

PPK held a significant existing investment in Frigrite. The further investment now made by PPK reconfirms PPK's belief in the future of the reinvigorated and recapitalised Frigrite.

Yours faithfully

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Robert Nicholls

Company Secretary

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