PPK GROUP LIMITED — Capital/Financing Update 2014

Mar 16, 2014

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ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

17 March 2014

PPK Group Limited – ASX Code: PPK

PPK completes acquisition of COALTRAM Mining Equipment Business

• PPK has completed the acquisition of the COALTRAM mining equipment business in an all cash transaction for $13 million

• $10 million has been paid with the balance of $3 million due on completion of an unsatisfied condition precedent

• Net Tangible Assets on hand were in excess of $17 million

• Foundation acquisition for mining sector growth strategy

PPK Group Limited (PPK) announces completion of its acquisition of the COALTRAM mining equipment business and intellectual property from Diversified Mining Services Limited (DMS) in an all cash transaction for $13 million. Whilst practical completion has been achieved, an amount of $3 million has been held back subject to completion of an unsatisfied condition precedent regarding the Tomago manufacturing facility. PPK and DMS are confident satisfaction of the condition precedent can be achieved, and after any costs of doing so are met, PPK will pay DMS a balance sum as final payment.

The acquired assets include plant, equipment, inventory and hire fleet to a Net Tangible Asset value in excess of $17 million.

The acquired businesses include:

• Manufacture, service and support of the trademark COALTRAM underground transport utility vehicle;

• Manufacture and distribution of Australia's leading flameproof alternator for use in methane gas prone underground coal mining environments; and

• Equipment hire.

PPK GROUP LIMITED

ABN: 65 003 964 181

LEVEL 31, AUSTRALIA SQUARE, 264-278 GEORGE STREET, SYDNEY NSW 2000 PO BOX H18, AUSTRALIA SQUARE NSW 1215 TEL: +61 2 9241 7372

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Executive Chairman, Robin Levison stated:

"Finalisation of the COALTRAM acquisition is the first step in the PPK strategy of acquiring mining services businesses that have a strong product or service offering at a time in the cycle where their value may not be fully appreciated by the wider market"

With around 100 COALTRAMS currently working in the Australian underground coal mining environment there is a strong product reputation to build upon, while the COALTRAM business continues to benefit from the Original Equipment Manufacturer (OEM) service and support revenue that is generated keeping this type of vehicle available for 24 hour use. Also as previously outlined, the COALTRAM vehicle has the potential to be exported to other major coal mining jurisdictions.

The acquisition of the flameproof alternator business also brings an already globally recognised product that is certified for use in high gas methane prone environments and is widely used by a number of global OEM underground equipment manufacturers.

In summary Mr Levison commented:

" The Board of PPK is delighted to have completed the first mining services acquisition and believe, in line with its published strategy, that PPK is receiving excellent value given the premium of Net Tangible Assets to purchase price. The Board and management team of PPK look forward to welcoming the COALTRAM employees into the broader PPK business and building upon the strong reputation that the COALTRAM product has established in the Australian underground coal mining market over the last 5 years"

For further information, contact:

Robin Levison Executive Chairman T: (02) 9241 7372

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