PRO-PAC PACKAGING LIMITED — Capital/Financing Update 2012

Feb 21, 2012

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Date: 22 February 2012

The Manager Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

Dear Sir

Pro-Pac Packaging Limited (ASX Code: PPG) Share Placement ASX Listing Rule 3.10.3 Announcement

In accordance with ASX Listing Rule 3.10.3, Pro-Pac Packaging Limited ( PPG ) provides the following information in relation to the placement it announced today:

Information requiredunder Listing Rule 3.10.3	Tranche 1	Tranche 2
Class of securities to beissued	Ordinary shares in PPG (Shares)
Number of securities to beissued (if known) ormaximum number whichmay be issued	20,628,645The Shares are expected tobe issued on 28 February2012.	41,593,578Subject to shareholderapproval, the Shares areexpected to be issued in earlyApril 2012.
Principal terms ofsecurities to be issued	Fully paid ordinary shares of the Company ranking equally withall other ordinary shares of PPG, save that none of theseShares will participate in the dividend announced by theCompany on 20 February 2012.
Issue price orconsideration	$0.45 per Share.
Purpose of the issue	To fund identified acquisition targets and associated workingcapital requirements.
Whether the entity will seeksecurity holder approval inrelation to the proposedissue of securities	Yes, PPG intends todispatch a notice of meetingon or about 29 February2012 to seek Shareholderratification for the allotmentof Shares under this trancheof the placement inaccordance with ASX ListingRule 7.4.	Yes, PPG intends to dispatch anotice of meeting on or about29 February 2012 to seekShareholder approval for theallotment of Shares under thistranche of the placement inaccordance with ASX ListingRule 7.1.

Pro-Pac Packaging Limited ACN 112 971 874 148 Newton Road, Wetherill Park NSW 2164 P.O. Box 6205 WPBC, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599

www.ppgaust.com.au

Whether the issue will beto a class of securityholders	Sophisticated andprofessionalinvestors as identifiedby InvestorfirstSecurities Ltd as to10,630,255 Shares;andBennamon Pty Ltd(ACN 126 160 852)as to 9,998,390Shares.	Sophisticated andprofessional investorsas identified byInvestorfirst SecuritiesLtd as to 19,183,805Shares;Bennamon Pty Ltd(ACN 126 160 852) asto 20,159,773 Shares;andMr Brandon Penn (orhis associates) as to2,250,000 Shares.

By the order of the Board

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Mark Saus Company Secretary