PRO-PAC PACKAGING LIMITED — Capital/Financing Update 2012

Feb 19, 2012

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MARKET RELEASE

20 February 2012

Pro-Pac Packaging Limited

TRADING HALT

The securities of Pro-Pac Packaging Limited (the “Company”) will remain in Trading Halt Session State at the request of the Company pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Wednesday, 22 February 2012 or when the announcement is released to the market.

Security Code: PPG

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Elvis Onyura Adviser, Listings (Sydney)

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20 February 2012

Elvis Onyura Adviser, Listings (Sydney) ASX Compliance Pty Ltd 20 Bridge Street Sydney NSW 2000

By email to: elvis.onyura@asx.com.au

Dear Mr Onyura

Request for trading halt

Pro-Pac Packaging Limited requests a trading halt in its ordinary shares from market open today, pending an announcement of a proposed capital raising by the Company by way of placements to sophisticated investors.

The Company anticipates that the trading halt will be lifted before market open on Wednesday 22 February 2012 by the provision of an announcement to ASX with details of the capital raising.

The Company accordingly requests that the trading halt remains in place until it announces the details of the capital raising, (and in any event at the latest until market open on 22 February 2012).

For the purposes of Listing Rule 17.1, the Company provides the following information:

1. the trading halt is necessary as otherwise trading in the Company's ordinary shares would occur on an uninformed basis; and

2. the Company is not aware of any reason why the trading halt should not be granted.

Yours sincerely

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Mark Saus Company Secretary

Pro-Pac Packaging Limited ACN 112 971 874 148 Newton Road, Wetherill Park NSW 2164 P.O. Box 6484, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599 www.ppgaust.com.au