RAIDEN RESOURCES LIMITED — Capital/Financing Update 2011

Oct 2, 2011

SVC Group Limited ABN 68 009 161 522

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3[rd] October 2011

SVC MARKET UPDATE

Joint Venture Agreement – Hunter Valley

The Directors of Shell Villages and Resorts are pleased to announce the execution of a Joint Venture (JV) with Coast and Country Developments Pty Ltd (CCD) to develop land owned by CCD in the Hunter Valley to site up to 70 low cost homes.

Background

The property is Lot 99 on Carrs Road, Neath. The site is an adjacent portion of the similar sized village (Lot 101) owned by CCD which has 66 presently occupied sites by a combination of owner occupiers and tenants.

The strong demand for low cost housing in the Hunter Valley region should see a good take up rate for both low cost property (under $150,000) and low cost rental accommodation (rent less than $200 per week).

The initial Integrated Site Design for Lot 99 shows a yield of 95 lots. Realistically, this will likely reduce to about 50-70 sites due to bushfire setback requirements.

Key Terms

The current owners CCD would retain ownership of the land whilst the homes would be sold off on a site lease basis together with home cabins manufactured off-site, the sale of the homes would provide the capital return to SVC and profit which is to be shared in accordance with 80% of profit to SVC and 20% to CCD. CCD will retain all long term management rights to the new development, terms of which will form part of the sale and lease arrangements with the new owners.

CCD will contribute the land and SVC will project manage and pay for the following:

• Detailed site plan of development and submission to Council

• All infrastructure requirements and liaison with authorities including;

  • electricity

  • water

• sewer

• roads

SVC will source and place the manufactured home cabins for prospective purchasers and connect them to the services. SVC may set up display areas and manage the sales process.

Conditions Precedent

Under the terms of the Joint Venture SVC will be required to obtain re-capitalisation and requotation of its shares within 3 months of execution. Succeeding this SVC must continue with detailed submission to Council of the proposal within a maximum 6 month time frame and begin construction within 1 month of achieving approved site construction plans.

CCD is also under obligations to allow SVC to register a caveat on title of the land prior to the start of construction.

Budget and Programme of Work

Based on the estimation of costs which SVC has carried out, an approximate budget of $1,500,000 is to be required during the course of the project. The property is to be developed in three approximately equal stages. Under the terms of the agreement SVC is under no obligation to continue past a stage until at least 80% of the newly built lots with cabin homes have been sold. This will alleviate both SVC’s cash exposure to the project and cash flow requirements during the period of the joint venture.

Modular Housing

A modular housing building system can be utilised to construct single & two storey homes, retirement villages and mining accommodation, modular offices, hotels & motels up to 4 storeys high. These modular systems are manufactured in Australia, China, and other parts of SE. Asia.

SVC will endeavour to attract a modular home manufacturer to the development to set up a display home.

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- Location Map Lot 99 and 101 Carrs Road, Neath, Hunter Valley

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----- Start of picture text ----- Existing Caravan Park Lot 101 Lot 99----- End of picture text -----

Please do not hesitate to contact the Company for any further information or clarification on the matters addressed in this update.

Yours faithfully,

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Richard Pritchard Chairman