RESOURCES & ENERGY GROUP LIMITED — Capital/Financing Update 2006

Apr 27, 2006

Usvei 14 16-19 Bent Street Sichey NSW 2000 telephone +01 2 8257 6500 tacalmia 461 2 6957 8601 Original Wardware PO Reserval. .
Aistraka Squard Sydney NSW 1216 AC4110-006-822

RealBrandHoldingsLimited

REAL BRAND HOLDINGS LIMITED

UPDATE ON COMPANY OPERATIONS, DOHA PROGRAM & NEW MERCHANDISING CONTRACT

28th of April 2006

The Company would like to update the investors on its status of operations and the \$1.8 million plus bonuses and expenses contract that has been awarded by The Doha Asian Games Organising Committee ("DAGOC") to Real Brands.

As previously announced, Real Brands is working on a number of major contracts and opportunities including

• The DAGOC contract announced March 2006 to undertake the professional management $\bullet$ and brand building services for the 'Planning, Implementation and Management of the Asian Games Doha 2006 Licensing Programme'.
• The work with Volkswagen Group in China (Volkswagen and Audi brands) $\bullet$
• The Kellogg's program $\bullet$
• The Hands of Humanity option opportunity

The board of Real is aware of the status of Reals' cash flow and notes under the current budgets this is due to recover over the next two quarters as works completed-to-date are billed and cash is received. To date, Real has invoiced in excess of \$800,000 with a further \$1.1m of billings due to be invoiced in the next two quarters on the DOHA contract alone. Costs will drop as the work is completed and delivered in the near future. Real Brands confirms it has received its first two payments from DAGOC totalling \$360,000 and we continue to progress our contractual obligations under the agreement to the program.

In addition, the Company is pleased to announce it has signed its first major licensing MOU with a prestigious regional distributor. This agreement guarantees a USD \$3 million purchase of licensed merchandise (apparel and hard goods) and will increase revenue to Real on the DAGOC contract by an additional USD\$300,000.

The MOU appoints a distributor to become the official licensed retailer and distributor in the country of Oatar for the 15^th Asian Games to be held in December 2006.

Real continues to undertake the marketing of licenses to key distributors, sponsors and retailers across the top 10 regional markets including Japan, Korea, China, SE Asia, GCC Countries and India. The initial response has been extremely positive thus far.

The programme will launch across the region in June and will peak in Doha when the Games begin in December 2006.

For further information, contact

Richard J Poole $(02)$ 8257 6500