SAFEROADS HOLDINGS LIMITED — Capital/Financing Update 2006

Sep 27, 2006

• saferoads -

RELEASE TO AUSTRALIAN STOCK EXCHANGE

NOMINAL OFFER PROSPECTUS

Saferoads Holdings Limited (ASX:SRH) announces that it has lodged a prospectus (Prospectus) today with the Australian Securities and Investments Commission (ASIC) in relation to a nominal offer of 100 Shares in Saferoads Holdings Limited at $1.40 per Share. A copy of the Prospectus lodged is attached to this announcement.

The purpose of the Prospectus is to support the Institutional Placement of Shares with sophisticated and professional investors that Saferoads announced on 21 September 2006 and lodged an Appendix 3B new issue announcement earlier today.

Generally, investors who acquire securities other than under a "disclosure document" (as defined by the Corporations Act) may not trade those securities within the 12 months following their issue. The Prospectus has been lodged with ASIC today so that investors who acquired Shares under the Institutional Placement may take advantage of an exception to the general rule and trade their securities without restriction.

Darren Hotchkin Managing Director

28 September 2006

SAFEROADS HOLDINGS LIMITED ABN 81 116 668 538

PO Box 340, Drouin, Vic., Australia 3818 Phone: 1800 060 672 Fax: 1800 060 673 Web: www.saferoads.com.au