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SAFEROADS HOLDINGS LIMITED Capital/Financing Update 2011

May 30, 2011

65853_rns_2011-05-30_29791b38-c063-438d-8e72-056a23db8c0e.pdf

Capital/Financing Update

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31 May 2011.

Trading Update

Based on unaudited management accounts to 30 April 2011 and forecast performance for the remainder of the year, the Directors of Saferoads Holdings Limited (ASX:SRH) expect the Company to report an NPAT within the range of $0. 7 million to $1 million and sales within the range of $45 million to $47 million for the full FY11 financial year, compared with an NPAT of $2.04 million and sales of $49 million in the previous corresponding period, FY10.

Whilst the second half’s performance represents a significant improvement over the first half, the Company’s overall performance has continued to be impacted by civil project delays due to prolonged periods of wet weather particularly in the eastern states, and a lack of supply in two key product areas.

Looking forward, Directors believe that the Company’s performance will continue to improve as the impact of senior management changes and supply chain improvements take effect, and as the backlog of civil projects is cleared.

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Gary Bertuch Chairman of Directors

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