SAFEROADS HOLDINGS LIMITED — Capital/Financing Update 2014

Dec 29, 2014

==> picture [313 x 63] intentionally omitted <==

ASX ANNOUNCEMENT

30 December 2014

EXTENSION OF BANK FACILITIES AND CORE DEBT REDUCTION

The Directors of Saferoads Holdings Limited ( ASX: SRH ) are pleased to announce that the Company has secured a three year extension to its current banking facilities with Commonwealth Bank, to February 2018. This has been secured following the repayment of $1.6 million in core debt, predominantly funded through the recent 2 for 5 Entitlement Offer, and aggregate proceeds from non-core asset sales achieved in the current quarter. These asset sales were the residual assets of our Civil Services business and were disposed of at book value or better.

Chairman, Mr. David Ashmore, said “the recent entitlement offer was necessary to reset the debt levels and secure our financier’s support in extending our current banking facilities. This goal has been achieved and the Board sincerely thanks those shareholders who participated in the Entitlement Offer, including those who showed their additional support by taking up Shortfall Shares (which were oversubscribed).”

“The Board now believes the Company is better placed going into the new calendar year with a stronger balance sheet that better reflects the scale of the present business. This significant debt reduction and facility restructuring will achieve reduced finance costs in the second half of the current financial year and beyond.”

Further to the Company’s guidance at last month’s Annual General Meeting, the Directors reaffirm that the Company is still anticipated to achieve a positive EBIT for the first half of the current financial year.

Enquiries/Additional Information:

David Ashmore, Chairman 0418 155 500

---

ABOUT SAFEROADS

Saferoads is a company listed on the Australian Stock Exchange (ASX: SRH), specialising in providing innovative road safety solutions. Headquartered in Drouin, Victoria, and with representation across Australia and New Zealand, the company provides State Government Departments, local councils and road construction and equipment hire companies with a broad range of products and services designed to direct, protect, inform and illuminate all road users.

SAFEROADS HOLDINGS LTD. ABN 81 116 668 538

PO Box 340, Drouin, Vic 3818 Phone: 1800 060 672 Fax: 1800 060 673

Website: www.saferoads.com.au