SEAFARMS GROUP LIMITED — Earnings Release 2012

Oct 29, 2012

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Our Ref: CO2 ASX Announce Media Release – 2012 Financial Year Results Boardroom Radio (370)

30 October 2012

ANNOUNCEMENT 370

Market Announcements Office
Australian Securities Exchange
Level 6
20 Bridge Street
SYDNEY NSW 2000

By ASX Online
Number of pages: 3
(including this page)

Dear Sir,

CO2 Group CEO Andrew Grant discusses record profit announcement on Boardroom Radio

CO2 Group Limited (COZ) provides the opportunity to listen to a podcast with Mr Andrew Grant, CEO in a presentation titled "CO2 Group delivers a record $7m profit".

To listen, copy the following details into your web browser:

http://www.brrmedia.com/event/105781

The presentation details are as follows:

• CO2 Group announces a record profit of $7m for the year ending 30 September 2012
• Prospects for the company following the acquisition of Western Australian Resources Limited
• Discussion of the current state of the carbon market
• Presented by Mr Andrew Grant, CEO
• Tuesday, 30 October 2012

Yours sincerely,

CO2 Group Limited

Harley Whitcombe
Company Secretary

CO2 Group Limited

Level 11, 225 St Georges Terrace Perth WA 6000
Tel. 08 9321 4111
ABN 50 009 317 846
PO Box 7312 Cloisters Square Perth WA 6850
Fax. 08 9321 4411
www.co2australia.com.au

CO2 Group Limited is a corporate authorised representative ("CAR") (Number 420079) of Valuestream Investment Management Limited (ACN 094 107 034 AFSL 246621). The Group's licence numbers are: CO2 Group Limited (CAR # 420079); Carbon Banc Limited (CAR # 420080); CO2 Australia Limited (CAR # 420081).

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CO2 Group delivers a record $7m profit

Andrew Grant, CEO at CO2 Group

BRR Today on BRR we're joined by Andrew Grant, who's the CEO of CO2 Group. Andrew great to have you on the line again.

AG Good morning Tom.

BRR Now Andrew you just released a successful full year result announcement to the market, could you tell our listeners about the highlights of the release?

AG Thank you very much. Well most critically we've had a record year in profits, so our earnings before interests and taxes are over $7 million, up substantially from last year and net profit after tax is $4.9 million. The best year we've ever had as a company and very pleasing to be able to announce to our investors such strong performance of the company.

BRR Okay you mentioned that both profit and revenue are up substantially on previous years, what do you think the reason is for the strong growth in the business?

AG Well I've been very pleased by our decision to expand the array of services that was taken to the market, but we've always seen our expertise as being able to understand the trends in the emerging carbon market and environmental credits more generally. Almost two years ago we decided to expand into trading, so the business originally was based on originating carbon offsets for clients, and that continues to be the backbone, but in more recent years we've expanded into advisory and trading work, and the trading piece has been very successful, it's seen substantial growth of both our revenue and our earnings and the advisory work really leverages off our deep knowledge of the markets and our technical expertise and we've been able to enhance that as a profit centre and more recently we've seeing dividends from our expansion into New Zealand.

BRR Okay great to see that diversification working for the business. The results include the introduction of the carbon price in Australia, could you tell me a little bit more about how CO2 Group has been impacted by the legislation?

AG That's a critical piece of work for our organisation. All of our clients have sought their assets that we manage their carbon forest to be transitioned under the Carbon Pricing Scheme. So we've been working on that for the last year, and related to that we've been developing our methodology with the Government to be able to generate Australian Carbon Credit Units under the Federal Government Scheme. So it's a substantial piece of work, and in addition we've been able to win new advisory work with organisations that have invested or wanting to invest in carbon forestry and more recently we're getting involved in financial modelling and analysis and what other opportunities exist for emitters to reduce their carbon exposure. So the legislation is a critical piece of reform for the

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Australian business and we're front and centre in that.

BRR Okay, we talked earlier a little bit about the diversification of the business, how will the acquisition of Western Australian Resources fit within the future of the company?

AG Well that's very exciting develop for the company and as I mentioned the diversification has been a really key theme of the business and having multiple profit centres, and it really comes back to the core competence of the organisation. We've viewed our company as being able to understand the EBIT section between good environmental science and commerce and taking that technology and taking it to market to commercialise it, so Western Australian Resources is really a continuation of the same theme and we've identified that protein to China and Asia at large is a major theme over the next 10 years or so, being able to develop really powerful commercial relationships with organisations like CSIROs. A big part of our track record and we've identified a key piece of technology and we think the timing's right, so the idea is young but we'll be putting out a lot more information on how we propose to expand upon that investment over the next period.

BRR Okay and where else do you believe that future growth may lie for the company?

AG Well the carbon market's pretty exciting at the moment, they're very, very tough I think in the short term they're incredibly tough even in Australia with the advent of the legislation most of the emitters are concentrating on the price pass through but the next logical stage is starting to trade actively and looking at some medium to longer term investments. I'm seeing a lot of pain amongst our competitors and we're picking up additional mandates for work where other companies are struggling financially and I think getting such a stellar result like this for the company and the strength that that gives us in the market is going to be to our advantage. So whilst I see the next period, the next 12 months as pretty choppy waters, there's no easy wins out there, I think in the medium to long term I see fantastic growth for the environmental expertise, emerging carbon markets not only in Australia but in New Zealand will continue to grow, in Asia we're seeing a lot more opportunity. We're excited by the pilot schemes that are being developed in China and the scale of them and the need for our kind of expertise in those regions and Western Australian Resources I think will be a very significant part of CO2 Group in the future.

BRR Well congratulations on the result Andrew and thank you very much for taking the time out from your day to talk with BRR.

AG Thanks Tom my pleasure, all the best.