SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2008

Nov 6, 2008

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ACN 091 744 884 Level 4, 72 Pitt Street Sydney NSW, 2000 Australia

ASX Announcement

7 November 2008

Shareholder update

Market Data business division

MDS Financial Group Limited (MDS or the Company) yesterday rejected an indicative non-binding offer for the market data division of the business which valued the division of the Company at between 1 and 1.5 times revenue. This would value the shares of the Company between 4 and 6 cents per share for that division of the business only. The board has rejected the offer as it believes the division is worth substantially more than the amount offered.

MDS remains engaged in discussions with other parties in relation to the announcement made on 17 October 2008, and expects to provide further information soon.

Capital raising

An Information Memorandum was released on 31 October 2008 inviting sophisticated investors to subscribe for shares in the Company to a capital raising of up to $2 million. The Lead Managers are actively working on this at present.

New product offerings

MDS Financial Research

The Company will release in mid-November 2008, a new delivery method for and revision of, the Company’s research product Stock Cubes . Upon release the product will be renamed to MDS Financial Research .

As part of the Company’s ongoing improvements to ensure our customers have access to the best resources available when making investment decisions, the Company will present the product in an online web based format providing more accessibility and ease of use for subscribers, as well as enhancing the research team’s ability to provide updated information in a more timely manner. This product primarily focuses on Contracts for Difference (CFD) and share analysis and recommendations.

The Company will also introduce a new feature to provide clients with regularly updated trailing stops to assist with their trading plans and trade management.

The new format is currently in pre-release with our existing customers and we expect this development to be an excellent addition to our product selection. It is expected that this will enable the Company to increase its revenue per client whilst delivering tools that can assist traders to profit from the markets.

This product is scheduled for public release Wednesday 12 November 2008. Please e-mail customerservice@mdsfinancial.com.au to be alerted of the release.

For more information please contact:

Sean Rothsey Allan Shek Chairman Director and Company Secretary MDS Financial Group Limited MDS Financial Group Limited

Phone: +61 7 5442 6080 Phone: +61 2 9300 3500 Mobile: +61 419 712 685