SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2012

Oct 2, 2012

3 October 2012

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ASX Announcement & Media Release

MDS Financial Group Limited

ACN 091 744 884

MDS Financial Group Announces Strategic China Placement and Rights Issue

Level 37

Rialto South Tower 525 Collins Street Melbourne VIC 3000

T: +61 3 9617 0600 F: +61 3 9617 0699 asx@mdsfi nancial.com.au

1. STRATEGIC CHINA PLACEMENT

MDS Financial Group Ltd (hereinafter called MDS and the Company, ASX: MWS) announces entering into a Binding Letter of Offer for the placement of AUD$1,000,000 in MDS shares in four payment tranches to FortuneHao Capital and Shanghai Fortunehao Investment and Management Ltd.

Mr Wayne Johnson, Executive Director and Deputy Chairman of MDS said the Company is pleased to have forged this strategic relationship. “MDS is excited by the opportunities this relationship offers, and sees many synergies and business developments for our group in both Australia and China.”

ASX Code: MWS

Directors

FortuneHao Capital and Shanghai Fortunehao Investment and Management provide investment and fi nancial services including advisory, investment, merger and acquisitions together with corporate company consulting services to Chinese companies in China and, in conjunction with MDS Financial, will be assisting directly with IPOs of Chinese entities listing on the Australian Securities Exchange.

Sean Rothsey

Chairman and Non Executive Director

Wayne Johnson

Deputy Chairman and Executive Director

Richard Symon

Led by its founder Ms Jasmine Yin, FortuneHao has extensive links to Chinese corporate and investment funds through its team of professional investment management and capital markets personnel. Ms Yin has over 20 years of private equity and investment experience including 8 years as a senior manager in New Zealand and 2 years in a Shenzhen-based Hong Kong Stock Exchange listed company.

Executive Director

Jamie Khoo

Independent Non-Executive Director

The Binding Placement agreement provides for the issuing of 66,666,667 fully paid ordinary shares, issued in three tranches, at an issue price of 1.5 cents per share with an attaching option for every 4 shares subscribed by FortuneHao Capital (or their nominees), with a 4 cent exercise price and 2 year term subject to shareholder approval.

Secretariat

The payment tranche details are:

Andrew Phillips

Company Secretary and Acting Chief Financial Offi cer

317.1 million listed shares 12.5 million unlisted options

Tranche 1: On signing of the Binding Placement agreement - $50,000 deposit which has been received. Shares to be issued upon the receipt of remaining $200,000 consideration. Tranche 2: Due to be completed on or before 5 October 2012 - 16,666,667 shares to be issued for the immediate consideration of $250,000, being $200,000 plus $50,000 received from Tranche 1; Tranche 3: Due to be completed on or before 31 October, 2012 - 16,666,667 shares to be issued for consideration of $250,000; and Tranche 4: Due to be completed on or before 30 November, 2012 - 33,333,333 shares to be issued for consideration of $500,000 subject to Shareholder approvals.

The Placement draws together the expertise of FortuneHao Capital in investment and fi nancial services, mergers and acquisitions and equity capital markets in China with MDS’ growing capabilities as an ASX participant through its wholly owned subsidiary, D2MX Pty Ltd, its corporate advisory division and leading sharemarket trading software.

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3 October 2012

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ASX Announcement & Media Release

2. RIGHTS ISSUE

MDS is pleased to advise that it intends to invite all eligible shareholders to participate in a non-renounceable pro-rata rights offer at 1.5 cents. The offer will seek to raise 2 to 3 million dollars, with full details of the offer to be announced in October 2012 by MDS. Shareholders eligible to participate in the Rights Issue at 7.00pm AEST on the record date will be notifi ed.

The combination of the Placement to Fortunehao Capital and Rights Issue will provide MDS with the working capital required to further strengthen its Balance Sheet, meet future liquidity and bond requirements for D2MX’s growing share and options trading business while also strategically growing its alliance within China.

MDS has extensively impaired the Company Balance Sheet with the write down of signifi cant intangible items associated with the software business. The company has ceased data contracts, sizable data centre and computer requirements and costs, reduced personnel and wound down many fi xed expenses from hosting two separate software products and data feeds. The alliance with IRESS Market Technology is now fully implemented, with Bourse and Market Analyser subscribers now fully transitioned to a new IRESS-based trading platform which includes the proprietary D2MX Trade Tools charting and market analysis plugin.

D2MX continues to grow its client numbers in wholesale (including institutional) and retail online share and option trading. Corporate equity and debt raisings, initial public offering (IPO) and merger and acquisition activity by the MDS Corporate Advisory team has grown into an extensive pipeline with the possibility of sizable success fee revenues to the Company.

The signifi cantly lower fi xed expenses, and diversifi ed, growing revenue streams combined with the support and strategic alliance with Fortunehao Capital in mainland China should give shareholders and stakeholders confi dence in MDS Financial Group’s future as a successful and innovative fi nancial services provider.

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Sean Rothsey Chairman

END

For more information please contact:

Sean Rothsey Chairman MDS Financial Group Limited Phone: +852 6204 7956

Wayne Johnson Deputy Chairman MDS Financial Group Limited Phone: +61 2 8226 3330 Mobile: +61 411 544 449

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3 October 2012

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ASX Announcement & Media Release

ABOUT FORTUNEHAO CAPITAL

FortuneHao Capital and Shanghai Fortunehao Investment and Management Ltd provide investment and fi nancial services and advisory, investment, merger and acquisition and corporate company consulting services.

Founded by Ms Jasmine Yin in 2010, FortuneHao has extensive links to Chinese corporate and investment funds through its team of professional investment management and capital markets personnel. Ms Yin has over 20 years of private equity and investment experience including 8 years as a senior manager in New Zealand and 2 years in a Shenzhen-based Hong Kong Stock Exchange listed company.

Shanghai HaoHong has extensive experience in investment and fi nancing services both domestically and internationally, underpinned by an aim to deliver economic and social benefi t through effective economic development. Possessing indepth local knowledge as well as international experience, Shanghai HaoHong provides professional and tailored fi nancial services to a global customer base.

ABOUT MDS FINANCIAL GROUP

MDS Financial Group is a full-service corporate advisory and capital markets specialist with clients in Australia and the Asia-Pacifi c region. The Company is listed on the Australian Securities Exchange Ltd (ASX), and has three licensed subsidiaries. One of its licensed subsidiaries is an ASX market participant, with institutional and third-party wholesale brokerage facilities underpinned by substantial retail online trading and market data services.

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