SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2014

Sep 25, 2014

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ABN 90 091 744 884

26 September 2014

ASX ANNOUNCEMENT & MEDIA RELEASE

Notification of Placement of Shares under ASX Listing Rule 7.1

MDS Financial Group Ltd (the “Company” or “Group”) advises that further to its announcement on 27 August 2014, issuing new shares under ASX Listing Rule 7.1 (“Placement Capacity”), a further 22,000,000 shares have been issued on 26 September 2014.

Under the Placement Capacity the Company has the ability to issue up to an additional15% of the total Issued Capital in the Company without first seeking Shareholder approval.

The announcement on 27 August 2014 advised the issue of 115,000,000 shares under the Placement Capacity, equalling 11.2% of the shares on issue, thus leaving 3.8% able to be issued under the Placement Capacity.

The Company is pleased to announce that interest continues in the Company's strategic direction and as a result applications for a further 39,524,900 shares have been received. These applications have been issued at $0.004, raising a further $158,100 in capital. The placement of these shares results in the entire Placement Capacity available now being allocated.

The Company is continuing to receive inquiries from existing shareholders and potential new investors to take a position in the Company, and the Company will consider each on the strategic merit and long-term benefit of any placement.

Any such placement will be under ASX Listing Rule 7.1A which will, along with shares placed under ASX Listing Rule 7.1, be requested to be ratified by the Shareholders at the next General Meeting of the Company

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Peter Stirling Chairman

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All market announcements are available to view at www.mdsfi nancial.com.au/asx and at www.asx.com.au.

For more information please contact Andrew Phillips Company Secretary MDS Financial Group Limited Phone +61 2 8114 2551

Level 37, Rialto South Tower 525 Collins Street, Melbourne, VIC 3000 P: +61 3 9617 0600 I F: +61 3 9617 0699

www. mds financial.com.au