SIMONDS GROUP LIMITED — Capital/Financing Update 2016

Sep 19, 2016

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20 September 2016

Mr John Johansson Australian Stock Exchange Limited 4 Rialto Tower 425 Collins Street Melbourne VIC 3000

Dear Mr Johansson

Simonds Group Limited – Trading Halt

Simonds Group Limited ( SIO ) hereby requests that the ASX grant a trading halt of its securities with immediate effect, pending an announcement by SIO in relation to the previously announced scheme of arrangement under which SR Residential Pty Ltd, a company jointly owned by entities associated with Simonds Family Office Pty Ltd and Roche Holdings Pty Ltd, will acquire all of the shares in the Company not already owned by associates of Simonds Family Office Pty Ltd.

The proposed trading halt is expected to last until the earlier of the commencement of trading on Wednesday 21 September 2016 or the release of the above announcement to ASX.

SIO confirms that it is not aware of any reason that would prevent this request being granted by the ASX.

Yours sincerely

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Matthew Chun CEO Simonds Group Limited

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