SKS TECHNOLOGIES GROUP LIMITED — Capital/Financing Update 2011

Aug 8, 2011

Stokes

ABN 24 004 554 929 ESTABLISHED 1856

STOKES (AUSTRALASIA) LIMITED 24 PALMERSTON ROAD WEST RINGWOOD VICTORIA 3134 P.O. BOX 168 MITCHAM VICTORIA 3132 TELEPHONE: (03) 9845 8300 FAX: (03) 9845 8373

UPDATE

The Directors wish to advise the market of material changes to its expected level of financial performance compared with the prior corresponding period.

Stokes (Australasia) Ltd estimates that the net accounting loss after tax for the financial year ended 30 June 2011 will be approximately $525,000, compared to a net profit after tax of $738,563 achieved for the 2010 financial year. The results are subject to audit which is presently underway.

The results reflect the continued challenging market conditions, and significant legal and other costs associated with protecting the company's trade mark and brand name.

The Directors intend to introduce a Share Purchase Plan which will allow shareholders to take up additional shares to a maximum value of $10,000. The funds raised will be used as additional working capital and to take advantage of any opportunities as they arise.

Further details will be provided following the announcement of the annual results later in the month.

Gordon Elkington Secretary

9 August 2011