SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2011

Apr 17, 2011

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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

ASX RELEASE

18 April 2011

ASX Limited (Perth office) Exchange Plaza 2 The Esplanade PERTH WA 6000

SOUTHERN CROSS ELECTRICAL ENGINEERING ANNOUNCES SUCCESSFUL A$30.0 MILLION PLACEMENT AND $5.0 MILLION SHARE PURCHASE PLAN FOR GROWTH CAPITAL TO SUPPORT RECORD TENDER PIPELINE

• Southern Cross Electrical Engineering announces a successful $30.0 million placement with a $5.0 million Share Purchase Plan to be offered to shareholders (together “the Capital Raising”)

• Funds raised will strengthen balance sheet for project bonding and working capital requirements

• Approximately $1 billion in current tenders for large scale contracts to be completed over 3 – 5 years

Southern Cross Electrical Engineering Limited (ASX: SXE) (“ SXE ” or “ the Company ”) is pleased to announce that it has received firm commitments for 33.3 million fully paid ordinary shares (“ Shares” ) at $0.90 per Share to raise $30.0 million before costs (“ Placement” ).

The Placement was strongly supported by new and existing Australian and international institutional and sophisticated investors.

The issue price of $0.90 represents a discount of approximately 14% to the last closing price on 13 April 2011.

Subsequent to the Placement, SXE will make an offer to eligible shareholders of up to $15,000 of shares per eligible shareholder under a Share Purchase Plan (“ SPP ”) to raise up to a further $5 million (before costs). Shares issued under the SPP (“ SPP Shares”) will be offered at the same price as the Shares issued under the Placement.

Funds raised under the Capital Raising will be used to provide SXE increased balance sheet strength for current and future negotiations with blue‐chip clients on large scale contract opportunities. SXE’s tender book has increased to approximately $1 billion of tenders in the evaluation phase for work to be executed over the next 3 to 5 years, up from $270 million reported in February 2011. The purpose of the equity capital raising is to ensure SXE has the working capital, bonding requirements and capital expenditure

funding necessary for these tenders. For more detail refer to the Investor Presentation released to the market in conjunction to this announcement.

Placement

Euroz Securities Limited acted as Lead Manager to the Placement. The Placement to institutional and sophisticated investors will be made in two tranches:

• Tranche 1: comprising 18.5 million Shares to raise $16.6 million to be issued immediately under the Company’s 15% capacity, pursuant to ASX Listing Rule 7.1. Settlement of tranche 1 is scheduled for Wednesday 27 April, 2011; and

• Tranche 2: comprising 14.8 million Shares to raise a further $13.4 million to be issued subject to shareholder approval at a meeting of shareholders to be held on 26 May 2011. The Company’s founder and Non‐Executive Director, Mr Frank Tomasi and Non‐Executive Director Mr Brian Carman have committed to participating in tranche two of the Placement, subject to shareholder approval.

The Placement is conditional upon Euroz's obligations under its mandate as sole Lead Manager, which are standard and customary, not ceasing or terminating."

Share Purchase Plan

Participation in the SPP is optional and will be open to shareholders who were holders of shares as at 5:00pm (Perth time) on 15 April 2011, being the record date and whose registered address is in Australia or New Zealand. Each eligible shareholder will be able to acquire up to 16,667 Shares under the SPP.

The SPP is non‐renounceable. This means that eligible SXE shareholders who do not take up their entitlement to participate in the SPP will not be able to transfer or receive value for those entitlements. The SPP Shares will rank equally with existing Shares on issue.

Further details relating to the Capital Raising and an indicative timetable for the Capital Raising are set out in the Investor Presentation to be released with this announcement.

SXE’s Managing Director, Simon High, said the Capital Raising ensured the Company was strongly positioned for continued future growth.

“We are delighted with the strong level of support that Southern Cross Electrical Engineering has received from both existing and new institutional shareholders as well as sophisticated investors participating in the Placement” he said.

“The strengthened balance sheet will provide the Company with much greater capacity to target large scale contract opportunities in both the minerals and metals and oil and gas sectors as we continue to benefit from our long‐term relationships with our blue‐chip clients. We now have the balance sheet strength to participate in the unprecedented pipeline of near – medium term committed projects.” For further information about SXE or the Capital Raising, please contact:

Mr Simon High	Stephen Fewster
Managing Director	Chief Financial Officer
Southern Cross Electrical Engineering Ltd	Southern Cross Electrical Engineering Ltd
+618 9410 1833	+618 9410 1833

This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer of securities for sale in the United States or any other jurisdiction. Any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.