SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2011

Mar 1, 2011

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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

2[nd] March 2011

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, Stock Exchange Centre 20 Bridge Street SYDNEY NSW 2000

ELECTRONIC LODGEMENT

Dear Sir or Madam,

SXE WINS ELECTRICAL & INSTRUMENTATION CONTRACT

Southern Cross Electrical Engineering Ltd (ASX:SXE) is pleased to advise it has received a letter of intent for the first concentrator area electrical installation contract for the Sino Iron Ore Project. The award of this contract brings SXE’s current forward order book to approximately $55 million. Work on this project is expected to commence in April and run for approximately six months.

SXE’s Managing Director, Simon High said “We are very pleased to continue our involvement in this project. During FY10, Southern Cross was involved in setting up the early power supply requirements for the site. This installation contract is the first of six concentrator areas to be completed. Successful execution on this contract should place SXE in a strong position to win the electrical installation work on the remaining five concentrator areas in addition to other significant electrical and instrumentation installation contracts to be awarded by MCC for the Sino Iron Project.”

-ENDS-

For further information please contact:

Simon High Managing Director Southern Cross Electrical Engineering Limited Telephone: +618 9410 1833 Email: simon.high@scee.com.au

Stephen Fewster Chief Financial Officer Southern Cross Electrical Engineering Limited Telephone: +618 9410 1833 Email: stevef@scee.com.au