SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2012

Nov 1, 2012

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

Southern Cross Electrical Engineering Limited

ABN

92 009 307 046

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to Financial Year 2013 Performance Rights be issued granted under the Southern Cross Electrical Engineering Limited Senior Management Long Term Incentive Plan 2 Number of[+] securities issued or 323,396 to be issued (if known) or maximum number which may be issued

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3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

The key terms of the Performance Rights are:  to be performance tested over a three year period from 1 July 2012 to 30 June 2015. No Performance Rights will vest until 30 June 2015;  performance testing criteria are 50% against Absolute Total Shareholder Return ("TSR") performance, and 50% against Absolute Earnings per Share ("EPS") performance, as detailed below; and  expiry on the 4th anniversary of the Grant Date, unless an earlier lapsing date applies. TSR The TSR formula is: ((Share Price at Test Date – Share Price at Start Date) + ($ Dividends Reinvested))/ Share Price at Start Date The 2013 Performance Rights will be assessed against the following TSR targets:  for threshold performance: 12% per annum compounded over the Performance Period; and  for stretch performance: 15% per annum compounded over the Performance Period. The vesting schedule is as follows for the applicable TSR performance over the relevant Performance Period:  less than 12% per annum compounded – 0% of the Performance Rights vest;  12% per annum compounded – 50% of the Performance Rights vest;  between 12% and 15% per annum compounded – a pro rata number between 50% and 100% of the Performance Rights vest; and  at or above 15% per annum compounded – 100% of the Performance Rights vest. EPS The vesting schedule is as follows for the applicable EPS performance over the relevant Performance Period:  less than 17 cents per share – 0% of the Performance Rights vest;  17 cents per share - 50% of the Performance Rights vest;  between 17 and 22 cents per share - a pro rata number between 50% and 100% of the Performance Rights vest; and  At or above 22 cents per share - 100% of the Performance Rights vest. Once the performance measurement calculation has been finalised the company will allot and issue the equivalent number of shares at nil consideration on the basis of one ordinary share per vested Performance Right for all PerformanceRights exercised.

• See chapter 19 for defined terms.

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4 Do the[+] securities rank equally No. in all respects from the date of allotment with an existing[+] class Prior to vesting, the Performance Rights do of quoted[+] securities? not carry a right to vote, receive dividends, or generally participate in corporate If the additional securities do actions. When the Performance Rights not rank equally, please state: have vested, and are exercised, ordinary  the date from which they do fully paid shares are issued which will rank  the extent to which they equally with the Company's already quoted participate for the next securities. dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration Nil 6 Purpose of the issue The Performance Rights are being issued (If issued as consideration for under the Southern Cross Electrical the acquisition of assets, clearly Engineering Limited Senior Management identify those assets) Long Term Incentive Plan (“Plan”) in

The Performance Rights are being issued under the Southern Cross Electrical Engineering Limited Senior Management Long Term Incentive Plan (“Plan”) in accordance with a resolution passed by shareholders at the Company’s AGM on 29 October 2012. The Plan, which was approved by shareholders at the 2011 AGM, seeks to reward performance in support of the achievement of the strategy of the business.

• 6a Is the entity an[+] eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the[+] securities the subject of this Appendix 3B , and comply with section 6i

N/A

• 6b The date the security holder resolution under rule 7.1A was passed

N/A

• 6c Number of[+] securities issued without security holder approval under rule 7.1

N/A

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6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of securities issued under an exception in rule 7.2 6g If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. 6h If securities were issued under rule 7.1A for non‐cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 Dates of entering +securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (including the securities in section 2 if applicable)	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	2 November 2012
	Number	+Class
	161,486,826	Fully paid ordinary shares

• See chapter 19 for defined terms.

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9 Number and +class of all +securities not quoted on ASX (including the securities in section 2 if applicable)	Number	+Class
	166,667	Options exercisable at $1.15 expiring on 28 November 2012
	166,667	Options exercisable at $1.15 expiring on 28 November 2013
	52,623	Financial Year 2011 Performance Rights with EPS growth as the vesting condition granted under the Southern Cross Electrical Engineering Limited Senior Management Long Term IncentivePlan
	52,623	Financial Year 2011 Performance Rights with TSR growth as the vesting condition granted under the Southern Cross Electrical Engineering Limited Senior Management Long Term IncentivePlan
	1,936,617	Financial Year 2012 Performance Rights granted under the Southern Cross Electrical Engineering Limited Senior Management Long Term IncentivePlan
	961,050	Financial Year 2013 Performance Rights granted under the Southern Cross Electrical Engineering Limited Senior Management Long Term IncentivePlan

10 Dividend policy (in the case of a The ability to pay dividends will depend on trust, distribution policy) on the the Company's future earnings, taxation increased capital (interests) and cash resources.

Part 2 - Bonus issue or pro rata issue

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11 Is security holder approval required? 12 Is the issue renounceable or non‐ renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell part of their entitlements through a broker and accept for the balance?	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
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• 32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

N/A

33 +Despatch date

N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a) Securities described in Part 1

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 ‐ 1,000

1,001 ‐ 5,000 5,001 ‐ 10,000 10,001 ‐ 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

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Entities that have ticked box 34(b)

38 Number of securities for which N/A +quotation is sought 39 Class of +securities for which N/A quotation is sought 40 Do the[+] securities rank equally in N/A all respects from the date of allotment with an existing[+] class of quoted[+] securities?

If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation N/A now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and +class of all N/A N/A +securities quoted on ASX ( including the securities in clause 38)

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Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no‐one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

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Date: 2 November 2012

Company Secretary

Print name: Chris Douglass

== == == == ==

• See chapter 19 for defined terms.

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Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for[+] eligible entities

Introduced 01/08/12

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

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Insert number of fully paid ordinary N/A
securities on issue 12 months before date
of issue or agreement to issue
N/A
Add the following:
• Number of fully paid ordinary securities
issued in that 12 month period under an
exception in rule 7.2
• Number of fully paid ordinary securities
issued in that 12 month period with
shareholder approval
• Number of partly paid ordinary
securities that became fully paid in that
12 month period
Note:
• Include only ordinary securities here –
other classes of equity securities cannot
be added
• Include here (if applicable) the securities
the subject of the Appendix 3B to which
this form is annexed
• It may be useful to set out issues of
securities on different dates as separate
line items
N/A
Subtract the number of fully paid ordinary
securities cancelled during that 12 month
period
N/A
“A”
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Step 2: Calculate 15% of “A”

“B” 0.15 [Note: this value cannot be changed] Multiply “A” by 0.15 N/A Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used

Insert number of equity securities issued or N/A agreed to be issued in that 12 month period not counting those issued: • Under an exception in rule 7.2

• Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4

• Note:

• This applies to equity securities, unless specifically excluded – not just ordinary securities

• • Include here (if applicable ) the securities the subject of the Appendix 3B to which this form is annexed

• • It may be useful to set out issues of securities on different dates as separate line items

• “C” N/A

Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1

“A” x 0.15 N/A Note: number must be same as shown in Step 2 Subtract “C” N/A Note: number must be same as shown in Step 3 Total [“A” x 0.15] – “C” N/A [Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

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Part 2

New issue announcement Part 2	New issue announcement Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	N/A
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply“A” by 0.10
Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used
Insertnumber of equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	N/A
“E”	N/A

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Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

Appendix 3B New issue announcement	Appendix 3B New issue announcement
Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	N/A
Subtract“E” Note: number must be same as shown in Step 3	N/A
Total[“A” x 0.10] – “E”	N/A Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

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