SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2017

Nov 22, 2017

Completion of $33.2m Placement and Listing Rule 3.10.5A Disclosure 23 November 2017

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ASX & media announcement ASX code: SXE

Diversified national electrical contractor Southern Cross Electrical Engineering Limited (“Company” or “SCEE”) is pleased to advise that the capital raising announced on 16 November 2017 (“Placement”) has been completed. The Company has today issued 44.25 million new fully paid ordinary shares to institutional and sophisticated investors at an issue price of $0.75 per share, raising $33.2m (before costs).

The funds from the Placement will be used to support SCEE’s growth strategy, by providing general working capital, in the context of SCEE’s greatly enlarged order book and significant pipeline of work, and balance sheet strength and the flexibility to capitalise on potential growth opportunities.

The Company provides the following information in relation to the Placement as required by Listing Rule 3.10.5A:

• a) The dilution to existing shareholders as a result of the Placement is as follows:

	Issued Shares	Dilution
Number of shares on issueprior to the Placement	187,139,097
Shares issued under ListingRule 7.1A	18,713,909	10.0%
Shares issued under ListingRule 7.1	25,536,091	13.6%
Number of shares on issue followingthe Placement	231,389,097

The fully paid ordinary shares issued under Listing Rule 7.1A (“Shares”) have been issued to both existing and new shareholders. The percentage of the post-Placement capital is as follows:

• 56.9% held by pre-Placement shareholders who did not participate in the Placement;

• 35.5% held by pre-Placement shareholders who did participate in the Placement; and

• 7.6% held by participants in the Placement who were not previously shareholders.

• b) The Shares were issued pursuant to Listing Rule 7.1A as the Company considered this to be the most expedient and cost effective method of raising capital. The Placement did not expose the Company to the additional costs and market volatility that may have been experienced over a more protracted capital raising process, such as a pro rata issue or other types of issue in which existing shareholders would have been eligible to participate.

• c) The Placement was not underwritten.

• d) Fees of approximately $1.16 million will be paid in connection with the Placement.

Contact

SCEE Perth Office 41 Macedonia Street Naval Base WA 6165 T: +61 8 9236 8300

Graeme Dunn CEO & Managing Director E: graeme.dunn@scee.com.au

Colin Harper Company Secretary E: colin.harper@scee.com.au

Southern Cross Electrical Engineering Limited

ABN 92 009 307 046