SPACETALK LTD — Capital/Financing Update 2017

Aug 30, 2017

31 August 2017

The Manager ASX Market Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

==> picture [133 x 130] intentionally omitted <==

Dear Sir/Madam

Letter to Shareholders

Please find attached for release to the market a letter to shareholders in relation to the nonrenounceable Entitlement Offer for MGM Wireless Limited.

The letter has been sent to all shareholders.

Yours faithfully,

==> picture [91 x 38] intentionally omitted <==

Justin Nelson Company Secretary

KLL Doc: 1663832

31 August 2017

==> picture [133 x 129] intentionally omitted <==

Dear Shareholder

Non-Renounceable Entitlement Offer

On 30 August 2017, MGM Wireless Limited (MGM Wirelessor theCompany) announced a 1 for 8 non-renounceable entitlement offer of ordinary shares in the Company (New Shares) at an issue price of $0.35 (35 cents) per share (Entitlement Offer). The Entitlement Offer seeks to raise approximately $380,000 (before issue costs), through the issue of up to approximately 1,086,430 New Shares. MGM Wireless invites shareholders who are registered as shareholders of the Company at 7.00pm (AEST) on Monday, 4 September 2017 (Record Date), and who have a registered address in Australia and New Zealand (Eligible Shareholders) to participate in the Entitlement Offer. This offer is only being extended to shareholders with registered addresses in Australia and New Zealand. All other shareholders (Non-Resident Shareholders) will not be offered entitlements under this issue. The Company has determined, in accordance with the Corporations Act and the ASX Listing Rules, that it would be unreasonable to make the offer to Non-Resident Shareholders having regard to the number of shareholders in the places where the offer would be made, the number and value of the rights that would be offered, and the cost of complying with the legal requirements in those places. Full details of the Entitlement Offer are contained in the offer booklet lodged with ASX on Wednesday, 30 August 2017 (Offer Booklet). The Offer Booklet together with the Entitlement and Acceptance Form SAMPLE
will be despatched to all Eligible Shareholders on Thursday, 7 September 2017. A copy of the Offer
Booklet is available on the MGM Wireless website. Pursuant to section 708AA of the Corporations Act,
the Company is not required to prepare a disclosure document for the Entitlement Offer.
Key dates which shareholders should note are as follows:
Date Event
Monday, 4 September Entitlements Issue Record Date
Thursday, 7 September Entitlements Issue opens and Offer Booklet despatched
Wednesday, 20 September Entitlements Issue offer closes at 5.00 pm (Adelaide time)
Thursday, 21 September New Shares quoted on a deferred settlement basis

Samples/000001/000001/i12

Date	Event
Monday, 25 September	Entitlements Issue shortfall notified to ASX
Wednesday, 27 September	Entitlements Issue shares allotted
	Deferred settlement trading ends
Thursday, 28 September	Normal (T+2) trading of New Shares commences

The above dates are indicative and may be subject to change. The Company reserves the right to amend this timetable subject to the Corporations Act and the ASX Listing Rules.

Use of funds

The proceeds of the Entitlement Offer will be used to increase the funds currently available for launch related activities to promote sales of the first manufacturing run of the ‘Spacetalk’ children’s 3G GPS smartwatch/phones, which the Company has developed for sale with its AllMyTribe family locator, child safety app and server platform.

The Company has sufficient working capital to meet the costs of the initial manufacturing run and therefore proceeds of this raising will not be required for this purpose. Furthermore, in the build-up to the upcoming peak Christmas and back to school retail sales periods, the Company believes it’s highly prudent that the launch expenditure be increased now to maximise sales opportunities during this period. Full details of the use of funds are contained in the Offer Booklet. Yours faithfully Mark Fortunatow Chairman