SPRINTEX LIMITED — Capital/Financing Update 2015

Oct 21, 2015

21 October 2015

Dear Shareholder,

NON-RENOUNCEABLE RIGHTS ISSUE – NOTIFICATION TO ELIGIBLE SHAREHOLDERS

On 21 October 2015, Sprintex Limited (Company) announced a capital raising comprised of a partially underwritten non-renounceable rights issue (Rights Issue Offer) of one (1) fully paid ordinary share (New Share) for every two (2) existing shares held as at 5.00pm (WST) on 28 October 2015 (Record Date) to shareholders with a registered address in Australia or New Zealand (Eligible Shareholders).

A prospectus in relation to the Rights Issue Offer was lodged with the Australian Securities and Investments Commission (ASIC) and ASX on 21 October 2015 (Prospectus) and will be mailed to Eligible Shareholders in accordance with the timetable below.

Details of the Rights Issue Offer

Pursuant to the Rights Issue Offer, the Company will issue approximately 1,566,789,399 New Shares at an issue price of $0.001 per New Share to raise approximately $1.57 million before costs.

The Rights Issue Offer is partially underwritten by MJ Two Pty Ltd (Underwriter) up to 412,880,019 New Shares**.**

In addition, each of Mr Richard Siemens, the Non-Executive Chairman of the Company, Mr David White, the Deputy Chairman and CEO of the Company, Mr Richard O'Brien, an independent Non-Executive Director of the Company and senior managers Tyrone Jones and Robert Molkenthin have entered into binding firm commitments to fully exercise their rights under the Offer and subscribe in aggregate for approximately 971,501,454 New Shares (Firm Commitments).

The New Shares will rank equally in all respects with the Company's existing shares. The Company will apply to the ASX for quotation of the New Shares.

Shareholders who choose not to take up their entitlement will receive no value in respect of their entitlement and their shareholding in the Company will be diluted.

Use of funds

The Company intends to apply the proceeds from the Rights Issue Offer together with the Company's existing cash reserves for the following purposes:

• (a) the expansion and further development of the Company's core product, Sprintex Superchargers;
• (b) for general working capital purposes; and
• (c) to fund expenses of the Rights Issue Offer.

SPRINTEX LIMITED ABN: 38 106 337 599

Timetables

The Company expects the Rights Issue Offer to be conducted in accordance with the following timetable:

Event	Date
Lodgment date	21 October 2015
"Ex" date	26 October 2015
Record date to determine entitlements for the Offer	28 October 2015
Prospectus with entitlement and acceptance form dispatched	2 November 2015
Rights Issue Offer opens for receipt of applications	2 November 2015
Closing date for acceptances	12 November at 5.00pm (WST)
New Shares quoted on a deferred settlement basis	13 November 2015
Notify ASX of under subscriptions	17 November 2015
Allotment and issue of New Shares	19 November 2015
Dispatch of holding statements for New Shares	19 November 2015
Normal trading of New Shares commences on the ASX	20 November 2015

* The timetable is indicative only and subject to change. The Company reserves the right, subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules, to amend the above dates.

Capital Structure

A comparative table of changes in the capital structure of the Company as a consequence of the capital raising is set out below.

Shares	Full Subscription	Firm Commitmentsand PartiallyUnderwrittenAmount
Shares on issue as at the date of the Prospectus	3,133,578,798	3,133,578,798
New Shares to be issued pursuant to the Rights1,566,789,399Issue Offer	971,501,455(Firm Commitments)
		412,880,019(Underwriting)
Total issued Shares	4,700,368,197	4,517,960,270

SPRINTEX LIMITED ABN: 38 106 337 599

The Company currently has 3,750,000 performance rights on issue as set out below. The number of performance rights on issue will not change under the Rights Issue Offer. The performance rights will not vest prior to the close of the Rights Issue Offer.

Performance rights
Class B performance rights	1,250,000
Class C performance rights	1,250,000
Class D performance rights	1,250,000
Total issued performance rights	3,750,000

Eligible Shareholders will receive a copy of the Prospectus and a personalised entitlement and application form (Application Form) shortly. You must follow the instructions in the Application Form to take up your entitlements.

A copy of the Prospectus may also be viewed on the Company's website www.sprintex.com.au or the ASX website.

If you have any questions, please call the Company Secretary on +61 8 9262 7222 at any time between 8.30am to 5.30pm (WST), Monday to Friday before the Rights Issue Offer closes, or consult your stockbroker or professional advisor.

The Company thanks you for your continuing support.

Yours faithfully,

Robert Anthony Molkenthin Company Secretary Sprintex Limited