TALIUS GROUP LIMITED — Capital/Financing Update 2012

Dec 19, 2012

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ASX Announcement

20 December 2012

Issue of Shares in Satisfaction of Convertible Note Interest Payable – December Quarter

The Company advises that it intends to exercise its option to pay interest payable to noteholders for the quarter ending 31 December 2012 by the issue of shares. Accordingly, registered noteholders on 2 July 2012 (Record Date) will be issued with shares at a price equal to 80% of the volume weighted average price of the shares sold on ASX during the 5 trading days before 2 July 2012.

The most recent share sale price was $0.002 (0.2 cents). In the event that the 5 day VWAP before the Interest Payment Date was $0.002, the company would satisfy the $158,531.25 of interest payable by the issue of 99,082,031 shares.

The following table summarises the entitlement of noteholders to the interest payable for the quarter.

‘Ex’ Date	24 December 2012
Record Date	2 January2013
Issue Date	10 January2013

The Company has received Conversion Notices from the holders of 50,000 Convertible Notes and will issue shares to these noteholders in accordance with the Trust Deed. Noteholders who elect to convert before the 31 December 2012 will be able to convert at 85% of the volume weighted average price of shares traded on ASX on the 30 days on which shares were traded before the date that the notice was given.

The holders of new shares issued either in satisfaction of interest payable or as a result of the conversion of listed notes will be entitled to participate in the entitlement issue of options that the Company intends to undertake in January 2013.

FOR FURTHER INFORMATION CONTACT

Mr Anthony Short (Managing Director) Or Mr Alistair Jobling (Company Secretary) Telephone: 08 9429 2900 Facsimile: 08 9486 1011

ASX CODE: AVD www.advanceenergyltd.com.au

20 December 2012

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