TERRACOM LIMITED — Major Shareholding Notification 2016

Mar 3, 2016

ISLAND'SANDS'CORPORATION

Oliaji&Trade&Centre,&1st Floor Victoria,&Mahe,&Seychelles

FAX

To: ASX&Shareholder&and&Participant&Customer&Service

Fax:' +61&2&9347&0005

+61&2&9227&0885

From: Island&Sands&Corporation

Contact: James&Dauman

Tel: +62&812&1366&5027

• Email: james.dauman@gmail.com
• Pages: 3&(including&cover)
• Date: 3 March 2016
• RE: Form'603'– Notice'of'Initial'Substantial'Shareholder

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To Company Name/Scheme	TerraCom Limited (TER)
ACN/ARSN	143 533 537
1. Details of substantial holder (1)
Name	Island Sands Corporation
ACN/AFBN (if applicable)	N/A
The holder hereine a a instantial holder on	02 / 03 / 2016

The holder became a substantial holder on

2 Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Number of securities	Person's votes (5)	Voting power (6)
150,994,642	150,994,642	6.29%

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest	Nature of relevant interest (7)	Class and number of securities
Island Sands Corporation	Relevant interest under section 608(1) and (3) of the Corporations Act 2001	150,994,642 fully paid ordinary shares

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant	Registered holder of	Person entitled to be	Class and number
interest	securities	registered as holder (8)	of securities
Island Sands Corporation	HSBC Custody Nominees	HSBC Custody Nominees	150,994,642 fully
	(Australia) Limited	(Australia) Limited	paid ordinary shares

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
		Cash	Non-cash
Island Sands Corporation	11/02/16	AUD 0.0069 per share		90,547,332 fully paid lordinary shares
Island Sands Corporation	02/03/16	AUD 0.007 per share		60.447,310 fully paid lordinary shares

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

Name and ACN/ARSN (if applicable)	Nature of association

7. Addresses

The addresses of persons named in this form are as follows:

Name	Address
Island Sands Corporation	Oliaji Trade Centre, 1st Floor, Victoria, Mahe, Seychelles

Signature

print name	JAMES DAUMAN	DIRECTOR capacity
sign here		date 03/03/6

DIRECTIONS

• If there are a number of substantial holders with similar or related relevant interests (eg. a corporation and its related corporations, or the manager and trustee of an $(1)$ equitytrust), the names could be included in an amexure to the form If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is dearly set out in paragraph 7 of the form
• See the definition of "associate" in section 9 of the Corporations Act 2001. $\circ$
• See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001. $(3)$
• The voting shares of a company constitute one class unless divided into separate classes. $(4)$
• The total number of votes attached to all the voting shares in the company or voting interests in the scheme (if any) that the person or an associate has a relevant $(5)$ interest in.
• The person's votes divided by the total votes in the body corporate or scheme multiplied by 100. $⁽⁶⁾$
• Indude details of: $(7)$
• any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) applies, a copy of any document setting out $(a)$ the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and
• any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to $(b)$ which the relevant interest relates (indicating dearly the particular securities to which the qualification applies).

See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.

• If the substantial holder is unable to determine the identity of the person (eg. if the relevant interest arises because of an option) write "unknown". $(8)$
• Details of the consideration must indude any and all benefits, money and other, that any person from whom a relevant interest was acquired has, or may, become $(9)$ entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be induded of any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant interest was acquired.