THORNEY OPPORTUNITIES LTD — Management Reports 2015

Jul 19, 2015

THORNEY OPPORTUNITIES LTD

ACN 080 167 264

ASX Announcement: 20 July 2015

ASX Code: TOP

CHAIRMAN’s UPDATE, JULY 2015

Please be advised that the attached Chairman’s Update has been mailed to all Thorney Opportunities Ltd shareholders today.

The document is also available on the Company’s website:

http://www.thorneyopportunities.com.au/ChairmansUpdateJuly2015.pdf

Please direct enquiries to:

Craig Smith Company Secretary T: + 61 3 9921 7116

Level 39, 55 Collins Street, Melbourne Vic 3000 Telephone + 61 3 9921 7116 Facsimile + 61 3 9921 7100

THORNEY OPPORTUNITIES LTD ACN 080 167 264

20 July 2015

Dear fellow shareholder

I am pleased to be able to report to you that, for the twelve month period ended 30 June 2015, the Thorney Opportunities Limited (TOP) net tangible assets (NTA) increased by 11.8% .

This performance compares favourably when considered against the ASX All Ordinaries Index which increased by approximately 1.4% over the same period and more recently, the considerable upheaval in global equity markets.

This environment has provided an opportunity for TOP to more closely assess several companies which have been on our watch-list for some time.

==> picture [491 x 32] intentionally omitted <==

NEW INVESTMENTS

During June 2015, TOP anchored a capital raising in Diversa Group Limited (DVA) and has emerged with a shareholding interest of approximately 10.9%. TOP has been following DVA for some time and began to accumulate a position early in 2015.

DVA is a financial services company providing essential superannuation, risk and investment management products and services to wholesale clients including superannuation funds, financial advisers, accountants and fund managers.

DVA operates four primary business units: superannuation, funds management, superannuation trusteeship and insurance. The capital raising provided the company with the necessary funding to complete a strategic acquisition and for additional working capital.

TOP is excited about the opportunity to support the board and management of DVA in their pursuit of further growth.

Level 39, 55 Collins Street, Melbourne Vic 3000 Telephone + 61 3 9921 7116 Facsimile + 61 3 9921 7100

As noted in my April 2015 letter to you, TOP made a significant investment in TPI Enterprises Limited (TPI), currently a non-listed public company which is expected to complete an ASX compliance listing during July/ August 2015. Ahead of the listing, TPI has been continuing to implement its strategic growth plan and poppy plantation diversification program.

CURRENT PORTFOLIO SUMMARY

As at 30 June 2015, the TOP portfolio, based on total assets, can be illustrated as follows:

In terms of the core portfolio positions, the share price movements are summarised in the table below and specific remarks relating thereto follow.

**Core Position ***	Closing Share Price	Closing Share Price	% appreciation
	30 June 2014	30 June 2015
AMA GroupLimited	$0.285	$0.600	110.5%
Money3 Corporation Limited Ordinary shares Listed options **	$1.08 $0.00	$1.14 $0.45	5.6%
Service Stream Limited	$0.215	$0.295	37.2%
NTA	$0.466	$0.521	11.8%

* Portfolio position greater than $2.0 million.

** Quoted on the ASX on 23 July 2014.

I remain confident in these investments which represent the core positions in the TOP portfolio. At the same time we still hold cash which can be deployed when further compelling investment opportunities materialise.

Page | 2

NTA AND SHARE PRICE

Over the period 1 July 2014 until 30 June 2015, TOP's Net Tangible Asset (NTA) per share has increased by approximately 11.8% and stands at 52.1 cents per share per the ASX filing lodged on 13 July 2015.

This compares to TOP's share price at the time of writing 45.0 cents.

AUSTRALIAN RENEWABLE FUELS LIMITED (ARW)

TOP, along with its associate, the private Thorney Group, holds a relevant interest of approximately 26.9% in ARW.

After a particularly difficult period, principally brought about by potentially negative Federal Government changes to the biodiesel excise regime contained in the 2014 Federal Budget, ARW announced on 18 June 2015 that, after strong representations by the industry and support from key shareholders, there had been a favourable resolution on the biodiesel excise regime in Australia.

The announcement confirms bipartisan agreement for the taxation of biodiesel and provides a framework for the continued viability of the biodiesel industry in this country. In the last couple of weeks, the revised legislation has been passed by both houses of Parliament and ARW has announced new sales contracts.

ARW also announced that, despite the difficult operating environment, it anticipates reporting a modest trading profit for the 2015 financial year and furthermore, it is optimistic in restoring shareholder value.

Since the announcement, the share price of ARW has increased strongly.

TOP has actively supported the campaign by the ARW Board and management to address the legislative environment. TOP strongly supported ARW’s campaign, raising the issue publicly both through the media and previous TOP shareholder communications, and in fact I spoke of my support for ARW in my Chairman’s Address to the TOP Annual General Meeting in November 2014. I was pleased to be able to assist ARW in these endeavours to secure an appropriate, and principled, outcome in a situation where it had been unfairly treated.

TOP commends the ARW Board and management for their efforts in securing this favourable outcome for ARW and its shareholders.

==> picture [491 x 33] intentionally omitted <==

Page | 3

SERVICE STREAM LIMITED (SSM)

TOP, along with its associate, the private Thorney Group, holds a relevant interest of approximately 30.0% in SSM.

Recently, SSM has issued a series of announcements regarding both new and renewed contracts, as well as an earnings upgrade statement in May 2015. This announcement provided strong evidence that the approach adopted by the Board and management of SSM was delivering the desired outcomes. Further, SSM continues to be well-placed to benefit from increasing infrastructure spend across its key markets.

The SSM share price has increased by more than 40% since 31 March 2015.

MONEY3 CORPORATION LIMITED (MNY)

TOP, along with its associate, the private Thorney Group, holds a relevant interest of 9.0% in MNY. In addition, TOP holds a $10.0 million investment in a secured bond as well as 5.0 million listed options (ASX: MNYO). The private Thorney Group holds a $5.0 million investment in a secured bond and 2.5 million listed options.

Following the announcement of MNY's outstanding first half results and an increase in its profit guidance, the operating business has continued to maintain high levels of activity across the group.

Disappointingly, and despite the strong operating performance, the negative sentiment surrounding the practices of certain market participants has continued to affect the MNY share price. Notably, since 30 June 2015, the MNY share price has rallied and sits around $1.30 as at the time of writing.

MNY continues to work closely with the regulators on implementing improvements to the nontraditional consumer lending market.

==> picture [491 x 111] intentionally omitted <==

Page | 4

AMA GROUP LIMITED (AMA)

TOP holds approximately 5.5% of the smash repair and automotive aftercare group AMA. Since 31 March 2015, the AMA share price has appreciated from $0.53 to $0.62.

AMA continues to grow, steered by Ray Malone, AMA’s largest shareholder and Executive Chairman.

TOP continues to believe that AMA will be at the forefront of further consolidation in the smash repairs sector in Australia and the recent completion of a $45.0 million capital raising has provided it with the financial flexibility to pursue further strategic acquisitions. The Company’s disciplined approach provides confidence that additional value accretion for shareholders is highly likely.

CONCLUSION

As I mentioned at the outset, recent market volatility means there will continue to be opportunities for TOP to take positions in targeted companies and work with them to increase shareholder value. Our still significant holdings of cash will ensure we can take advantage of these situations when they arise.

I will communicate with you again when TOP releases its financial results for the 2015 financial year. I anticipate this to be around mid-late August.

Best regards

==> picture [155 x 57] intentionally omitted <==

Alex Waislitz Chairman

Page | 5