VINYL GROUP LTD — Capital/Financing Update 2018

May 22, 2018

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23 May 2018

ACQUISITION OF JAXSTA HOLDINGS PTY LTD, SALE OF MRT AND PROPOSED CAPITAL RAISING

Mobilarm Limited (Company) today announces the signing of the Share Purchase Agreement to buy Jaxsta Holdings Pty Ltd (Jaxsta) (Acquisition) . This follows the signing of the binding heads of agreement ( HOA ) as announced on 16 February 2018. The Acquisition as announced on 16 February 2018 was going to be for a consideration of 100,551,691. The final consideration will be for a minimum of 102,086,793 and maximum of 115,420,126.

Mobilarm CEO Ken Gaunt stated: “This transaction affords tremendous opportunity to all Mobilarm Shareholders as Jacqui and her team move their Jaxsta Music Data Platform closer to commercialisation. We believe Mobilarm provides the ideal structure from which to deliver this at this stage of the company.”

Jaxsta’s CEO and co-founder Jacqui Louez Schoorl added: “I am so excited to have reached this milestone. Jaxsta is gathering tremendous global recognition and has recently been approved by a significant Music Industry body as a prime partner. Additionally, we are in the process of finalising a further 5 material Data Partner contracts.”

The Company also announces the signing of the Share Purchase Agreement to sell its Marine Rescue Technologies Ltd (MRT) to Secure2Go Group Pty Ltd or its Nominee (Secure2Go) ((Divestiture) . This follows the signing of the binding heads of agreement ( HOA ) as announced on 16 February 2018. The Divestiture as announced on 16 February 2018 was going to be for a consideration of $6,000,000 paid via an initial deposit of $2,000,000 on completion and a deferred compensation of $4,000,000 within two years. The final consideration will still be for $6,000,000 but the payment structure has been amended to an initial deposit of $1,000,000 on completion, a deferred compensation of $1,000,000 payable within 12 months and a deferred compensation of $4,000,000 within two years.

Secure2Go's Chairman Kathal Spence said: "The acquisition of MRT represents a fantastic opportunity to launch our product range throughout the UK and Europe via MRT's established customer network, existing infrastructure and the team currently in place. The unique synergies that are in place will ensure an exciting future for both MRT and Secure2Go."

In association with the Acquisition and the Company’s ability to re-comply with Chapters 1 and 2 of the Listing Rules, the Company plans, subject to shareholder approval, to conduct a capital raising under a public offer pursuant to a full form prospectus to raise up to a minimum of $5 million at a price of at least $0.20 per Mobilarm Share (Public Offer) .

The Company has submitted a Notice of Meeting for Review with the ASX with full details of the Acquisition and Divestiture. Once approved it will be issued to shareholders in order to hold the General Meeting of Shareholders for approval of the necessary resolutions related to the Acquisition and Divestiture.

TEL. +61 8 9315 3511 MOBILARM LIMITED (ABN 15 106 513 580) WWW.MOBILARM.COM 2/33 ROBERTS STREET PO BOX 1837 OSBORNE PARK 6916 WESTERN AUSTRALIA

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For further information please contact:

Ken Gaunt

Mobile +61 0417 961 770 Email keng@mrtsos.com

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MOBILARM LIMITED (ABN 15 106 513 580) 2/33 ROBERTS STREET PO BOX 1837 OSBORNE PARK 6916 WESTERN AUSTRALIA

TEL. +61 8 9315 3511 WWW.MOBILARM.COM

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