XREALITY GROUP LTD — Capital/Financing Update 2016

Jun 21, 2016

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Indoor Skydive Australia Group Limited ACN 154 103 607

ASX/Media Release Sydney, Australia – 22 June 2016

iFLY GOLD COAST UPDATE

Indoor Skydive Australia Group Limited’s (ASX: IDZ)(ISA Group) second indoor skydiving facility, iFLY Gold Coast, has recently completed its first full 3 months of operations.

iFLY Gold Coast has been cash flow positive since it commenced operations in February 2016. The construction delay and the late opening of the facility, previously briefed to the market, has impacted the overall performance of the facility. This will have a flow on effect on our full year results including EBITDA, delaying anticipated operational profit until the new financial year.

Based on tourist operator experience and the seasonal nature of tourism on the Gold Coast, we expect to see a large portion of the facility’s business executed annually during the months of September through to January. During the current low tourism season, ISA Group has focused on: driving brand recognition and awareness of the facility, completing final works at the facility, and positioning the facility as a top tourist attraction for the high tempo school holiday period in June/July and the much larger holiday period commencing in September 2016.

The June/July school holidays for the east coast of Australia run over 3 weeks this year commencing on 27 June 2016. We anticipate that this will be a high tempo period for our operations and the Group will provide a further market update following their completion.

ENDS

About Indoor Skydive Australia Group Limited (ACN: 154 103 607)

Indoor Skydive Australia Group Limited was established in 2011 as the parent company to build and operate a number of indoor skydiving facilities across our region in the next 3-5 years. These facilities allowing human flight within a safe environment are currently used by tourists, skydiving enthusiasts and military throughout the world. Flexible operating hours, low overheads and proven technology are just a few of the highlights that support the company’s business model. The Company listed on ASX on 18 January 2013 under the code IDZ.

For further information visit: www.indoorskydive.com.au Telephone: +61 2 9325 5900 fax +61 2 9325 5950 Wayne Jones, CEO, +61 2 9325 5900 or wjones@indoorskydive.com.au Fiona Yiend, Company Secretary, +61 2 9325 5900 or fyiend@indoorskydive.com.au

Indoor Skydive Australia Group Limited: ACN 154 103 607 p: +61 (0)2 9325 5960 | Level 2, 201 Miller St, North Sydney, NSW 2060 | Australia

IndoorSkydive.com.au