XREALITY GROUP LTD — Capital/Financing Update 2018

Jun 19, 2018

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Indoor Skydive Australia Group Limited ACN 154 103 607

ASX/Media Release Sydney, Australia – 20 June 2018

CLARIFYING ANNOUNCEMENT

Indoor Skydive Australia Group Limited (ASX:IDZ) (ISA Group) refers to its ASX Announcement on 19 June 2018 “New Loan Facility and Operations Update” and provides the following clarification.

As previously announced the Loan Facility for up to $3m is to be drawn down in tranches subject to satisfying certain conditions including an obligation to obtain all necessary approvals.

The second ranking general security supporting the Loan Facility is treated as an asset by the ASX for the purpose of Listing Rule 10.1 ( Security Asset ). The value of the Security Asset is determined by the amount owed by ISA Group to the secured party. For the initial $1.5m available under the Loan Facility the Security Asset’s value is less than the 5% of the equity interests of the Company and is not a substantial asset for the purposes of Listing Rule 10.1. ISA Group intends to seek a waiver of Listing Rule 10.1 to facilitate any additional drawdowns which would result in the Security Asset becoming a substantial asset.

As part of the loan agreements ISA Group will issue 6m options with an exercise price of $0.25 and an expiry date of 2 years from the date of issue. The issue of the options is subject to shareholder approval under Listing Rule 10.11 which will be sought at the Annual General Meeting.

Further information on ISA Group is available at www.indoorskydive.com.au.

ENDS

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

Indoor Skydive Australia Group Limited is a visionary leisure company established in 2011 to build and operate a portfolio of world class indoor skydiving facilities across our region. These facilities, allowing human flight within a safe environment, are currently used by tourists, skydiving enthusiasts and military throughout the world. Our business plan is based on proven technology, flexible operating hours and low overheads. The Company listed on the 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 | 202/201 Miller Street, North Sydney NSW 2060 | Australia

IndoorSkydiveAustralia.com.au