Ann: SFG Demerger Letter to Optionholders, page-12

New Development Timetable ‐PDS Development timetable has slipped due to delays finalising the Nissui Agreement, securing Legune Station with a major agricultural investor and the associated long term lease arrangement with SFG for PSD. These factors in turn have delayed the finalisation of project finance required to develop the project. Commencement of PSD construction is still anticipated during the current 2018 calendar year. Engineering definition has been refined with the Stage 1 development (1,120 ha of ponds) to be built in steps. The first step will complete the construction of the first farm of 400 ha. This will enable stocking of ponds ahead of the need to construct all 3 farms of Stage 1. The benefits of stepping Stage 1 development include: de‐risking construction ‐less complex initial development strategy being adopted reduced capital expenditure requirement to secure project finance with cash flows generated earlier which will assist in funding of the staged development of PSD maintaining the maximum equity ownership of PSD by its shareholders greater access to Government sponsored infrastructure funding corporations like NAIF and NT Infrastructure Fund