Ann: SFG Legune Negotiations, page-3

Legune Option status update Seafarms Group Limited (Seafarms) is pleased to announce the signing of terms sheets with a substantial agribusiness investor – AAM Investment Group (AAMIG) and the owners of Legune Station (Legune) to secure long term access at Legune for Project Sea Dragon. The proposal will see AAMIG acquire Legune Station and lease the area required for Project Sea Dragon to Seafarms. A long term lease (90 years) rather than outright acquisition, reduces the initial capital costs for the project while providing long term tenure. The portion of land not used for Project Sea Dragon will continue to be operated as a cattle station by AAMIG, which has significant experience managing and operating cattle stations. The parties have entered into conditional term sheets which set out the key commercial conditions which will form the basis of formal agreements between the parties. As part of these arrangements the Legune owners have agreed to further extend Seafarms’ option to acquire Legune Station until 31 July 2018, to enable sufficient time to finalise formal documentation and other matters required prior to exercise of the option. Under the proposal, following exercise of the option, AAMIG will have until 30 September 2018 to secure the necessary funds for the purchase. AAMIG is a major Australian owned diversified agricultural investment and asset manager that specialises in agricultural operations throughout Australia. For further information regarding AAMIG please refer to their website www.aamig.com.au. Please telephone Harley Whitcombe on (08) 9216 5200 with any queries. Yours faithfully Seafarms Group Limited