External Administration, page-28

They should all go to jail. This less than 2 months ago from annual report, just the first page

CHAIRMAN’S REPORT

Stargroup Limited (ABN 87 061 041 281) Unit 1, 25 Montgomery Way MALAGA WA 6090

29 September 2017

Dear Shareholders, I am pleased to present this report to the shareholders of Stargroup Limited (‘Stargroup’).

On 5 July 2016, Stargroup completed the capital raising and acquisition of the Cash My ATM network, which from 1 June 2016 added 95 ATMs to the network, taking its total ATM network to 348 machines at 30 June 2016. This network was acquired for $4,454,017 with the consideration being satisfied by the payment of $4,008,615 in cash and the balance by the issue of 8,908,060 new fully paid STL shares to the vendor, namely Mr Jason Warren, at $0.05 per share which was above the current market price at the time.

On 8 July 2016, Stargroup achieved its 10th record quarter of revenue in a row with a 242% increase in annual revenue in the FY16 year when compared to the FY15 year.

On 8 July 2016, Stargroup announced that it had agreed to place 5,000,000 fully paid ordinary shares in the Company at $0.036 per share to existing shareholders, to raise $180,000 which was largely to take the total shares on issue on a fully diluted basis to 650,000,000 shares.

On 1 August 2016, Stargroup announced that it had changed its auditor from Nexia Court & Co (who operated in Sydney) to Nexia Perth Audit Services Pty Ltd to coincide with the head office relocation from Sydney to Perth that had occurred in late 2015 as part of the reverse takeover of iCash Payment Systems Limited by Stargroup.

On 11 August 2016, NeoICP Korea Inc, a private South Korean Company that Stargroup owns 11.28% of, announced their full year results with all key financial metrics being significantly up on the FY15 results and the payment of a maiden dividend from NeoICP to Stargroup.

On 18 August 2016, Stargroup announced that the Company had issued 2,500,000 fully paid ordinary shares which represented the 2016 performance shares which were issued to key management personnel which vested some six months earlier than expected. These performance shares were approved by members of the Company at the extraordinary general meeting held on 29 July 2015.

On 25 August 2016, Stargroup announced the resignation of Mr Shaun Sutton, the Chief Operating Officer and an Executive Director, due to ill health and appointed Mr Evan McGregor to the Board.

On 30 August 2016, Stargroup announced that 56,285,714 ordinary shares were released from voluntary escrow and these shares were originally subject to voluntary escrow for a 12 month period from the date of their issue which was 7 August 2015 and these shares were held by nominees of Mr Todd Zani, the Company CEO and Executive Chairman and nominees of major shareholder Mr Arthur Ognenis.

On 30 August 2016, Stargroup announced a five year distribution agreement deal for EFTPOS terminals and software with West International AB via its 100% owned subsidiary, StarApps Pty Ltd, to release next generation payment solutions and applications in Australia and New Zealand