AusGroup Limited Concludes Banking Facility Agreement

20 January 2012

AusGroup Limited wishes to announce that it has successfully concluded a new, expanded banking agreement which puts the Group in a strong position to support its future growth.

The new facility is structured to service the style of contracts being executed presently and those anticipated in the future, which are expected to continue to grow in size. This will ensure that the Group is well positioned to take advantage of the changing contracts that are currently being tendered on the back of the Australian LNG and Mining demand for the Group's services.

We are pleased that our bankers, Australia and New Zealand Banking Group Limited (ANZ) and HSBC Bank Australia Limited (HSBC), who both operate across Australia and Asia, will be providing the bank guarantee and working capital requirements of the Group through an initial two year facility of AU$133 million.

AusGroup Acting CEO and Managing Director, Stuart Kenny, is pleased that the Group’s funding requirements are now aligned with both the operational and commercial requirements necessary to undertake the broad range of services now provided by AusGroup.

“We now have flexible banking facilities to support the growth in contract values as well as to take on larger scale projects which are typical in the natural resources industry” Mr Kenny said.

Ends