PALADIO ACQUIRES FABCON CONSTRUCTIONSThe Directors of Paladio...

PALADIO ACQUIRES FABCON CONSTRUCTIONS

The Directors of Paladio Group Limited are pleased to announce that an agreement has been reached to purchase the business and assets of Fabcon Constructions Pty Ltd (Fabcon).

Fabcon provides site based construction and maintenance services to the resources and mining industry, predominantly in Western Australia.

The acquisition will add to the existing construction and maintenance operations of the Paladio Group whilst also adding an extensive equipment fleet independently valued at approximately $2,000,000 consisting of mobile cranes ranging in capacity from 10 to 100 tonnes, site vehicles and other construction equipment which will be
utilised across the Group’s existing operations.

The purchase price is $1.91 million payable by $1.4 million cash plus 600,000 ordinary shares in Paladio Group Limited to be issued at $0.85 (escrowed for three
months). The cash component will be funded via an equipment finance facility.

Fabcon was founded in 1989 by Mr Francisco (Paco) Arevalo, the sole owner and Managing Director. Over recent years the Fabcon business has focuses on small to medium sized remote resources projects including the Nifty Copper Expansion Project, Tanami Gold Project and the construction of a water treatment plant for
Zinifex. Fabcon has achieved revenue levels of approximately $10 million per annum and the business currently employs approximately 30 staff.

Paladio Group plans to significantly expand the Group’s construction and maintenance operations, particularly in Western Australia, and Mr Arevalo will remain with the Paladio Group to assist with this objective and also through the operational transition process. Fabcon currently has a number of contracts which also form part of this transaction.

Settlement of this acquisition is expected to occur within the next week.

For more information about this announcement or Paladio Group Limited generally, please
contact:
Mr. Rob Franco, Chief Executive Officer, or Mr. Len Troncone, Chief Financial Officer, on
08 9262 9999