Strategic Finance Limited (In Receivership)

Update to investors

13 October 2011

We advise that a further update to secured debenture investors will be issued early next week. This update has been delayed whilst we have finalised certain property transactions.

Update to investors

2 September 2011

We advise that a third interim distribution of 3 cents in the dollar will be made to secured debenture investors on 5 September 2011.

Please note that a letter will not be sent to secured debenture investors prior to the payment being made.

We intend to write to secured debenture investors by 30 September 2011 to provide an update on the status of the receiverships.

Update to investors

5 August 2011

We advise that a letter will be sent to investors at the end of this week confirming a second interim distribution of 2 cents in the dollar will be made on or around 12 August 2011.

Based on expected loan realisations in August/early September 2011, we expect to make a third interim distribution to secured debenture investors in September 2011 (estimated at 3 cents in the dollar).

Update to investors

13 July 2011

In our letter to investors dated 29 April 2011, we advised that we would write to secured debenture investors in early July to confirm the timing and amount of the second distribution.

In our report, we noted that a property securing one of the loans to Strategic was subject to an unconditional sales contract and was scheduled to complete by 30 June 2011. Settlement of this sales contract did not occur on the due date; however the purchaser is still actively working through the issues delaying settlement. The proceeds from the sale of the property is payable to Strategic under its first ranking security.

We currently have sufficient funds on hand to pay a further interim distribution of 2 cents in the dollar (calculated by reference to balances as at 12 March 2010) to secured debenture investors.

However, if settlement of the property (referred to above) occurs, the interim distribution could increase to up to 5 cents in the dollar.

We expect to know the outcome of the sale of the property by 28 July 2011 and accordingly, we intend to delay confirming the exact timing and amount of the second distribution until the end of July 2011. The timing of the distribution will be in early August 2011.

Appointment of Liquidators

Liquidators were appointed to Strategic Finance Limited (In receivership) on 26 July 2010. We advise that liquidators were appointed to preserve certain potential claims that are available to liquidators and not to receivers under the Companies Act 1993.

The liquidation will not impact on the receivership. The receivers will continue their work, including the loan realisation and sales process currently being undertaken for the benefit of secured investors.

Any queries should be directed to the receivers in the first instance.

Reporting

As set out in our letter to investors dated 5 May 2010, we expected to provide a further update to secured debenture investors by 30 July 2010.

We advise that there is several property transactions scheduled to occur in the first week of August and therefore we intend to delay reporting for one week to 6 August 2010. Subject to these property transactions occurring as scheduled, we expect to be able to announce the timing and quantum of the first interim distribution to secured debenture investors.

The receivers of Strategic Finance Limited (in receivership) (SFL) have become aware of a number of unsolicited offers made to stockholders of SFL seeking to purchase SFL debenture stock (Stock).

The receivers of SFL:

• stress that they are still reviewing the assets and financial position of SFL, and that it is too early for them to be able to give any guidance as to the likely return which SFL stockholders may ultimately receive in respect of their Stock, and that consequently the true value of the Stock is currently unknown;

• urge SFL stockholders to seek independent advice before deciding whether or not to sell any of their Stock;

• refer SFL stockholders to the news release by the New Zealand Securities Commission dated 27 January 2010 (available on its website www.sec-com.govt.nz)."