Performance Update

Up to June 2012

High Level Summary:

We are performing better than last year.

We have significant upside via our 18 month forward order book at better margins.

We have many opportunities for improved operating performance.

We have invested in key people who are delivering.

Nepean Performance FY12:

- Irrespective of very tough markets in all divisions except mining

- Strong cash flow from operations

- YTD sales are up 36% {Mining} 18% Overall

- Significant reduction in debtors & inventory

- Significant investment on new equipment and property

CEO Update – March 2012