Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

KAGARA LIMITED

ABN

36 008 988 583

We (the entity) give ASX the following information.

You must complete the relevant sections (attach sheets if there is not enough space).

Part 1 - All issues

1 +Class of +securities issued or to
be issued ORD FULLY PAID
2 Number of +securities issued or to be issued (if known) or maximum number which may be issued

80,645,161

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid

+securities, the amount outstanding and due dates for

payment; if +convertible securities, the conversion price and dates for conversion)

N/A

X:CorporateASXAppendixesAppendix 3BASX 3B11 1612 Placement Shares.docx

4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?
If the additional securities do not rank equally, please state: