21 March 2017 TO THE CREDITOR AS ADDRESSED. Dear Sir / Madam

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1 Contact: Samantha Morgan Phone: (08) March 2017 TO THE CREDITOR AS ADDRESSED Dear Sir / Madam Trading as Dynasty Drycleaners ( the Company ) As you are aware, I, Kim Wallman, was appointed as the Administrator of the above named Company on 11 April 2016 by the Company under section 436A of the Corporations Act 2001 ( the Act ). I write to advise that at the reconvened second meeting of creditors held on Thursday, 14 July 2016, creditors resolved that the Company execute a Deed of Company Arrangement ( DOCA ) principally in line with the terms outlined in section 9 of the supplementary section 439A report to creditors dated 6 July I advise the DOCA was duly executed and implemented on Tuesday, 19 July I automatically became Deed Administrator of the Company in accordance with section 444A(2) of the Act and control of the Company has now reverted back to its Director. I write to provide you with an update regarding the conduct of the Deed Administration and to advise creditors of my intention to declare a first and final dividend to priority creditors of the Company. DOCA Fund I advise that the Company has complied with its requirements under the DOCA to provide an upfront contribution of $60,000 and a deferred contribution of $10,000 from the ongoing trading operations. Collections from the debtors, wedding dresses and existing stock on the rail occurred as expected and have been finalised; however there were some modest write-offs in respect of debtors and funds owed from stock on the rail. I advise creditors that the finalisation of the above matters has taken longer than originally anticipated; hence my delay in giving notice of my intention to declare a dividend. First and Final Dividend to Priority Creditors Given the above, I write to advise that I am now in a position to declare a first and final dividend to priority creditors of the Company (i.e. to former employees in respect of unpaid Superannuation Guarantee Charge). I draw the attention of creditors to the table below, which was set out on page 10 of my report to creditors dated 6 July HLB Mann Judd (Insolvency WA) ABN Level 3/35 Outram Street, West Perth WA 6005 PO Box 622 West Perth WA 6872 Telephone Fax Website: Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (Insolvency WA) is a member of International. A world-wide network of accounting firms and business advisers.

2 Comparison of Liquidation versus DOCA - as detailed in the report to creditors dated 6 July 2016 Liquidation DOCA High return Realistic Low return High return Realistic Low return Assets $ $ $ $ $ $ Cash at Bank 5,000 5,000 5,000 5,000 5,000 5,000 Plant & equipment - unencumbered 20,000 15,000 10,000 NA NA NA Debtors 20,000 15,000 12,500 20,000 18,000 15,000 Finished garments 15,000 12,500 10,000 NA NA NA Total Assets 60,000 47,500 37,500 25,000 23,000 20,000 Liquidator's Potential Recoveries Preferences / uncommercial transactions 10, NA NA NA Insolvent trading NA NA NA Total Liquidator's Potential Recoveries 10, DOCA Contributions Up-front contribution NA NA NA 60,000 60,000 60,000 Finished garments and work in progress NA NA NA 15,000 12,500 10,000 Contribution from future trading NA NA NA 10,000 10,000 10,000 Total DOCA Contributions ,000 82,500 80,000 Total Funds Available 70,000 47,500 37, , , ,000 LESS Appointee's Fees Administrator's fees and expenses 40,000 40,000 40,000 40,000 40,000 40,000 Liquidator's fees and expenses 25,000 27,500 30,000 NA NA NA Deed Administrator's fees and expenses NA NA NA 10,000 15,000 20,000 Balance of Funds Available for Creditors ,000 50,500 40,000 LESS Priority Claims - section 556(1)(e)-(h) Superannuation Guarantee Charge 30,000 30,000 30,000 30,000 30,000 30,000 Annual leave 15,000 20,000 25,000 NA NA NA Termination entitlements 5,000 7,500 10,000 NA NA NA Balance of Funds Available for Unsecured Creditors ,000 20,500 10,000 Unsecured Creditors Trade creditors 130, , , , , ,000 Milligan Street landlord 60,000 60,000 60,000 NA NA NA Australian Taxation Office 230, , , , , ,000 Equipment finance contract shortfalls 60,000 70,000 80,000 NA NA NA Related parties 300, , ,000 NA NA NA Total Unsecured Creditors 780, , , , , ,000 Estimated Return to Unsecured Creditors Estimated Average Return Nil 0.05 As detailed above, it was intended for there to be sufficient funds to permit a return to unsecured creditors in the DOCA. The final summary position of the DOCA is as follows: The majority of the DOCA contributions have been collected; Reconciliation of the outstanding Superannuation Guarantee Charge revealed an amount owing of approximately $40K which was greater than initially estimated. In summary, whilst a minimum of $10,000 was anticipated to be available for unsecured creditors, there will ultimately be no funds available for distribution for unsecured creditors.

3 I have considered this outcome and its impact on the purpose of the DOCA, the intention of which was to make a return to unsecured creditors in an amount greater that what would be available in a liquidation. Whilst this outcome will be unsatisfactory for unsecured creditors, in a liquidation scenario, priority creditors too would not have received any return. Given that a large proportion of the unpaid Superannuation Guarantee Charge will be paid, I consider that although the unsecured creditors will not receive a return, it was still in the interests of creditors for the DOCA to be entered into. As noted above, a first and final priority dividend is to be paid to priority creditors on Tuesday, 2 May Please find enclosed the following notices in this regard: Form 534 Notice Inviting Formal Proof of Debt of Claim Form 548 Notice to Creditor or Person Claiming to be a Creditor of Intention to Declare First and Final Priority Dividend Form 535 Formal Proof of Debt Deed Administrator s Prior Accounts of Receipts and Payments Pursuant to section 539(5) of the Act, I am required to give notice to every creditor and contributory in any notice, report or circular that my six monthly accounts and statements have been completed and submitted to the Australian Securities & Investments Commission ( ASIC ). Accordingly, please see below a summary of my previous lodgements of the ASIC Form 524 to date: Description From To Date lodged Presentation of Accounts and Statements Form April July August 2016 Presentation of Accounts and Statements Form July January January 2017 Yours faithfully Kim Wallman Deed Administrator of

4 FORM 534 Corporations Act 2001 Sub regulation (3) NOTICE INVITING FORMAL PROOF OF DEBT OR CLAIM FOR PRIORITY DEBTS Trading as Dynasty Drycleaners ( the Company ) TAKE NOTICE that PRIORITY creditors of the Company, whose debts or claims have not already been admitted, are required on or before Tuesday, 11 April 2017 to prove their debts or claims and to establish any title they may have to priority, by delivering or posting to me at my address a Formal Proof of Debt or Claim in accordance with Form 535 (for creditors) or Form 536 (for employees) containing their respective debts or claims. If they do not they will be excluded from: (a) (b) the benefit of any distribution made before their debts or claims are proved or their priority is established; and objecting to the distribution. If you have previously submitted a Formal Proof of Debt or Claim you are NOT required to submit an additional one to the Deed Administrator. A Form 535 Formal Proof of Debt or Claim (General Form) is enclosed. Dated: 21 March 2017 Kim Wallman Deed Administrator of

5 FORM 548 Corporations Act 2001 Sub regulation (1) NOTICE TO CREDITOR OR PERSON CLAIMING TO BE A CREDITOR OF INTENTION TO DECLARE A FIRST AND FINAL PRIORITY DIVIDEND Trading as Dynasty Drycleaners ( the Company ) TAKE NOTICE that a first and final PRIORITY dividend is to be declared on Tuesday, 2 May 2017 for the Company. If you have not already done so, you are required to prove formally your debt or claim on or before Tuesday, 11 April If you do not, you will be excluded from the benefit of the dividend. If you have previously submitted a Formal Proof of Debt or Claim you are NOT required to submit an additional one to the Deed Administrator. A Form 535 Formal Proof of Debt or Claim (General Form) is enclosed. Dated 21 March 2017 Kim Wallman Deed Administrator of

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7 Form 535 Corporations Act 2001 Sub regulation (2) FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM) To the Deed Administrator of ACN INSTRUCTIONS 1. Insert name of creditor here. This is to state that the Company was on 11 April 2016 and still is, justly and truly indebted to: Creditor / company name: (1) (2) ABN: 2. Insert creditor s ABN here or N/A if not applicable. In the amount of: GST in claim: 3. Insert debt amount here (inclusive of GST). 4. Insert GST component of claim here. (3) $ (4) $ TO ENSURE THE VALIDITY OF YOUR CLAIM, PLEASE ATTACH APPROPRIATE DOCUMENTATION TO SUBSTANTIATE YOUR CLAIM. PLEASE SEE OVERLEAF FOR FURTHER INFORMATION. Particulars of the debt(s) are (5): 5. Show here details of goods and services were provided to the Company and remain unpaid for. Date/s Consideration (e.g. goods supplied / services rendered) Amount Remarks 6. Do not complete unless you are a secured creditor. (6) To my knowledge or belief the creditor has not, nor has any person by the creditor s order, had or received any satisfaction or security for the sum or any part of it except for the following: (Insert particulars of all securities held. If the securities are on the property of the company, assess the value of those securities. If any bills or other negotiable securities are held, show them in a schedule as an attachment to this form). 7. Do not complete this section unless you act for an employee. 8. Do not complete this section unless you act for an employee. (7) I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied. (8) I am the creditor s agent authorised in writing to make this statement in writing. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied. 9. Insert date here DATED (9) this day of Sign here Signature: (10) Phone: Name: Occupation: Fax: Postal address: FOR OFFICE USE ONLY Dividend Expectations: Priority only Unsecured Creditors Unascertained No Class Priority: $ Unsecured: $ Total Admitted: $ Rejected: $ Comments: Signed Appointee: File Manager:

8 NOTES TO THE PROOF OF DEBT OR CLAIM FORM 1. Failure to provide an Australian Business Number or notice that one is not applicable will result in 48.5% of any dividend being withheld and remitted to the Australian Taxation Office. 2. To enable to adjudication of your claim, it is required that you submit together with your Proof of Debt or Claim form. It should be noted that failure to provide substantiating documentation may result in your claim being rejected. Generally, a statement of account and corresponding invoices is requested. However, if it is impractical to submit correspondence invoices (e.g. if the sheer quantum of invoices makes postage impractical) a statement of account is requested as a minimum in the first instance. Should a statement of account or invoices not be available, other documentation may be provided such as a purchase order or other substantiating voucher. The Administrator / Liquidator may contact you to then discuss your documentation and anything else that may be available to assist in his / her adjudication process. DIRECTIONS FOR ANNEXURE 1. Where the space provided for a particular purpose is insufficient to contain all the required information in relation to a particular item, that information shall be set out in an annexure. 2. An annexure to form shall have an identifying mark and be endorsed with the words:- This is the annexure of... pages marked... referred to in the (insert description of form) signed by me and dated Signature(s) Name of Signatory IN BLOCK LETTERS 3. The pages in the annexure shall be numbered consecutively. 4. Where a document, copy of a document or other matter is annexed to a form, reference made in the form to the annexure shall be by its identifying mark, the number of pages in it, and a brief description of the nature of the document and its contents. A reference to an annexure includes a document, copy of a document or any other matter accompanying, attached to or annexed to a form.