Desane : Welcomes Supreme Court Ruling on Discovery

ASX and Media release 15 September 2017

68-72 Lilyfield Road, Rozelle NSW 2039

PO Box 331, Leichhardt NSW 2040

T: [phone]

F: [phone]

www.desane.com.au ASX Code: DGH

DESANE WELCOMES SUPREME COURT RULING ON DISCOVERY

Desane Properties Pty Ltd, a controlled entity of Desane Group Holdings Limited (ASX: DGH), is pleased to provide the market with an update on the proposed compulsory acquisition of its 5,274m2 property located at 68‐72 Lilyfield Road, Rozelle, by the Roads & Maritime Services ("RMS") for Sydney Motorway Corporation ("SMC") and the State of NSW ("the State").

Yesterday, 14 September 2017, in the Supreme Court of NSW, two applications were heard by His Honour Hammerschlag J, one being an application by Desane for the State, the RMS and SMC to disclose documents to Desane.

The other application was brought by the State to remove itself from proceedings. His Honour refused to hear the application brought by the State.

Following yesterday's hearing, His Honour Hammerschlag J, today, ordered that each of the State, the RMS and SMC give disclosure to Desane of various documents that have been created since 1 January 2016, including documents concerning the contemplated uses of the subject property in connection with Stage 3 of the WestConnex project and after completion of Stage 3 of the WestConnex project.

His Honour Hammerschlag J observed that if the Defendants want to resume Desane's property, Desane is entitled to know the true reason why.

The State and SMC are also required to disclose to Desane any documents recording the proposed structure of any sale of shares in SMC, whilst SMC is also required to produce its company constitution, and the constitutions of its subsidiaries.

Desane welcomes the orders and will continue to undertake court action in order to discover the true reason why the proposed acquisition notice has been issued to Desane.

Justice Hammerschlag has set a hearing date for the matter of 20 November 2017.

DESANE MEDIA CONTACT: 0411 254 390.

Bordered in red - Desane's Rozelle property.

Prof. John Sheehan AM Chairman

Desane Group Holdings Limited [phone]

[e-mail]

68-72 Lilyfield Road, Rozelle NSW 2039

PO Box 331, Leichhardt NSW 2040

T: [phone]

F: [phone]

www.desane.com.au ASX Code: DGH

Jack Sciara Company Secretary

Desane Group Holdings Limited [phone]

[e-mail]

ABOUT DESANE:

Desane Group Holdings Limited is a property investment and development business based in Sydney, with expertise in property acquisitions, investment, management, leasing, sales and development of industrial, commercial and residential properties. Desane has a disciplined "add value" property acquisition approach, which will deliver maximum shareholder value in the medium to long term.