Not for distribution in the United States ASX ANNOUNCEMENT

15 November 2013

FOLKESTONE ANNOUNCES $25 MILLION EQUITY RAISING TO FUND NEW ACQUISITIONS AND FUTURE GROWTH

Folkestone Limited (ASX code: FLK) today announces a $25 million equity raising to take advantage of a number of current opportunities which will accelerate the growth of its funds management platform and provide it with exposure to the Sydney residential development market.

USE OF EQUITY RAISING PROCEEDS

Funds from the equity raising will initially be applied to:

• establish and underwrite the $18 million West Ryde Development Fund ("Fund") which will develop, in joint venture with Toga, a 205 apartment and mixed use development in West Ryde, Sydney. FLK will retain a 50 per cent equity interest in the Fund following sell down of the remaining interest to external investors. The Fund is forecast to deliver a minimum IRR of 18 per cent (pre