Spirit Telecom : 2016-10-06 Section 708a notice and appendix 3b

ASX Announcement 6 October 2016

SECTION 708A NOTICE AND APPENDIX 3B

Spirit Telecom Limited (ASX: ST1) advises that it has today issued a total of 636,356 fully paid ordinary shares at a deemed issue price of $0.022 (2.2 cents) per Share to employees under the Employee Tax Exempt Share Plan to align the interests of fellow employees (non-directors) with the growth and success of the Company.

An Appendix 3B relating to this issue is attached to this announcement. The Issuer advises that:

1. the Shares were issued by the Issuer without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (Act);

2. this notice is being given under section 708A(5)(e) of the Act;

3. as at the date of this notice, the Issuer has complied with;

4. the provisions of Chapter 2M of the Act, as they apply to the Issuer; and

5. section 674 of the Act; and

6. as at the date of this notice, there is no information that is 'excluded information' within the meanings of sections 708A(7) and 708A(8) of the Act.

7. For further information, please contact: Melanie Leydin

   Company Secretary

   Ph: 1300 007 001

   About Spirit

   Spirit Telecom Limited is a modern telecommunications provider of ultra-fast Internet access and telephony services.

   A fast growing niche Telecommunications Carriage Service Provider, Spirit is focused on supplying fibre based broadband services to multi-dwelling user locations including residential, business, student accommodation, community housing and business parks.

   Spirit was voted as being Australia's fastest Internet Service Provider (ISP) for 2015 by PCMag.com.

   With over 10-years of brand awareness, Spirit prides itself on delivering real service to its Australian residential and commercial customers and provides customers with the highest quality product.

   For more information please visit www.spirit.com.au

   Appendix 3B New issue announcement 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 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

   Name of entity

   SPIRIT TELECOM LIMITED

   ABN

   73 089 224 402

   We (the entity) give ASX the following information.

   Part 1 - All issues

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

8. Fully Paid Ordinary Shares

9. Performance Rights

1 +Class of +securities issued or to be issued

1. 636,356 Fully Paid Ordinary Shares

2. 9,000,000 Performance Rights

1. Number of +securities issued or to be issued (if known) or maximum number which may be issued

2. Fully Paid Ordinary Shares

3. Performance Rights issued pursuant to the terms of the Spirit Telecom Long Term Incentive Plan, vesting on satisfaction of certain vesting conditions

4. Principal terms of the

   +securities (e.g. 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)

   + See chapter 19 for defined terms.

   04/03/2013 Appendix 3B Page 1

   Appendix 3B New issue announcement

5. Yes

6. No - A does not participate

7. performance right

   give any right

   in new issues Shares or to participate

   to

   of in

8. Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

   dividends until shares are

   issued to the Participant pursuant to exercise of vested Performance rights. However,

   If the additional +securities do not rank equally, please state:

   • the date from which they do

     ordinary shares

     upon

     vesting

     performance rights

     allocated

     of the will rank

   • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

     equally with ordinary fully paid

     shares on issue.

   • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

   • Deemed issue price of $0.022 (2.2 cents) per share.

   • $Nil

9. Issue price or consideration

10. To incentivise employees of the Company (non-directors)

11. Grant of performance rights issued to employees of the Company pursuant to the terms of the Spirit Telecom Long Term Incentive Plan

12. Purpose of the issue

13. (If issued as consideration for the acquisition of assets, clearly identify those assets)

    Yes

    6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

    If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

    24 November 2015

    6b The date the security holder resolution under rule 7.1A was passed

14. 636,356 Fully Paid Ordinary Shares

15. 9,000,000 Performance Rights

6c Number of +securities issued without security holder approval under rule 7.1

+ See chapter 19 for defined terms.

Appendix 3B Page 2 04/03/2013

N/A

6d Number of +securities issued with security holder approval under rule 7.1A

Appendix 3B New issue announcement

N/A

6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

N/A

6f Number of +securities issued under an exception in rule 7.2

N/A

6g If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.

N/A

6h If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements

Refer to annexure 1 below

6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements

6 October 2016

7 +Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

Number	+Class
836,844,216 223,272,153	Ordinary fully paid shares Listed Options Expiring 31 July 2019 and exercisable at 3.9376 cents

8 Number and +class of all

+securities quoted on ASX (including the +securities in section 2 if applicable)

+ See chapter 19 for defined terms.

04/03/2013 Appendix 3B Page 3