FAR : Buy-back of unmarketable parcels of shares

For personal use only

30 May 2022

Buy-Back of Unmarketable Parcels of Shares

FAR Limited (ASX: FAR) (FAR or the Company) is pleased to announce that it is instituting an off-market share buy-back facility to offer to buy-back shares held by shareholders that are unmarketable parcels of shares (valued at less than $500) at $0.786 per share, being the 5- day Volume Weighted Average Price (VWAP) of FAR shares at the close of trade on 27 May 2022.

This will assist those shareholders to sell their shares without incurring brokerage and other expenses. It will also assist FAR in reducing administration costs associated with several thousand shareholders who hold unmarketable parcels. The cost of FAR implementing the buy-back is expected to be less than A$850,000.

Details are set out in the attached letter which is being sent to holders of unmarketable parcels. They will be provided with an opportunity to retain their shareholding should they so wish by following the procedure set out in the letter.

This announcement has been approved for release by the FAR Limited Board of Directors.

For further information, please contact:

Investors:		Media:
Patrick O'Connor	Craig Sainsbury	Tristan Everett
Chairman	Market Eye	Market Eye
[e-mail]	[e-mail]	[e-mail]

P: [phone]

P: [phone]

P: [phone]

For personal use only

FAR Limited ABN 41 009 117 293

Level 12 Podium

530 Collins Street

Melbourne VIC 3000 Australia

T: [phone]

F: [phone]

E: [e-mail]

www.far.com.au

30 May 2022

Dear shareholder

BUY-BACK OF UNMARKETABLE PARCELS OF SHARES

FAR Limited is writing to advise all shareholders who hold less than $500 worth of shares (Unmarketable Parcel) as at 7.00 pm (Melbourne time) on Friday, 27 May 2022 (Record Date), being an Eligible Shareholder, that it is implementing an off-market minimum holding share buy- back of the unmarketable parcel shares at $0.786 per share (Buy-Back).

Our records indicate that you are such a shareholder and therefore your holding has been included in the Buy-Back.

This will assist you to sell your shares without incurring brokerage and other expenses. It will also assist FAR in reducing administration costs associated with several thousand shareholders who hold unmarketable parcels. The cost of FAR implementing the Buy-Back is expected to be less than A$850,000.

If you wish to retain your shares, you must complete the enclosed personalised Share Retention Form in accordance with the instructions on that form and return it by no later than 5.00 pm (Melbourne time) on 15 July 2022 (Closing Date) or increase the value of your holding by then to more than $500. If you do not do so, then your shares will be bought back, and you will be sent payment for your shares.

The Company will pay for all costs related with the Buy-Back (excluding tax consequences from the buy-back which remains your responsibility).

The buy-back price is the 5-day Volume Weighted Average Price (VWAP) as at the Record Date. Shares that are purchased by the Company under the Buy-Back will be cancelled in accordance with the Corporations Act.

Key Dates

7.00 pm (Melbourne time) on	Record Date
27 May 2022
5.00 pm (Melbourne time) on	Closing Date for receipt of 'Share Retention'
15 July 2022	forms/period to opt-out of Buy-Back
22 July 2022	Shares bought back through the Buy-Back will be
	cancelled and announcement of outcome of the
	Buy-Back to ASX

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For personal use only

29 July 2022	Eligible Shareholders whose shares are bought back
	under the Buy-Back will have proceeds remitted to them
	and will be sent documentation advising them of the
	number of shares sold and the amount of proceeds
	remitted.
	Proceeds will be remitted to the bank account that the
	Eligible Shareholder has registered with the Share
	Registry as at the Closing Date. If no bank account is
	registered, proceeds will be remitted by cheque mailed
	to the address that the shareholder has registered with
	the Share Registry. Instructions for providing your
	bank account details can be found in Schedule 2.

The Company may modify these dates or suspend or terminate the Buy-Back. Any modification, suspension or termination will be notified by written notice to the ASX.

Important Notes

This letter provides information about the Buy-Back and the choices that are available to you. The directors of the Company wish to remind you that the Company will not buy-back your shares if you wish to retain your shareholding. In this case, you may do so by returning the Share Retention Form or by otherwise increasing your holding to an amount above an Unmarketable Parcel by the Closing Date.

The Company does not make any recommendation or give any advice to you regarding whether to retain your shares or permit them to be bought-back. If you are in any doubt about whether to retain your shares or permit them to be bought-back, please consult your financial adviser.

For further important information about the Buy-Back, please read Schedule 1 (Additional Important Information) and Schedule 2 (Frequently Asked Questions) of this letter.

If, after reading this document in its entirety, you still have questions or need further information, you may contact the Shareholder Help Line on 1300 850 505 (within Australia) and [phone] (outside Australia).

Yours sincerely

Patrick O'Connor

Chairman

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For personal use only

Schedule 1 - Additional Important Information

1. The Company is offering to buy-back shares under the Buy-Back in accordance with the terms set out in this document and the procedure in the Corporations Act and Listing Rules.
2. If a shareholder holds more than one Unmarketable Parcel, the Company will buy back each Unmarketable Parcel unless:
3. • By the Closing Date, the Share Registry receives your completed Share Retention Form, or you increase your shareholding to more than a $500 value.
   • The market value of your shares in the Company increases before the Closing Date so that your shares that were previously identified by the Company as constituting an Unmarketable Parcel become a 'marketable parcel' (i.e. their value becomes greater than $500).
   • If you sell your shares prior to the Closing Date.
4. It is important to note that the market price of the Company's shares may change from time to time. The Buy-Back Price may be more or less than the actual market price at the time of the Buy-Back and may not be the best price obtainable on the day on which your shares are bought back. Information on the price of the Company's shares can be obtained from the daily financial press or through the ASX website (www.asx.com.au) using the Company's ASX code, which is "FAR".
5. While the Company will pay for costs associated with the Buy-Back, any taxation consequences from the Buy-Back will be the shareholder's responsibility. If you have questions about taxation consequences, please seek the independent advice of a taxation adviser.
6. The Company makes no recommendation as to whether you should participate in this Buy-Back, whether or how you should sell your shares or the value of your shares. If you have questions about whether to retain or sell your shares, you should consult a financial adviser.
7. Before a buy-back is effected the Company may terminate it.
8. The Company reserves the right to change any of the dates, terms or conditions referred to in this document by written notice to the ASX.
9. The Company will on behalf of relevant shareholders attend to any necessary logistical aspects to implement the Buy-Back.

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Schedule 2 - Frequently Asked Questions

For personal use only

Who is eligible to participate in this Buy-Back?

Shareholders in the Company are eligible to participate in this Buy-Back if they held shareholdings in the Company valued at less than $500 as at the Record Date.

If my shares are bought back through the Buy-Back, how much will I receive per share?

If your Unmarketable Parcel is bought back through the Buy-Back, you will receive the Buy- Back Price of $0.786 per share, determined using the 5-day Volume Weighted Average Price (VWAP) of the shares as at the Record Date.

What do I need to do to sell my shares?

Nothing. Your Unmarketable Parcel will be bought back through the Buy-Back unless you return a Share Retention Form or increase your shareholding to more than $500 on the Closing Date.

If my shares are bought back through the Buy-Back, how much will I receive for all of my shares?

The total price that you will receive for an Unmarketable Parcel if it is bought back through this Buy-Back will be the number of shares in that Unmarketable Parcel multiplied by $0.786 per share.

Do I need to pay anything if I participate in the Buy-Back?

The Company will pay all costs and expenses arising in connection with the Buy-Back. Any tax consequences from the Buy-Back will be your responsibility.

If my shares are bought back through the Buy-Back, when and how will I receive the proceeds from the buy-back?

If your Unmarketable Parcel is bought back through the Buy-Back, it is anticipated the proceeds will be remitted to you on 29 July 2022, by payment into your nominated bank account or by cheque to your registered postal address for your shareholding. The payment advice will display the number of shares bought back and the proceeds remitted to you.

This documentation will be sent by mail to the address held on the Company's register or by email if you have previously nominated to receive communication electronically. If you have previously nominated to receive communications electronically and your bank account details have been recorded on the Company's register, payment will be made to you by direct credit to the bank account details recorded on the Company's register.

You can update your bank account details by the Closing Date by visiting https://www- au.computershare.com/Investor/#Home.This also applies if you are an issuer sponsored shareholder and need to update your address. If you have a CHESS sponsored holding and need to update your address, you will need to contact your controlling participant.

What are the tax consequences of having my shares sold through the Buy-Back?

The tax outcomes of participating in the Buy-Back will vary depending on your circumstances.

If you are in the business of trading shares or hold the shares as revenue assets, you may have an assessable gain or loss on sale on revenue account. Otherwise, it is the Company's

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