Seafarms : SFG Options Appendix 3B

Name of entity

Seafarms Group Limited

ABN

50 009 317 846

1

+Class of +securities issued or to be issued

Quoted Options.

2

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

126,092,585

3

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)

Quoted options which have an exercise price of

$0.10 and expire on 17 July 2021 (Options), the terms of which are set out in the Company's prospectus dated 5 July 2017 (Prospectus).

4

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

+securities?

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

• the date from which they do

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

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

No.

The Options are a new class of security and rank equally amongst themselves.

Any ordinary shares issued upon the exercise of the Options will be fully paid and will, on issue, rank equally in all respects with the fully paid ordinary shares issued by the Company.

Any Options not exercised before their expiry date will lapse and expire.

The Options are not entitled to participate in dividends, distributions or interest payments.

5

Issue price or consideration

The Options will be issued for nil consideration.

6

Purpose of the issue

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

The Options will be issued as free attaching options in connection with the Company's recent capital raising.

Further details of which are set out in the ASX announcement dated 2 June 2017 and Notice of Meeting dated 5 June 2017.

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

Yes.

6b

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

25 November 2016

6c

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

5,634,253 Options (to be issued under the Prospectus).

6d

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

Nil

6e

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

120,833,332 (4 July 2017) (to be issued under the Prospectus).

6f

Number of +securities issued under an exception in rule 7.2

Nil

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

N/A

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

7.1 - 204,895,951

7.1A - 140,353,469

7

+Issue dates

17 July 2017

Number

+Class

8

Number and +class of all

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

1,403,534,699

126,092,585

Ordinary fully paid shares

Quoted Options

Number

+Class

30,150,189

Convertible Preference Shares