STEPS IN OFFERING A HORSE RACING SYNDICATE

1. The prospective promoter meets an approved lead regulators requirements for

registration on its register of promoters of horse racing syndications. Make
application to Racing Queensland and to ASIC. If approved by Racing
Queensland, final registration will be conditional on the promoter obtaining a
financial securities licence from ASIC.

2. The registered horse racing syndicate promoter applies to the ASIC (Australian
Securities and Investment Commission) for a restricted securities dealers licence
for horse racing syndicates. This includes lodgement of the required forms.
Granting of registration is conditional on the register of promoters.

3. The promoter either before, during or after receiving a securities dealers licence
for horse racing syndications, will purchase the relevant scheme horse (or
horses) for the purpose of syndication, where the total syndicated value of the
scheme horse (or horses) will not exceed $250,000.00 each.

4. A disclosure statement to lead the regulator has to be lodged stating whether the
registered promoter proposes to manage the said scheme, and if not, state that a
participant in the scheme will be required to manage it in accordance with the
terms of any agreement governing the scheme approved by the lead regulator,
and in accordance with any rules, regulations or guidelines issued by the lead
regulator. No fact or statement in the PDS may be changed without lodging a
new PDS. The scheme to which the PDS applies must operate as described in
the PDS without change- no discounts or altered arrangements for purchase of
shares is permitted.

5. Approval from the lead regulator (i.e. Racing Queensland RQ) of all
documentation in relation to the scheme must be sought, including all disclosure
statements to be provided to all syndicate members regarding either
unencumbered title to the whole of the scheme horse/s, or lease the whole of the
scheme horse/s pursuant to a finance lease agreement in a standard approved
form. Approval must also be gained in relation to all the advertising materials to
be used in relation to the said scheme, or any agreement governing the said
scheme.

6. Advertise by approval means (4) by the lead regulator, for prospective syndicate
members, the total must not exceed 20 in total.

7. Prior to the registration of the syndicate with the lead regulator, all participants /
members in the scheme either have an approval (4) unencumbered title to the
whole of the scheme horse/s, or lease the whole of the scheme horse/s pursuant
to a finance lease agreement in a standard form.

8. Register the scheme with the regulator within 45 days of it being fully subscribed.

9. If not fully subscribed within 6 months of the date on which the lead regulator
approved the disclosure statement and according to the contents of that
statement, repay within 10 days all subscriptions with any interest.