FIRST GROWTH FUNDS LIMITED

1

FIRSTGROWTHFUNDSLIMITED

ACN006648835

NOTICEOFEXTRAORDINARYGENERALMEETING

TIME: 11.00 am (EDST) DATE: Wednesday, 28 February 2018 PLACE: Level 6 412 Collins Street Melbourne Vic 3000

NoticeisgiventhatanExtraordinaryGeneralMeetingofShareholdersofFirstGrowthFundsLimited(“FGF”orthe“Company”) will be held onWednesday28 February2018 at11.00 am (EDST) Level6,412 Collins Street,Melbourne,Victoria. TheExplanatoryMemorandumaccompanying thisNoticeofExtraordinaryGeneralMeetingprovidesadditionalinformationonmatterstobeconsideredattheExtraordinaryGeneralMeeting.TheExplanatoryMemorandumandProxyFormformpartofthisNotice.

TheDirectorshavedeterminedthatpursuanttoRegulation7.11.37oftheCorporationsRegulations2001(Cth)thepersons eligible to vote at the Extraordinary General Meeting are those who are registered shareholders of theCompanyasat7pm(EDSTtime)onMonday26February2018.

TermsandabbreviationsusedinthisNoticearedefinedintheGlossarytotheExplanatoryMemorandum.

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ORDINARYBUSINESS

RESOLUTION1: APPROVALTOISSUEOPTIONSANDMILESTONESHARESTOMRANOOSHMANZOORI

To consider and, if thought fit, to pass the following Resolution as an Ordinary Resolution, with or withoutamendment:

“That for the purposes ofASX ListingRule 10.11, Chapter 2E of the CorporationsAct and for all other purposes, theCompany be authorised to issue 10,000,000 Options exercisable at $0.03 and expiring 2 years after issue and up to60,000,000 Milestone Shares to Mr Anoosh Manzoori (or his nominee) on the terms set out in the ExplanatoryMemorandum.”

VotingExclusionStatement:InaccordancewithListingRule14.11,theCompanywilldisregardanyvotescastonthisResolutionby:

(a) MrManzoori;and

(b) anyassociateofMrManzoori.

However,theCompanyneednotdisregardavoteif:

(a) itiscastbyapersonasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionsontheproxyform;or

(b) itiscastbythepersonchairingtheMeetingasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionontheproxyformtovoteastheproxydecides.

InaccordancewithChapter2EoftheCorporationsAct,avoteonthisResolutionmustnotbecastbyoronbehalfof:

(a) MrManzoori;and

(b) anyassociateofMrManzoori.

However,thisdoesnotpreventthecastingofavoteonthisResolutionifitiscastbyapersonasaproxyinwritingthatspecifieshowtheproxyistovoteontheproposedresolutionanditisnotcastonbehalfofapersonreferredtoinsub‐paragraphs(a)or(b)directlyabove.

Inaccordancewithsection250BDoftheCorporationsAct,avoteonResolution1mustnotbecastby:

(a) anymemberofKeyManagementPersonneloftheCompanyoriftheCompanyispartofaconsolidatedentity,oftheentity;or

(b) aCloselyRelatedPartyofsuchamember,

whoisappointedasaShareholder’sproxy,onthebasisofthatappointment,wheretheShareholderdoesnotspecifyinwritingthewaytheproxyistovoteontheresolution.

However,theCompanyneednotdisregardavoteifitiscastbythepersonchairingtheMeetingasproxyforapersonwho is entitled to vote, where the Shareholder does not specify in writing the way the proxy is to vote on theresolution, if theappointmentofproxyexpresslyauthorises thechair toexercise theproxyeven if theresolution isconnecteddirectlyorindirectlywiththeremunerationofamemberoftheKeyManagementPersonneloftheCompanyoriftheCompanyispartofaconsolidatedentity,oftheentity.F

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RESOLUTION2: APPROVAL TO ISSUE BCG PLACEMENT SHARES, BCG PLACEMENT OPTIONS ANDUNDERWRITINGFEESHARES


"ThatforthepurposesofListingRule7.1oftheASXListingRulesandforallotherpurposes,theCompanybeauthorisedtoissue114,711,813BCGPlacementShares,114,711,813PlacementOptions(exercisableat$0.03eachandexpiring2yearsafterissue)and21,309,841UnderwritingFeeSharestoBlockchainGlobalLimitedACN601628497(BCG)onthetermssetoutintheExplanatoryMemorandum."


(a) BCG;and

(b) anyassociateofBCG.


(a) itiscastbyapersonasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionsontheproxyform;or

(b) itiscastbythepersonchairingtheMeetingasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionontheproxyformtovoteastheproxydecides.

RESOLUTION3: APPROVALTOISSUEBCGMILESTONESHARES


“ThatforthepurposesofListingRule7.1oftheASXListingRulesandforallotherpurposes,theCompanybeauthorisedtoissue up to 60,000,000 BCG Milestone Shares to BCG (or its nominee)on the terms set out in the ExplanatoryMemorandum.”


(a) BCG;and

(b) anyassociateofBCG.


(c) itiscastbyapersonasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionsontheproxyform;or

(d) itiscastbythepersonchairingtheMeetingasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionontheproxyformtovoteastheproxydecides.

RESOLUTION4: APPROVALTOISSUEOTHERPLACEMENTSHARESANDOTHERPLACEMENTOPTIONS


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"ThatforthepurposesofListingRule7.1oftheASXListingRulesandforallotherpurposes,theCompanybeauthorisedto issue167,546,094OtherPlacementSharesand167,546,094OtherPlacementOptions(exercisableat$0.03eachandexpiring2yearsafterissue)tounrelatedsophisticatedandprofessionalinvestorsonthetermssetoutintheExplanatoryMemorandum"


(a) anypersonwhomayparticipateintheproposedissueoftheOtherPlacementSharesandOtherPlacementOptionsandapersonwhomightobtainabenefit,exceptabenefitsolelyinthecapacityofaholderofordinarysecurities,iftheresolutionispassed;and

(b) anyassociateofsuchaperson


(c) itiscastbyapersonasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionsontheproxyform;or

(d) itiscastbythepersonchairingtheMeetingasproxyforapersonwhoisentitledtovote,inaccordancewiththedirectionontheproxyformtovoteastheproxydecides.

PROXIESShareholdersshouldbeawarethatanyundirectedproxiesgiventotheChairwillbecastbytheChairandcountedinfavouroftheResolutionsthesubjectofthisMeeting,subjecttocompliancewiththeCorporationsAct.Inexceptionalcircumstances, the Chair of theMeeting may change his voting intention on any resolution, in which case an ASXannouncementwillbemade.

GENERALBUSINESS

ToconsideranyotherbusinessasmaybelawfullyputforwardinaccordancewiththeConstitution.Byorderoftheboard

JulieEdwards

CompanySecretary25January2018

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NOTES:ExplanatoryMemorandumThe Notice of Extraordinary General Meeting should be read in conjunction with the accompanying ExplanatoryMemorandum.EligibilitytovoteIn accordance with the Corporations Act and the Company's Constitution, a person's entitlement to vote at theExtraordinaryGeneralMeetingwillbedeterminedbyreferenceto thenumberof fullypaidsharesregistered in thenameofthatperson(reflectedintheregisterofmembers)asat7pm(EDST)onMonday26February2018.ProxyvotesAShareholderentitledtoattendandvoteisentitledtoappointnotmorethantwo(2)proxiestoattendandvote intheirplace.Wheremorethanone(1)proxyisappointed,theappointmentmayspecifytheproportionornumberofvotesthattheproxymayexercise,otherwiseeachmayexercisehalfofthevotes.AproxyneednotbeaShareholder.AformofproxymustbesignedbytheShareholderortheShareholder’sattorney.ProxiesmustreachtheCompanyatleastfortyeight(48)hoursbeforethemeetingatwhichthepersonnamedintheProxyFormproposestovote(i.e.notlaterthan11:00am(EDST)onMonday26February2018).Theaddressforlodgmentofproxiesis:DeliveryAddress: PostalAddress: FaxNumber:ComputershareInvestorServices452JohnsonStreetAbbotsfordVIC3067

ComputershareInvestorServices452JohnsonStreetAbbotsfordVIC3067

(withinAustralia)1800783447(outsideAustralia)+61394732555

PowerofAttorneyIfaproxyissignedbyaShareholder'sattorney,theShareholder'sattorneyconfirmsthathehasreceivednorevocationof authority underwhich the proxy is executed and the authorities underwhich the appointmentwas signed or acertifiedcopythereofmustalsobereceivedatleastfortyeight(48)hoursbeforethemeeting.BodiesCorporateAbodycorporatemayappointanindividualasitsrepresentativetoexerciseanyofthepowersthebodymayexerciseatmeetingsofa company'sShareholders. Theappointmentmaybea standingone. Unless theappointment statesotherwise,therepresentativemayexerciseallofthepowersthattheappointingbodycouldexerciseatameetingorinvotingonaresolution.EnquiriesShareholdersareinvitedtocontacttheCompanySecretary,JulieEdwardson(03)96420655iftheyhaveanyqueriesinrespectofthematterssetoutinthesedocuments.

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EXPLANATORYMEMORANDUM

FIRSTGROWTHFUNDSLIMITED

INTRODUCTIONThisExplanatoryMemorandumhasbeenpreparedtoassistShareholdersinconsideringtheResolutionssetoutintheCompany’sNotice of ExtraordinaryGeneralMeeting. This ExplanatoryMemorandum forms part of, and should beread in conjunctionwith, theCompany’sNoticeofMeeting, for theCompany’sExtraordinaryGeneralMeeting tobeheldatLevel6,412CollinsStreet,Melbourne,VictoriaonWednesday28February2018(EDST)at11.00am.TermsusedinthisExplanatoryMemorandumaredefinedintheGlossaryatpage17ofthisExplanatoryMemorandum.ORDINARYBUSINESSRESOLUTION1:APPROVALTOISSUEOPTIONSANDMILESTONESHARESTOMRANOOSHMANZOORI1. Introduction

AsannouncedbytheCompanyinDecember2017,theCompanyhasappointedMrAnooshManzooriasanexecutiveDirectoroftheCompany.

MrManzoorihasbeenactivelyinvolvedintheemergingblockchainandcryptocurrencymarketwherehehasadvisedoneofthelargestBitCoinminingcompaniesinAustraliaandisalsoastrategicadvisortoaMelbournebasedblockchainsoftwarecompany.Heisalsoanactiveinvestorinthesector.

MrManzooribringstotheBoardandtheCompanyawealthofexperienceintechnologyandinvestmentadvisory.HeistheCEOofShapeCapitalPtyLtd,anadvisoryandventureinvestmentfirm,andanExpertNetworkMember,supportinglocalinnovativecompaniesundertheDepartmentofIndustry,InnovationandScienceprogram.HisexperienceincludescapitalraisingandM&Aacrossanumberofindustrieswithaparticularfocusonthetechnologysector.MrManzooriisalsoaNon‐ExecutiveDirectorofCCPTechnologiesLimited(ASX:CT1).

MrManzooriwaspreviouslythefounderandCEOofoneofAustralia’slargestcloudhostingcompaniesreachingover75,000customersbeforesellingthecompanytoMYOBLimitedin2008.

GivenMrManzoori’sskillsandtheexpertisethathewillbringtotheboardandtheCompany,theCompanyproposestoincentiviseandremuneratehimthroughtheissuetohim(orhisnominee),subjecttoallnecessaryshareholderorregulatoryapprovalsbeingobtained,of10,000,000Options(ManzooriOptions)and,ifcertaintargetsareachievedbyMrManzoori,60,000,000MilestoneShares(ManzooriMilestoneShares),.

TheManzooriOptionswillhaveanexercisepriceof$0.03,willexpire2yearsfromthedateoftheirissueandwillotherwisebeissuedonthetermssetoutinAnnexureAtothisExplanatoryMemorandum.

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SubjecttoreceiptofallnecessaryshareholderapprovalsandanynecessaryASXwaiversbeingobtainedandtheachievementofcertainmilestones(ManzooriMilestones)andMrManzooriremainingasadirectoratthetimeofachievingthosemilestones,MrManzoori(orhisnominee)willbeissuedSharesinthefollowingmanner:

Timeframe Shares Milestone

0‐12monthsfromappointment

15,000,000 Setupanadvisorybusinessunit(ABU)withintheCompanytoassisttheCompanywithinitialcoinofferings(ICOs)andcrypto‐currencyofferings.ThiswillbesatisfiedoncetheapplicablebusinessplanandpoliciesfortheABUhavebeenpreparedandapprovedbytheboard.

AND

Secureaminimumof2strategicpartnersfortheCompanythatareapprovedbytheboard,whowilleitherparticipateinCompanyICOsand/orcanprovidedistributionandaccesstoICOandcrypto‐currencyinvestorsduringanICO.

15,000,000 First$2,000,000considerationfromtheABUoranyICOactivityreceivedbytheCompany(TrancheA).Considerationincludesthecumulativeofcash,sharesandcrypto‐currency.

12‐24monthsfromappointment

15,000,000 Secondtrancheof$2,000,000consideration(TrancheB)(beingacombinedtotalof$4,000,000withTrancheA)fromtheABUoranyICOactivityreceivedbytheCompany.Considerationincludesthecumulativeofcash,sharesandcrypto‐currency.

15,000,000 Thirdtrancheof$2,000,000consideration(beingacombinedtotalof$6,000,000withTrancheAandTrancheB)fromtheABUoranyICOactivityreceivedbytheCompany.Considerationincludesthecumulativeofcash,sharesandcrypto‐currency.

2. RelatedParty

UndertheListingRules,a‘relatedparty’hasthemeaninggivenundertheCorporationsAct.

UndertheCorporationsAct,a‘relatedparty’ofapubliccompanyincludesthedirectorsofthepubliccompany.

AsMrManzooriisaDirector,MrManzooriisconsideredaRelatedPartyoftheCompanyforthepurposesofListingRule10.11andtheCorporationsAct.

3. ListingRule10.11

ListingRule10.11

ListingRule10.11requiresthatanentitymustobtaintheapprovalofShareholderstoissueSecuritiestoaRelatedPartyandindoingsomustprovidetheinformationspecifiedinListingRule10.13,unlessanexceptionapplies.

AsMrManzooriisaDirectoroftheCompany,heisconsideredaRelatedPartyoftheCompany.

IfapprovalisgivenunderASXListingRule10.11,approvalisnotrequiredunderASXListingRule7.1.

InaccordancewithListingRule7.2(exception14),asapprovalisbeingsoughtunderListingRule10.11,approvalisnotrequiredtobeobtainedunderListingRule7.1andtheissueoftheManzooriOptionsandtheManzooriMilestoneShareswillnotcounttowardstheCompany’s15%capacityunderListingRule7.1,assumingResolution1isapproved.

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ListingRule10.13

ListingRule10.13setsouttherequirementsforanoticeofmeetingtoapprovetheissueofsharesunderListingRule10.11.

ForthepurposesofListingRule10.13andforallotherpurposesthefollowinginformationisprovidedtoShareholdersinrespectofResolution1:

RelatedParty MrAnooshManzooriorhisnominee.

MrAnooshManzooriisarelatedpartyforthepurposeofChapter10oftheListingRulesbecauseheisaDirectoroftheCompany.AsatthedateofthisNotice,MrManzooriandpartiesassociatedwithhimholdnoSharesintheCompany.

MaximumNumberofSecuritiestobeissued

Upto10,000,000ManzooriOptionsandupto60,000,000ManzooriMilestoneShares.

DatetheCompanymayissuethesecurities

TheCompanywillissuetheManzooriOptionswithinonemonthofapprovalofResolution1

AstheManzooriMilestonesmaybesatisfiedupto24monthsafterMrManzoori’sappointmentasaDirector,itispossiblethattheManzooriMilestoneSharesmaybeissuedlaterthanonemonthaftertheMeeting.Assuch,theCompanywillmakeanapplicationtoASXforawaiverofListingRule10.13.3extendingtheperiodinwhichtheCompanymayissuetheManzooriMilestoneSharesfromtheusualonemonthperiodfollowingtheMeetingtoaperiodendingon14January2020.Intheeventthatthiswaiverisgranted,theCompanymayissuetheManzooriMilestoneSharesinrelianceonthiswaiverwithoutseekingfurthershareholderapproval.Intheeventthiswaiverisnotapproved,theCompanywillnotbeabletoissuetheManzooriMilestoneSharesmorethanonemonthafterthisMeetingunlessfurthershareholderapprovalisobtained.

Issuepriceofthesharesandoptions

TheManzooriOptionswillbeissuedfornilcashconsideration,willhaveanexercisepriceof$0.03,willexpire2yearsfromthedateoftheirissueandwillotherwisebeissuedonthetermssetoutinAnnexureAtothisExplanatoryMemorandum.

TheManzooriMilestoneShareswillbeissuedfornilcashconsideration,astheywillbeissuedontheachievementoftheMilestones.

EachManzooriMilestoneSharewillrank,onandfromissue,inallrespectsparipassuwiththethenexistingShares.

Intendeduseoffunds NofundswillberaisedbytheissueoftheManzooriOptionsortheManzooriMilestoneShares.AnyfundsraisedfromtheexerciseoftheManzooriOptionswillbeusedforgeneralworkingcapitalandinvestmentopportunities.

4. Chapter2EoftheCorporationsAct

Chapter2EoftheCorporationsActprohibitsapubliccompanyfromgivingaFinancialBenefittoaRelatedPartyofthepubliccompanyunlessprovidingthebenefitfallswithinaprescribedexceptiontothegeneralprohibition.Relevantly,there is an exception if the company first obtains the approval of its Shareholders in a general meeting incircumstanceswherecertainrequirementsspecifiedinChapter2Einrelationtotheconveningof thatmeetinghavebeenmet.A“FinancialBenefit”forthepurposesoftheCorporationsActhasaverywidemeaning.Itincludesapubliccompanypayingmoneyor issuing securities to theRelatedParty. Indeterminingwhetherornot a financialbenefit isbeinggiven,itisnecessarytolooktotheeconomicandcommercialsubstanceandeffectofwhatthepubliccompanyisdoing(ratherthanjustthelegalform).Anyconsiderationwhichisgivenforthefinancialbenefitistobedisregarded,evenifitisfulloradequate.ThisproposedResolution1,ifpassed,willconferFinancialBenefits,namely,theissueoftheManzooriOptionsandtheManzooriMilestoneShares,onMrManzooriwhoasnotedaboveisaRelatedPartyoftheCompany.Accordingly,theCompany seeks to obtain Shareholder approval in respect ofMrManzoori in accordancewith the requirements ofChapter2EoftheCorporationsAct.

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For the purposes of Chapter 2E of the Corporations Act and for all other purposes the following information isprovidedtoShareholders:

(a) TheRelatedPartytowhomResolution1wouldpermitthefinancialbenefittobegiven(section219(1)(a))

MrAnooshManzoori,aDirectoroftheCompany(orhisnominee).

(b) ThenatureoftheFinancialBenefit(section219(1)(b))

ThenatureoftheproposedFinancialBenefit istheissueoftheManzooriOptionsandtheManzooriMilestoneShares.The Manzoori Options and the Manzoori Milestone Shares are to be granted in order to provideappropriate incentive driven remuneration to secureMrManzoori as an executive Director of theCompany.AtthetimeofagreementofthetermsofMrManzoori’sappointment(20December2017)theclosingpriceoftheShareswas$0.017.TheexercisepriceoftheManzooriOptions($0.03)thenrepresentedalmostdoublethatclosingprice.SincetheannouncementofthePlacementthesharepricehasrisensignificantly. MrManzooriwas instrumental in securing thePlacement,demonstratinghisvalue totheCompany.The board considered the number of Manzoori Options (10,000,000) to be appropriate in allcircumstances,particularlywherethisrepresentedonly1.1%ofthecurrentissuedSharesandatthetimeofagreeingtoissuetheManzooriOptions,theexercisepricewasalmostdoublethatofthemostrecentclosingprice.TheboardconsideredthenumberofManzooriMilestoneShares(60,000,000)tobeappropriateinallcircumstances, particularly where the Manzoori Milestone Shares are split into four groups of15,000,000SharesandhavingregardtotheManzooriMilestonesthatmustbemetbeforeeachgroupofManzooriMilestoneSharesareissued.InadditionthetotalnumberofManzooriMilestoneSharesrepresented6.75%ofthecurrentissuedShares.Referalso to section1aboveand4(c)below for the reason forgiving thebenefit and thebasis forwhichitisgiven.

(c) Directors’Recommendation(section219(1)(c))

Each of the Directors (excluding Mr Manzoori) recommends that Shareholders vote in favour ofResolution1.Theirreasonsfordoingsoincludethefollowing:(1) theagreementoftheCompanytoissuetheManzooriOptionsassistedtheCompanyin

securingtheservicesofanexperiencedandskilledexecutivedirectoronappropriateincentivetermsasanalternativetoneedingtoofferahigherleveloffixedcashremunerationinordertosecuretheservicesofMrManzoori;

(2) thetotalremunerationpackageofcash,ManzooriOptionsandtheManzooriMilestoneShareswasdeterminedtobeappropriatefortheengagementofMrManzooriasanexecutivedirectoroftheCompany,whowasintendedtobeinstrumentalinmovingtheCompanyforwardanddevelopingtheCompany’sexposuretoblockchaintechnology,assetsandbusinesseswhichMrManzooriisexperiencedin.MrManzoori’svaluetotheCompanyhasalreadybeenevidencedwithhisinstrumentalroleinsecuringthePlacement;

(3) itisconsideredthatthepotentialincreaseofvalueintheManzooriOptionsandtheManzooriMilestoneSharesisdependentuponaconcomitantincreaseinthevalueoftheCompanyanditsSharesgenerally;

(4) theabilitytoissueMrManzooriwiththeManzooriOptionsandtheManzooriMilestoneSharesenablestheCompanytoincentivisehiminamannerwhichpreservestheCompany’scashresources.

As the Manzoori Options and the Manzoori Milestone Shares will (if approved) be issued to MrManzoori(orhisnominee),hemakesnorecommendationsinrespectofResolution1.

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(d) Directors’Interestandotherremuneration(section219(1)(d))

TheDirectors (excludingMrManzoori) do not have amaterial personal interest in the outcomeofResolution 1, save for any interest they may have solely in their capacity as Shareholders whichinteresttheyholdincommonwiththeotherShareholders.MrManzoori is to be issued theManzoori Options and theManzooriMilestone Shares, if they areapproved.Asat thedateof thisNotice,MrManzooriandhisassociateshavenorelevant interest inShares.MrManzooriwillreceiveinadditiontotheManzooriOptionsandManzooriMilestoneSharescontemplatedunderthisNotice,anannualdirector’sfeeof$90,000,tobepaidmonthly.

NootherDirectorhasanyinterestintheoutcomeofResolution1oranyotherrelevantagreement.

(e) ValuationofManzooriOptionsandManzooriMilestoneShares

ManzooriOptionsTheManzooriOptionsarenotcurrentlyquotedontheASXandassuchhavenomarketvalue. TheManzooriOptionseachgranttheholderarighttoreceiveoneordinaryShareintheCompanyuponexerciseofoneManzooriOptionandpaymentoftheexercisepriceoftheManzooriOptions($0.03).Accordingly,theManzooriOptionsmayhaveapresentvalueatthedateoftheirgrant.The Manzoori Options may acquire future value dependent upon the extent to which the SharesexceedtheexercisepriceoftheManzooriOptionsduringtheexerciseperiodoftheManzooriOptions.As a general proposition, options to subscribe for ordinary fully paid shares in a company have avalue.Variousfactorsimpactuponthevalueofoptionsincluding:(1) theperiodoutstandingbeforetheexpirydateoftheoptions;

(2) theexercisepriceoftheoptionsrelativetotheunderlyingpriceorvalueofthesecuritiesintowhichtheymaybeconverted;

(3) theproportionoftheissuedcapitalasexpandedconsequentuponexerciserepresentedbythesharesissueduponexercise(i.e.whetherornotthesharesthatmightbeacquireduponexerciseoftheoptionsrepresentacontrollingorothersignificantinterest);

(4) thevalueofthesharesintowhichtheoptionsmaybeconverted;and

(5) whethertheoptionsarelisted(i.e.readilycapableofbeingliquidated).

Therearevariousformulaewhichcanbeappliedtodeterminingthetheoreticalvalueofoptions(includingtheformulaknownastheBlack‐ScholesModeloptionvaluationformulaandtheBinomialModeloptionvaluationformula).

TheCompanyhasundertakenavaluationoftheOptionsthesubjectofResolution1forthepurposesof disclosing to Shareholders such information required to decide whether or not it is in theCompany’s interest to pass Resolution 1 and disclosing expenses in the Company’s FinancialStatementsinaccordancewithAASB2ShareBasedPayments,usingtheBlackScholesModel,whichisthemostwidelyusedandrecognisedmodelforpricingoptions.ThevalueofanoptioncalculatedbytheBlack ScholesModel is a functionof the relationship betweenanumberof variables, being thepriceoftheunderlyingShare,bothatthetimeofissueandthedateofissueoftheNotice,theexerciseprice,thetimetoexpiry, theriskfreeinterestrate,thevolatilityoftheCompany’sunderlyingSharepriceandexpecteddividends.InherentintheapplicationoftheBlackScholesModelareanumberofinputs,someofwhichmustbeassumed.ThedatarelieduponinapplyingtheBlackScholesModelwas:(1) aSharepriceof:

(A) $0.016(beingtheclosingpriceoftheCompany’sShareson19December2017,thedaypriortothetermsoftheOptionsbeingagreedandannounced);and

(B) $0.025(beingtheclosingpriceoftheCompany’sShareson22January2018,beingshortlypriortothefinalisationoftheNotice);

(2) exerciseprice:$0.03;

(3) expirydateof2yearsafterissuedate;

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(4) avolatilitymeasureof110%;

(5) arisk‐freeinterestrateof3%;and

(6) adividendyieldof0%.

Basedon thevaluationof theManzooriOptions, theCompanybelieves that thevalueperManzooriOption:(1) asat19December2017(thedaypriortothetermsoftheOptionsbeingagreedand

announced)is$0.007,meaningthe10,000,000ManzooriOptionshaveacombinedvalueof$70,000;and

(2) asat22January2018(beingshortlypriortothefinalisationoftheNotice)is$0.0134,meaningthe10,000,000ManzooriOptionshaveacombinedvalueof$134,000.

ManzooriMilestoneShares

SharesinthesameclassastheManzooriMilestoneSharesarecurrentlyquotedontheASXandassuchwillhaveatradeablemarketvalue.

InformationregardingtheindicativemarketvalueoftheManzooriMilestoneSharesthesubjectofResolution1aresetoutinthetablebelowbasedonthefollowing:

(1) theASXMarketPriceofShareson19December2017,beingthedateofannouncementtothetermsofappointmentofMrManzooriasanexecutiveDirector($0.016);

(2) theASXMarketPriceofShareson22January2018($0.025)and

(3) theVWAPoftheCompany’sSharesforthe15tradingdaysbetween29Dec2017and22January2018($0.0363).

No.ofManzooriMilestoneShares

Valuebasedonclosingpriceon19December2017($0.016)

Valuebasedonclosingpriceon22January2018($0.025)

Valuebasedon15tradingdayVWAP($0.0363)

IssuePrice($nil)

60,000,000 $960,000 $1,500,000 $2,178,000 $0

TheimpactonMrManzoori’soverallremunerationpackage(ifShareholderapprovalisobtainedforResolution1)isasfollows:

Director Director’sfeesperannum

ManzooriMilestoneShares1

ManzooriOptions2

Overallremunerationpackage3

MrManzoori $90,000 $2,178,000 $134,0000 $2,402,000

1.ThisassumesthevalueoftheManzooriMilestoneSharesiscalculatedusingthe15dayVWAPbetween29December2017and22January2018andallManzooriMilestoneSharesareissued.2.ThisassumesthevalueoftheManzooriOptionsiscalculatedusingtheclosingsharepriceasat22January2018.IfthevalueoftheManzooriOptionsiscalculatedusingtheclosingsharepriceasat19December2017,thevalueoftheManzooriOptionsis$70,000.3.ThisassumesthatallManzooriMilestoneSharesareissuedandthatShareholderapprovalandrelevantASXwaiversareobtainedtoissuetheManzooriMilestoneSharesandtheManzooriOptions.IfthevalueoftheManzooriOptionsiscalculatedusingtheclosingsharepriceasat19December2017,thevalueoftheoverallremunerationpackageis$2,338,000.

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(f) AnyotherinformationthatisreasonablyrequiredbyShareholderstomakeadecisionandthatisknowntotheCompanyoranyofitsDirectors(section219(1)(e)and219(2))

ThereisnootherinformationknowntotheCompanyoranyofitsDirectorsrelevanttoResolution1saveandexceptasfollows:(1) MarketPricemovements

ThevaluationoftheManzooriMilestoneSharesnotedaboveisbasedonamarketpriceoftheShares.ThereisapossibilitythatthemarketpriceoftheSharesonthedateofissueoftheManzooriMilestoneShareswillbedifferenttothepricenotedaboveandthatthemarketpriceoftheShareswillchangeuptothedateoftheMeeting.TheeffectonthevaluationfortheManzooriMilestoneShares,ofmovementsinthemarketpriceoftheSharesissetoutbelow:

MarketPrice

Valuation total ‐ assumes 60,000,000ManzooriMilestoneSharesissued

$0.01 $600,000.00

$0.02 $1,200,000.00

$0.04 $2,400,000.00

$0.08 $4,800,000.00

(2) Tradinghistory

Asat22January2018theclosingpriceoftheSharesontheASXwas$0.025.SetoutbelowisthetradinghistoryoftheSharesoverthepast12months.

MarketPrice

22January2018

Closing price duringprior6months

Closing Price duringprior12months

High $0.03 $0.043 $0.043

Low $0.024 $0.004 $0.004

(3) OpportunityCosts

TheopportunitycostsandbenefitsforegonebytheCompanyissuingtheManzooriMilestoneSharesisthedilutionaryimpactontheissuedsharecapitaloftheCompany.TheissueoftheManzooriOptionswillnothaveadilutionaryimpactontheCompany,however,ifanyoftheseOptionsareexercised,therewillbeadilutionaryimpactontheCompany.TotheextentthatthedilutionaryimpactcausedbytheissueoftheManzooriMilestoneSharesortheexerciseoftheManzooriOptionswillbedetrimentaltotheCompany,thisismorethanoffsetbytheadvantagesaccruingfromtheCompanysecuringtheservicesofanexperiencedandskilleddirectoronappropriateincentiveterms.

ItisalsoconsideredthatthepotentialincreaseofvalueintheManzooriOptionsandtheManzooriMilestoneSharesisdependentuponaconcomitantincreaseinthevalueoftheCompanyanditsSharesgenerally.

(4) TaxationConsequences

NostampdutywillbepayableinrespectofthegrantingoftheManzooriOptionsortheManzooriMilestoneShares.NoGSTwillbepayablebytheCompanyinrespectofthegrantingoftheManzooriOptionsortheManzooriMilestoneShares.

(5) DilutionaryEffect

TheeffectthattheissueoftheManzooriMilestoneSharesandtheManzooriOptionswillhaveontheissuedSharesoftheCompanyissetoutinAnnexureB.

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SaveassetoutinthisExplanatoryMemorandum,theDirectorsarenotawareofanyotherinformationthatwillbereasonablyrequiredbyShareholderstomakeadecisioninrelationtothebenefitscontemplatedbyResolution1.

(g) Votingexclusionstatement

AvotingexclusionstatementissetoutinResolution1intheNoticeofMeeting.Director’sRecommendationEach of the non‐interested Directors (being Geoff Barnes, Athan Lekkas and Michael Clarke) recommend thatShareholdersvoteinfavourofResolution1.AsMrManzoorihasaninterestinResolution1,hemakesnorecommendationwithrespecttoResolution1.

OVERVIEWOFTHEPLACEMENT(RESOLUTIONS2‐4)

AsannouncedbytheCompanyon2January2018,theCompanyenteredintoconditionalplacementagreementswithBlockchain Global Limited (BCG) and other unrelated sophisticated or professional investors to issue 282,257,907Sharesat$0.012237eachwitha1:1attachingOptionexercisableat$0.03expiringtwoyearsafterissue(Placement).Oncompletion,thePlacementwillraiseapproximately$3,453,990toprovidetheCompanywithworkingcapitalandforfundingtofacilitateacquisitionsof,orinvestmentsin,blockchaintechnology,assetsorbusinesses.AsummaryofthetermsofthePlacementissetoutbelow.1. Placementterms

TheCompanyhasagreedtoissue282,257,907sharesat$0.012237each(PlacementShares).ThePlacementShareswillbeordinarySharesandwillrankparipassuwithallexistingSharesonissue.Inaddition,theCompanyhasagreedto offer to investors in the Placement Shares a 1:1 attaching Option exercisable at $0.03 within 2 years of issue(Placement Options). Full terms of the Placement Options are set out in Annexure A. A total of 282,257,907PlacementOptionsaretobeissued.ThePlacementSharesandPlacementOptionsarenotbeingissuedinrelianceonFGF’sexistingcapacityunderListingRules7.1or7.1Aorunderanexception inListingRule7.2, rather theywillbe issued subject toand in relianceonShareholderapproval,beingsoughtunderResolutions2and4.2. ConditionstocompletionofPlacement

CompletionoftheissueofthePlacementSharesandPlacementOptionsisconditionaluponthefollowingconditionsprecedentbeingsatisfiedorwaived:

(a) TheCompanyobtainingtheapprovalofitsshareholdersingeneralmeetingtotheissueofthePlacementShares,thePlacementOptionsandtheBCGMilestoneSharesinaccordancewithListingRules7.1and7.3(theApproval)andallotherrequiredregulatoryorASXapprovalsbeingobtainedonorbefore28February2018(theApprovalDate);

(b) TheCompanylodgingadisclosuredocumentwithASICinrespectoftheissueofthePlacementSharesandthePlacementOptions(Prospectus)onorbeforetheApprovalDate;

(c) Eachinvestorbeingsatisfied(actingreasonably)withitsduediligenceinvestigationsontheCompanyonorbefore25January2018;

(d) BCGenteringavoluntaryescrowdeedintheformprovidedbytheCompany,onorbefore25January2018(EscrowDeed),

(eachaConditionPrecedent).TheConditionsPrecedentin(a),(b)and(d)aboveareforthebenefitoftheCompanyandeachinvestorandmayonlybewaivedbyagreementinwritingbythem.TheConditionPrecedentin(c)aboveisforthebenefitofeachinvestorand may only be waived by an investor in writing. The parties must use their best endeavours to ensure thesatisfactionofeachoftheConditionsPrecedent.EachoftheConditionsPrecedentmustbesatisfiedorwaivedbythedatessetout foreachrespectiveConditionPrecedentandif theyarenot, therelevantplacementagreementmaybeterminatedbyeitherpartygivingwrittennoticetotheother,solongasthepartygivingthenoticeisnotindefaultintheperformanceof its obligations touse their best endeavours to ensure the satisfactionof each of theConditionsPrecedent.

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3. Shareallocation

The Placement Shares and Placement Options (282,257,907 each) will be issued to unrelated sophisticated andprofessional investors, led byBCG.ThePlacement Shareswill represent approximately 24.12%of the issued sharecapital of the Company on issue, with BCG holding approximately 9.80% of issued Shares on completion of thePlacement(assumingnofurthersharesareissuedintheCompanyotherthanascontemplatedbythePlacement).Intheinterestsofeaseofadministration,theCompanyseeksshareholderapprovalfortheissueofPlacementSharesandPlacementOptionsintwoseparateresolutions:oneresolutionfortheissuetoBCGof114,711,813Placement Shares (BCG Placement Shares) and 114,711,813 Placement Options (BCG Placement Options)(Resolution2),andtheotherfortheissuetotheother,non‐BCG,investorsof167,546,094PlacementShares(OtherPlacementShares)and167,546,094PlacementOptions(OtherPlacementOptions)(Resolution4).TheallocationofPlacementSharesandPlacementOptionsisasfollows:

Recipient PlacementShares PlacementOptions

BCG 114,711,813

(BCGPlacementShares)

114,711,813

(BCGPlacementOptions)

Allnon‐BCGinvestorspartytothePlacement

167,546,094

(OtherPlacementShares)

167,546,094

(OtherPlacementOptions)TheBCGPlacementSharesissuedwillbesubjecttovoluntaryescrowfor12months.TheOtherPlacementShareswillnotbesubjecttoescrow.TheCompanywilllodgeaprospectustoenablethePlacementSharestobefreelytraded(subjecttotheEscrowDeedin respect of BCG) and to offer the Placement Options and therefore allow any shares issued on exercise of thePlacementOptionstobefreelytraded,onorbefore28February2018.Thefollowingistheproposedtimetableinthisregard:

Activity CompletionDate

Completion of duediligence

25January2018

FinaldateforlodgementofProspectus

28February2018

ShareholdersMeeting 28February2018

FundsduetoFGF 3 Business Days aftersatisfaction or waiver ofConditionsPrecedent

Expected allotment ofPlacement Shares andPlacementOptions

4 Business Days aftersatisfaction or waiver ofConditionsPrecedent

ExpectedASX quotation ofPlacementShares

6 Business Days aftersatisfaction or waiver ofConditionsPrecedent

4. UnderwritingofSeriesBandSeriesCOptions

The Company currently has on issue 249,716,800 Series B listed Options exercisable at $0.02 and expiring on 17February2018and161,747,397SeriesClistedOptionsexercisableat$0.02andexpiringon20February2018.BCGhasagreedtounderwritetheexerciseof50%oftheSeriesBandSeriesCOptionsonissueasat31December2017(beingatotalof217,307,099options)(UnderwrittenOptions)onthefollowingconditions:

(a) BCG’sobligationtosubscribeforsharesonexerciseoftheUnderwrittenOptionsissubjecttoallConditionsPrecedenttothePlacementeitherbeingsatisfiedorwaived;

(b) thenumberofUnderwrittenOptionswillbecappedsoastoensurethatneitherBCGnoranyotherpersonwillbeinbreachofChapter6oftheCorporationsActuponissueofsharesonexerciseoftheUnderwrittenOptionsandtheissueofthePlacementSharesorthattheissueofsharesonexerciseoftheUnderwrittenOptionsandtheissueofthePlacementSharesotherwiserequiresShareholderapprovalunderItem7ofSection611oftheCorporationsAct.Assuch,theactualnumberofUnderwrittenOptionsmaybelessthan50%ofthoseSeriesBandSeriesCoptionscurrentlyonissue.

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(c) BCGmustsubscribeforanyoftheSeriesBUnderwrittenOptionswhicharenotvalidlyexercisedbymidnight(Sydneytime)on17February2018inimmediatelyavailablefundsonorbefore9businessdaysafter17February2018,sothatthesharesonexerciseoftheSeriesBUnderwrittenOptionsmaybeissuedwithin10businessdaysafter17February2018inaccordancewithException12ofListingRule7.2;

(d) BCGmustsubscribeforanyoftheSeriesCUnderwrittenOptionswhicharenotvalidlyexercisedbymidnight(Sydneytime)on20February2018inimmediatelyavailablefundsonorbefore9businessdaysafter20February2018,sothatthesharesonexerciseoftheSeriesCUnderwrittenOptionsmaybeissuedwithin10businessdaysafter20February2018inaccordancewithException12ofListingRule7.2;

(e) afeeof6%willbepayabletoBCGbasedonthetotalexercisepriceofthenumberofUnderwrittenOptionsonissueasat31December2017(equalto$260,768.52)(UnderwritingFee).Subjecttoshareholderapproval,whichisbeingsoughtunderResolution3,theunderwritingfeewillbepayableinSharesatanissuepriceof$0.012237,beingatotalof21,309,841Shares(UnderwritingFeeShares).Ifsuchapprovalisnotobtainedby28February2018,theunderwritingfeewillbepayableincash;and

(f) if:

(1) theAllOrdinariesIndexis,atanytimefortwoconsecutiveBusinessDaysafter25January2018andpriorto1March2018(being9businessdaysaftertheexpirydateoftheSeriesBoptions),morethan10%belowthelevelofthatIndexatthecloseofASXtradingon25January2018;or

(2) initialcoinofferingsorcryptocurrenciesareprohibitedinAustraliaafter25January2018andpriorto1March2018,

BCGmayterminateitsobligationtounderwritetheexerciseoftheUnderwrittenOptionsatanytimepriorto1March2018bynoticeinwritingtotheCompany.

IfalloftheSeriesBandSeriesCoptionsareexercisedthiswillraiseanadditional$8.6millionfortheCompany.IfonlytheunderwrittenSeriesBandSeriesCoptionsaresubscribedforpursuanttotheunderwritingarrangements,thiswillraiseupto$4.3million.5. BCGMilestoneSharesandBoardnominee

Under the terms of the PlacementwithBCG and subject to the receipt of all necessary shareholder and regulatoryapprovals,theCompanyhasagreedtoissuetoBCGupto60,000,000milestoneShares,intheeventthattheCompany’ssharepricetradesoveracertainvalueswithin12monthsofthecompletionofthePlacement. TheissueoftheBCGMilestoneSharesisthesubjectofResolution3.SubjecttoBCGmaintainingashareholdingintheCompanyofatleast5%,itmaynominateonepersontobeappointedas a non‐executive director of the Company on completion of the Placement. In addition, ifMilestone 3 (describedbelowinResolution3ofthisExplanatoryMemorandum)issatisfied,BCGwillhavetherighttoappointoneadditionaldirector.

RESOLUTION2: APPROVAL TO ISSUE BCG PLACEMENT SHARES, BCG PLACEMENT OPTIONS ANDUNDERWRITINGFEESHARES

Resolution2seekstheapprovalofShareholdersfortheissuebytheCompanytoBCGof114,711,813PlacementSharesatanissuepriceof$0.012237perShare,114,711,813BCGPlacementOptions,and21,309,841UnderwritingFeeShares.ListingRule7.1prohibitsacompany,exceptincertaincases,fromissuingnewequitysecuritiesequivalentinnumbertomore than15%of its capital in any12monthperiodwithout thepriorapprovalof its shareholders.Equity securitiesissuedwithshareholderapprovalunderListingRules7.1or7.4donotcounttowardsthe15%limitunderListingRule7.1orthe10%limitunderListingRule7.1A.Shareholder approval is sought under Resolution 2 for all purposes including ASX Listing Rule 7.1 to preserve theCompany’splacementcapacitypursuanttoListingRule7.1.BypassingResolution2,theCompanywillbepermittedtoissue theBCGPlacementShares, theBCGPlacementOptionsand theUnderwritingFeeSharesduring the3monthsaftertheMeetingandtheissueofthosesecuritieswillnotcounttowardstheCompany’scapacityunderListingRule7.1or7.1A.IfResolution2isnotpassed,theCompanywillnotbepermittedtoissuetheBCGPlacementShares,theBCGPlacementOptionsortheUnderwritingFeeShares.

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ForthepurposesofListingRule7.3andforallotherpurposesthefollowinginformationisprovidedtoShareholders:

Maximum Number ofsecuritiestobeissued

ThenumberofBCGPlacementShareswhichmaybeissuedis114,711,813.

ThenumberofBCGPlacementOptionswhichmaybeissuedis114,711,813.

ThenumberofUnderwritingFeeShareswhichmaybeissuedis21,309,841.

Date by which theCompanywillissuethesecurities

TheBCGPlacementSharesandtheBCGPlacementOptionswillbeissued4BusinessDaysafter the satisfactionorwaiverof theConditionsPrecedent to thePlacement and in anyeventwithin3monthsofthedateoftheMeeting.

The Underwriting Fee Shares will be issued within three months after the date of theMeeting.

Issue price of thesecurities

TheBCGPlacementShareswillbeissuedatanissuepriceof$0.012237pershare.

TheBCGPlacementOptions and theUnderwriting Fee Shareswill be issued for nil cashconsideration.

Recipients of thesecurities

TheBCGPlacementShares, theBCGPlacementOptionsandtheUnderwritingFeeShareswillbeissuedtoBCGoritsnominee.

Termsofthesecuritiestobeissued

EachBCGPlacementShareandUnderwritingFeeSharewillrank,onandfromissue,inallrespectsparipassuwiththethenexistingShares.

TheBCGPlacementOptionswillbe issuedon the termsas setout inAnnexureAof thisExplanatoryMemorandum.

Intendeduseoffunds Thefundsraisedfromthe issueof theBCGPlacementShareswillbeusedtoprovidetheCompanywithworkingcapitalandforfundingtofacilitateacquisitionsor,orinvestmentsin,blockchaintechnology,assetsandbusinesses.

Directors'RecommendationTheDirectorsunanimouslyrecommendthatShareholdersvoteinfavourofResolution2.RESOLUTION3:APPROVALTOISSUEBCGMILESTONESHARESUnderthetermsofthePlacementandsubjecttothereceiptofallnecessaryshareholderandregulatoryapprovals,theCompanyhasagreedtoissuetoBCGcertainmilestoneshares,intheeventthattheCompany’ssharepricetradesoveracertainvalueswithin12monthsofthecompletionofthePlacement.Thesevaluesare:

Timeframe Shares Targetvalue(BCGMilestones)

0‐24monthsfromcompletionofthePlacement

20,000,000 FGF'ssharepricetradingover3cfor20consecutivebusinessdays(BCGMilestone1)



Resolution3seekstheapprovalofShareholdersfortheissuebytheCompanytoBCGofupto60,000,000BCGMilestoneShares.AswithResolution2,Shareholderapproval issoughtunderResolution3forallpurposesincludingASXListingRule7.1topreservetheCompany’splacementcapacitypursuanttoListingRule7.1.BypassingResolution3,theCompanywill be permitted to issue the BCGMilestone Shares during the 3months after theMeeting (or such later date aspermittedbytheASX)andtheissueofthosesecuritieswillnotcounttowardstheCompany’scapacityunderListingRule7.1or7.1A.ForthepurposesofListingRule7.3andforallotherpurposesthefollowinginformationisprovidedtoShareholders:


ThenumberofBCGMilestoneShareswhichmaybeissuedisupto60,000,000,subjecttotheachievementoftheBCGMilestonessetoutabove.


AstheBCGMilestonesmaybemetupto24monthsaftercompletionofthePlacement,theCompanywillmakeanapplicationtoASXforawaiverofListingRule7.3.2extendingtheperiodinwhichtheCompanymayissuetheBCGMilestoneSharesfromtheusualthree

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monthperiodfollowingtheMeetingtoaperiodending25monthsafterthecompletionofthePlacement.Intheeventthatthiswaiverisgranted,theCompanymayissuetheBCGMilestoneSharesinrelianceonthiswaiverwithoutseekingfurtherShareholderapproval.Intheeventthiswaiverisnotapproved,theCompanywillnotbeabletoissuetheBCGMilestoneSharesmorethanthreemonthsafterthisMeetingunlessfurtherShareholderapprovalisobtained.


TheBCGMilestoneShareswillbefornilcashconsideration.


TheBCGMilestoneShareswillbeissuedtoBCGoritsnominee.


EachBCGMilestoneSharewillrank,onandfromissue,inallrespectsparipassuwiththethenexistingShares.

Intendeduseoffunds TherewillbenofundsraisedbytheissueoftheBCGMilestoneShares.Directors’RecommendationTheDirectorsunanimouslyrecommendthatShareholdersvoteinfavourofResolution3.

RESOLUTION4: APPROVALTOISSUEOTHERPLACEMENTSHARESANDOTHERPLACEMENTOPTIONS

Resolution4seekstheapprovalofShareholdersfortheissuebytheCompanyof167,546,094OtherPlacementSharesatanissuepriceof$0.012237persharetonon‐BCGinvestors,alongwith167,546,094OtherPlacementOptions.AswithResolutions2and3,ShareholderapprovalissoughtunderResolution4forallpurposesincludingASXListingRule 7.1 to preserve the Company’s placement capacity pursuant to Listing Rule 7.1. By passing Resolution 4, theCompanywillbepermittedtoissuetheOtherPlacementSharesandtheOtherPlacementOptionsduringthe3monthsaftertheMeetingandtheissueofthosesecuritieswillnotcounttowardstheCompany’scapacityunderListingRule7.1or7.1A.IfResolution4isnotpassed,theCompanywillnotbepermittedtoissuetheOtherPlacementSharesandtheOtherPlacementOptions.ForthepurposesofListingRule7.3andforallotherpurposesthefollowinginformationisprovidedtoShareholders:


ThenumberofOtherPlacementShareswhichmaybeissuedis167,546,094.

ThenumberofOtherPlacementOptionswhichmaybeissuedis167,546,094.


TheOtherPlacement Shares and theOtherPlacementOptionswill be issued4BusinessDaysafterthesatisfactionorwaiverof theConditionsPrecedenttothePlacementandinanyeventwithin3monthsofthedateoftheMeeting.


TheOtherPlacementShareswillbeissuedatissuepriceof$0.012237pershare.

TheOtherPlacementOptionswillbeissuedfornilcashconsideration.


TheOtherPlacementSharesandtheOtherPlacementOptionswillbeissuedtounrelatedsophisticated or professional investors party to the Placement other than BCG, or theirnominees.


EachOtherPlacementSharewillrank,onandfromissue,inallrespectsparipassuwiththethenexistingShares.

TheOtherPlacementOptionswillbeissuedonthetermsassetoutinAnnexureAofthisExplanatoryMemorandum.

Intendeduseoffunds ThefundsraisedfromtheissueoftheOtherPlacementShareswillbeusedtoprovidetheCompanywithworkingcapitalandforfundingtofacilitateacquisitionsor,orinvestmentsin,blockchaintechnology,assetsandbusinesses.

TherewillbenofundsraisedbytheissueoftheOtherPlacementOptions.Directors'Recommendation

TheDirectorsunanimouslyrecommendthatShareholdersvoteinfavourofResolution4.

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GLOSSARY$meansAustraliandollars.ABUmeansadvisorybusinessunit.AllOrdinariesIndexmeanstheAllOrdinariesIndex(forshareprices)publishedbyStandard&Poor’sinrespectofthefinancialmarketofASX;ASICmeanstheAustralianSecuritiesandInvestmentsCommission.ASXmeansASXLimited(ACN008624691)ortheAustralianSecuritiesExchange,asthecontextrequires.ASXListingRulesmeanstheListingRulesofASX.BCGmeansBlockchainGlobalLimitedACN601628497.BCGMilestoneSharesmeansupto60,000,000SharesonthetermssetoutintheExplanatoryMemoranduminrespectofResolution3tobeissuedtoBCG.BCGPlacementOptionsmeans114,711,813PlacementOptionstobeissuedtoBCG,thesubjectofResolution2.BCGPlacementSharesmeans114,711,813PlacementSharestobeissuedtoBCG,thesubjectofResolution2.BoardmeansthecurrentboardofdirectorsoftheCompany.BusinessDaymeans Monday to Friday inclusive, except New Year’s Day, Good Friday, Easter Monday, Christmas Day,BoxingDay,andanyotherdaythatASXdeclaresisnotabusinessday.ChairmeansthepersonappointedtochairtheMeeting.CloselyRelatedPartyorCRP(asdefinedintheCorporationsAct)ofamemberoftheKeyManagementPersonnelforanentitymeans:(a) aspouseorchildofthemember;(b) achildofthemember’sspouse;(c) adependantofthememberorthemember’sspouse;(d) anyoneelsewhoisoneofthemember’sfamilyandmaybeexpectedtoinfluencethemember,orbeinfluencedby

themember,inthemember’sdealingswiththeentity;(e) acompanythemembercontrols;or(f) apersonprescribedbytheregulationsforthepurposesofthedefinitionofcloselyrelatedparty.CompanyorFGFmeansFirstGrowthFundsLimited(ABN34006648835).ConstitutionmeanstheCompany’sconstitution.CorporationsActmeanstheCorporationsAct2001(Cth).DirectorsmeansthecurrentdirectorsoftheCompany.ExplanatoryMemorandummeanstheexplanatorymemorandumaccompanyingtheNotice.ExtraordinaryGeneralMeetingorMeetingmeansthemeetingconvenedbytheNotice.FinancialBenefithasthemeaninggiventothattermintheCorporationsAct.ICOmeansinitialcoinoffering.KeyManagementPersonnelorKMPhasthedefinitiongivenintheAccountingStandardAASB124RelatedPartyDisclosureas‘thosepersonshavingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheentity,directlyandindirectly,includinganydirector(whetherexecutiveorotherwise)ofthatentity’.ManzooriMilestonesmeansthemilestonesthatneedtobeachievedbeforetheManzooriMilestoneSharesmaybeissued,assetoutintheExplanatoryMemoranduminrespectofResolution1.ManzooriMilestoneSharesmeansupto60,000,000SharesonthetermssetoutintheExplanatoryMemoranduminrespectofResolution1,whichmaybeissuedtoAnooshManzoori(orhisnominees).

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ManzooriOptionsmeans10,000,000OptionsonthetermssetoutinAnnexureAtobeissuedtoAnooshManzoori(orhisnominees).NoticeorNoticeofMeetingorNoticeofExtraordinaryGeneralMeetingmeans thisnoticeofExtraordinaryGeneralMeetingincludingtheExplanatoryMemorandumandtheProxyForm.OptionmeansanoptionwhichentitlestheholdertosubscribeforoneShare.OrdinaryResolutionmeansaresolutionpassedbymorethan50%ofthevotescastatageneralmeetingofshareholders.OtherPlacementOptionsmeans167,546,094PlacementOptionstobeissuedtoinvestorsotherthanBCG,thesubjectofResolution4.OtherPlacementSharesmeans167,546,094PlacementSharestobeissuedtoinvestorsotherthanBCG,thesubjectofResolution4.Placementmeanstheissueof282,257,907Sharesat$0.012237eachwitha1:1attachingOptionexercisableat$0.03expiringtwoyearsafterissuetoBCGandotherunrelatedsophisticatedorprofessionalinvestorstoraiseapproximately$3,453,990asannouncedbytheCompanytothemarketon2January2018.PlacementOptionsmeans282,257,907Optionsexercisableat$0.03eachwithin2yearsofissueandotherwiseonthetermssetoutinAnnexureA,beingmadeupoftheBCGPlacementOptionsandtheOtherPlacementOptions.PlacementSharesmeans282,257,907Sharesatanissuepriceof$0.012237each,beingmadeupoftheBCGPlacementSharesandtheOtherPlacementShares.ResolutionsmeanstheresolutionssetoutintheNoticeofMeeting,oranyoneofthem,asthecontextrequires.RelatedPartyhasthemeaninggiventothattermintheCorporationsAct.RulemeansaruleoftheConstitution.SectionmeansasectionoftheExplanatoryStatement.SharemeansafullypaidordinaryshareinthecapitaloftheCompany.ShareholdermeansaholderofaShare.UnderwritingFeeSharesmeans21,309,841SharestobeissuedtoBCGwithadeemedissuepriceof$0.012237eachinlieuofcashpaymentoftheUnderwritingFeetoBCG.UnderwritingFeemeansafeeof6%payabletoBCGbasedonthetotalexercisepriceofthenumberofUnderwrittenOptions(equalto$260,768.52).UnderwrittenOptionsmeans50%oftheSeriesBlistedOptionsandSeriesClistedOptionsonissueasat31December2017(beingatotalof217,307,099Options).

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AnnexureA‐TermsandConditionsofManzooriOptionsandPlacementOptions

(a) TheOptionsshallbeissuedfornocashconsideration;

(a) TheexercisepriceofeachOptionis$0.03(ExercisePrice);

(b) TheOptionswillexpireonthedatethatis2yearsafterissue(ExpiryDate)unlessearlierexercised;

(c) TheOptionsaretransferrable;

(d) TheOptionsmaybeexercisedatanytimewhollyorinpartbydeliveringadulycompletedformofnoticeofexercisetogetherwithpaymentfortheExercisePriceperOptiontotheCompanyatanytimeonorafterthedateofissueoftheOptionsandonorbeforetheExpiryDate.PaymentmaybemadeasdirectedbytheCompanyfromtimetotime,whichmayincludebycheque,electronicfundstransferorothermethods;

(e) ThenumberofOptionsthatmaybeexercisedatonetimemustbenotlessthan1000,unlesstheOptionholderholdslessthan1000optionsinwhichcasealloptionsmustbeexercisedatonetime;

(f) UponthevalidexerciseoftheOptionsandpaymentoftheExercisePrice,theCompanywillissuefullypaidordinarysharesrankingparipassuwiththethenissuedordinaryshareswithin10businessdaysofvalidexerciseandpayment;

(g) OptionholdersdonothaveanyrighttoparticipateinnewissuesofsecuritiesintheCompanymadetoshareholdersgenerally.TheCompanywill,whererequiredpursuanttotheASXListingRules,provideOptionholderswithnoticepriortothebooksrecorddate(todetermineentitlementstoanynewissueofsecuritiesmadetoshareholdersgenerally)toexercisetheOptions,inaccordancewiththerequirementsoftheListingRules.

(h) OptionholdersdonotparticipateinanydividendsunlesstheOptionsareexercisedandtheresultantsharesoftheCompanyareissuedpriortotherecorddatetodetermineentitlementstothedividend;

(i) Intheeventofanyreorganisation(includingconsolidation,subdivision,reductionorreturn)oftheissuedcapitaloftheCompany:

(1) thenumberofOptions,theExercisePriceoftheOptions,orbothwillbereorganised(asappropriate)inamannerconsistentwiththeASXListingRulesasapplicableatthetimeofreorganisation,butwiththeintentionthatsuchreorganisationwillnotresultinanybenefitsbeingconferredontheholdersoftheOptionswhicharenotconferredonshareholders;and

(2) subjecttotheprovisionswithrespecttoroundingofentitlementsassanctionedbyameetingofshareholdersapprovingareorganisationofcapital,inallotherrespectsthetermsfortheexerciseoftheOptionswillremainunchanged;

(j) Ifthereisaprorataissue(exceptabonusissue),theExercisePriceofanOptionmaybereducedaccordingtothefollowingformula:

On=O–E[P‐(S+D)]N+1

Where:

On = thenewexercisepriceoftheOption;

O = theoldexercisepriceoftheOption;

E = thenumberofunderlyingsecuritiesintowhichoneOptionisexercisable;

P = thevolumeweightedaveragemarketpricepersecurityoftheunderlyingsecuritiesduringthe5tradingdaysendingonthedaybeforetheexrightdateortheexentitlementsdate;

S = thesubscriptionpriceforasecurityundertheprorataissue;

D = dividendduebutnotyetpaidontheexistingunderlyingsecurities(exceptthosetobeissuedundertheprorataissue);

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N = thenumberofsecuritieswithrightsorentitlementsthatmustbeheldto receivearighttoonenewsecurity.

(k) IfthereisabonusissuetotheholdersofsharesintheCompany,thenumberofsharesoverwhichtheOptionisexercisablemaybeincreasedbythenumberofshareswhichtheOptionholderwouldhavereceivediftheOptionhadbeenexercisedbeforetherecorddateforthebonusissue;

(l) ThetermsoftheOptionsshallonlybechangedifholders(whosevotesarenottobedisregarded)ofordinarysharesintheCompanyapproveofsuchachange.However,unlessallnecessarywaiversoftheASXListingRulesareobtained,thetermsoftheOptionsshallnotbechangedtoreducetheExercisePrice,increasethenumberofOptionsorchangeanyperiodforexerciseoftheOptions;

(m) TheCompanyshallnotapplyforlistingoftheOptionsontheASX;and

(n) TheCompanyshallapplyforlistingontheASXoftheresultantsharesoftheCompanyissueduponexerciseofanyOption.

AnnexureB‐DilutionaryeffectoftheissueoftheManzooriMilestoneSharesandtheManzooriOptions

Current FollowingissueofManzooriMilestone

Shares

FollowingissueofManzooriMilestoneSharesand

exerciseofManzooriOptions

Holder Securities

directlyheld

%

directlyheld

Securities

directlyheld

%

directlyheld

Securities

directlyheld

%

directlyheld

CurrentShareholders1,2 887928612 100% 887928612 93.67% 887928612 92.69%

AnooshManzoori3 0 0% 60,000,000 6.49% 70,000,000 7.49%

Totalordinaryshares 887928612 100.00% 947,928,612 100.00% 957,928,612 100.00%

1. ExcludingSharesheldbyAnooshManzoori.

2. AssumesthatnoSharesareissuedotherthanascontemplatedbyResolution1,includingthatnoSharesareissuedonexerciseofexistingOptionsorpursuanttosecuritiesproposedtobeissuedunderResolutions2,3and4.

3. ThenumberofSharesassumesthemaximumnumberofManzooriMilestoneSharesareissuedandthatallManzooriOptionsareexercised.

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SRN/HIN: I9999999999

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Alternatively you can fax your form to(within Australia) 1800 783 447(outside Australia) +61 3 9473 2555

For Intermediary Online subscribers only(custodians) www.intermediaryonline.com

For all enquiries call:(within Australia) 1300 850 505(outside Australia) +61 3 9415 4000

Proxy Form

For your vote to be effective it must be received by 11.00 am (EDST) Monday, 26 February 2018

How to Vote on Items of BusinessAll your securities will be voted in accordance with your directions.

Appointment of ProxyVoting 100% of your holding: Direct your proxy how to vote bymarking one of the boxes opposite each item of business. If you donot mark a box your proxy may vote or abstain as they choose (tothe extent permitted by law). If you mark more than one box on anitem your vote will be invalid on that item.

Voting a portion of your holding: Indicate a portion of yourvoting rights by inserting the percentage or number of securitiesyou wish to vote in the For, Against or Abstain box or boxes. Thesum of the votes cast must not exceed your voting entitlement or100%.

Appointing a second proxy: You are entitled to appoint up to twoproxies to attend the meeting and vote on a poll. If you appoint twoproxies you must specify the percentage of votes or number ofsecurities for each proxy, otherwise each proxy may exercise half ofthe votes. When appointing a second proxy write both names andthe percentage of votes or number of securities for each in Step 1overleaf.

Signing InstructionsIndividual: Where the holding is in one name, the securityholdermust sign.Joint Holding: Where the holding is in more than one name, all ofthe securityholders should sign.Power of Attorney: If you have not already lodged the Power ofAttorney with the registry, please attach a certified photocopy of thePower of Attorney to this form when you return it.Companies: Where the company has a Sole Director who is also theSole Company Secretary, this form must be signed by that person. Ifthe company (pursuant to section 204A of the Corporations Act2001) does not have a Company Secretary, a Sole Director can alsosign alone. Otherwise this form must be signed by a Director jointlywith either another Director or a Company Secretary. Please sign inthe appropriate place to indicate the office held. Delete titles asapplicable.

Attending the MeetingBring this form to assist registration. If a representative of a corporatesecurityholder or proxy is to attend the meeting you will need toprovide the appropriate “Certificate of Appointment of CorporateRepresentative” prior to admission. A form of the certificate may beobtained from Computershare or online at www.investorcentre.comunder the help tab, "Printable Forms".

Comments & Questions: If you have any comments or questionsfor the company, please write them on a separate sheet of paper andreturn with this form.

Turn over to complete the form

A proxy need not be a securityholder of the Company.

www.investorcentre.comView your securityholder information, 24 hours a day, 7 days a week:

Review your securityholding

Update your securityholding

Your secure access information is:

PLEASE NOTE: For security reasons it is important that you keep yourSRN/HIN confidential.

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DEFAULT TO CHAIRMAN OF THE MEETING Any directed proxies that are not voted on a poll at the Meeting willdefault to the Chairman of the Meeting, who is required to vote thoseproxies as directed. Any undirected proxies that default to the Chairmanof the Meeting will be voted according to the instructions set out in thisProxy Form, including where the Resolution is connected directly orindirectly with the remuneration of KMP.

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Change of address. If incorrect,mark this box and make thecorrection in the space to the left.Securityholders sponsored by abroker (reference numbercommences with ‘X’) should adviseyour broker of any changes.

Proxy Form Please mark to indicate your directions

Appoint a Proxy to Vote on Your BehalfI/We being a member/s of First Growth Funds Limited hereby appoint

STEP 1

the Chairman ORPLEASE NOTE: Leave this box blank ifyou have selected the Chairman of theMeeting. Do not insert your own name(s).

or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting, as my/our proxyto act generally at the meeting on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, andto the extent permitted by law, as the proxy sees fit) at the Extraordinary General Meeting of First Growth Funds Limited to be held at Level 6,412 Collins Street, Melbourne, Vic 3000 on Wednesday, 28 February 2018 at 11.00 am (EDST) and at any adjournment or postponement ofthat meeting.

STEP 2 Items of Business PLEASE NOTE: If you mark the Abstain box for an item, you are directing your proxy not to vote on yourbehalf on a show of hands or a poll and your votes will not be counted in computing the required majority.

SIGN Signature of Securityholder(s) This section must be completed.

Individual or Securityholder 1 Securityholder 2 Securityholder 3

Sole Director and Sole Company Secretary Director Director/Company Secretary

ContactName

ContactDaytimeTelephone Date

The Chairman of the Meeting intends to vote undirected proxies in favour of each item of business. In exceptional circumstances, the Chairman of the Meeting maychange his/her voting intention on any resolution, in which case an ASX announcement will be made.

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Resolution 1 Approval to Issue Options and Milestone Shares to Mr Anoosh Manzoori

Resolution 2 Approval to Issue BCG Placement Shares, BCG Placement Options and Underwriting Fee Shares

Resolution 3 Approval to Issue BCG Milestone Shares

Resolution 4 Approval to Issue other Placement Shares and other Placement Options

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Documents

FIRST GROWTH FUNDS LIMITED