Chair's Address to Shareholders

• SDI is holding a Scheme Meeting to determine the future of the Company
• SDI Board recommends shareholders vote in favor of the Scheme
• Scheme is conditional on shareholder approval and Court approval

SDI Ltd is holding a Scheme Meeting to decide on the proposed acquisition by Sinocera. The scheme involves Bidder acquiring 100% of SDI's issued share capital for A$1.40 per share. The SDI Board recommends shareholders vote in favor of the scheme as no superior proposal has emerged. The scheme is conditional on shareholder approval at the meeting and subsequent court approval. The timetable for implementation is contingent on these conditions being met.