Market Update

30 January 2017 NZX Announcement Market Update Lateral Corporation Limited (NZX:LAT) can advise the market that, further to the trading halt placed on its shares on 27 January, it has been made aware of an accounting treatment issue in its financial statements for the year ending 31 March 2015. In March 2014 and immediately prior to listing on the NZAX market, LAT acquired all of the shares of Lateral Profiles Limited (LPL). This was subsequently accounted for in LAT's financial statements as a group restructure. However LAT has now received advice that the transaction should have been accounted for as a reverse acquisition with LPL being identified as the accounting acquirer. While detailed calculations of the effect of this change in accounting treatment are still to be worked through, at this time LAT does not believe there will be any material change to the previously reported financial results. The outcome may be a re-classification in values between the accumulated loss and issued capital values however any changes depend on fair value assessments and these have possibly been covered in earlier accounting entries. Based on the information that LAT has at this time, it considers this to be a technical accounting issue only and, critically, having no impact on trading results or the cash position of LAT. LAT will update the market with full particulars of this issue as soon as it has worked through the full implications of it with its advisers. For and on behalf of the Board. Dene Biddlecombe Executive Chairman Email: dene.biddlecombe@lateralcorp.com Mobile: 027 230 0166 End CA:00296107 For:LAT Type:GENERAL Time:2017-01-30 10:50:33