Notification of Issue of Securities

Synlait Milk Limited (SML) has today issued 134,582 Performance Share Rights (PSRs) as further set out in the NZX Allotment Notice and the Appendix 3B. SML notes that 121,997 PSRs have lapsed between the issue of this tranche of PSRs and the last tranche on 3 November 2017 in accordance with the rules of the employee share scheme. For the purposes of Listing Rule 7.12.1 of the NZX Main Board/Debt Market Listing Rules, Synlait Milk Limited (SML) advises that the following securities, convertible into quoted ordinary shares, have been issued: a. Class of security. Performance Share Rights (PSR). ISIN. N/A b. Number issued. 134,582 c. Issue price. PSRs are issued for nil consideration d. Payment in cash. N/A e. Amount paid up. N/A f. Principal terms of PSRs. Each PSR converts on a 1:1 basis for nil consideration into fully paid ordinary shares, subject to the participant remaining employed and vesting of PSRs on a progressive scale dependent on SML's TSR and EPS growth over a 3 year vesting period. Vesting is also subject to pro-rata scaling if the total value of all PSRs vesting in a given calendar year exceeds 5% of the increase in market capitalisation over the vesting period. PSRs are non-transferable and have no voting or other share rights and are otherwise subject to the rules of the SML Employee Share Scheme and individual award agreements. g. Percentage of class of securities. 34.97% h. Reason for issue. Issue of PSRs under the SML Employee Share Scheme as part of employee remuneration I. Authority for issue. Resolution of the Board and Listing Rule 7.3.6. j. Terms of issue. The grant of PSRs is made under the SML Employee Share Scheme as part of employee remuneration. No cash consideration is payable by the employee on the grant of PSRs or on the issue of fully paid ordinary shares following vesting of PSRs. As noted above, vesting of PSRs is subject to certain performance hurdles and pro-rata scaling. k. Total number of securities of the class in existence after the issue. 519,424 l. Treasury stock. N/A m. Date of issue. 17 December 2018 End CA:00328526 For:SML Type:SECISSUE Time:2018-12-17 15:27:28