NOTICE OF INTENTION TO APPLY TO THE FEDERAL COURT FOR CONFIRMATION OF A SCHEME FOR THE TRANSFER OF THE GENERAL INSURANCE BUSINESS OF POSEIDON INSURANCE CO PTY LTD TO GORDIAN RUNOFF LIMITED UNDER DIVISION 3A OF PART III OF THE INSURANCE ACT 1973 (CTH).

TAKE NOTICE that Gordian RunOff Limited ABN 11 052 179 647 (GRO) intends to make an application to the Federal Court of Australia in Sydney at 9:30am on 6 June 2016, or on such later date or time as the Court appoints, for confirmation of a scheme to transfer all of the general insurance business of Poseidon Insurance Co Pty Ltd. ABN 25 000 162 649 (Poseidon) to GRO (the Scheme).

GRO is a company incorporated in Australia, regulated under the Corporations Act 2001 (Cth) and authorised under the Insurance Act 1973 (Cth) (the Act) to carry on general insurance run-off business in Australia. Poseidon is a body corporate authorised under the Act to carry on general insurance run-off business in Australia.

Persons who are insured under insurance contracts written by Poseidon (Affected Policyholders) may attend the Court hearing and request to be heard by the Court on the application for confirmation of the Scheme. The hearing will be held at the New South Wales Registry of the Federal Court of Australia. Any holder of a Policy who wishes to appear before the Court or wishes to object to the terms of the Scheme, is requested to advise the solicitor for GRO, Mark Kimberley of HWL Ebsworth, Level 14 Australia Square, 264-278 George Street, Sydney Australia (p: +61 2 9334 8793 or e: mkimberley@hwle.com.au) at least seven days prior to the hearing date specified above.

Affected Policyholders are not required to take any action if they have no objection to the Scheme.

A copy of this notice, the Scheme, a summary of the Scheme and the report by Sandra O'Sullivan of Enstar Australia Limited dated November 2015(the Report) upon which the Scheme will be based (the Scheme Documents), will be available for public inspection between the hours of 9.00am and 5.00pm (local time) every day (except weekends and public holidays) for the period commencing on 9 May, 2016 through to 27 May 2016 (inclusive) at:

(a)                the offices of GRO at level 9, 220 George Street, Sydney NSW 2000; and

(b)                the offices of HWL Ebsworth at Level 26, 530 Collins Street, Melbourne VIC 3000

Any policyholder of Poseidon or GRO may obtain a copy of the Scheme Documents free of charge by contacting Vu Pham on +61 2 8062 4237 or by email at vu.pham@enstargroup.com.au.

If you have any other enquiries you may contact Mr Pham at the contact details referred to above.

A copy of the Scheme Documents can be viewed during the period set out above at the following website    www.enstardivision3a.com.au/Poseidon

We recommend that each holder of a Policy obtain and review both the Scheme and the Report, each of which contains a discussion of the impact of the Scheme on policyholders.

THIS NOTICE HAS BEEN PREPARED BY Gordian RunOff Limited ABN 11 052 179 647

Dated: 29 April 2016