15 March 2012

ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000

Dear Sir / Madam

National Project Update

In accordance with Listing Rule 3.1, find attached a National Project Update for the Watpac Limited Group.

Yours sincerely,

WATPAC LIMITED

Mark Baker

Company Secretary

Watpac is pleased to provide the following update on our key projects.

The completed $108M Nambour General Hospital on Queensland’s Sunshine Coast

WATPAC NATIONAL PROJECT UPDATEMARCH 2012

Construction BPA Biologics Plant of the Future, Brisbane – $21.5MBiopharmaceuticals Australia (BCP) in partnership with DSM Biologics is constructing the BPA Biologics Plant of the Future, located at the Translational Research Institute on the Princess Alexandra Hospital campus at Woolloongabba in Brisbane. Watpac has been contracted to fit-out the six-level building including the warehouse and utilities space, plant space, and offices and laboratories, and to undertake other external works and roofing.

C17A Cargo Compartment Trainer Facility, Amberley – $11MWatpac was recently awarded the contract to deliver the structure and associated services to house a new training facility - the C17A Cargo Compartment Trainer - at the Amberley RAAF base in South East Queensland. The project involves constructing administration storage facilities, maintenance workshops and fencing.

Northern Sydney Institute of Tafe, Sydney – $14.4MWatpac has been engaged by the NSW State Government to deliver a revitalised Dunbar Building at the Northern Sydney Institute of Tafe. Works include designing the refurbishment and adaptive re-use of the building as a major teaching facility accommodating lecture theatres, seminar rooms, teaching rooms and office space.

Master-planning and revitalisation of the surrounding external spaces is also included in the contract.

South Melbourne Market Roof, Melbourne – $4M Watpac has been engaged by the City of Port Phillip to construct a new roof over the South Melbourne Market. The new roof will cover the existing rooftop carpark and will help to waterproof the building. Environmental benefits of the design include solar panels and rainwater collection. Construction is scheduled to begin in April 2012.

Nambour General Hospital, Sunshine Coast – $108MThe project was successfully completed in November 2011 and involved early site works, erecting and completing a new 96-bed ward block and refurbishing existing blocks. Associated works included internal access roads, landscaping, a new waste management area, and relocating solar collectors. The project formed part of the Sunshine Coast and Cooloola Health Service District, Demand Management Strategy established by Queensland Health to meet the increasing demand for health services in the region.

LaTrobe Institute for Molecular Science, Melbourne – $66MThe LaTrobe Institute for Molecular Science will be an iconic new building and a world-class facility for molecular science, biotechnology and nanotechnology research, teaching and learning. The project is being built to achieve a 5-star Green Star rating and includes 11,000m2 space over six floors. Construction is well underway with the structure complete and the façade panel installation progressing well.

Australian Hearing Hub, Sydney – $74.9MThe Australian Hearing Hub will be a world-class facility at Sydney’s Macquarie University, purpose-designed to facilitate collaborative research into hearing and related speech and language disorders. The six-storey building will feature approximately 20,000m2 of net lettable space, and two

levels of basement car parking catering for more than 300 vehicles. Demolition of the existing multi-level car parks is complete and bulk earthworks are progressing well with approximately 45,000m3 (of 50,000m3) excavation undertaken.

University of Queensland Advanced Engineering Building, Brisbane – $105MThe eight-story building will comprise facilities for structural, civil, materials and hydraulics engineers and has been designed to suit the specialised laboratory and teaching needs of teachers and students. Formwork and concrete pouring is well underway with level five nearly complete. The unique composite external window system recently underwent full scale structural and waterproofing testing in the manufacturer’s facility in Thailand.

An artists impression of One Central Park – the landmark first residential stage of the $2B Central Park precinct in downtown Sydney

One Central Park, Sydney – $353MConstruction on One Central Park – stage one of the iconic Central Park development in downtown Sydney – is well underway. The development, which includes residential, retail and commercial space, involves the specialist construction of a cantilevered heliostat positioned 30 levels above ground and extending 32 metres from the edge of the building.

Rue de Chapel, Melbourne – $25.9MThis eight-level development located in Melbourne’s iconic Chapel Street shopping district, will feature approximately 720m2 of prime real estate space with 84 one bedroom and two-bedroom apartments above. The development will retain an existing heritage façade and comprise a new build set back from the street. Construction on this highly-anticipated building is expected to be completed later this year.

Melbourne Park Redevelopment, Melbourne – $112MStage one of the Melbourne Park redevelopment, Eastern Plaza, is on track for completion in early 2013. Works include a new public plaza and gathering place, eight new indoor courts and 13 outdoor courts for elite training and general public use, state-of-the-art lounge areas, change room and coaching facilities, refurbishment and new entries to Hisense Arena, and additional parking and a footbridge linking Melbourne Park to the Melbourne Rectangular Stadium.

Adelaide Airport Landside Infrastructure Project, Adelaide – $73MThis project comprises a five-level multi-deck car park which will provide direct access to the existing Adelaide Airport Terminal One across a pedestrian plaza space and an elevated link bridge. The project is progressing rapidly towards the completion of all structural slabs. The safety performance on this project has been second-to-none, with no Lost Time Injuries in over 300 days worked.

WATPAC NATIONAL PROJECT UPDATEMARCH 2012

Civil and MiningOlympic Park, Melbourne – $7MThe Olympic Park facility has been demolished to make way for a new, state-of-the art sports training facility to be used by the Collingwood Football Club. It will comprise a sports field, two-lane running track and car parking. Watpac has been engaged to deliver civil infrastructure works to the site.

Landsborough Highway, South-West Queensland – $40.2MWatpac has been engaged to reconstruct an 88 kilometre stretch of the Landsborough Highway between Morven and Augathella as a result of recent flooding in the region. Works include road reconstruction, stormwater installation and bulk earthworks. Weather pending, construction is expected to commence in April 2012.

Wyndham Vale South Recreational Reserve, Melbourne – $2.5MWatpac has been awarded the civil infrastructure construction for the new sporting complex at Wyndham Vale South Recreational Reserve. The project will see two football/cricket ovals developed in the area. Works comprise bulk earthworks, installation of drainage and irrigation systems, fencing and gates, footpaths, and sports furniture including goal posts, coaches’ boxes and cricket wickets.

Mt Abundance Road, South-West Queensland – $4.9MAs a result of flooding, Watpac was engaged by the Maranoa City Council to reconstruct the 40 kilometre Mount Abundance Road near Muckadilla in South West Queensland. Works include road reconstruction, stormwater drainage and minor earthworks. Works have progressed to schedule with the project due for completion in May 2012.

Roof trusses being installed at Brisbane’s ground-breaking Translational Research Institute

Translational Research Institute, Brisbane – $202M Watpac is building the Translational Research Institute (TRI) located at the Princess Alexandra Hospital in Woolloongabba, Brisbane. TRI will bring four of the country’s pinnacle research facilities together with the aim of improving and accelerating medical research and translating that research into greater patient care. The TRI will allow – for the first time in Australia – biopharmaceuticals and treatments to be discovered, produced, clinically tested and manufactured in one location.

Construction on the 32,000m2 building is progressing well with 80 per cent of the external façade now complete. The internal fit-out is well progressed with final finishes being applied to levels one to four. Services commissioning is scheduled to commence at the end of March 2012.

Pajingo Gold Mine, Charters Towers – $11.5MWatpac is operating the Janet A open pit mining area, which is located at the Pajingo Gold Mine, approximately 70 kilometres south of Charters Towers. Watpac is overseeing all facets of mining operations including drilling and blasting. The project involves extracting approximately 950,000 bcm of gold bearing iron ore and waste for processing.

Works are progressing at the Pajingo Gold Mine, near Charters Towers

WATPAC NATIONAL PROJECT UPDATEMARCH 2012

Mt Magnet Gold Mine, Western Australia – $207M Established in the 1890s gold rush, Mount Magnet is a long established gold mine located in the heart of Western Australia. Watpac is pleased to be a part of this historic mine site working with Ramelius Resources to re-establish the Galaxy Tenements as open cut mines. The mines will produce 24 million

An artists impression of Griffith University’s library extension and GUMMURRI Centre

BCM out of five pits over five years. Watpac is providing drill and blasting services, iron ore loading and haulage, and crusher feeds.

Nullagine Mining Project, Pilbara – $289MNullagine mine site is located in the heart of Western Australia’s Pilbara region. Watpac is delivering surfacing mining services for BC

Iron including loading and haulage of ore and waste, mobile and fixed crushing, topsoil and vegetation relocation, and road construction and maintenance. Watpac is regularly exceeding monthly production targets on the project which is increasing to in excess of 300,000 tonnes per month.

Specialty ServicesGriffith University Library and GUMURRII Centre, Gold Coast – $16.5MThis project, spanning 5,800sqm, will see the development of an iconic building in the heart of the Griffith University’s Gold Coast campus. It will house the GUMURRII Centre, a student support unit for indigenous students and staff. The project also extends the existing library to provide for the new school of architecture and the university’s medical and oral heath facilities, which have all been relocated to the Gold Coast.

Griffith University International Building, Gold Coast – $25MWatpac was proud to deliver a new five story building to house the Griffith English Language Institute and the Queensland Institute of Business and Technology in December 2011. The building, known as the International Building, includes a 150 seat lecture theatre, over 42 seminar spaces, two independent learning centres, two specialist exam rooms and a dedicated administration floor.

WATPAC LIMITEDLEVEL 1, 12 COMMERCIAL ROAD NEWSTEAD QLD 4006TEL: 07 3251 6300

WATPAC NATIONAL PROJECT UPDATEMARCH 2012

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mining construction services win for the Specialty Services division, which specialises in construction techniques that work in and around busy operational or construction environments.

The fencing contract involves the construction of a 72 kilometre rural fence and a 16 kilometre security fence. Construction is expected to commence in March 2012.

The contract win is strategically important for Watpac Specialty Services as it realigns its business to take advantage of opportunities in the resources sector.

Watpac Specialty Services has a strong reputation for delivering refurbishments and specialised construction outcomes for the food processing industry. The business is now focused on building its capability in the resources sector with the workbook expected to increase in size over the coming years.

Caval Ridge Mine, Bowen Basin – $2.3M Watpac has been selected as the preferred contractor to construct an 88 kilometre site perimeter fence at the Caval Ridge Mine in the Bowen Basin. The contract is the first