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                           BARBEQUES GALORE LIMITED

                            AUDIT COMMITTEE CHARTER

   The Audit Committee ("the Committee") of the Board of Directors ("the
Board") of Barbeques Galore Limited ("the Company") shall comprise not less
than 3 (three) members of the Board, a majority of whom shall be non-executive
directors and a quorum will be 2 (two).

   The Chairman of the Committee shall be a non-executive director of the
Company, elected by the Committee and confirmed by the Board. Members of the
Committee shall be appointed for an initial 3 (three) year term of office
whereafter their appointment may be subject to annual rotation. Other Board
members, management, staff, external auditors and related organizations may
attend by invitation of the Chairman.

   The Committee is empowered to examine any matters as it considers
appropriate relating to the financial affairs of the Company and its controlled
entities and to internal and external audit issues. In addition, the Committee
shall examine any other matters referred to it by the Board.

   The duties and responsibilities of the Committee include (but are not
restricted to), the undermentioned:

..   Reviewing:

   (i) financial statements to ensure they are presented in conformity with
       Generally Accepted Accounting Principles in all material respects, based
       on discussions with management and the external auditors and in
       compliance with the Board's statutory responsibilities, prior to
       submission to the Board for approval;

  (ii) financial statements and other financial information, as appropriate,
       which are released externally;

 (iii) the scope and effectiveness of the internal audit plan and, in
       consultation with management and the external auditors, initiating
       changes to the programme as appropriate;

  (iv) reports prepared by the external auditors and generally assisting and
       interacting with the external auditors, to enable them to discharge
       their duties in the most efficient and cost-effective manner;

   (v) accounting and administration policies;

  (vi) policies to avoid any potential conflicts of interest (including past
       and/or proposed transactions) between the Company and management; and

 (vii) related third party transactions, including appropriate disclosure in
       the financial statements as required by prevailing legislation.

..   Monitoring:

   (i) the establishment of an appropriate internal control framework
       (including information technology systems), together with on-going
       enhancements thereto;

  (ii) activities of the internal audit department (including consultation with
       the external auditors and discussion with management), as to scope and
       quality of internal accounting and financial controls currently in place;

 (iii) corporate risk assessment vis-a-vis the internal controls instituted; and

  (iv) procedures in place to ensure compliance with The Corporations Law,
       Securities and Exchange Commission, Nasdaq and any other legislative
       requirements.

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   Ultimate authority and responsibility to select, evaluate and where
appropriate, replace the external auditors, rests with the Committee. The
Committee shall also be responsible for ensuring:

   (i) receipt from the external auditors, of a formal written statement,
       delineating all relationships between the auditors and the Company,
       including any relationships or services that may impact the objectivity
       and independence of the auditors;

  (ii) discussions with the external auditors, relating to judgements as to
       quality and not only acceptability, of the Company's accounting
       principles as applied to financial reporting; and

 (iii) independent professional advice is sought as and when it considers such
       action necessary and/or appropriate, including recommendations in
       consequence thereof, to the Board.

   The Committee shall have the authority to seek any information it requires
from any officer or employee of the Company and its controlled entities and
shall report its findings and recommendations to the Board after each meeting
but shall have no executive powers with regard to any such findings and
recommendations.

Secretarial and meetings:

   The Company Secretary shall be appointed secretary of the Committee and, in
conjunction with the Chairman, shall draw up an agenda to be circulated at
least one week prior to each meeting to the members of the Committee and the
external auditors.

   Meetings shall be held at least four times a year.

                                                          Dated: 4 January 2001

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