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| 1.   | The preamble hereto forms an integral part of these presents. |
|----------------|---------------------------------------------------------------|

| 2.   | As full consideration for settlement of all claims and obligations against SITO, TC accepts a total amount of Seven Hundred Twenty Three Thousand Six Hundred Eighty Four (723,684) restricted Common Shares of SITO) as full and final settlement of all claims and obligation; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   |  In consideration of the cancellation of any Claims between the parties, the receipt and sufficiency of which being hereby acknowledged, Creditor for himself, his successors and assigns hereby grants a full and final release and discharge to SITO and to each of its agents, directors, officers, shareholders, employees, representatives, affiliates, subsidiaries, insurers, trustees, successors, assigns, and legal representatives, from any and all demands, claims, actions, causes of action, proceedings, losses, damages, charges and expenses, of any kind or nature whatsoever, past present or future including principal, interest accrued or to accrue and costs, in connection with or in any way relating to or arising out of the facts alleged in the above-mentioned declaration; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Consequently, TC hereby consents to hold harmless SITO from any and all demands, claims, actions, causes of action, proceedings losses damages, charges and expenses including principal and interest accrued or to accrue and costs to which they may be subjected to and which results from any claim or action instituted by Creditor in connection with aforesaid matters; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | TC will provide further assurances and provide any necessary information or documentation to implement this settlement and also provide any confirmations requested related to settlement of TC claims. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | It is understood that the present settlement does not in any way constitute an admission of liability on the part of any party to the agreement and that it has been entered into for the sole purpose of terminating any and all Claims between the parties amicably and avoiding costs and expenses in connection therewith; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | TC hereby declares that it has read the foregoing Release, Discharge and Transaction and understands and know the contents thereof and that it contains the entire agreement between TC and SITO, having been advised by legal counsel prior to signing same; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ted Cooper |                                                            |
|--------|------------|-----------------------------------------------------------------|
|   |       |                                                            |   |
|   |       |                                                            |   |
|   |       |          /s/ Ted Cooper |   |
|   | By:        |                                                            |   |

|   | Single Touch Systems, Inc. |                                                             |
|--------|----------------------------|------------------------------------------------------------------|
|   |                       |                                                             |   |
|   |                       |                                                             |   |
|   |                       |          /s/ Anthony Macaluso |   |
|   | By:                        | Anthony Macaluso                                                 |   |
|   |                       | President                                                        |   |

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