4DS MEMORY LIMITED — Capital/Financing Update 2017

Feb 19, 2017

4DS Memory Limited | ABN 43 145 590 110 Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271, West Perth WA 6872

+61 8 6377 8043 | info@4dsmemory.com | www.4dsmemory.com

==> picture [52 x 37] intentionally omitted <==

ASX RELEASE

20 February 2017

TECHNICAL UPDATE

• 4DS is now in the process of collecting metrics on the four key characteristics required for potential Storage Class Memory applications: small memory cell geometries, cycling endurance, data retention and access speed

• Additional analysis shows cycling endurance now well in excess of 100,000

• Initial data retention measurements look encouraging

• Patented technology demonstrates potential for 4DS to deliver memory cells which are significantly faster, cheaper and more energy efficient

• Targeting US$40 billion global market

4DS Memory Limited (ASX:4DS) ( 4DS ) (the Company ) today announced it has completed analysis of cycling endurance and data retention, and is initiating access speed testing for its Interface Switching resistive random access memory ( IS ReRAM) cells.

1. 40nm Geometries

In October 2016, 4DS announced it had successfully developed and tested 40 nanometre IS ReRAM cells.

This milestone was a significant breakthrough as it represents a digital memory cell size which is smaller than the current large scale volume production sizes of existing non-volatile memory technology.

2. Cycling Endurance

Cycling Endurance – defined as how often the state of a memory cell can be changed without failure – is an important characteristic relevant to global non-volatile memory manufacturers in the US$40 billion market and for any future Storage Class Memory product.

In December 2016, 4DS reported it was able to demonstrate endurance on a number of cells with results well in excess of 10,000 cycles per cell.

Optimisation of cycling endurance continues to make good progress.

Additional analysis has now shown that cycling endurance for a limited number of cells of difference cell sizes is now well in excess of 100,000 cycles. During this process cell currents were measured after each state change to ensure correct memory operation, further demonstrating the Company has working memory cells at significantly higher cycling endurance levels.

3. Data Retention

Data retention is how long a memory cell can reliably retain its data without power.

The initial data retention measurements are promising for the Storage Memory Class segment that 4DS is targeting and the Company will continue to improve its technology to meet this target.

Page 1 of 3

4DS Memory Limited | ABN 43 145 590 110 Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271, West Perth WA 6872

+61 8 6377 8043 | info@4dsmemory.com | www.4dsmemory.com

==> picture [52 x 37] intentionally omitted <==

4. Access Speed

Access speed is how fast the state of a memory cell can reliably be changed or read and is a focus area for optimisation.

The Company has defined a robust development plan to meet the specifications required for Storage Class Memory.

All four characteristics vital for Storage Class Memory show encouraging data results

In order to validate and demonstrate commercial viability of a particular storage technology, all memory developers follow a very specific development process.

During this multi-step process, memory cells are scaled down, then tested for cycling endurance, data retention and access speed – essential characteristics for a functional memory technology.

In addition, the memory cell architecture and manufacturing process is continually being optimised to achieve the targeted goals for these metrics.

The goals for cycling endurance, data retention and access speed may be different for different sub-segments of the vast space between DRAM and NAND Flash, which is called Storage Class Memory.

4DS’ Interface Switching ReRAM technology has now demonstrated that it is making significant advances in all areas.

2017 Outlook

Commenting on the outlook for 2017, Dr Arnout said, “The Company continues to make important breakthroughs in characteristics such as cycling endurance, data retention and access speed and we look forward to informing shareholders of further technical developments, aimed at demonstrating commercial viability for Storage Class Memory, as they occur.”

ENDS

Contact information

Investors: David McAuliffe Media: Harrison Polites 4DS Memory Media & Capital Partners +61 408 994 313 +61 409 623 618 david@4dsmemory.com harrison.polites@mcpartners.com.au

About 4DS

4DS Memory Limited (ASX: 4DS), with facilities located in Silicon Valley, is a semiconductor development company of non-volatile memory technology, pioneering Interface Switching ReRAM (Non-Filamentary ReRAM), for next generation gigabyte storage. Established in 2007, 4DS owns a patented IP portfolio, comprising 17 US patents granted and 6 patents pending, which has been developed in-house to create high density Storage Class Memory. 4DS has a joint development agreement with Western Digital subsidiary HGST, a global storage leader, which accelerates the evolution of 4DS’ technology.

For more information, please visit www.4dsmemory.com.

Page 2 of 3

4DS Memory Limited | ABN 43 145 590 110 Level 2, 50 Kings Park Road, West Perth WA 6005 PO Box 271, West Perth WA 6872

+61 8 6377 8043 | info@4dsmemory.com | www.4dsmemory.com

==> picture [52 x 37] intentionally omitted <==

Disclaimer

This release contains certain forward looking statements that are based on the Company’s management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of 4DS to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which 4DS will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, 4DS and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this release (including, but not limited to, any assumptions or expectations set out in the release).

You should not place undue reliance on these forward- looking statements. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward- looking statements.

Page 3 of 3