AML3D LIMITED — Capital/Financing Update 2020

Apr 19, 2020

The Future of Large 3D Metal Printing

ASX Release 20 April 2020

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ASX CODE: AL3

CORPORATE UPDATE

CAPITAL STRUCTURE

Share Price (IPO) $0.20 Shares on Issue 132m Market Capitalisation $26m

MAJOR SHAREHOLDERS

HIGHLIGHTS

• AML3D raises A$9m with strong institutional support including cornerstone institutional investor Perennial Value Management (5.3% shareholder) facilitating an oversubscribed IPO and debut on the Australian Securities Exchange

• AML3D is progressing well with major Singaporean customers:

Andrew Sales 30.0% Perennial Value Mgmt 5.3% Global Asset Solutions 5.3%

• Panama Chock (1400kg) delivered to Keppel Corporation (SGX: BN4) in January with potential for significant future orders

• First Arcemy® unit to be delivered to ST Engineering (SGX: S63) under ‘rent to buy’ agreement

BOARD & MANAGEMENT

Stephen Gerlach AM Non-Executive Chairman

Andrew Sales Managing Director

Sean Ebert Executive Director

Kevin Reid Non-Executive Director

Len Piro Non-Executive Director

Christine Manuel Company Secretary

CONTACT

T: +61 8 8258 2658 E: investor@aml3d.com

• W: www.aml3d.com

A: 12-14 Pentland Road Salisbury South SA 5016

P: PO BOX 4101 Tranmere SA 5073

• Industry leading certifications and strong cash position (~A$10m) provide a strong foundation to fulfil the industry demand for the Company’s innovative Wire Additive Manufacturing (‘WAM®’) technology

• Further updates on customer activities to follow

As a response to significant interest from shareholders and interested investors, AML3D Limited (“AML3D” or “the Company”) (ASX:AL3) is pleased to provide an update on key customers referred to in its Prospectus. AML3D is to be listed on the ASX at 11am (AEST) today, 20 April, 2020.

UPDATE - PANAMA CHOCK FOR KEPPEL CORPORATION LIMITED

AML3D recently finalised construction and completed internal testing of a 3D printed Panama Chock for a Singaporean customer, Keppel Corporation Limited (“Keppel”). This Panama Chock, used in maritime applications, was delivered in January 2020 under a paid trial purchase order aiming to assess suitability for more significant future production volumes. The part, which was the subject of successful in-house testing, will now undertake third party checks, the results of which will are expected to be made available to AML during May.

Keppel is a leading Singapore listed company with a market capitalisation of ~A$11bn and revenues in excess of A$8.5bn (FY19). The Keppel group has a large marine division that specialises in the design and development of a wide spectrum of specialised vessels. In addition to ship building, Keppel is a leading ship repairer, with expertise to undertake the entire spectrum of repair and modification work for a diverse range of vessels including tankers, containerships, dry cargo, cruise ships, gas carriers, livestock carriers and offshore support vessels.

AML3D is discussing terms for a further order of Panama Chocks for Keppel. The Company believes that its ability to promptly deliver an array of large, high-quality, custom components required for ship building, repair and modification at a competitive price and significantly shorter lead time is potentially of great value to Keppel.

ABN: 55 602 857 983

ASX Release 20 April 2020

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The above is provided in the nature of a corporate update and was not considered of itself to be material for disclosure in the prospectus or supplementary disclosure after the prospectus was lodged.

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Figure 1 - Panama Chock printed using AML3D’s proprietary WAM® process offers more than 1.5 times the strength of a cast version

ARCEMY ® RENT TO BUY AGREEMENT WITH ST ENGINEERING

AML3D expects to deliver its first Arcemy[®] 3D printing module (figure 2) to Singapore Technologies Engineering Ltd (“ST Engineering”) during May 2020 under a “rent to buy” agreement. Originally slated to be installed by the end of March, logistics challenges due to regulatory changes around COVID-19 in Singapore have resulted in ST Engineering requesting an amendment to the delivery date until mid May to ensure its relevant staff are in a position to assist. Arcemy units are AML3D’s proprietary, stand-alone 3D printing systems designed to be supplied as a ‘turn-key’ solutions in a range of industries including the defence, maritime, mining and oil and gas sectors.

ST Engineering is a Singapore listed technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. ST Engineering is one of the largest groups listed on the SGX with a market capitalisation in excess of A$10bn and reported revenue of $7.86b in FY2019, making it one of Asia’s largest defence and engineering groups.

The agreed pricing is commercial in confidence and reflects that AML3D will retain the right to use 50% of the Arcemy[®] module’s capacity through the ‘rent to buy’ period to produce products for other customers as part of the Company’s plans in establishing its Singapore presence.

ST Engineering has paid a non-refundable deposit equal to approximately 15% of the contract value with a further 30% payable on delivery of the Arcemy[®] printing module for installation at ST Engineering’s premises. A final payment equal to the balance of the contract is payable on formal handover of ownership of the module at the end of the rental period, subject to meeting performance requirements and ST Engineering taking up the ownership option.

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ASX Release 20 April 2020

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The above is provided in the nature of a corporate update and was not considered of itself to be material for supplementary disclosure after the prospectus was lodged.

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Figure 2 – Computer generated image of AML3D’s Arcemy® Module

AML3D’s managing director Andrew Sales said , “We are very excited about the potential our Singaporean customers present, providing a strong foundation for our upcoming Singaporean facility. Interest from customers not only highlight the capacity of our innovative technologies but validate our experienced and well-equipped team’s ability to negotiate and execute deals with blue-chip global companies.”

COMMENTS ON COVID-19

AML3D is pleased to report that they have been effective in managing operational challenges presented around COVID-19 at its Adelaide facility. We have actively deployed measures to ensure the safety of all staff whilst maintaining our ability to manufacture products on time.

To ensure safety of all our staff and counterparts, we are following appropriate guidelines ensuring hygiene is maintained to the highest degree whilst significantly limiting close proximity contact. For the time being, travel has been postponed, providing no material impediment to date in terms of sales and marketing efforts. AML3D is working collaboratively with customers who are based overseas to minimise the impact of logistics and supply chain constraints as a result of COVID-19.

The Company is moving forward in manufacturing products to a wide range of customers and expects to update the market on progression of these activities in the near term. The flexible nature of AML3D’s WAM® technology has resulted in continued enquiry during this current situation which is demonstrative of the need for stand-alone, high-quality and cost-effective advanced manufacturing solutions that are not reliant on long lead supply chains from overseas.

ABOUT THE AML3D INITIAL PUBLIC OFFERING

The Company’s A$9m Initial Public Offering resulted in a significant cornerstone investment from Perennial (5.3% shareholder) and exceptional support from additional domestic and international institutional, sophisticated and retail investors, closing oversubscribed. Foster Stockbroking acted as Lead Manager, Adelaide Equity Partners as Corporate Advisor and Steinepreis Paganin as legal adviser to the Company’s IPO.

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ASX Release 20 April 2020

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AML3D’s managing director Andrew Sales said: “ We would like to welcome all new AML3D shareholders and express our thanks for the exceptional support we received for the IPO. Transforming to a publicly listed company signifies a momentous event for AML3D, facilitating the acceleration of our commercialisation pathway to meet the strong interest built in our technology established over the past twelve months. We are confident our positive momentum will continue as we remain focussed on delivering a customer value proposition through the rapid build and deployment of large-scale 3D printed metal components.”

This announcement has been authorised for release by the Board of AML3D.

For Further Information please contact:

Andrew Sales Duncan Gordon Simon Hinsley Managing Director Executive Director Director AML3D Limited Adelaide Equity Partners NWR Communications T: +61 8 8258 2658 T: +61 404 006 444 T: +61 (0) 401 809 653 E: investor@aml3d.com E: dgordon@adelaideequity.com.au E: simon@nwrcommunications.com.au

About AML3D Limited

AML3D Limited is an Australian public company incorporated on 14 November 2014 and currently operate out of its Adelaide Contract Manufacturing Centre. The Company specialises in providing commercial large-scale metal 3D printing services to defence, maritime, aerospace and resources customers. The Company has commercialised its technology under the trademark WAM[®] and proprietary software WAMSoft[®] which combines metallurgical science and engineering design to fully automate the 3D printing process utilising advanced robotics technology.

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