ANTEOTECH LTD — Interim / Quarterly Report 2012

Oct 30, 2012

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31 October 2012 Company Announcements Office Australian Stock Exchange Level 6, 20 Bridge Street Sydney NSW 2000

Appendix 4C for the quarter ending 30 September 2012 (ASX:ADO) Anteo Diagnostics Limited (ASX : ADO) attaches its Appendix 4C for the quarter ending 30 September 2012.

CEO REPORT - QUARTER ENDED 30 September 2012

Dear Shareholders,

Anteo Diagnostics Limited (ASX:ADO) is pleased to report on its activities for the quarter ending 30 September 2012. This quarter had the following highlights:

• Delivered optimised multiplex products and protocols to Affymetrix for pre-market testing prior to migration of manufacturing to include Mix&Go.

• Commenced discussions with Affymetrix on second product range envisaged to incorporate Mix&Go.

• Successful completion of paid Point of Care project and dispatch of optimised product to sponsor.

• Generation of a series of “ General Guidelines ” and “ SOP ’ s ” (Standard Operating Procedures) for different applications of Mix&Go.

• Developed compelling data set for use with prospective “ microtitre plate ” customers.

• Contributed to ongoing commercial scale assessment of Mix&Go with mid-tier IVD company.

• Commenced activities on nanoparticles.

• Progressed further development of immunoprecipitation product.

• Received notification from European Patent Office that it intends to grant “ Use of Metal Complexes ” patent.

• Attended American Association of Clinical Chemistry (AACC) annual conference in Los Angeles.

• Commenced regular technical newsletter for potential customers and shareholders.

AFFYMETRIX

Anteo is working closely with eBioscience, an Affymetrix company, to assist with and facilitate the rapid migration of a range of relevant tests to include the use of Mix&Go. The first products selected are bead-based immunoassays for use on flow cytometers. In late September we shipped optimised multiplex products to the relevant site for pre-market testing prior to incorporation of Mix&Go into all products within that range of products. Mix&Go was shown to significantly improve the performance of the assays we developed.

Work has commenced on the second product opportunity under the Affymetrix Agreement. The initial data on microtitre plates is sufficiently promising for us to share it with our Affymetrix partners to assist in further scoping out the project.

PAID POINT OF CARE PROJECT I

We are nearing the end of a paid project in the field of “ point of care ” testing. Whilst further improvements remain possible within the assessment period we have already met the primary objective of the project. Our collaboration partners are pleased with what has been developed thus far and they have requested us to send material to two of the groups working on the project for verification of the results.

PAID POINT OF CARE PROJECT II

We are in final discussions with a large IVD company for a paid initial evaluation of Mix&Go for their nanoparticle-based system. Work will commence as soon as the legal documentation has been signed by their lawyers.

GENERAL GUIDELINES AND STANDARD OPERATING PROCEDURES

We currently have 69 Confidential Disclosure Agreements (CDA ’ s) and 61 Material Transfer Agreements in place. There is generally a significant body of work associated with progressing each of these interactions through to a point at which a commercial transaction could realistically result. An approach to reduce the workload on our scientists, that is likely to provide a positive outcome, is the production of General Guidelines to the use of Mix&Go for a range of relevant applications. These General Guidelines, IF FOLLOWED, are likely to ensure positive outcomes using Mix&Go in the hands of those testing it and are expected to

significantly reduce the time required by our scientists to troubleshoot procedures. SOP ’ s provide greater detail and are more tailored to specific needs in individual assessments. We now have about 10 of these documents prepared and currently envisage that we will need a further 10 to cover the most common applications.

MICROTITRE PLATE DATA

Our efforts in this field continue to produce exciting and commercially relevant data. Major benefits are the significant reduction in the time it takes to get a result – less than half the time – reduction in labour required and possible improvements in antibody selection in assay development. In addition, significant cost savings of up to 80% for both biological reagents, such as antibodies, and consumables, such as the plates themselves, have been

Anteo Diagnostics Limited ABN 78 090 487 273 Unit 4, 26 Brandl Street, Eight Mile Plains Qld 4113 Phone 07 3219 0085 Fax 07 3219 0553 Email contact@anteodx.com Web www.anteodx.com

shown. We are commencing discussions with relevant industry players now that our value proposition has clarified.

COMMERCIAL SCALE UP WITH IVD PARTICIPANT

Early work with this group quickly demonstrated to them the commercial benefits of Mix&Go in their portfolio of products. Work commenced on scaling up the successful pilot approach into the commercial environment. This process has encountered some challenges mainly due to a preference to modify the existing manufacturing line as little as possible. We are jointly considering a number of ways in which we might work around these constraints before contemplating the less palatable path that entails modification of the existing production line.

COMMENCED ACTIVITIES ON NANOPARTICLES

We have long believed that some of the more dramatic outcomes that flow from the use of Mix&Go become more obvious with increasing miniaturisation. The clinical testing environment (IVD market) is trending toward the use of smaller particles and, it could

therefore be argued, into our “ sweet spot ” . Miniaturisation allows more tests to be undertaken on smaller quantities of precious clinical samples.

The smallest particles into which we have invested significant resources to date have been the 500nm beads produced by the French firm, Ademtech. We are now generating some

promising early data from particles as small as 10nm (10[−][8] metres) – about the thickness of a bacterial cell wall. This is taking us into virgin territory and is potentially ground-breaking commercially interesting work. One of the largest players in point of care testing is taking a deep interest in the outcomes of this work.

PATENT PORTFOLIO

The company has received a Notice of Allowance for its “ Use of Metal Complexes ” patent from the European Patent Office and this patent is expected to grant shortly.

We have previously announced that a divisional application to this patent was filed with the United States Patent and Trademark Office (USPTO). This divisional patent has now been published and the parent patent has been granted.

Our most recent filing, “ Binding System ” , is now entering the “ national phase ” and we have instructed our patent attorneys on the jurisdictions in which we want to file these cases. We have elected to include China, India and Brazil in the jurisdictions in anticipation of the potential importance of these markets to our future. This patent is intended to offer protection over some of the different surfaces that we are now working with.

IMMUNOPRECIPITATION PROJECT

We have previously reported on some of the challenges we have experienced with this project. I am happy to report that significant progress has been made in this area through the past quarter and we are inching closer to producing a best-in-class product in this field –

Anteo Diagnostics Limited ABN 78 090 487 273 Unit 4, 26 Brandl Street, Eight Mile Plains Qld 4113 Phone 07 3219 0085 Fax 07 3219 0553 Email contact@anteodx.com Web www.anteodx.com

but we are not there yet. We still have unacceptable levels of non-specific binding and, whilst we believe we can successfully minimise it, additional work is required.

MARKETING ACTIVITIES

We will attend Medica, the largest European-based trade show for the IVD (and other health related) industries in Dusseldorf, Germany, in November. Medica will provide us with the opportunity to meet with existing partners and introduce additional, mainly European IVD and life sciences companies, to Mix&Go.

In addition, we are developing a series of marketing documents, e.g. additional one-page overview technical bulletins, and instructional videos which are designed to increase awareness and drive traffic to Anteo ’ s website.

Planning for marketing activities in 2013, e.g. number and type of conferences and trade shows to attend is under way.

CORPORATE

Anteo ’ s cash balance at the end of September was $3.896M and expenditures continue to be in line with our expectations

The feedback we receive from those assessing our technology continues to be universally positive and the results of the assessments, which are mandatorily shared with us, warrant that view. We believe the past quarter has seen us make pleasing progress toward our corporate objectives.

Finally, it is our intention to release our second newsletter toward the end of this week. Interested parties that are not currently on our email distribution list should email contact@anteodx.com to have your details included on our list and to receive this document. These newsletters do contain information that meets the continuous disclosure requirements and in future no announcement will be made when they are issued. They will be available also be available on our website.

Dr Geoff Cumming CEO Anteo Diagnostics Limited

Anteo Diagnostics Limited ABN 78 090 487 273 Unit 4, 26 Brandl Street, Eight Mile Plains Qld 4113 Phone 07 3219 0085 Fax 07 3219 0553 Email contact@anteodx.com Web www.anteodx.com

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity Anteo Diagnostics Limited ACN or ARBN Quarter ended (“currentquarter”)	Name of entity Anteo Diagnostics Limited ACN or ARBN Quarter ended (“currentquarter”)
75-070-028-625	30-Sep-12

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities	Current quarter $A’000	Year to date (3months) $A’000
1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (excluding staff costs relating to R&D) (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.1 Receipts from customers and government grants	11 (429) (142) (114) - (398) - 57 - -	11 (429) (142) (114) - (398) - 57 - -
Net operating cash flows	(1,015)	(1,015)

NOTES:

		Current quarter $A’000	Year to date (3months) $A’000
1.8	Net operating cash flows (carried forward)	(1,015)	(1,015)
1.9 1.11 1.12 1.13 1.10	Cash flows related to investing activities Payment for acquisition of: (a) Businesses (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets Proceeds from disposal of: (a) Businesses (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets Loans to other entities Loans repaid by other entities Adjustment for cash remaining in subsidiary entity at disposal Net investing cash flows	- - - (76) - - - - - - - - -	- - - (76) - - - - - - - - -
		(76)	(76)
1.14	Total operating and investing cash flows
		(1,091)	(1,091)
1.15 1.16 1.17 1.18 1.19 1.20	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other: Conversion of converting notes Interest paid on converting notes Capital raising costs Net financing cash flows	104 - - - - - - -	104 - - - - - - -
		104	104
1.21 1.22 1.23	Net increase (decrease) in cash held Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end ofquarter
		(987) 4,883 -	(987) 4,883 -
		**3,896 **	3,896
NOTES: 1.20

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
		132
		NIL
1.26 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

NIL

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

NIL

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	NIL	NIL
	NIL	NIL

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other-Funds held in trust re. Open Prospectus Offer	3,712	4,758
	184	125
		-
		-
Total: cash at end of quarter(item 1.23)	3,896	4,883

Acquisitions and disposals of business entities

Acquisitions and disposals of business entities
5.1 Acquisition/disposal of subsidiary 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets at date of acquisition/disposal Nature of business 5.5	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act 2001 (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

2 This statement [does] give a true and fair view of the matters disclosed.

Sign here:

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Date: 31 October 2012

(Director)

Print name: Richard Martin