ANTEOTECH LTD — Interim / Quarterly Report 2012

Jul 30, 2012

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

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

CEO REPORT - QUARTER ENDED 30 June 2012

Dear Shareholders,

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

• Liaising with eBioscience with to ensure rapid uptake of the use of Mix&Go

• Allowance of Generation of Surface Coating Diversity patent in the US

• Filing of divisional application for Use of Metal Complexes patent in US

• Presentations on our technology and the investment opportunity offered by our company in a range of domestic and international forums

• Addressed “non specific binding” identified in immunoprecipation studies with major collaborator

• Development of a universal protein conjugation kit for use on nanospheres (beads)

• Progressed studies on Point of Care applications for Mix&Go

eBIOSCIENCE

Anteo is working closely with eBioscience to assist with and facilitate the rapid migration of all relevant tests to include the use of Mix&Go. In the first instance this will be bead based immunoassays for use on flow cytometers. Work has also commenced on plate based applications and technical discussions on a range of novel applications have been held.

On 25[th] June eBioscience was acquired by Affymetrix, Inc a company that develops, manufactures and sells products and services for genetic analysis to the life science research and clinical healthcare markets. Included in the Affymetrix product range are many assays for which Mix&Go is likely to demonstrate benefit. Discussions surrounding these issues are currently in train. In consequence it is expected that the Affymerix acquisition of eBioscience will provide revenue opportunities beyond

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

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those originally anticipated by Anteo. We expect these revenues opportunities to become increasingly apparent through the course of the current financial year.

PATENT PORTFOLIO

The company has received a Notice of Allowance for its Generation of Surface Coating Diversity patent from the United Stated Patent and Trademark Office (USPTO). This patent covers the intellectual property that led to the discovery of Mix&Go. Its granting will ensure that the process used to identify Mix&Go cannot be copied in the US market and will provide Anteo with the freedom to use the same approach for the identification of new “glues” in a broad range of other sectors and industries.

Under normal circumstances the USPTO would be expected to grant the “Generation of Surface Coating Diversity” patent within three months of issuance of the Notice of Allowance.

A divisional application on the “Use of Metal Complexes” has been filed with the USPTO. The US specification of the divisional application has not been published yet and, as a result, the USPTO database does not currently show a record of this filing.

COMPANY PRESENTATIONS

Over the period since my last report presentations have been delivered at a range of conferences:

• In May at the AusMedtech Annual Conference in Sydney

• In June at the Australian Life Siences Investment Showcase in New York and

• In June at the Bio International Conference in Boston. In addition, at this meeting, we were associated with the “Australian Pavillion” and had the opportunity to progress existing collaborations with a number of companies and introduce our technology to many new, interested, parties.

• In July at the AACC Annual Meeting and Clinical Lab Expo in Los Angeles, where we expanded our presence and had a booth manned by 5 staff.

”NON_SPECIFIC BINDING” IN IMMUNOPRECIPITATION

Immunoprecipitation is a technique that is used to separate a particular protein from a mixture of proteins. We are working with one of the market leading companies in this segment to develop an improved product. Early studies indicated that, if we could eliminate non-specific binding, results using our prototype products would be greatly enhanced. As was mentioned in our last quarterly report our scientists have been working on finding solutions to this problem.

We have developed a range of non-protein “blockers” specifically designed to bind to (block) any unreacted Mix&Go sites making them unavailable to bind any unwanted material. In addition, we

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

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have developed methods to prevent binding of unwanted material to the underlying surface – often a magnetic bead. Using a combination of these two approaches we believe we have now greatly improved our prototype immunoprecipitation product.

DEVELOPMENT OF A “UNIVERSAL” PROTEIN CONJUGATION KIT

The work we undertook over the past few years with some of the major in vitro diagnostic (IVD) companies has highlighted the concerns amongst assay developers for non-specific binding. As mentioned above we have developed solutions to this industry wide issue, some of which are specific to Mix&Go and others are more general.

This work has also led to many refinements to our coupling approach, all developed with the intention of improving outcomes when using Mix&Go. These new “blockers”, “quenchers” and enhanced protocols are now being assessed by interested global IVD companies. An outcome of this work is that we can now offer a “universal” protein conjugation kit for companies to more quickly determine the benefits of Mix&Go. It is our belief that these assessments can occur with considerably less involvement from us than has been necessary to date. We believe this kit will be of widespread interest to the Life Science sector.

POINT OF CARE APPLICATIONS FOR MIX&GO AND ITS USE ON OTHER SURFACES

Anteo scientists have undertaken a great deal of work to develop improvements in Point of Care (POC) testing that incorporate Mix&Go. Traditionally, POC testing has involved the lateral flow of solutions along membranes – often nitrocellulose. As a consequence of our recent work we believe Mix&Go can positively influence outcomes in this environment. An outcome from this work on POC applications is that several major players now share this belief and are engaging with us to further examine whether Mix&Go might assist them to overcome their specific technical issues.

There are numerous “next generation” POC devices that are currently in development many of them involving biosensors. We are working closely with a number of these companies and generating what appears to be very exciting data. These projects are long term and it is likely to be some time before the final testing, registration and sale of these devices necessary for us to achieve significant revenues will be complete. More modest revenues from Research and Collaboration Agreements and Technology Access Fees are, however, possible.

As has previously been mentioned there is a body of work being undertaken on microtitre plates. This work demonstrates the ability of Mix&Go to convert a low cost plate into one that performs as well as premium quality (and cost) plates. This data is of great attraction to many of the parties with whom we have made contact at Oak Ridge, Bio and AACC.

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

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CORPORATE

Anteo’s cash balance at the end of June was $4,883,176. For the year to June we were pleased to expand operational capability and yet maintain a cost regime within Board approved parameters. Given our future expenditure estimates this sum is believed to be sufficient to meet our needs through to the end of March 2014 in the absence of additional revenues. The activities outlined above enhance our expectations of revenues before that time.

We continue to be pleased with the progress Anteo is making and heartened by the progress we are making in market segments that are relatively new to us. We remain frustrated by the time it takes to reach definitive agreements but remain optimistic about likely outcomes.

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-Jun-12

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities	Current quarter $A’000	Year to date (12 months) $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	149 (477) (105) (119) - (213) - 62 - -	1,208 (1,660) (371) (462) - (1,043) - 401 (2) -
Net operating cash flows	(703)	(1,929)

NOTES:

		Current quarter $A’000	Year to date (12 months) $A’000
1.8	Net operating cash flows (carried forward)	(703)	(1,929)
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	- - - (38) - - - - - - - - -	- - - (109) - - - - - - - - -
		(38)	(109)
1.14	Total operating and investing cash flows
		(741)	(2,038)
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	4 - - - - - - -	58 - - - - - - -
		4	58
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
		(737) 5,620 -	(1,980) 6,863 -
		**4,883 **	4,883
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
		219
		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	4,759	5,492
	125	128
		-
		-
Total: cash at end of quarter(item 1.23)	4,883	5,620

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:

Date: 31 July 2012

(Director)

Print name: Richard Martin