ANTEOTECH LTD — Interim / Quarterly Report 2013

Oct 29, 2013

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30 October 2013 Company Announcements Office Australian Stock Exchange Level 6, 20 Bridge Street Sydney NSW 2000

Anteo Diagnostics Limited (ASX : ADO) attaches its Appendix 4C for the quarter ending 30 September 2013.

CEO ACTIVITIES REPORT – QUARTER ENDED 30 SEPTEMBER 2013

Dear Fellow Shareholder,

The past quarter has seen significant advances with some of our activities and continued steady progress with the remainder. Our laboratory scientists were excited to share the data generated with our various project partners – a sign that we have made some critical advances. I look forward to extracting commercial returns from these labours.

Mix&Go™, our molecular glue, has successfully been used to simply, quickly and inexpensively attach biomolecules to synthetic surfaces for commercially important applications in in vitro Diagnostics (IVD testing), Point of Care (POC testing) and Life Science Research (LSR).

There is always a fine balance between maintaining a sharp focus on the projects that have the capacity to provide short-term returns and undertaking exploratory work to uncover additional sources of future revenue. The two related factors that inform this argument are capital and labour. Our prime immediate focus is to generate sufficient returns from our existing projects to lead to profitability. Recently filed patents will lead us into new, commercially valuable, directions such as bioprocessing, bioseparations, high throughput drug screening, imaging and targeted drug delivery.

Our cash position at the end of the quarter, of $3.3M, was enhanced by the receipt of $1.2M from the R&D Tax Incentive Scheme. These funds have previously been received in December/January.

This quarter had the following activities:

• Development of proprietary reagents for use in the POC1 project.

• Negotiation with POC2 around the terms of our commercial interactions and the elements of a project plan that will lead to desired commercial outcomes.

• Negotiation continues with a Chinese IVD company for the use of Mix&Go to activate their in-house manufactured beads used in the preparation of test kits for their SFDA approved immunoassay instrument.

• Commenced dialogue with a significant corporation that develops, manufactures and markets innovative biological testing technologies with applications throughout

Anteo Diagnostics Limited ABN 75 070 028 625

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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the clinical diagnostic and life science industries. They have reported that their “initial results are very promising”.

• Continued commercial and technical discussions with microarray manufacturer on streptavidin coating of Mix&Go activated glass slides.

• Began work on conjugating quantum dots to magnetic particles. Success in this endeavour has a range of potential cutting edge applications in healthcare and beyond.

• Filed two new patent applications. We have 12 months fully exemplify and reduce to practice the uses for these applications to maximise their commercial value.

• A scientific paper on the use of Mix&Go with COC/COP surfaces, which are increasingly being used in healthcare, especially in point-of-care diagnostics was prepared for submission in a scientific journal.

• During the upcoming Ausbiotech National Conference we will beta-release two value-added products to the Australian R&D market. These products - streptavidin coated Mix&Go magnetic beads and streptavidin coated Mix&Go microtiter plates – are our first commercial products which we’ll undergo beta testing in the hands of a Australian researchers before the planned commercial release in Q1 2014 in Australia and Q2 2014 in the US.

PAID POINT OF CARE PROJECT l

At the end of June we received a shipment of equipment and materials that would allow us to undertake many of the activities in our Brisbane laboratories that are performed in our partners laboratories. The work that we have undertaken has strengthened our belief that Mix&Go can provide critical elements required for a commercially successful product.

Our work with Mix&Go has resolved issues with colloidal stability and consistency of reading the amount of analyte there is in a blood sample. Addressing both of these issues are a necessary precursors to improving sensitivity.

Two of our scientists are currently working at our partner’s facility. Part of their work will involve a head-to-head comparison of Mix&Go methods versus the conventional method. We anticipate that the results obtained in this work will provide us with a clear path for the remainder of the project.

It is generally held that Mix&Go is able to significantly enhance the sensitivity of assays. This is particularly important with assays, such as troponin, where an ability to detect down to very low levels can greatly improve clinical outcomes. Our work to date has been around developing stable and repeatable conditions and already we feel we have contributed meaningfully to the project. We believe our value will be further enhanced should we be able to successfully deliver improved sensitivity.

Anteo Diagnostics Limited ABN 75 070 028 625 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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PAID POINT OF CARE PROJECT ll

Dr Joe Maeji, our CSO, recently met with the R&D heads of this company to plan for our future collaborative programs and agree on the costs, manpower requirements and objectives of the work.

We look forward to starting the project with the first phase due for completion by year end. The objective is to have product into the market in the second half of 2014.

The two organisations have been working toward the establishment of a formal, binding, commercial agreement..

ANTEO MANUFACTURED PRODUCTS

The release of two products, (AMG™) Plates and Beads, for beta testing this week at the AusBiotech Conference has two clear objectives:

• To get Mix&Go and its attributes more widely known through the research sector with an off-the-shelf product, in this case streptavidin coated plates and beads. Strepavidin is widely used as a universal reagent for binding other proteins. Anteo’s products are distinctive because they offer performance equal to or better than the current gold standards at a lower price and with greater stability (stored at ambient temperature).

• To send clear messages to our current customers of the maturity and quality of the work being undertaken at Anteo by providing superior off-the-shelf products for broad use.

In addition, developing products in house has afforded us with the opportunity to develop and implement manufacturing and QC procedures that will benefit our work with companies in regulated fields such as IVD and POC.

Finally, we encourage those interested in our company to add their email address to our mailing distribution list contact@anteodx.com to ensure that they receive newsletters as they are produced. Information sent out by email will also be available on our website.

Dr Geoff Cumming CEO Anteo Diagnostics Limited

Anteo Diagnostics Limited ABN 75 070 028 625

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 (“current quarter”)	Name of entity Anteo Diagnostics Limited ACN or ARBN Quarter ended (“current quarter”)
75-070-028-625	30-Sep-13

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities	Current quarter $A’000	Year to date (3 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	1,817 (427) (189) (149) - (340) - 25 - -	1,817 (427) (189) (149) - (340) - 25 - -
Net operating cash flows	737	737

NOTES:

		Current quarter $A’000	Year to date (3 months) $A’000
1.8	Net operatingcash flows(carried forward)	737	737
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	- - - (90) - - - - - - - - -	- - - (90) - - - - - - - - -
		(90)	(90)
1.14	Total operating and investing cash flows
		647	647
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	- - - - - - - -	- - - - - - - -
		-	-
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
		647 2,620 -	647 2,620 -
		**3,267 **	3,267
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 theparties 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 theparties included in item 1.11	Current quarter $A'000
		269
		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).

3.2 Credit standby arrangements 3.1 Loan facilities	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	1,275	25
	1,992	2,595
		-
		-
Total: cash at end of quarter(item 1.23)	3,267	2,620

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 5.5 Nature of business	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: 30 October 2013

(Director)

Print name: Richard Martin