ANTEOTECH LTD — Interim / Quarterly Report 2014

Oct 30, 2014

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31 October, 2014 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 2014.

CEO ACTIVITIES REPORT – QUARTER ENDED 30 SEPTEMBER 2014

Dear Fellow Shareholders,

Activity levels have, again, increased significantly through the past quarter. We now find that all within the organisation need to be adept at progressing multiple projects to meet the objectives that are required by our partners and those that we set for ourselves. Our two major projects have met important milestones and we have made pleasing progress on a broad range of other interactions.

Our cash position at the end of the quarter was approximately $6.1M.

This quarter had the following headline activities and achievements:

• Work on Phase 3 of the BBI project was completed to plan. Subsequent discussions with BBI have us working on some elements that are embraced by our most recently filed patents.

• Our “ PoC 1 ” work is continuing in several areas. We have embarked on some studies aimed at improving outcomes with their “ beads ” and, after numerous requests, we have been given access to the other half of the system – “ base ”

• parts .

• Josh Soldo joined our team as VP Scientific Affairs. Josh brings deep experience to our organisation from Beckman and DiaSorin, two of the preeminent companies in a commercially relevant segment for us. This experience is proving to be invaluable in many of our interactions.

• An in-house “ amplification ” project is drawing to its conclusion and has generated results that are expected to be of great interest in many of our existing projects and open more doors.

• Ferghana Partners have continued the task searching for commercially relevant opportunities.

• Early studies that are intended to demonstrate the applicability of Mix&Go in some non-healthcare applications are producing satisfying results.

• Anteo AMG ™ Coupling Kit, 1 μ m Magnetic Particles was released for sale.

• Bio-Layer Pty Ltd, a subsidiary of Anteo Diagnostics Limited, has changed its name to Anteo Technologies Pty Ltd. This pre-emptive change was made to better reflect the commercialisation prospects for Anteo.

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BBI PROJECT

Phase 3 of the planned five-phase project with BBI was satisfactorily completed. Subsequent discussions between BBI scientific management and Josh Soldo have unearthed some further improvements that become possible through utilisation of IP covered by our most recent patent filings.

Our work to date in this project has focused on the “ capture ” side of the lateral flow test (the gold nanoparticles). Our recent work has been on the “ detection ” end where we are achieving extremely exciting improvements in sensitivity. Discussions with BBI are planned at the Medica conference in Germany in mid-November.

POINT OF CARE PROJECT 1

PoC1 has indicated its desire for us to remain on their project into the future. We are being paid to continue our work with them.

Our scientists continue to improve outcomes on the existing solid phase (beads) and are exploring the possibility that superior solid phase alternatives exist. We are also working on the other half of the system (base parts). Through this recently granted access to the sensor surfaces we expect to, through a holistic approach to the device using Mix&Go, achieve better results than would otherwise be possible.

We expect that even greater momentum will result once we receive, and are trained on, our new sciFlexArrayer - expected to be early December. This device will provide the final piece that will allow us to fully replicate activities and findings generated by our partner - and, more importantly, vice versa.

Josh had a productive meeting with our partners ’ scientific management team in early September. He was able to discuss some novel thoughts with them that have the potential to allow the generation of extraordinary data for troponin and importantly for any other tests performed on the device. These non-obvious enhancements, that are only possible through the use of Mix&Go, were received with interest by our partner.

AMPLIFICATION PROJECT

The most commonly used lateral flow tests that are currently sold have a visually detected end point. A range of advances has made greater quantification possible should it be clinically or commercially desirable. We believe we have demonstrated the capability of Mix&Go to amplify the visual signal and thereby improve the sensitivity of detection. Visual detection is, at best, qualitative. We have shown that, through the use of magnetic particles rather than gold nanoparticles quantitative, more sensitive, results are possible. Use of fluorescent particles and, for instance, quantum dots can enhance outcomes even further.

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ACCELERATED GROWTH STRATEGY

We have now been working closely with Ferghana Partners, a New York based investment bank, for over 6 months. Jointly we have been assessing the possibilities offered to our growth plans by strategic acquisitions that meet several critical criteria:

• The target must be cash flow positive

• The transaction must be accretive and

• The target must have products that will benefit through the inclusion of Mix&Go

It is felt that, through execution of this strategy, we can accelerate our growth and possibly gain a foothold in geographic jurisdictions in closer proximity to our key targets.

PRE-EMPTIVE NAME CHANGE

Bio-Layer Pty Ltd, a subsidiary of Anteo Diagnostics Limited, has changed its name to Anteo Technologies Pty Ltd. This change does not affect Anteo Diagnostics' shareholders.

This pre-emptive change has been made to better reflect the commercialisation prospects for Anteo.

Anteo Diagnostics ’ growing suite of patented and patentable technologies is being applied in the biotechnology, life sciences and in vitro diagnostics industries today.

In the future, as many of our investors are aware, there is significant potential for expansion into other industries that are not yet being addressed. The "Diagnostics" label no longer adequately covers the range of uses or industries in which Anteo will be a player. Aligning the Anteo Technologies subsidiary with Anteo Diagnostics will strengthen the Anteo brand; a new name to reflect new possibilities. The ASX listed parent company remains Anteo Diagnostics Limited (ADO).

OTHER INTERACTIONS

Our business development activities, headed by Tina, have been focused on ensuring maximum momentum with the more proximal interactions we have on foot. In virtually all of these projects we are dependent upon decisions being made by third parties and timing is therefore not entirely within our control. A concerted effort with this cohort is generating significant enthusiasm in our team which we hope will translate into actions by our partners over the next quarter.

MARKET RELEASE OF AMG™ PRODUCTS

We have released another AMG™ (Anteo Mix&Go) product to the market - Anteo AMG ™ Coupling Kit, 1 μ m Magnetic Particles. We planned to release one new product per quarter and are managing to keep to that schedule. As expected, the products are providing a degree of credibility in the market with parties with whom we are endeavouring to influence to use Mix&Go. The fact that we have product and protocols has been shown to significantly truncate the trialling process and improve outcomes.

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It is also both interesting and pleasing to see some of the entities that have, unsolicited, placed orders. It is clear that we continue to gain greater recognition with relevant parties around the world.

We look forward to keeping you apprised of our progress.

Dr Geoff Cumming CEO Anteo Diagnostics Limited

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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”) 75-070-028-625 30-Sep-14 Consolidated statement of cash flows	Name of entity Anteo Diagnostics Limited ACN or ARBN Quarter ended (“current quarter”) 75-070-028-625 30-Sep-14 Consolidated statement of cash flows	Name of entity Anteo Diagnostics Limited ACN or ARBN Quarter ended (“current quarter”) 75-070-028-625 30-Sep-14 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	312 (469) (186) (172) - (428) - 49 - -	312 (469) (186) (172) - (428) - 49 - -
Net operating cash flows	(894)	(894)

NOTES:

	Current quarter $A’000	Year to date (3 months) $A’000
1.8 Net operating cash flows (carriedforward)	(894)	(894)
Cash flows related to investing activities 1.9 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 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Adjustment for cash remaining in subsidiary entity at disposal Net investing cash flows 1.10	- - - (89) - - - - - - - - -	- - - (89) - - - - - - - - -
	(89)	(89)
1.14 Total operating and investing cash flows
	(983)	(983)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other: Conversion of converting notes Interest paid on converting notes Capital raising costs Net financing cash flows	25 - - - - - - -	25 - - - - - - -
	25	25
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end ofquarter
	(958) 7,071 -	(958) 7,071 -
	**6,112 **	6,112

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 partiesincludedin 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 partiesincludedin item 1.11	Current quarter $A'000
		216
		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 - Fundsheldintrustre.Open Prospectus Offer	5,994	6,953
	118	118
		-
		-
Total:cash at end of quarter (item 1.23)	6,112	7,071
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: 30 October 2014

(Director)

Print name: Richard Martin