ANTEOTECH LTD — Interim / Quarterly Report 2014

Apr 29, 2014

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30 April 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 31 March 2014.

CEO ACTIVITIES REPORT – QUARTER ENDED 31 March 2014

Dear Fellow Shareholder,

It is worthwhile, from time to time, to reflect on the journey we have taken over the past five years and to note where we have come from, where we are now and where we are going. One can’t help but have a sense of pride in seeing the way our long-term staff have developed and the contributions our newer staff are making towards expanding our skill base and broadening our competencies. Together, they are driving us, with increasing speed, toward the successful execution of our corporate strategy. Today our team is well rounded and its technical abilities are sufficient to engage, at least as equals, with some of the most highly respected assay and product development groups in the world. These skills are amplified by our unique tool – Mix&Go[TM] .

A hallmark of the market sector we have chosen to address first is that progress is incremental and takes time. Those intimately involved see each step forward as being significant and bringing us inexorably closer to our ultimate goal. In each of our collaborations our partners must decide between the costs of the benefits offered by our Mix&Go technology and their conservative desire to retain the status quo. Whilst we must always outperform the current technologies and inject measurable value we are confident that in some, if not all, of our commercially important interactions, we will prevail. We have demonstrated, as have our partners in their own facilities, that the use of Mix&Go technology addresses many of their issues in a superior manner. We are more fortunate than many of our biotechnology contemporaries that outcomes with Mix&Go are not binary. We have a broad array of activities on foot that mitigates the risks in our endeavours – and our objective remains to succeed in them all.

Our cash position at the end of the quarter, approximately $8 million, has been bolstered through the exercising of options by myself, some of the original shareholders and staff.

This quarter had the following activities and achievements:

• An interim report on the work undertaken to date was provided to BBI and we have subsequently received confirmation of their desire to progress to the next stage of the project.

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 technical requirements for the PoC 1 project have now been completed at Anteo and the performance of the resultant activated particles on clinical samples is being tested in their facility.

• An advanced stage of commercial discussions has now been reached with PoC 1.

• • Following positive technical assessments of Mix&Go activated in-house manufactured beads we received notification from a Chinese IVD company that their instrument, on which bead-based assays were to be performed, requires further work for it to be commercially acceptable.

• Anteo appointed Ferghana Partners as financial advisors.

• A reprioritisation, caused by an internal restructure at a US Life Science and Diagnostic Company, has put our project on hold.

• A collaborative project with a US based veterinary diagnostic company was commenced.

• In excess of 20 novel formulations of Mix&Go have been developed, each with a specific company or commercially valuable application in mind.

• Commercial discussions for the supply of activated Mix&Go particles, to be used in bioseparations, were undertaken with a global Life Science Research company.

BBI PROJECT

We entered into a paid 5-phase study with BBI that was targeted for completion in the second half of this year. The first two phases were to be largely undertaken at the Anteo facility. The key objectives of the first two phases were completed on time and with results that were better than expected. The work undertaken covered a range of activities from activation of particles with Mix&Go, binding antibodies to activated particles to improving stability of particles and streamlining the manufacturing process. We were supplied with a range of highly optimised antibodies that BBI routinely use when assessing new technologies. To our delight and their surprise we improved sensitivities between 3 and 5 fold and believe that further improvements are possible with additional optimisation. Increases in sensitivity may not have great commercial value for the antibodies tested but if similar improvements are achieved with other antibodies then the commercial ramifications are likely to be significant. Where increased sensitivity is not a benefit then less antibody can be used, reducing the Cost of Goods Sold. Sensitivities we achieved on the lateral flow tests rivalled those that are achieved, for the antibodies tested, in laboratory-based test.

Since we submitted our report to BBI they have undergone some internal restructuring and reassessment of priorities. Recently, we were informed of their decision to proceed to the final phases of the project, including scale-up, outlined in the Heads of Terms. Their management expressed satisfaction with the progress made on the project to date and high expectations for the outcome of the collaboration into the future.

POINT OF CARE PROJECT 1

The technical work on this project that was undertaken at Anteo was largely complete by the end of March.

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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In October 2013 our client undertook a significant study using clinical samples to investigate the performance of Mix&Go and to compare its performance with that achieved conventionally. The results for Mix&Go were approaching those necessary for commercial success. Since then a smaller study to assess progress using Mix&Go with clinical samples was undertaken with a performance outcome approaching twice that achieved in October. Refinements made since then through to the end of March are expected to deliver a range of test performance levels that are comparable to many laboratory-based tests.

In early April activated particles, produced utilising what we consider to be our best (current) approach, were sent for testing using the full panel of clinical samples held by our partner. Results of this study are expected in the near future.

A series of further tests have been jointly developed and will be undertaken, commencing early May, when several Anteo scientists will be working with the PoC 1 team in their laboratories.

Concurrently we have been discussing the likely parameters that would be covered by any commercial interaction that results from these studies. There is a basic understanding on the high level terms but the details remain dependant upon the outcome of the present analysis.

CHINESE IVD COMPANY

The Chinese IVD company, discussed in my December report, undertook a restructure prior to the Chinese New Year. The new management determined that their proprietary instrument, which is under development, is not ready for commercial launch. Their beads activated with Mix&Go were to be utilised on this instrument. Work to iron out its issues is currently being undertaken. We have been invited to visit their facility in Beijing through May to discuss progress.

APPOINTMENT OF ADVISOR

In recent times, perhaps as a result of our increased market capitalisation, we have been presented with a range of commercial opportunities to assess. We have appointed a very well-credentialed New York based group, Ferghana Partners, to assess the merits of these opportunities and thereby allow us to retain our focus on ensuring the commercial success of our core technology.

STAFFING

The recent capital placement allowed us to invest in additional scientists to exploit the value of our recently filed patents and reduce the time to market for a range of products in the field of bioseparations.

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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Dr Jozef Hodyl, an inorganic chemist, joined us at the beginning of the year. Since joining he has developed in excess of 20 novel Mix&Go formulations all of which have been designed to address either issues that have been raised by companies that haven’t been successfully addressed using conventional technologies or specific issues that we have identified and believe have commercial value.

Michael Carroll has joined us as a Production Scientist after 9 years at Alere where he held a similar position. Michael will work in our Production and Quality Control Group. This team will be responsible for the manufacture of products for sale but will also manufacture materials and reagents for internal use.

Dr Catriona (Cat) McElnea after 12 years at Alere joined our R&D group bringing a wealth of immunoassay experience across a range of diverse formats. Specialising in planar applications, Cat will work on microtitre plates, biosensors and microarrays amongst other things.

ANTEO MANUFACTURED PRODUCTS

AMG[TM] Streptavidin Magnetic Beads, Streptavidin Plates and a range of Mix&Go Solutions, our first products for direct sale, were launched at the 39[th] Lorne Conference for Protein and Structure. These ready-to-use research tools will not only generate sales revenue, but more importantly, will actively engage research and development teams that will gain a hands-on understanding of the unique capabilities of Mix&Go.

Work continues on the development of additional Anteo manufactured products. Our next products for release will be AMG™ Universal Binding Kits and Universal Activation Kits. These kits have everything needed to enable easy and fast activation of particles and binding of proteins to these particles in a one-step reaction.

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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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Further, a pre-β test version of an activation kit for use with Luminex particles has been sent to a US based veterinary diagnostic company. Dr Charlie Huang is scheduled to visit them next month to review their work.

ADDITIONAL OPPORTUNITIES

I have endeavoured to provide some detail around our key current activities. In other areas we are engaged with a major European IVD company and have been requested to send materials, with protocols, for them to assess in three problematic projects one of which requires conjugation of biological material to glass. Another European based supplier of OEM consumables to the IVD industry has found that Mix&Go appears to improve outcomes on their novel synthetic materials. Further testing is being planned.

We feel the activities of this past quarter have significantly advanced our position in the key projects. Again, we look forward to sharing additional details as confidentiality allows.

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	31-Mar-14

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities	Current quarter $A’000	Year to date (9 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	375 (548) (156) (130) - (290) - 65 - -	2,496 (1,501) (511) (410) - (1,050) - 112 - -
Net operating cash flows	(684)	(864)

NOTES:

		Current quarter $A’000	Year to date (9 months) $A’000
1.8	Net operatingcash flows(carried forward)	(684)	(864)
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	- - - (41) - - - - - - - - -	- - - (162) - - - - - - - - -
		(41)	(162)
1.14	Total operating and investing cash flows
		(725)	(1,026)
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	1,238 - - - - - - (4)	6,738 - - - - - - (347)
		1,234	6,391
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
		509 7,476 -	5,365 2,620 -
		**7,985 **	7,985
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
		234
		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	188	88
	7,797	7,388
		-
		-
Total: cash at end of quarter(item 1.23)	7,985	7,476

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: 30 April 2014

(Director)

Print name: Richard Martin