ANTEOTECH LTD — Interim / Quarterly Report 2015

Feb 16, 2015

ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

	Contents	Page Contents	Page
	Corporate Directory	1 Statement of Cash Flows	10
	Directors’ Report	2 Notes to the Financial Statements	11
	Statement of Profit or Loss and Other Comprehensive Income	7 Directors’ Declaration	14
	Statement of Financial Position	8 Auditor’s Independence Declaration	15
	Statement of Changes in Equity	9 Independent Review Report	16
	CORPORATE DIRECTORY
	Directors	Mr Mark Bouris Non-Executive Chairman
		Dr Geoffrey Cumming CEO, Executive Director
		Mr Richard Martin CFO, Executive Director
		Mrs Sandra Andersen Non-Executive Director
		Dr John Hurrell Non-Executive Director
	Company Secretary	Mr Shane Hartwig
	Registered office	4/26 Brandl Street, Eight Mile Plains QLD 4113
	Mailing address	4/26 Brandl Street, Eight Mile Plains QLD 4113
	E-mail:	contact@anteodx.com
	Website:	www.anteodx.com
	Legal advisors	ClarkeKann Lawyers
		300 Queen Street, Brisbane QLD 4000
	Auditors	Grant Thornton
		145 Ann Street, Brisbane QLD 4000
	Patent attorneys	Freehills Patent Attorneys
		101 Collins Street, Melbourne VIC 3000
	Share registry	Boardroom Pty Limited
		Level 7, 207 Kent Street, Sydney NSW 2000
	Insurance advisors	IC Firth & Associates
		Level 1, 175 Melbourne Street, South Brisbane Qld 4101
		Yellow Brick Road Wealth Management Pty Limited
		1 Chifley Square, SYDNEY, 2001
	Bankers	Australia and New Zealand Banking Group Limited
		3 Sherwood Road, Toowong QLD 4066

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

The Directors of Anteo Diagnostics Limited submit herewith the interim financial report for the half-year ended 31 December 2014. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

The names of the Directors of the Company during or since the end of the half-year are:

Mr Mark Bouris Dr Geoffrey Cumming Mr Richard Martin Mrs Sandra Andersen Dr John Hurrell

REVIEW OF OPERATIONS

The recent Activities Report for the Quarter Ended 31[st] December, 2014 covered the aspects of our growth strategy for Anteo, which comprises 5 priority areas:

• Exploiting Our IP

• Expanding Core Competencies and IP

• Developing Our Product Pipeline

• Exploring Non-Core Opportunities

• Acquisition of Synergistic Assets

Developing and implementing a sound strategy to grow a business and the company that holds it is not just a matter of “selling a widget”. The ability and flexibility to observe, learn and continue to evolve is important, and it is one of Anteo’s strengths. We are focused on an interactive and complementary set of key activities that will enable the value of our core technology to be maximised for the benefit of all stakeholders. The resources of an organisation must always be managed efficiently, especially in small organisations. At Anteo we address this by ensuring that each and every project offers benefits in a primary and multiple secondary aspects of our growth strategy. We also ask if each project will build, both directly and indirectly, on any interaction we have.

In recent years, we have worked closely with large IVD companies, and will continue to do so. The objective of co-developing products utilising the new chemistry technology, Mix&Go, to solve certain intractable obstacles that IVD companies face in day-to-day processes and product development remains. During this period we have observed and learnt a lot about Mix&Go, how it might practically be applied and its commercial opportunities, as well as the ways of our target customers. This experience is pivotal as we progress towards attaining full commitments. Further, these experiences have expanded our horizons and will help us to realise new opportunities for Mix&Go that had not previously been identified, in both laboratories and in other markets.

We have a substantive offering that combines four important facets for success:

DISRUPTIVE TECHNOLOGY + KNOW-HOW + FOOL-PROOF PRODUCTS + OUR TEAM

By definition, a disruptive technology challenges the tried and tested way of doing things. In the case of our product range, we have learnt that our know-how adds significant value for potential customers. We have tried and tested, and we continue to try and test the opportunities for this unique technology platform. A new user will have more success adapting to a new way of doing things when real, hands-on support is provided by engaged and innovative scientists. Some customers have likened the experience to ‘breaking a habit’. Just like getting into a keyless car for the first time something intrinsically simple is not necessarily intuitive. A habit needs to be broken and minds opened to new ways of thinking. We have found that inexperienced technicians have often performed better in evaluating Mix&Go than their more learned colleagues.

What did we learn from this?

A suite of ready-to-use product kits with our know-how built in is a necessary part of an introductory package. By customising our product for specific applications we enhance its value for our customer.

This combination of technology and core competency built into fool-proof products has evolved to deliver a potent system to engage customers and then progress to a productive engagement once the technology is

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

understood and fully appreciated. We anticipate this approach will shore up customer confidence and open more opportunities for paid research and collaboration for the development of customised products leading to wholesale supply or licensing, and we already have evidence of this occurring.

Since we developed this approach and made products available we have experienced greater attention and more productive interactions, both in speed and intensity, with large multinational players, than in previous years. Our most recent example is that one large player can envisage Mix&Go as a platform technology for use across their product portfolio.

This is our goal - broad implementation of Mix&Go across a target’s products.

Each strategic element of our business complements another. This is fundamental to growing Anteo.

Exploiting Our IP

Proper exploitation of IP to maximise shareholder and stakeholder benefit requires a careful carve up of the IP. We need to be engaging across a number of markets. Each market has different requirements, operating parameters, nuances and timeframes. In healthcare alone there are the direct opportunities in testing for IVD, Life Sciences and Veterinary. In addition there is a broadening array of potential uses in Bioseparations and in In Vivo applications such as Medical Devices and Drug Delivery.

Understanding each is important in allowing the same or similar applications to earn revenue across different fields or different uses within a field.

Today we are in a position where companies from a variety of different sectors within healthcare are learning and appreciating the benefits our technology can bring to their products. Consequently Mix&Go is being applied in an increasing variety of uses not usually addressed by most companies, let alone a relatively small company such as Anteo.

How will we meet these demands and retain our focus? The answer is twofold:

• Mix&Go is a simple chemistry for surface interactions designed with a variety of uses in mind; and

• Potential customers are introduced by first using one of our AMG products to fully understand the outcomes possible for their particular business. Then, in most cases they commit to either co-develop a custom product or implement our kit or a close variant directly into their system.

In order to maximise our success Anteo needs both our strong core competencies and our IP to demonstrate our key point of difference – we know that we can coat any given surface for the purpose envisaged and we deliver the tools to achieve a positive outcome, with an ease customers do not expect.

Customers do business in a variety of ways. Consequently, Anteo must be adaptable. We endeavour to generate revenues from each interaction in one or several of the following ways:

• license the use of Mix&Go;

• enter into supply agreements for the wholesale provision of an “off the shelf” Mix&Go product or a customised product for use within the scientific/clinical marketplace - both IVD and Life Science segments;

• establish Research and Collaboration agreements to insert our technology into the development of products that a partner company is developing. Work of this sort is generally undertaken with the view that revenues will continue into the future once the product is commercially launched by our partner company.

Expanding Core Competencies and IP

Possession of a disruptive intellectual property is hugely valuable. While many researchers are inventive and innovative, the ability to develop a new disruptive technology and to be the custodian of the IP until it is fully commercially viable is key to a business’ success. The capacity to do this sets Anteo apart.

Anteo has invested in and developed the progressive and inventive work of Dr Joe Maeji. Dr Maeji’s unique and novel approach to interactions on synthetic surfaces and the impact when attaching biomolecules led to the first undertaking to fund the core research that created Mix&Go. We have been the custodians of this IP from this

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

embryonic stage to now – we have a successful set of tools that we can confidently demonstrate are commercially viable for intended uses.

To date this investment has developed a set of core competencies that are reflected in our straight-forward offering:

“THE SURFACE YOU WANT ON THE SURFACE YOU HAVE”

The ability to create the ideal surface characteristics on any given base surface is no trivial development in research and development. The interchangeability between hydrophilic (water attracting) and hydrophobic (water repelling) surfaces with a desired contact angle has already resulted in two active opportunities for Anteo.

The core competencies we have and will continue to develop are:

The Anteo Team – Dr Cumming joined Anteo in 2009. Under his leadership the team has transformed from a strong research group to one that now also has significant capability in commercial development, productisation and manufacturability at an IVD level. Our technical strength and experience is well established and our business development and product support now has depth and breadth.

Quality – Assurance of quality is vital to any product manufacturer, especially in healthcare. Today our products demonstrate our quality assurance capability delivering predictability and consistency of products and services; a capability that has twice been audited by customers seeking to qualify us as suppliers with positive results. Our next step is to adopt International Organisation for Standardisation (ISO) certification to formally underwrite this competency.

Technical Capability and Know How – the development in our technical ability to utilise Mix&Go on a given platform has expanded from specific particles in 2013 to a library of Mix&Go alternatives today. These applications are adapted across an array of platforms from particles of all sizes and many materials to membranes, biosensors, microarrays and microtitre plates, including engineering plastics such as COCs. This capability provides customers with an holistic approach to providing solutions. In immunoassays this is exemplified by Mix&Go’s capacity to bind target proteins to a surface and to improve sensitivity.

Intellectual Property – Anteo’s IP strategy can be separated into two parts;

1. The core technology that covers the identification and generation of novel surfaces. This includes the granted patents “Generation of Surface Coating Diversity” (covering methods to generate libraries of different surfaces and their screening); “Use of Metal Complexes” (covering use of metal complexes to bind proteins to surfaces; and “Binding Systems” in National Phase (covering use of metal polymers as coatings).

2. Novel and inventive applications made possible by our core technology. This includes “Conjugating Molecules to Particles” (covers coating nanoparticles) and “Heterofunctional Binding Systems” (covering materials such as thermosplastics and steel).

Developing Our Product Pipeline

End products are the lifeblood of most companies. Anteo is not a manufacturing business. Our model is focused on developing commercial relationships with end users of Mix&Go technology and getting them to adopt Mix&Go broadly.

The primary role of our commercially available Anteo AMG products is to provide an easy entry point for prospective adopters of Mix&Go that is fool-proof. This provides interested parties with access to easy-to-use Mix&Go products and allows us to concentrate our resources on companies with whom we are dealing directly.

The AMG product kits exemplify the array of capabilities and uses of Mix&Go. In 2015 we expect to continue to release products on a quarterly basis.

Our new AMG products demonstrate the ongoing expansion of capabilities for Mix&Go use.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

We have instigated a program to support our product portfolio that aims to continually improve our messaging, content, processes and digital infrastructure, and to consequently increase our product sales. The automation of marketing tools intended to increase our inbound sales leads and convert existing and new traffic into product sales will also be implemented this year.

“We have used the Mix&Go technology for the preparation of in-vitro diagnostic reagents. The Mix&Go method for immobilisation of antibodies is advantageous in many ways: it is much faster than many other methods; it is much easier than many other methods; last but not least it makes use of considerably fewer hazardous chemicals which in turn decreases the health risks and waste of hazardous chemicals.”

Dr Björn Ekberg, R&D Manager Life Assays.

Exploring Non-core Opportunities

We define non-core opportunities as non-diagnostic applications of Mix&Go technology in Healthcare, Clean Tech, Mining or Other Industries. To be a successful technology company we know it is important to make our technology available to all potential users, thereby maximising the value of the technology and its uses outside IVD.

Two questions should be asked about exploring non-core opportunities at this stage in Anteo’s development:

• Is it appropriate for Anteo to investigate areas away from its core competency to use Mix&Go?

A: Yes. Mix&Go was designed as a nanoglue with many potential uses. Exploration of applications should be undertaken provided they are not a distraction from our core business.

• Are current non-core activities a distraction?

A: No. We provide for a small amount of “skunk works” to be undertaken by our scientists to investigate different ways of utilising Mix&Go. Alternatively, if a customer wishes to fund such an activity we are prepared to apply resources on a larger scale.

Provided non-core activities are well controlled and qualified then they both add to value creation using Mix&Go technology and improve the core competency of the organisation.

At this time Anteo has two non-core projects underway - one in Clean Technology and one in Medical Devices. Both are showing good promise.

Acquisition of Synergistic Assets

The acquisition of synergistic assets allows a company to mature and expand at a rate that it would not be possible organically. We have set three key criteria for the acquisition of any asset.

• It must be cash flow positive;

• It needs to be accretive; and

• It must provide technical synergy with the current Mix&Go business.

The first and last of these criteria speak for themselves but what does accretive mean to Anteo? Simply speaking, it adds value to our organisation immediately. Examples of elements that a target may possess that would positively contribute to accretion are:, ISO and/or regulator accreditation, presence in a desired geographical zone, excess production capacity and/or capability to manufacture Anteo products, a good name in the market place for its products, a capable management team and most importantly having products within its portfolio that can be improved in the short term with Mix&Go.

To date we have examined a number of prospects, some of which have shown promise.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Our priority areas come together to provide Anteo with a strong platform for the growth and success of the Company.

RESULT FOR THE PERIOD

The net loss after tax for the half-year ending 31 December 2014 was $2,264,157 compared with a loss of $620,457 in the same period last year. At first glance this appears to be a significant increase, however $1,247,510 (2013 $72,294) is the non-cash expensing of options as required to comply with Accounting Standards, which were approved at the AGM in November 2014 and allotted to directors. During the period a Research and Development Taxation Concession Rebate of $1,087,247 was received (2013: $1,203,659); Commercial Ready Grant of $449,113 (2013: 431,632); and Other Revenue from Operating Activities $230,867 (2013: $160,862).

As at 31 December 2014, the Company held cash reserves of $6,851,246 (30 June 2014: $7,070,722).

DIVIDENDS

The Directors have not declared a dividend to be paid during the period.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the Auditor’s Independence Declaration (as required under Section 307C of the Corporations Act 2001) is shown on page 14 and forms part of this report.

Signed in accordance with a resolution of the Directors made pursuant to Section 306(3) of the Corporations Act 2001.

On behalf of the Directors

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.............................................. Mark Bouris Chairman Sydney, Dated 16[th] February 2015

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Note Other revenue from ordinary activities 2 Selling, distribution and business development expenses Occupancy expenses Administration expenses 2 Borrowing costs Research and development expenses Loss from ordinary activities before income tax Income tax benefit relating to ordinary activities Loss from ordinary activities after income tax Loss attributable to members of the parent entity Other Comprehensive Income Total Comprehensive Income (Loss)

31 December 2014 31 December 2013 $ $ 1,850,631 1,848,872 (721,450) (640,423) (74,975) (83,637) (1,780,351) (347,363) - (38) (1,538,012) (1,397,868) (2,264,157) (620,457) - - (2,264,157) (620,457) (2,264,157) (620,457) - - (2,264,157) (620,457)

Basic earnings per share (cents per share) Diluted earnings per share (cents per share)

(0.3) (0.1) (0.3) (0.1)

The financial statements should be read in conjunction with the accompanying notes.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

CURRENT ASSETS Cash assets Receivables Other TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Payables Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Share option reserve Accumulated losses TOTAL EQUITY	31 December 2014 30 June 2014 $ $ 6,851,246 7,070,722 142,419 233,500 74,339 10,182 7,068,004 7,314,404 593,918 352,532 593,918 352,532 7,661,922 7,666,936 326,671 280,310 255,362 202,658 582,033 482,968 76,451 82,633 76,451 82,633 658,484 565,601 7,003,438 7,101,335 39,610,145 38,657,954 1,668,015 455,739 (34,274,722) (32,012,358) 7,003,438 7,101,335

The financial statements should be read in conjunction with the accompanying notes.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Balance at 1 July 2013 Issued during the year Capital Raising Costs Options expensed for the period Options lapsed for the period Options converted to shares for the period Losses attributable to members of the parent entity Balance at 31 December 2013	Contributed Equity Ordinary Shares Options $ $ $ $ 31,968,536 329,062 (29,521,832) 2,775,766 5,500,000 - - 5,500,000 (346,720) - - (346,720) - 72,294 - 72,294 - (1,623) 1,623 - - - - - - - (620,457) (620,457) Accumulated Losses Total
	37,121,816 399,732.9 (30,140,666) 7,380,883
Balance at 1 July 2014 Issued during the year Capital Raising Costs Options expensed for the period Options lapsed for the period Options converted to shares for the period Losses attributable to members of the parent entity	38,657,954 455,739 (32,012,358) 7,101,335 918,750 - - 918,750 - - - - - 1,247,510 - 1,247,510 - (1,793) 1,793 - 33,441 (33,441) - - - - (2,264,157) (2,264,157)
Balance at 31 December 2014	39,610,145 1,668,015 (34,274,722) 7,003,438

The financial statements should be read in conjunction with the accompanying notes.

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ANTEO DIAGNOSTCS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers Receipt from R&D Tax Incentive Grant receipts Payments to suppliers and employees Borrowing costs Interest received Net cash (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES:	31 December 2014 $ 341,172 1,087,247 449,113 (2,791,298) - 91,673 (822,093)	31 December 2013 $ 216,865 1,203,659 706,335 (2,303,889) (38) 46,426
		(130,642)
Payment for property, plant and equipment	(316,133)	(133,251)
Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Captial raising costs	(316,133) -
		(133,251)
		(381,393)
Proceeds from issues of shares, options, etc.	918,750	5,500,000
Net cash (used in) provided by financing activities Net increase (decrease) increase in cash held Opening cash brought forward	918,750 (219,476) 7,070,722
		5,118,607
		4,854,714 2,621,072
Closing cash carried forward	6,851,246	7,475,786

The financial statements should be read in conjunction with the accompanying notes.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

1. Summary of accounting policies

Basis of Preparation

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001, AASB 134 Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year financial report does not include disclosures or notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report and any other public announcements made during the half-year in accordance with the continuous disclosure requirements arising under the Australian Stock Exchange Listing Rules and the Corporations Act 2001.

The accounting policies set out below have been applied in preparing the financial statements for the half-year ended 31 December 2014.

(a) Going Concern

As at 31 December 2014, the company had cash reserves of $6,851,246. The Board believes that based upon current spending forecasts there is adequate funding to provide for the Group’s requirements to complete its strategic plan and in any case beyond 12 months of operation.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

2. Loss from Ordinary Activities The loss from ordinary activities before income tax expense has been determined after: Depreciation of non-current assets: Loss on write-off Plant and equipment Total depreciation of non-current assets Borrowing costs: Interest, other persons Movements in provisions: Employee benefits increase / (decrease) Staff Remuneration Salaries Superannuation	31 December 2014 $ - 74,747 74,747 - - 46,522 1,010,629 94,789	31 December 2013 $ - 50,900
		50,900
		38
		38
		61,027
		972,469 88,921
Share Based Payments	1,247,510	72,295
Other Revenue from ordinary activities Grants Revenue from operating activities R&D Tax Concession Rebate Interest – other corporations	2,352,928 449,113 230,867 1,087,247 83,404 1,850,631	1,133,685
		431,632 160,862 1,203,659 52,719
		1,848,872

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

3. Operating Lease Commitments Payable:	31 December 2014 31 December 2013 $ $
- Not later than one year - Later than one year and not later than five years	299,984 289,844 587,288 887,284
Receivable:	887,272 1,177,128
- Not later than one year - Later than one year and not later than five years	80,034 58,992 - 52,423
	80,034 111,415

4. Events Subsequent to Reporting Date

There were no material events subsequent to Balance Date apart from, on 4[th] February 2015 5,000,000 options were issued in accordance with the Anteo Employee Share Option Plan as approved at the Annual General Meeting on 10[th] November 2014.

5. Options Issued

During the period 17,000,000 options expiring on 10[th] November, 2018 with an exercise price of $0.20 were issued to Directors in accordance with shareholder resolutions at the AGM held on 10[th] November 2014 and a value of $1,241,000 was charged as a non-cash expense based on an independent valuation obtained by the Company.

6. Equity Issued

During the six months 13,125,000 shares were issued at a price of $0.07 each as a result of the exercise of options held by employees and officers under the Anteo Employee Share Option Plan.

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ANTEO DIAGNOSTICS LIMITED AND ITS CONTROLLED ENTITIES ABN 75 070 028 625

DIRECTORS’ DECLARATION

In the opinion of the directors:

• a. the consolidated financial statements and notes of Anteo Diagnostics Limited set out on pages 7 to 13 are in accordance with the Corporations Act 2001, including

• i. giving a true and fair view of its financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• ii. complying with Accounting Standard AASB 134 Interim Financial Reporting; and

• b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

On behalf of the Directors

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............................................... Mark Bouris Chairman

Dated 16[th] February 2015

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Grant Thornton Audit Pty Ltd ACN 130 913 594

Level 18 King George Central 145 Ann Street Brisbane QLD 4000 Correspondence to: GPO Box 1008 Brisbane QLD 4001

T + 61 7 3222 0200 F + 61 7 3222 0444 E info.qld@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To The Directors of Anteo Diagnostics Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Anteo Diagnostics Limited for the half-year ended 31 December 2014, I declare that, to the best of my knowledge and belief, there have been:

• a No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b No contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M S Bell Partner - Audit & Assurance

Brisbane, 16 February 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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Level 18

King George Central 145 Ann Street Brisbane QLD 4000 Correspondence to: GPO Box 1008 Brisbane QLD 4001

T + 61 7 3222 0200 F + 61 7 3222 0444 E info.qld@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Anteo Diagnostics Limited

We have reviewed the accompanying half-year financial report of Anteo Diagnostics Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2014, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the halfyear’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of Anteo Diagnostics Limited are responsible for the preparation of the halfyear financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Anteo Diagnostics Limited consolidated entity’s financial position as at 31 December 2014 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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Regulations 2001. As the auditor of Anteo Diagnostics Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Anteo Diagnostics Limited is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M S Bell Partner - Audit & Assurance

Brisbane, 16 February 2015