ARCHTIS LIMITED — Capital/Financing Update 2018

Sep 18, 2018

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STATEMENT OF COMMITMENTS

archTIS Limited ACN 123 098 671 (Company) refers to its prospectus dated 1 August 2018 replacing a prospectus dated 19 July 2018 and confirms that following the close of the offer under that Prospectus, an amount of $8,000,000 has been successfully raised. Utilising the Company’s use of funds table outlined in the Prospectus, the Company confirms that it intends to apply funds raised from the Offer over the first 2 years following re-admission of the Company to the official list of ASX as follows:

	Minimum Subscription	% of Funds
	($)
Existing cash reserves1	$1,100,000	12%
Funds raised from the Offer	$8,000,000	88%
TOTAL	$9,100,000	100%
Ongoing Product development1	$2,350,000	25.7%
Sales and marketing2	$1,650,000	18.1%
Repayment of existing banking facility3	$300,000	3.2%
Expand customer support capability4	$1,000,000	11%
Working capital and other expenses	$3,000,000	33%
Costs of the Offer6	$800,000	9%
TOTAL	$9,100,000	100%

1. Ongoing product development costs includes costs associated with the research and development, testing and support of the Kojensi and DataKloak products. This work includes the work required to complete the beta versions of these products for testing by key selected identified customers and parties prior to the launch of the initial products for commercial sales and marketing of those products.

2. Sales and marketing includes costs associated with developing marketing and sales material, running marketing events, engaging sales personnel, building partner and sales channels to expand into further government, commercial and overseas markets and engaging with new sectors such as finance, health, legal and transport.

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Phone: 1300 ARCHTIS Intl Phone: +61 2 6162 2783 Fax: +61 2 6162 2418 ACN 123 098 071 Email: info@archtis.com

Level 3, 10 National Circuit Barton ACT 2600 AUSTRALIA

www.archtis.com

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1. The Company currently has an existing banking facility with Westpac drawn down to $300,000. Funds raised under the Offer are intended to repay the outstanding balance and enable the closure of this banking facility.

2. Working capital and other costs include general costs associated with the management and operation of the Company including infrastructure and hosting costs, administration expenses, directors’ fees, salaries of management and staff in Australia and the Czech Republic, travel expenses, compliance costs and other associated costs.

Phone: 1300 ARCHTIS Intl Phone: +61 2 6162 2783 Fax: +61 2 6162 2418 ACN 123 098 071 Email: info@archtis.com

Level 3, 10 National Circuit Barton ACT 2600 AUSTRALIA

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www.archtis.com