ARCHTIS LIMITED — Capital/Financing Update 2020

May 12, 2020

Proposed issue of securities

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Update Summary

Entity name

ARCHTIS LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Wednesday May 13, 2020

Reason for update to a previous announcement

Correction of the maximum number of securities to be issued under the placement.

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

ARCHTIS LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 79123098671

1.3 ASX issuer code

AR9

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Correction of the maximum number of securities to be issued under the placement.

1.4b Date of previous announcement(s) to this update

Monday May 11, 2020

1.5 Date of this announcement

Wednesday May 13, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Monday November 30, 2020 Estimated

Comments

Part 7B - Issue details

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? Existing class

Details of +securities proposed to be issued

ASX +Security Code and Description

AR9 : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

30,524,245

Reason for the update of 'Maximum Number of +securities proposed to be issued'

The previous announcement said 30,524,526 which was incorrect.

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Purpose of the issue

Funds will be used to pursue the execution of archTIS¿ sales pipeline across both Enterprise and Government.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.05500

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Part 7C - Timetable

7C.1 Proposed +issue date

Monday May 18, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? Yes

7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1 Wednesday October 30, 2019

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

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Part 7E - Fees and expenses

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7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

MST Financial Services Pty Ltd and amicaa Advisors Pty Ltd

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

A placement fee of 6% and 6 million options over ordinary shares in the Company. These options shall have a strike price of A$0.10 and an expiry date 3 years from the date of settlement. The issue of the options shall be subject to shareholder approval so as not to impact the Company's placement capacity under the ASX Listing Rules.

7E.2 Is the proposed issue to be underwritten?

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No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

N/A

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

N/A

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