AURORA LABS LIMITED — Capital/Financing Update 2017

Mar 20, 2017

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ASX ANNOUNCEMENT

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21 March 2017
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Corporate Update March 2017

Aurora Labs Limited (“the Company”) (ASX:A3D), an industrial technology and innovation company that specialises in the development of 3D metal printers, powders, digital parts and their associated intellectual property are pleased to supply the following corporate update.

Small format printer deliveries

Deliveries of Aurora’s Small Format Printers (SFP), the S-Titanium and S-Titanium Pro have continued with units now delivered in Perth, the east coast of Australia and Japan.

Strategic alliances and commercial ventures

Aurora is currently negotiating the terms of several key distributorships with potential distributors in Germany, Scandinavia and India. The proposed distribution agreements will initially cover the SFP. It is expected that selling through a distributor will speed up the process of getting the machines to diverse geographical markets and provide installation, training and service support in these key markets. It will also reduce Aurora’s capital needs as Aurora won’t be required to set up its own distribution networks.

The agreement with the German distributor will encompass Germany and several other countries in Europe (excluding Scandinavia). A representative of the proposed German distribution company attended Aurora’s premises in February for training. The negotiations are at an advanced stage.

The Scandinavian and Indian distribution agreements are in early stages of negotiations. The agreements will need to be tailored to the proposed distributors’ circumstances.

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

Medium Format Printer (MFP) / Large Format Printer (LFP)

The MFP/LFP printer sub-systems have now been assembled into a prototype machine. This has undergone a whole system test and Aurora is very pleased with the results so far. Work has now begun on the early stages of process and parameter development.

Powder Production Plant

A prototype of the Powder Production unit is currently in the fabrication stage. This has been accelerated from the planned second half of calendar year 2017 to coincide with the expected demand for bulk powders required for the MFP and LFP.

WorleyParson

Aurora are working with Advisian, WorleyParsons’ global advisory and consulting business on the framework outlined in our ASX announcement dated 20 January 2017 titled “Non-Binding Term Sheet for Proposed Commercial Venture”. Regular meetings are ongoing with business development, business modelling and technical designs being some of the early areas of discussion.

CE Mark

Additional information was requested by the CE Mark authorities which has been provided. There has been no additional feedback and Aurora is confident that CE Mark certification will be received in the coming months. Upon receipt of this certification, Aurora will be in a position to sell machines into European Union member countries.

R&D Acceleration

Aurora have begun negotiations with a number of institutions and Universities about working jointly with them on advancing metal 3D printing in medical and dental applications. The scope within these industries for 3D printing is enormous. However, because the work involves medical research, progress will be slow and methodical and outcomes likely to be several years away. Only a small amount of Aurora’s budget is being devoted to such research. Aurora have also been approached and are in negotiations with an International University to collaboratively develop complementary technologies.

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

Patent Applications

Since the last update, Aurora has submitted one additional Patent Cooperation Treaty (PTC) application which is an international patent application that covers multiple contracting states to the Treaty. Six additional provisional patent applications are in the final stages of drafting.

Tradeshows

Aurora has booked a stand at the Rapid + TCT 2017 tradeshow in Pittsburgh, Pennsylvania, USA. Rapid + TCT is North America’s pre-eminent event for discovery, innovation and networking in 3D manufacturing and attracts over 270 exhibitors representing the majority of the 3D printing industry. The 2016 Rapid tradeshow had 4,446 attendees with 80% being purchase decision influencers and 33% having equipment budgets in excess of $200,000.

We will also be showing at the Inside 3D Printing Conference and Expo in Melbourne, Australia, between May 9-12th 2017. This is in conjunction with Aus-Tech and will be held at the Melbourne Exhibition and Convention Centre.

Finance

Aurora raised $7 million (before costs) from the placement announced in February 2017 and welcomed several institutional investors to the Aurora register. Aurora’s current cash balance is more than sufficient to progress the matters referred to in this announcement.

Aurora is pleased to confirm it has received a R&D Tax Incentive refund of $323,000 for the 2015/2016 financial year. The R&D Tax Incentive is an Australian Government program under which companies receive cash refunds of up to 45% of eligible expenditure on research and development.

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

Forward Looking Statements

This announcement contains forward-looking statements which incorporate an element of uncertainty or risk, such as ‘intends’, ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’ or ‘expects’. These statements are based on an evaluation of current economic and operating conditions, as well as assumptions regarding future events. These events are, as at the date of this announcement, expected to take place, but there cannot be any guarantee that such events will occur as anticipated or at all given that many of the events are outside Aurora’s control.

Accordingly, Aurora and the directors cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur.

For further information please contact:

enquiries@auroralabs3D.com

ABOUT AURORA LABS

Aurora Labs is an Australian based company an industrial technology and innovation company that specialises in the development of 3D metal printers, powders, digital parts and their associated intellectual property. Aurora has primarily focused on developing innovative 3D metal printing technology to address gaps in the current market for 3D metal printers. By focusing on development of the intellectual property related to these technologies it is seeking to meet the markets current and future needs.

Aurora Labs is listed on the Australian Securities Exchange (ASX:A3D).

To learn more about Aurora Labs please visit: www.auroralabs3d.com

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D