AURORA LABS LIMITED — Capital/Financing Update 2019

Sep 30, 2019

1 October 2019

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ASX Announcement

CORPORATE DIRECTORY

Chairman PAUL KRISTENSEN

Founder, Managing Director DAVID BUDGE

Business Development and Marketing Director NATHAN HENRY Non-Executive Director MEL ASHTON

Non-Executive Director and Company Secretary MATHEW WHYTE

Aurora Supplies First RMP-1 Beta

Highlights

• First cashflow from large format printers secured, with the commercial supply to AdditiveNow™ of a pre-production RMP-1 Beta printer.

• The RMP-1 will enable AdditiveNow™ to service demand from tier 1 resource industry clients, who are seeking 3D printed metal parts as a cost-effective solution to their ongoing parts and maintenance needs.

• Aurora Labs retains the right to use RMP-1 Beta for continued research and development, and to execute printing commitments for the Company’s Industry Partners.

CONTACT DETAILS

U2/79 Bushland Ridge, Bibra Lake, WA AUSTRALIA 6163

enquiries@auroralabs3d.com t. +61 (0)8 9434 1934 auroralabs3d.com

Aurora Labs Limited (“Aurora” or “the Company”) (ASX: A3D), is pleased to announce that it (through its wholly owned subsidiary, A3D Operations Pty Ltd) has entered an agreement to supply an RMP-1 Beta metal printer to AdditiveNow Pty Ltd (“AdditiveNow™”) by way of a finance lease arrangement. The commercial supply of the RMP-1 Beta printer is a major milestone for the Company, which has developed world-leading additive manufacturing technology that has the potential to revolutionise metal manufacturing.

The machine will service demand for printing from AdditiveNow™’s growing list of tier one resource clients in Australia.

AdditiveNow™ is ASX CODE: A3D conducting training ACN: 601 164 505 programs, providing engineering design services and printing sample parts for its clients. These services are the initial stages of demonstrating the benefits of 3D printed metal parts as a costeffective solution to their ongoing parts and maintenance needs.

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AdditiveNow™ Managing Director John Bolto
(L)
Aurora Labs ® CEO David Budge (R)
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auroralabs3d.com

Aurora Labs Ltd t. +61 (0)8 9434 1934 ACN: 601 164 505 U2/79 Bushland Ridge, e. enquiries@auroralabs3d.com ASX Code: A3D Bibra Lake, WA, AUSTRALIA 6163

1 October 2019

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Key Terms

• Aurora subsidiary, A3D Operations Pty Ltd, will receive payments of AUD2.096M under the transaction;

• The transaction will be executed under a 5year Fixed Rate Finance Lease, with monthly payments paid in arrears;

• The RMP1 will transfer to AdditiveNow™ at the end of the lease subject to AdditiveNow™ having paid all amounts due under the lease;

• AdditiveNow™ may at any time during the lease exercise an option to purchase the RMP1 by paying the agreed purchase amount;

• The price is net of discounts for the sale to AdditiveNow™ in which Aurora has a 50% shareholding interest. The majority of the discount offered to AdditiveNow™ takes the form of an in-kind shareholder contribution to the running costs of AdditiveNow™;

• The transaction is conditional upon satisfaction of certain performance conditions, which the Company is confident in achieving;

• The Company has reserved the right to have priority use of the RMP-1 for its own printing in return for a payment of 50% of estimated operating costs of the RMP-1, for up to the first 12 months post-sale; and

• The parties will collaborate on the development of a cost estimating tool, printer scheduling tool and standardised business processes for the commercial operation of the RMP-1.

Aurora's Managing Director, Mr. David Budge said: “This transaction is a demonstration of the unique value proposition of the Company’s 3D metal printers, which lead the industry with their speed and technical capability.

“This is a great result for Aurora on a number of levels. Importantly, we will generate revenue from the supply of this machine, as well as ongoing revenue from our share of the work it will do for AdditiveNow™. The RMP-1 is the only printer in the world designed to do this work for AdditiveNow™ to the specifications required.

“The RMP-1 will be based at our facility in Bibra Lake, Western Australia, where Aurora will continue to have access to it so we can have real time feedback from a customer as we prepare to launch our production model.”

ABOUT AURORA LABS®

Aurora is an industrial technology and innovation company that specialises in the development of 3D metal printers, powders, digital parts and their associated intellectual property.

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

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

ABOUT AdditiveNow[TM]

AdditiveNow™ is an incorporated joint venture and A3D Holdings Pty Ltd (a member of the Aurora Labs group of companies) holds the Aurora economic interest in AdditiveNow™. It is operated through AdditiveNow Pty Ltd (ACN 630 628 134) and AdditiveNow Holdings Pty Ltd (ACN 630 609 068). This document was prepared by Aurora and it takes all responsibility and liability for the statements contained in this document.

t. +61 (0)8 9434 1934 e. enquiries@auroralabs3d.com

auroralabs3d.com

ACN: 601 164 505

Aurora Labs Ltd U2/79 Bushland Ridge, Bibra Lake, WA, AUSTRALIA 6163

ASX Code: A3D

1 October 2019

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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

auroralabs3d.com

t. +61 (0)8 9434 1934 e. enquiries@auroralabs3d.com

ACN: 601 164 505

Aurora Labs Ltd U2/79 Bushland Ridge, Bibra Lake, WA, AUSTRALIA 6163

ASX Code: A3D