BIOTRON LIMITED — Capital/Financing Update 2018

May 9, 2018

Level 2, 66 Hunter Street SYDNEY NSW 2000 AUSTRALIA

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Telephone: +61 2 9300 3344 Facsimile: +61 2 9221 6333 E-mail: pnightingale@biotron.com.au Website: www.biotron.com.au

10 May 2018

The Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 2000

(3 pages by email)

Dear Madam,

LETTER TO OPTION HOLDERS

The Company advises that the attached letter has been sent to the holders of Biotron Limited listed options (ASX code: BITOA) in relation to the recently announced Renounceable Rights Issue.

Yours sincerely

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Peter J. Nightingale Company Secretary

pjn9397

Level 2, 66 Hunter Street SYDNEY NSW 2000 AUSTRALIA

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Telephone: +61 2 9300 3344 Facsimile: +61 2 9221 6333 E-mail: pnightingale@biotron.com.au Website: www.biotron.com.au

10 May 2018

Dear Optionholder

RENOUNCEABLE RIGHTS ISSUE

On 10 May 2018 Biotron Limited (Company) announced a renounceable pro rata rights issue (Rights Issue) of 1 fully paid ordinary share (New Share) for each 4 fully paid ordinary shares held as at 5:00pm on 16 May 2018 to shareholders with a registered address in Australia or New Zealand (Eligible Shareholders).

Pursuant to the Rights Issue, the Company may issue approximately 98,078,690 New Shares at an issue price of $0.015 each, to raise a maximum of approximately $1.47m (before expenses of the issue).

The prospectus for the Rights Issue is available on the ASX website http://www.asx.com.au.

The Record Date for the purposes of determining security holders entitled to participate in the Rights Issue is 16 May 2018. The prospectus for the Rights Issue will be despatched to all shareholders soon after the Record Date.

The purpose of this letter is to give you notice that if you wish to participate in the Rights Issue with respect to your options, you must exercise your options before the Record Date.

To ensure that your new shares are allotted before the Record Date, your option exercise notice together with the correct monies must be received by the Company no later than 15 May 2018. Any notice of exercise of option received after this date cannot be assured of allotment before the Record Date. For your convenience an option exercise notice is attached.

If you do not wish to participate in the Rights Issue (in respect of your options) you do not need to take any action.

Before deciding whether to exercise all or any of your options, you should consider the terms of the Rights Issue carefully and if in any doubt, consult with your professional advisor. Anybody wishing to acquire securities will need to complete the personalised application form which will accompany the prospectus.

Yours sincerely

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Peter J. Nightingale Company Secretary

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NOTICE OF EXERCISE OF OPTIONS

TO: The Directors Biotron Limited Level 2 66 Hunter Street Sydney NSW 2000

Optionholder Entitlement Details HIN/SRN Number of Options held Amount payable on full exercise of Options @ $0.06 per Option

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I/We ______________________________________________________________________ being the registered holder(s) of

the options hereby exercise my/our option to subscribe for ___________________A ordinary shares in Biotron Limited. In respect of the shares the subject of this notice, I/we enclose application monies of $__________________B.

I/We authorise you to register me/us as the holder(s) of the shares to be allotted to me/us and I/we agree to accept such shares subject to Biotron Limited’s Constitution.

Holder Identification Number ('HIN') or Securityholder Reference Number ('SRN'):

INDIVIDUALS TO SIGN BELOW COMPANIES TO SIGN BELOW

Executed in accordance with the Company’s Constitution Individual or Securityholder 1 Director Securityholder 2 Director/Secretary (Delete inapplicable) Securityholder 3 Sole Director and Sole Company Secretary If a joint holding, all shareholders must If only one signatory needs to sign on behalf of a sign. If this form is being signed by a Company and that signatory is not the Sole Director and person who is not the registered holder, Sole Company Secretary then a certified copy of the then the relevant authority (e.g. power Constitution. of attorney) must either have previously been exhibited to the Company or its Registrar or be attached to this form.

Affix common seal here (if required by constitution)

Dated this _______ day of ___________________ 2018.

How to Complete this Form

A Enter the number of Options you wish to exercise. B Enter the amount of exercise monies being A x $0.06.

You can make your cheque or bank draft for the amount in B payable to Biotron Limited.

You can pay by cheque or bank draft by returning this completed and signed form together with your cheque or bank draft in the enclosed reply paid envelope to the Company at Level 2, 66 Hunter Street, Sydney NSW 2000.