BIOTRON LIMITED — Interim / Quarterly Report 2015

Jul 26, 2015

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Level 2, 66 Hunter Street Sydney NSW 2000 Tel: (61-2) 9300 3344 Fax: (61-2) 9221 6333 E-mail: pnightingale@biotron.com.au Website: www.biotron.com.au

27 July 2015

The Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 2000

(6 pages by email)

Dear Madam,

QUARTERLY CASH FLOW REPORT

In accordance with Listing Rule 4.7B, I attach an Appendix 4C, a quarterly cash flow report to 30 June 2015.

I also advise that, in addition to the $2.0 million proceeds from the issue of shares referred to in item 1.15 of the Appendix 4C, subsequent to the end of the quarter, on 15 July 2015 the Company announced the completion a Share Purchase Plan which was strongly supported by shareholders.

As a result, the Company has a current cash balance of approximately $6.5 million, placing the Company in a strong financial position to capitalise on the recently announced interim results of its phase 2 study of the Company’s lead antiviral drug, BIT225, on 60 patients infected with Hepatitis C virus (‘HCV’) genotypes 1 or 3 (trial BIT225-008).

Key interim, preliminary data from trial BIT225-008 was reviewed by a USA-based, independent Data and Safety Monitoring Committee (‘DSMC’) which recommended that the Company continue with the development of BIT225 in combination with other direct acting antiviral drugs (‘DAAs’) and with a particular focus on patients infected with HCV genotype 3 (‘G3’).

In addition to improving the Company’s financial position to engage in the negotiation of a commercialisation transaction, the Company’s current cash balance will be used to achieve the following key milestones:

• Finalise the BIT225-008 trial analysis of an antiviral effect twelve weeks after completing all drug treatment (ie a sustained virological response at Week 12, known as SVR12). The SVR12 time point for the G3 cohort is mid-August 2015, and the SVR12 time point for the G1 cohort is February 2016.

• Determination of potential drug-drug interactions between BIT225 and other HCV drug(s), to assist with design of a proposed Investigational New Drug (‘IND’) study with the USA Food and Drug Administration (‘FDA’).

• In addition to the HCV market, prepare documentation for regulatory and ethics submissions, and if approved, initiate a Phase 2 HIV trial for BIT225.

• Progress towards filing IND applications with the FDA for both HCV and HIV indications.

Yours sincerely

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Peter J. Nightingale Company Secretary

pjn8160

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Name of entity

BIOTRON LIMITED

ABN 60 086 399 144	Quarter ended (“current quarter”)
60 086 399 144	30 JUNE 2015

Consolidated statement of cash flows

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – R&D refund Net operating cash flows	Current quarter $A’000	Year to date (12 months) $A’000
		- (207) (829) - (171) - 14 - - 1,672	- (783) (2,933) - (724) - 48 - - 1,672
		479	(2,720)

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (12 months) $A’000
1.8 Net operating cash flows (carried forward)	479	(2,720)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -
	-	-
	479	(2,720)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other (cost of share issue) Net financing cash flows	2,000 - - - - (184)	6,060 - - - - (583)
	1,816	5,477
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.21 1.23 Cash at end of quarter	2,295 2,204 24	2,757 1,764 2
	4,523	4,523

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
		150
		-
1.26	Explanation necessary for an understanding of the transactions
	N/A

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items inthe accountsis asfollows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	4,523	2,204
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	4,523	2,204

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	Nil	Nil

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 27 July 2015 (Company Secretary) Print name: Peter J. Nightingale

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 4

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals  12.1(a) - policy for classification of cash items  12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

6. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

7. See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 5