BPH ENERGY LTD — Capital/Financing Update 2018

Oct 24, 2018

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24 October 2018

Companies Announcement Office ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir/Madam

BPH Energy Ltd (“BPH” or “Company”) - Market Update-Medical Cannabis Sector

The company is pleased to provide the following market update:

1. Medical Cannabis Investment

The Company intends to pursue a complementary strategy of making investments in the medical cannabis sector. At this stage no specific investment has been considered.

The medical cannabis sector is showing significant growth with current developments boosting the sectors viability including the move to legalise cannabis in Canada last week and the announcement by the British Government to legalise medical cannabis from November 2018. This follows the announcement by the Australian Federal Government to legalise the export of medical cannabis from Australia in January this year. BPH plans to raise funds in its planned rights issue to pursue this objective.

Shareholders should note that any investment by the Company in the medical cannabis sector will be reviewed by ASX and the Company may be required to recomply with chapters 1 and 2 of the Listing Rules and there may be necessary escrow implications for the shares to be issued under the rights issue.

2. BPH Rights Issue

BPH has announced a rights issue to raise up to $1,186,237 by issuing up to 1,186,237,417 shares on a one for one basis at an issue price of 0.1 cents ($0.001) per share.

BPH Energy Limited ACN 95 912 002 PO Box 317, North Perth, Western Australia 6906 14 View Street, North Perth, Western Australia 6006 admin@bphenergy.com.au www.bphenergy.com.au

T: +61 8 9328 8366 F: +61 8 9328 8733

3. BPH Placement

BPH has agreed to place a further $145,050 of shares in the Company at 0.1 cents ($0.001) per share. Further confirmation of the details of this placement is being made concurrently with this announcement.

4. Cortical’s BAR Monitor (BARM) in Korean Trade show

Cortical Dynamics Limited’s (“Cortical”) BAR Monitor (BARM) will be exhibited by the Cortical Korean distributor GLOBALUCK on 8th to 10th November 2018 at the Congress of Korean Anaesthesiology meeting in Seoul. Mr Louis Delacretaz, Cortical’s Chief Technical Officer, will attend this conference and it is planned that he will also meet the heads of leading teaching and research hospitals in Korea with the assistance of Austrade.

5. Cortical Capital Raising

Cortical has engaged Enable Funding to undertake a pre-IPO capital raising of up to $2 million at a price of 10 cents per share.

6. Further trial of Cortical BARM device in Sydney

Cortical’s BARM has now been used in further successful trials at Strathfield Private Hospital in Sydney. Strathfield is part of the Ramsay private hospital group.

Yours sincerely,

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David Breeze Executive Director