BPH ENERGY LTD — Capital/Financing Update 2019

Jan 7, 2019

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8[th] Jan 2019

Companies Announcements Office ASX Limited 10[th] Floor, 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam,

Company Update

1. Non-Renounceable Rights Issue (“Rights Issue”)

Following the release of the Appendix 3B made yesterday 7[th] Jan BPH is pleased to confirm it has now raised $982,504 from the Rights Issue announced on 24 October 2018 of which $661,070 has been through shortfall applications . Together with applications received under the offset the Rights Issue applications now total $1,141,040. The residual shortfall now available to place is only $45,197. The company is in discussions on this residual shortfall placement. BPH has received excellent support for its issue and the company is now well placed to implement its corporate strategy. BPH has successfully raised $1,08,504 in cash from share issues in the last three months. Further updates follow.

2. Cortical’s BAR Monitor (BARM) - Korea

In early November, Mr Louis Delacretaz, Cortical’s Chief Technical Officer, attended the Korea Anesthesia 2018 congress in Seoul. Prior to the congress start, Mr. Delacretaz attended a series of meetings organised by Austrade with anaesthesiology professors from the Seoul National University College of Medicine, Konkuk University School of Medicine and the Catholic University of Korea College of Medicine.

Each Professor was actively looking for a substitute for their current monitors as they had strong concerns about the credibility of the current monitors reading. In several meetings they were very interested in a means to determine the patients’ pain levels and interested in trialing the BARM as a substitute device.

During the congress many anesthetists were very interested in the advantages the BARM has compared to other monitors due to being based on physiological principles and have provided contact details. Globaluck, Cortical Dynamics Korean distributor, also introduced Mr Delacretaz to a number of heads of leading teaching and research hospitals.

BPH Energy Ltd ACN 095 912 002 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

Cortical has now engaged an international testing and certification organization to test and certify the BARM to comply with the Korean certification process .The assessment also includes the latest medical safety standard deviations for Australia, New Zealand, European Union and the USA.

3. Medical Cannabis Investment

As announced on 24 October 2018 the Company intends to pursue a complimentary strategy of making investments in the medical cannabis sector. The medical cannabis sector is showing significant growth with current developments boosting the sectors viability.

As reported by EverBlu research legislative changes show rapid acceptance and growth. In the last fortnight Thailand, Israel and South Africa have reported changing laws for the exportation and legalisation of medicinal marijuana and in USA the Food and Drug Administration is looking for “pathways” to legalize the sale of CBD oil and other cannabis-based compounds in food and beverages in a move that could remove one of the last remaining legal hurdles for companies hoping to sell such products across state lines.

New Zealand has legalised medical marijuana and South Korea's government has approved the legalisation of medical marijuana as soon as early 2019.

4. Cortical’ s Capital Raising

Cortical has advised the engagement of Enable Funding to undertake a capital raising of up to $2 million at a price of 10 cents per share and is also in discussions with other parties on its further funding.

Yours sincerely

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David Breeze Chairman