CODEIFAI LIMITED — Capital/Financing Update 2016

May 23, 2016

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ASX: YPB

ASX ANNOUNCEMENT 24 May 2016

YPB COMPLETES OVERSUBSCRIBED A$4.5 MILLION INSTITUTIONAL PLACEMENT

• Placement of 18.75 million new ordinary shares at $0.24 per share

• Excellent demand from new and existing shareholders

• Six new institutions join the register

• Capital raised to fund acceleration of business development and product R&D

Brand Protection and Customer Engagement solutions company YPB Group Limited (ASX code: YPB) has successfully undertaken an institutional placement of new fully paid ordinary shares to raise A$4.5 million.

The placement was strongly supported by new and existing investors, with the addition of six new institutions to the register.

Under the placement, YPB will issue 18.75 million new ordinary shares at a price of $0.24 per share.

Net proceeds from the placement will be used to accelerate conversion of YPB’s substantial new business opportunity pipeline into recurring revenues, expand into new markets and partnerships, and further enhance its solutions suite via R&D.

YPB Executive Chairman John Houston said: “We are delighted with the results of this placement and thank existing and new shareholders for their strong support. Having six new institutions recognise and back YPB’s potential is testament to the company’s maturation since listing. Our short-term goal is very clear, achieving profit breakeven by Q1 2017 and $5m pre-tax profit for FY2017. Our longer term goal is just as clear, to create substantial shareholder wealth by building a global franchise in Anti-Counterfeit, Customer Engagement and Government Vital Documents solutions. We are intently focused on effective execution and delivery of our goals and ensuring shareholders’ support is well rewarded.”

Settlement of the placement is scheduled for Friday 27 May 2016 with allocation and issuing of the new shares expected on Monday 30 May 2016. The placement shares will rank equally with existing shares on issue.

The trading halt in place since Friday 20 May 2016 will be lifted from the commencement of trading today.

Moelis Australia Advisory Pty Ltd acted as sole lead manager and bookrunner for the placement.

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For further information please contact;

Mr. John Houston Executive Chairman YPB Group Limited T: +61 458 701 088 E: john.houston@ypbsystems.com W: www.ypbsystems.com

Mr. Robert Whitton CFO and Company Secretary YPB Group Limited T: +61 457 666 309 E: rob.whitton@ypbsystems.com

Media and Investor Enquiries

Matthew Wright NWR Communications +61 451 896 420 matt@nwrcommunications.com.au

About YPB

YPB Group (ASX: YPB) is a pioneer in advanced brand protection solutions. Listed on the Australian Securities Exchange, we are expanding our global footprint with an established presence in China, USA, Australia and South East Asia.

YPB’s patented anti-counterfeit technology combined with its security packaging solutions, consulting and forensic services enables businesses to protect their high value brands from the risks of counterfeit and product diversion.

YPB’s full range of services will give businesses the ability to cost effectively protect their brands, easily detect counterfeits and give them the opportunity to connect with their consumers about the authenticity of their brand.

PROTECT

Security print packaging and labeling

YPB offers a wide range of intelligent security packaging and labeling solutions that can be included into almost any material and is a cost effective brand protection solution for companies wanting to protect the integrity and value of their brands in high-risk markets.

IP solutions & forensic services

YPB’s IP solution specialists will work with quality brands and Governments, to develop personalised brand protection strategies and solutions that will deliver real protection and safety for brands, products and consumers.

DETECT

Scanner and tracer protection solutions

YPB’s patent protected state-of-the art tracer technology is invisible, cannot be copied or destroyed. Brand owners that include YPB’s tracers in their packaging can use YPB’s scanners to verify their product’s authenticity. If a counterfeit is detected YPB’s forensic services will consult with a brand owner to develop strategic solutions to protect the brand counterfeiting and product diversion.

CONNECT

Smartphone applications to detect and connect

YPB’s sophisticated, user friendly and powerful smartphone applications allow brand owners and consumers to identify and report suspected counterfeit or divergent products and allows brands to connect and engage with consumers via QR codes, near field communication, track and trace, product scanning and consumer engagement. Giving brand owners valuable and actionable “big data” about their consumers and products through a powerful data analytics capability.