CODEIFAI LIMITED — Capital/Financing Update 2023

Jun 7, 2023

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ASX ANNOUNCEMENT

ASX: YPB | 8th June 2023

YPB signs 3 year contract with Rim-Lock Innovations

• Multiple YPB solutions to support Rim-Lock® deployment in mining and heavy machinery

• • Initial three-year contract

• Contract highlights expansion of addressable market and value of IP portfolio

• Monetisation of IP portfolio building momentum

Authentication and consumer engagement solutions creator YPB Group Limited (ASX: YPB) is pleased to announce that it has signed a 3-year agreement to protect and support an invention for the global mining and wheeled heavy machinery generally.

The new product from Australian inventor Rim-Lock Innovations Pty Ltd is being initially adopted in the mining industry https://www.rim-lock.com.au.

YPB’s solutions will be deployed by Rim-Lock® as it works with resources and OEM equipment customers in using its Rim-Lock® product to:

1. Ensure supply chain integrity.

2. Authenticate new and in-use parts as genuine.

3. Enable automated maintenance logging for service schedule compliance.

This contract demonstrates YPB advancing the monetisation of its increasingly capable and mature intellectual property portfolio by combing blocks of its IP library to rapidly enter tangential but large markets with scalable, innovative solutions. This new contract follows the adaptation of YPB Tracer to an OEM module for fraud prevention in the USA instant lottery ticket market earlier in 2023. Both these contracts highlight the versatility and broad relevance of YPB’s IP.

Five YPB solutions will integrate to deliver the following outcomes for Rim-Lock®:

• Digital Information – via ProtectCode® issuing each product unit with a unique QR identifier as a means of managing that unit through its lifecycle.

• Physical authentication - with YPB Tracer providing forensic guarantee of authenticity of each unit.

• Supply chain management - with BrandReporter® providing visibility through the entire supply chain.

• Inventory, use and maintenance logging - via the UnifAI smartphone app and BrandReporter®.

• Management of the maintenance database - via smartphone QR scan uploading data to YPB Connect. It is important to note that YPB Connect is the parent to all YPBs digital services ProtectCode® BrandReporter® UnifAI

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YPB Group Limited Level 5 126 Phillip Street SYDNEY NSW 2000

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ypbsystems.com

investors@ypbsystems.com

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The three-year contract is with Australian company Rim-Lock Innovations Pty Ltd, whose invention, Rim-Lock®, protects against injuries and fatalities in the wheel and tyre change “crush zone” for wheels and tyres weighing over four tonnes. The patent protected Rim-Lock® retainer is a wheelnut-like system that allows the secure locking of a rim in place without the need for any manual interaction from personnel, minimising the risk of injury. Rim-Lock® is presently being deployed with a global resource major in Australia.

YPB’s solution will be applied by Rim-Lock® as follows:

• YPB Connect will generate serialised QR codes (ProtectCodes®) to be applied to YPB supplied designed Ultra-Tough security labels for demanding environments will be applied to each RimLock® unit, case and retainer.

• The unit will be traced through the supply chain with BrandReporter®.

• At every use the ProtectCode® will be smartphone scanned and its use logged. At compulsory 90-day maintenance intervals a new YPB ProtectCode Ultra Tough security label will be applied.

• • Data from scans will be uploaded to YPB Connect to a maintenance schedule database.

• Should there be any doubt as to product authenticity, YPB Tracer in the ProtectCode Ultra Tough security label can be scanned to confirm whether fake or real.

The commercial details of the contract are:

• Minimum revenue estimate over the term of the contract A$80,300.

• Initial term 3 years from commencement date.

• Monthly Licence Fee for YPB BrandReporter® platform.

• Amazon Web Services activation fee.

• Fee per QR code generated.

• Fee Per YPB ProtectCode Ultra Tough label supplied.

• Termination by customer 30 days subject to payment of the Minimum Order Quantity over the initial Term.

It should be highlighted that this opportunity is sourced in YPB Connect becoming the parent to all YPB’s digital services, ProtectCode®, BrandReporter®, and UnifAI, as well as it now capturing data from YPB Tracer via Bluetooth-enabled scanners. Connect acts as a digital hub where valuable product and market data is recorded, analysed, monitored, and used in critical decision making and compliance. This data capability increases the value of authenticity and track and trace scans, and product linkage allows the rapid creation of novel solutions to complex problems from the core YPB IP library. It significantly expands YPB’s market opportunity via broader relevance of YPB’s IP and the value of its IP portfolio.

YPB Executive Chairman and CEO John Houston said : “ This is an exciting contract for YPB reflecting our increased capacity to unearth and secure innovative opportunities in major markets. Worker safety is the first order priority of all companies in dangerous industries globally and Rim-Lock® has great potential for rapid growth. YPB’s solutions can help Rim-Lock® achieve its potential by ensuring the authenticity and correct maintenance of its products. We look forward to working with RimLock® in pursuit of worker safety in like deployments around the world.”

Authorisation: YPB Board

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investors@ypbsystems.com

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YPB Group Limited ypbsystems.com Level 5 126 Phillip Street SYDNEY NSW 2000

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YPB investor enquiries investors@ypbsystems.com

About YPB Group

YPB Group Limited (ASX: YPB) is listed on the Australian Stock Exchange and has developed and sells of a suite of physical, digital, and AI-based authentication technologies with a vast range of applications. Our solutions can easily authenticate a myriad of items, such as FMCG (fast-moving consumer goods) products, official identification documents, pharmaceuticals, nutraceuticals, dairy products, tax stamps, transactions - and even people.

Our solutions trigger engagement with consumers in a consented, cost-effective, and direct manner. Our proprietary technologies utilize Bluetooth and/or smartphones to capture and analyse invaluable authentication data in our Connect™ global intelligence platform, providing real-time, first-party, and worldwide market intelligence data. This actionable data enables brands to establish digital and direct marketing channels with their customers.

The markets YPB is targeting comprise many billions of items, and this number is growing rapidly, providing YPB with significant growth opportunities for its authentication and consumer engagement technologies.

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investors@ypbsystems.com

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YPB Group Limited Level 5 126 Phillip Street SYDNEY NSW 2000

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ypbsystems.com