CODEIFAI LIMITED — Regulatory Filings 2016

Aug 10, 2016

10 August 2016

Ms Luxmy Wigneswaran Principal Advisor, Listings Compliance, Sydney ASX Compliance PTY Ltd, 20 Bridge Street, Sydney, NSW, 2000

Dear Ms Wigneswaran,

Re: ASX Appendix 4C Query

I refer to your letter dated 8 August 2016 concerning YPB’s Appendix 4C lodged 29 July 2016, the Company notes the comments therein and herewith responds to your specific questions using the same numbering as in your letter.

1. The Company expects that for the time being it will have negative operating cash flows, which is in line with expectations. We refer to our ASX release on 19 May 2016 where we note cash flow breakeven is expected to occur in Q1, 2017.

2. Yes, the Company has a leading Investment Bank managing a potential capital raising which is planned to occur in advance of the Company’s funding needs. In parallel, the Company has commenced discussions with a strategic investor which will progress in conjunction with the potential capital raising. We are confident of continued support from investors and point to our history of successful capital raises, most recently in May 2016 where we completed an oversubscribed $4.5m institutional placement.

3. Yes, on the basis of the information provided above.

4. The company is in compliance with Listing Rule 3.1.

Should you have any further queries please do not hesitate to contact the writer Robert Whitton on 8263 4020.

Yours faithfully

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Robert Whitton Company Secretary

8 August 2016

Mr Robert Whitton

Chief Finance Officer & Company Secretary YPB Group Ltd c/- William Buck Level 29, 66 Goulburn Street Sydney NSW 2000

By Email

Dear Mr Whitton,

YPB Group Ltd (the “Company”): ASX Appendix 4C Query

I refer to the Company’s quarterly report in the form of Appendix 4C for the period ended 30 June 2016 lodged with ASX Market Announcements and released on 29 July 2016 (the “Appendix 4C”).

ASX notes that the Company has reported:

• negative net operating cash flows for the quarter of $2,270,000; and

• cash at the end of the quarter of $3,164,000.

It is possible to conclude on the basis of the information provided in the Appendix 4C that if the Company were to continue to expend cash at the rate for the quarter indicated by the Appendix 4C, the Company may not have sufficient cash to continue funding its operations. In view of this, please respond to each of the following.

1. Does the Company expect that it will continue to have negative operating cash flows for the time being and, if not, why not?

2. Has the Company taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

3. Does the Company expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

20 Bridge Street www.asx.com.au Sydney NSW 2000 Customer service 13 12 79

ASX Compliance Pty Limited ABN 26 087 780 489

1. Can the Company confirm that it is in compliance with Listing Rule 3.1 and that there is no information that should be given to ASX about its financial condition in accordance with that Rule that has not already been released to the market?

Please also provide any other information that the Company considers may be relevant to ASX forming an opinion on whether the Company is in compliance with Listing Rule 12.2.

When and where to send your response

This request is made under, and in accordance with Listing Rule 18.7. Your response is required as soon as reasonably possible and, in any event, by not later than 9.30am AEST on Thursday, 11 August 2016. If we do not have your response by then, ASX will have no choice but to consider suspending trading in the Company’s securities under Listing Rule 17.3.

You should note that if the information requested by this letter is information required to be given to ASX under Listing Rule 3.1 and it does not fall within the exceptions mentioned in Listing Rule 3.1A, the Company’s obligation is to disclose the information “immediately”. This may require the information to be disclosed before the deadline set out in the previous paragraph.

ASX reserves the right to release a copy of this letter and your response on the ASX Market Announcements Platform under Listing Rule 18.7A. Accordingly, your response should be in a form suitable for release to the market.

Your response should be sent to me by e-mail. It should not be sent directly to the ASX Market Announcements Office. This is to allow me to review your response to confirm that it is in a form appropriate for release to the market, before it is published on the ASX Market Announcements Platform.

Listing Rule 3.1

Listing Rule 3.1 requires a listed entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities. Exceptions to this requirement are set out in Listing Rule 3.1A.

The obligation of the Company to disclose information under Listing Rules 3.1 and 3.1A is not confined to, nor is it necessarily satisfied by, answering the questions set out in this letter.

In responding to this letter, you should have regard to the Company’s obligations under Listing Rules 3.1 and 3.1A and also to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B .

Trading halt

If you are unable to respond to this letter by the time specified above, you should discuss with us whether it is appropriate to request a trading halt in the Company’s securities under Listing Rule 17.1.

If you wish a trading halt, you must tell us:

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• the reasons for the trading halt;

• how long you want the trading halt to last;

• the event you expect to happen that will end the trading halt;

• that you are not aware of any reason why the trading halt should not be granted; and

• any other information necessary to inform the market about the trading halt, or that we ask for.

We may require the request for a trading halt to be in writing. The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted.

You can find further information about trading halts in Guidance Note 16 Trading Halts & Voluntary Suspensions .

If you have any queries or concerns about any of the above, please contact me immediately.

Yours sincerely,

[sent electronically without signature]

Lux Wigneswaran

Principal Adviser, Listings Compliance (Sydney)

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