CODEIFAI LIMITED — Regulatory Filings 2021

Sep 7, 2021

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ASX ANNOUNCEMENT

ASX: YPB | 8[th] September 2021

First paid trial for MotifMicro with major ANZ packager

• First paid commercial trial for MotifMicro1

• Market leader OpalANZ is a subsidiary of Nippon Paper Group

• Paid trials increase the probability of full commercialisation via clear customer commitment

Anti-counterfeit and consumer engagement solutions provider YPB Group Limited (ASX: YPB) is pleased to advise that it has secured the first paid commercial trial of MotifMicro1 (MM1) with leading ANZ packaging supplier OpalANZ through its Specialty Packing Group Pty Ltd.

MM1 is YPB’s revolutionary forensic anti-counterfeit solution readable by an unmodified smartphone. It has the potential to make ultra-secure anti-counterfeit solutions widely available in mass markets for the first time.

This paid trial with Opal follows the global marketing launch on 28 April 2021 of MM1 to targeted, ultra-high-volume suppliers to FMCG manufacturers and Governments in key geographies. As discussed in prior ASX releases, paid commercial trials are a critical, intermediate stage in MM1’s path to full commercialisation.

Paid commercial trials are a recent innovation in YPB’s commercialisation strategy. They secure genuine corporate commitment to novel products, in this case MM1, and incentivise key customer personnel to drive the novel product to adoption by end Brands or Government customers. By achieving significant customer buy-in, paid trials increase the probability of a product eventually achieving full commercialisation.

The trial will test the performance of MM1 in a variety of coatings and substrates across Opal’s product range under normal production conditions and will seek to identify the highest value applications for the highest value customers. During the trial phase, Opal and YPB are both committed to minimising the time to the first commercial customer.

The Licence Agreement is for a term of 12 months with a 3-year renewal option. It grants Opal exclusivity to distribute MM1 in the Australasian recyclable, paper-based packaging market. The revenue to YPB from the trial will not in itself be material but the opportunities that would follow a successful conclusion undoubtedly are. Initial target customers would be ANZ food exporters.

Opal was previously wholly owned by Orora Limited (ASX: ORA) and was sold to Nippon Paper Group in October 2019. It is one of the leading packaging and paper manufacturing groups in Australia and New Zealand. It has more than 80 operating sites and exports to over 70 countries around the world. It has six divisions: Opal Australian Paper, Opal Paper and Recycling, Opal Converting Group, Opal Fibre Packaging, Opal Kiwi Packaging and Opal Specialty Packaging.

investors@ypbsystems.com

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypbsystems.com

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This first paid commercial trial follows the first commercial revenues from MM1 in early 2021 via channel partner WAPL selling into the USA collectible sneaker market under the GetSliip brand. GetSliip’s original plan has been slowed by COVID-19 but remains on track and still holds meaningful potential for YPB.

Executive Chairman John Houston said: “I’m pleased and encouraged by the enthusiastic feedback from global and Australian partners for our proprietary MM1 product. This first paid commercial trial is a major breakthrough for the Company and the technology, particularly given the pedigrees of our new partner Opal and its parent Nippon Paper”.

We continue to progress other paid trial opportunities with a range of global entities, and I look forward to announcing further paid trials as they are secured.”

This announcement has been authorised by the Board of YPB Group Limited.

For further information please contact:

YPB investor enquiries investors@ypbsystems.com

Ben Jarvis 0413 150 448 Ben.jarvis@sdir.com.au Six Degrees Investor Relations

About YPB Group

YPB Group Limited (ASX: YPB) is an Australia-based product authentication and consumer engagement solutions provider. YPB's proprietary smartphone enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumers’ engagement.

The combination of YPB’s smartphone authentication solutions and its SaaS Connect platform, creates ‘smart’ product packaging, opening cost-effective, digital, and direct marketing channels between brands and their consumers. Connect gathers actionable data on consumer preferences. It can then host tailored marketing campaigns directly back to the scanning smartphone.

YPB is currently focused on the rapidly growing Australian, South East Asian, and Chinese markets. Its focus is dairy, cannabis, alcohol, and cosmetics where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers. To learn more please visit: ypbsystems.com

investors@ypbsystems.com

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypbsystems.com