DIGITALX LIMITED — Capital/Financing Update 2015

Apr 27, 2015

ASX ANNOUNCEMENT

28 April 2015

digitalBTC Market and Product Release Update

• Strategic shift towards new commercial initiatives set to reduce earnings exposure to Bitcoin prices and lower capital intensity

• Industry developments provide strong confidence in medium-to-long term growth potential for the global Bitcoin market

• Successful launch of digitalX Direct software product – generating $3.8 million in revenues in Q1 2015

• Shift away from high capital intensity Bitcoin mining operations

• Focus on distributed ledger technology utilising the Blockchain technology, which remains of key importance to future growth plans

Fintech company Digital CC Limited (trading as digitalBTC, ASX: DCC and ‘the Company ”) is pleased to provide an update on its recent product development and the wider market adoption of digital currencies.

Overview

The Company’s digitalX Direct product has made significant progress since the implementation of its Application Programming Interface (API) which enables clients to connect directly into the dynamic platform.

While digitalBTC will remain focused on its profitable digitalX Direct product, the Company wishes to advise that it has made a shift of focus in its operations towards currency payments solutions using distributed ledger technology. Importantly this technology utilises the Blockchain and Bitcoin nodes, which are not reliant on the currently depressed Bitcoin market.

Specifically, the IP associated with Blockchain provides a major competitive advantage for the disruption of other non-Bitcoin related financial services markets. Significant market research and product development work has been undertaken in this area over recent months and a major new product launch will be announced over the coming weeks.

digitalX Direct update

digitalX Direct is the Company’s proprietary software that provides real-time liquidity of Bitcoin to institutional investors and large commercial operators. The platform was launched in Beta during October 2014 with select customers and has delivered significant trading growth thereafter. 13 clients have transacted on the platform to date with total revenues generating of $3.8 million in Q1 2015.

Importantly, the turnover generation from this product is linked to Bitcoin volumes, which continue to rise and are not materially impacted by depressed Bitcoin market prices.

The product is an institutional and consumer facing dynamic portal that provides users with instant access to Bitcoins, significant trading volume and competitive pricing.

As part of the service provided by digitalBTC the Company provides 24 hour customer service, and since October 2014 the Application Programming Interface (API) access has been available for institutions, giving clients the ability to plug directly into the platform.

The company believes the success of this product provides strong validation of its ability to develop innovative technological products to meet the emerging opportunities from the rapidly changing financial services industry.

Market Update

Bitcoin market remains strong

Encouragingly, exchange trading value for March increased by 30% over the prior months lows and the quarter-on-quarter growth in Bitcoin trading volumes continues to highlight the attractiveness of the technology.

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Blockchain technology becoming widely used in other payments solutions

The Blockchain technology is becoming more widely used in the market as it is increasingly deployed in many non-currency applications and leading financial institutions. Large corporates including Citi Bank and UBS are also starting to explore the utilisation of Blockchain technology in their operations.

The Australian Digital Currency Commerce Association (ADCCA) has announced a new constitution that has been built into and certified by the Blockchain and the UK government has announced as part of its 2015 budget that it will be investing £10 million into a research initiative looking at Bitcoin and other digital currencies.

ADCCA’s constitution coincides with the final Senate hearing into digital currencies, which is tasked with looking into how best to regulate this emerging industry including the crucial area of tax treatment with the release of the report due this year.

Investment

Q1 2015 saw the largest level of investment in Bitcoin related companies from venture capitalists to date. Total funds invested in the quarter totaled $225m, representing a 50% increase from prior quarter, and gives rise to total investment to date of nearly $700m.

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The possibilities for Bitcoin technology are just beginning and the Company sees significant transferability of its existing proprietary technology to enable the commercial disruption of numerous financial services markets.

Ends

For further information please contact:

digitalBTC

Media

Zhenya Tsvetnenko Media & Capital Partners Executive Chairman Asher Moses T: +61 8 9389 2000 Director +61 438 008 616 Alex Karis Asher.moses@mcpartners.com.au

Alex Karis Chief Executive Officer T: +1 (617) 544 3150