DIGITALX LIMITED — Capital/Financing Update 2017

May 22, 2017

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

DIGITALX LIMITED

ABN

59 009 575 035

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

Convertible Notes 9 Convertible Notes

Convertible Notes with a face value of $10,000, converting to Fully Paid Ordinary Shares at $0.05 per Share and maturing 23 May 2018. Subject to complying with the requirements of the ASX and the ASX Listing Rules, the Company and the Noteholder may agree to the Conversion Price being adjusted to equal the issue price of Shares at which the Issuer next raises equity capital (other than under the Convertible Note) after the date the Convertible Note is issued where the issue price is less than $0.05 per Share.

• See chapter 19 for defined terms.

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4 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted+securities? If the additional+securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of+securities issued without security holder approval under rule 7.1	No. Upon conversion of the Convertible Notes to Shares, the Shares will rank equally with existing Shares.
	Convertible Notes: $10,000 per Note.
	Tranche Two of the capital raising, as announced 20 March 2017, with funds to be allocated to working capital and ongoing business development.
	Yes
	30 November 2016
	9 Convertible Notes

• See chapter 19 for defined terms.

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6d Number of[+] securities issued Nil with security holder approval under rule 7.1A 6e Number of[+] securities issued Nil with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of[+] securities issued Nil under an exception in rule 7.2 6g If[+] securities issued under rule N/A 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If[+] securities were issued under N/A rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining 7.1: 9,806,740 issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 7.1A: 21,204,493 and release to ASX Market Announcements 7 +Issue dates 23 May 2017 Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B. Number +Class 8 Number and +class of all 212,044,933 Fully Paid Ordinary Shares +securities quoted on ASX ( including the +securities in section 2 if applicable)

• See chapter 19 for defined terms.

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9 Number and +class of all +securities not quoted on ASX (_including_the +securities in section 2 if applicable)	Number	+Class
	3,849,517 23,486,000 3,000,000 70	Unlisted Options exercisable at $0.286 each on or before 30 June 2017 Unlisted Options exercisable at $0.08 each on or before 10 February 2018 Unlisted Options exercisable at the lesser of $0.06 each, or a 20% premium to the next equity raising completed by the Company before 15 December 2018 and expiring 30 March 2019. Convertible Notes with a face value of $10,000 per Note, converting to Shares at $0.05 per Share and maturing on the following dates respectively: - 9 at 23 May 2018. - 1 at 24 April 2018. - 30 at 21 April 2018. - 30 at 30 March 2018. Subject to complying with the requirements of the ASX and the ASX Listing Rules, the Company and the Noteholder may agree to the Conversion Price being adjusted to equal the issue price of Shares at which the Issuer next raises equity capital (other than under the Convertible Notes) after the date the Convertible Note is issued where the issue price is less than $0.05 per Share.

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	The Company does not have a dividend policy

Part 2 - Pro rata issue

art 2 - Pro rata issue
11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders 25 If the issue is contingent on security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and offer documents will be sent to persons entitled	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do security holders sell their entitlements_in full_through a broker? 31 How do security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do security holders dispose of their entitlements (except by sale through a broker)? 33 +Issue date	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of[+] securities ( tick one )

(a) +Securities described in Part 1

(b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

• See chapter 19 for defined terms.

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Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which +quotation is sought 39 +Class of +securities for which quotation is sought

40 Do the[+] securities rank equally in all respects from the[+] issue date with an existing[+] class of quoted +securities? If the additional[+] securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• See chapter 19 for defined terms.

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41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another[+] security, clearly identify that other[+] security)

Number +Class 42 Number and +class of all +securities quoted on ASX ( including the +securities in clause 38)

Quotation agreement

1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• See chapter 19 for defined terms.

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• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

==> picture [101 x 27] intentionally omitted <==

Sign here:.................................... Date: 23 May 2017 (Company Secretary) Print name: Shannon Coates........................................

• See chapter 19 for defined terms.

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Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Part 1	Part 1
Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnumber of fully paid+ordinary securities on issue 12 months before the +issue date or date of agreement to issue	178,119,581
Addthe following: • Number of fully paid+ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid+ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid+ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	10,580,303 shares issued 7/09/2016 32,780,000 shares issued 8/12/2016 4,232,000 shares issued 19/01/2017 3,166,888 shares issued 7/02/2017 800,000 shares issued 10/02/2017
Subtractthe number of fully paid+ordinary securities cancelled during that 12 month period	17,633,839 (cancelled 14 December 2017 following completion of selective buyback)
“A”	212,044,933

• See chapter 19 for defined terms.

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Step 2: Calculate 15% of “A”

Step 2: Calculate 15% of “A”
“B”	0.15
	[Note: this value cannot be changed]
Multiply“A” by 0.15	31,806,740
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has
already been used
Insertnumber of+equity securities issued	5,000,000 unlisted options
or agreed to be issued in that 12 month
period_not counting_those issued:	3,000,000 unlisted options
• Under an exception in rule 7.2	6,000,000 shares (being the maximum able
	to be converted pursuant to the 30
• Under rule 7.1A	Convertible Notes)
• With security holder approval under rule	6,000,000 shares (being the maximum able
7.1 or rule 7.4	to be converted pursuant to the 30
	Convertible Notes)
Note:
• This applies to equity securities, unless	200,000 shares (being the maximum able to
specifically excluded – not just ordinary	be converted pursuant to the 1 Convertible
securities	Note)
• Include here (if applicable) the
securities the subject of the Appendix	1,800,000 shares (being the maximum able
3B to which this form is annexed	to be converted pursuant to the 9
• It may be useful to set out issues of	Convertible Notes, the subject of this 3B)
securities on different dates as separate
line items

already been used
Insertnumber of+equity securities issued	5,000,000 unlisted options
or agreed to be issued in that 12 month
period_not counting_those issued:	3,000,000 unlisted options
• Under an exception in rule 7.2	6,000,000 shares (being the maximum able
	to be converted pursuant to the 30
• Under rule 7.1A	Convertible Notes)
• With security holder approval under rule	6,000,000 shares (being the maximum able
7.1 or rule 7.4	to be converted pursuant to the 30
	Convertible Notes)
Note:
• This applies to equity securities, unless	200,000 shares (being the maximum able to
specifically excluded – not just ordinary	be converted pursuant to the 1 Convertible
securities	Note)
• Include here (if applicable) the
securities the subject of the Appendix	1,800,000 shares (being the maximum able
3B to which this form is annexed	to be converted pursuant to the 9
• It may be useful to set out issues of	Convertible Notes, the subject of this 3B)
securities on different dates as separate
line items
“C”	22,000,000
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity
under rule 7.1
“A” x 0.15	31,806,740
Note: number must be same as shown in
Step 2

under rule 7.1
“A” x 0.15	31,806,740
Note: number must be same as shown in
Step 2
Subtract“C”	22,000,000
Note: number must be same as shown in
Step 3
Total[“A” x 0.15] – “C”	9,806,740
	[Note: this is the remaining placement
	capacity under rule 7.1]

• See chapter 19 for defined terms.

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- Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Part 2-	Part 2-	Part 2-
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1		212,044,933
Step 2: Calculate 10% of “A”
“D”		0.10 Note: this value cannot be changed
Multiply“A” by 0.10		21,204,493
Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items
“E”		0
Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	21,204,493
Subtract“E” Note: number must be same as shown in Step 3	0
Total[“A” x 0.10] – “E”	21,204,493 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

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