DIGITALX LIMITED — Capital/Financing Update 2021

Jan 17, 2021

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ASX ANNOUNCEMENT 18 JANUARY 2021

DigitalX follow-on investment and ongoing consulting services to bullion technology business, Bullion Asset Management Services Pte Ltd (BAM)

• DigitalX signs Master Service Agreement with BAM to secure its position as preferred technology provider for BAM’s product roadmap.

• DigitalX has consulted to BAM since 2019 to deliver corporate and technology services. In recognition of additional consulting services provided during 2020, DigitalX is to receive an additional US$189,000 in equity in BAM.

• BAM’s first product, xbullion, has seen +50% month-on-month growth since launch.

• DigitalX has also agreed to invest an additional US$250k into BAM to retain a ~17.5% equity holding as part of BAM’s US$1.3 million Series A investment.

• Digital Gold marketplace currently stands at under US$200m[1] compared to the traditional gold investment market a $2T marketplace.

Technology and digital asset investment Company, DigitalX Limited (ASX: DCC , ‘DigitalX’ or ‘the Company’ ) is pleased to announce a follow-on investment in Bullion Asset Management Services Pte Ltd (“BAM”), a Singapore based technology company. DigitalX has entered into a Master Services Agreement (MSA) with BAM to act as the preferred technology provider for BAM’s ongoing product development. DigitalX’s equity interest in BAM is now valued at AUD$2.5m (US$1.91m)[2] .

Bullion Asset Management

BAM’s wholly-owned subsidiary xbullion Holdings (“xbullion”) domiciled in the Cayman Islands has launched its 100% physical-gold-backed digital token GOLD in September 2020. The launch was the culmination of significant operational and technical activities that leveraged expertise from a range of highly skilled and experienced team3. GOLD is currently available for trade against AUD, SGD, USD, IDR and THB and provides investors with digital ownership of physical gold bullion that is valued, audited and insured.

BAM’s supply, corporate and logistic partners include StoneX, a Fortune100 financial platform service company, Baird &Co, UK’s largest independent gold trader, Jaggards, Australia’s oldest bullion and rare coin merchant. BAM and xbullion’s accounts and physical gold are audited by global audit firm BDO.

1 https://www.coingecko.com/ reference market capitalisation for PaxG, TetherAU, PMGT

2 On completion of all outstanding share issues to be completed

3 https://xbullion.io/about/

DigitalX Limited | 59 009 575 035 | Suite 1, Level 2, 66 Kings Park Road West Perth WA 6005 | www.digitalx.com

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Since launch in September 2020, xbullion has seen 50% month-on-month growth despite availability at only one digital asset platform, Zipmex which is headquartered in Singapore.

BAM technology roadmap and DigitalX’s role

BAM has leveraged DigitalX’s blockchain expertise to deliver a best-in-class digital gold product. To grow the market for GOLD, BAM has created a technology roadmap which includes integrating xbullion on further trading platforms. In addition to GOLD, BAM plans to launch additional commodity backed products in the near future, including silver and other precious metals. DigitalX expects to provide the technical services to enable BAM to deliver these to market.

DigitalX invests into BAM to retain ~17.5% equity

In 2019, DigitalX announced an investment of AUD$1.25m into BAM at a price of AU$1.00 per share for a ~17.5% shareholding. In order to maintain this shareholding position, DigitalX has elected to invest an additional US$250k at a price of US$1.00 per share. The new valuation represents an uplift of ~30% which values DigitalX’s equity holding in BAM at ~AUD$2.5m.

DigitalX joins other major investors into the round including ASX-Listed Theta Gold Mines Ltd and Aura Group backed, Decentralised Capital.

Alignment with the DigitalX Strategy

As a technology and digital asset investment Company, DigitalX is focused on creating financial and technical solutions in global markets. DigitalX identified the opportunity, as a corporate and technology consulting partner as well as an investor in BAM as an avenue to create shareholder value.

Through leveraging the technical experience and expertise of DigitalX and directing that through a bullion and metals industry focused team vehicle and corporate structure, BAM is showcasing the capabilities required to succeed using a corporate-startup partnership approach. The opportunity for BAM to disrupt the bullion and metals marketplace with blockchain technology is becoming clearer after the recent successful launch and capital raise.

DigitalX Executive Director, Leigh Travers commented

“The value proposition for stakeholders in the bullion and metals marketplace is expanding through the advantages of digital infrastructure. DigitalX is pleased with the recent growth of BAM and looks forward to further accelerating the business with technical and corporate support. The recent strategic investment from ASX-Listed gold developer Theta Gold Mines Ltd (ASX:TGM) is testament to the quality of what has been achieved to date and DigitalX looks forward to continuing to support BAM as it looks to grow further.”

-ENDS-

Authorised by the Board of Directors of DigitalX Limited.

For further information, please contact:

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DigitalX Limited

Leigh Travers Executive Director leigh@digitalx.com T: +61 439 376 847

About DigitalX

DigitalX Limited (ASX: DCC) is a technology and investment company focused on blockchain consulting, digital asset funds management, and RegTech.

DigitalX’s consulting division designs and develops blockchain technology applications for business and enterprise organizations. Through its asset management division, DigitalX provides low-cost traditional asset management products for qualified investors looking to gain exposure to the growing alternative asset class of digital assets, including Bitcoin.

DigitalX is currently commercialising Drawbridge, the Company’s first RegTech solution that supports listed companies in better managing their compliance and corporate governance policies. With Drawbridge, companies can manage employee and director share trading approvals in order to safeguard their reputations.

To learn more please visit: www.digitalx.com | www.digitalx.fund | www.opendrawbridge.io

ABOUT THETA GOLD MINES LIMITED

Theta Gold Mines Limited (ASX: TGM | OTCQB: TGMGF) is a gold mining development company that holds a range of prospective gold assets in a world-renowned South African gold mining region. These assets include several surface and near-surface high-grade gold projects which provide cost advantages relative to other gold producers in the region.

Theta Gold’s core project is located next to the historical gold mining town of Pilgrim’s Rest, in Mpumalanga Province, some 370km northeast of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province). Following small scale production from 2011 – 2015, the Company is currently focussing on the construction of a new gold processing plant within its approved footprint at the TGME plant, and for the processing of the Theta Open Pit oxide gold ore. Nearby surface and underground mines and prospects are being evaluated.

The Company aims to build a solid production platform to over 160 kozpa based primarily around shallow, open-cut or adit-entry hard rock mining sources. Theta Gold has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7Moz of historical production recorded.

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Theta Gold holds 100% issued capital of its South African subsidiary, Theta Gold SA (Pty) Ltd (“SGSA”). SGSA holds a 74% shareholding in both Transvaal Gold Mining Estates Limited (“TGME”) and Sabie Mines (Pty) Ltd (“Sabie Mines”). The balance of shareholding is held by Black Economic Empowerment (“BEE”) entities. The BEE shareholding in TGME and Sabie Mines is comprised of a combination of local community trusts, an employee trust and a strategic entrepreneurial partner.

ABOUT AURA GROUP

Aura Group (www.aura.co) is a fast growing alternative investment and wealth manager. Founded in Australia in 2009 and head quartered in Singapore, Aura Group and related entities collectively manage and advise over A$1billion across a range of asset classes such as Private Equity, Venture Capital, Private Credit and Real Assets. The Group has a significant footprint across the Asia Pacific region including Singapore, Sydney, Melbourne and Ho Chi Minh City. Aura Group was awarded Best Wealth and Fund Management Company – Asia Pacific and Client Service Excellence Award – South East Asia, at the 2019 International Finance Awards. Aura Group co-founded Decentralised Capital in 2018 to identify and commercialise opportunities in the blockchain industry.

ABOUT JAGGARDS

Trading continuously since 1963, Jaggards is Australia’s oldest independent bullion dealer, offering unparalleled service to investors who wish to safeguard their wealth with gold and silver bullion ingots and coins. Sourcing only the best bullion products from the most renowned refineries and mints from around the world, Jaggards is one of the most trusted names in the industry. Now Jaggards aims to forge ahead with digital initiatives to make investment in precious metals more accessible to a wider spectrum of investors.