DOTZ NANO LIMITED — Capital/Financing Update 2017

Nov 22, 2017

23 November 2017

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ASX ANNOUNCEMENT

DOTZ NANO ESTABLISHES DOTZBLUE LTD SUBSIDIARY FOR THE COMMERCIALISATION OF GRAPHENE QUANTUM DOTS AS ANTI-COUNTERFEITING MECHANISM IN DIESEL EXHAUST FLUID/ADBLUE™ AND AUTOMOTIVE SOLVENTS

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• Subsidiary DotzBlue Ltd. established for commercialisation of GQDs in automotive solvents

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• Dotz Nano’s unique patent pending GQD tagging technology will be used as anticounterfeiting mechanism in Diesel Exhaust Fluid (DEF)/ADBlue™

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• DEF is an aqueous urea based solution used as a consumable in trucks and diesel engines to lower Nitrogen Oxide gases

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• Global DEF market is expected to grow from US$9.95 billion in 2016 to US$22.80 billion by 2023

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• GQDs are to be used by DEF manufacturers to mark their products as anticounterfeiting markers and for protection from counterfeit product liability claims.

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• Dotz Nano’s GQDs are currently being evaluated by several DEF manufacturers in US, Europe, Asia and Australia.

Dotz Nano Limited (“Dotz Nano” or the “Company”) , a nano-technology company focusing on the development, manufacture, and commercialisation of graphene quantum dots (GQDs), is pleased to announce that it has established a subsidiary for the commercialisation of GQDs for use as anticounterfeiting and brand protection mechanisms in the automotive solvent market.

DotzBlue Ltd, a 100% owned subsidiary is seeking commercialise Dotz Nano’s unique patent pending technology for tagging liquids in the automobile solvent market, focusing at first on the Diesel Exhaust Fluid (DEF)/ADBlue™ market.

Diesel exhaust fluid ( DEF ) is an aqueous urea solution made with 32.5% urea and 67.5% deionized water. It is standardised as AUS 32 (aqueous urea solution) in ISO 22241. DEF is used as a consumable in selective catalytic reduction (SCR) to lower Nitrogen Oxide (NOx) concentration in the diesel exhaust emissions from diesel engines.

As countries worldwide adhere to the NOx 2010 Emission Standards regulated by the US EPA and the Euro 6/5 regulations adopted by the EU, more and more cases of non-certified and counterfeit DEF/ADBlue™ are occurring. As DEF users get smarter, requesting to see certification documentation, non-certified DEF manufacturers resort to counterfeiting DEF products. Non-certified and counterfeited DEF products will be an increasing problem as regulations get tougher on fuel emissions. These counterfeited products can leave the legitimate DEF manufacturer exposed to expensive litigation in product liability lawsuits.

Dotz Nano Limited ACN 125 264 575 T: +61 8 9486 7244 | A: 108 Outram Street, West Perth WA 6005

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Using DEF that is not certified and not up to the specifications of ISO 22241-1 can contain minerals or materials (out of spec) that may result in problems with the sensors/ components in the vehicle’s DEF tank, the DEF injector, surface area of the catalytic converter and NOx sensor. Reduced performance of any of the above will eventually cause the vehicle’s emission control system to fail resulting in the illumination of a DEF/ SCR failure light on the dash, subsequent de-rate, and/or failure of expensive emission system components. In addition to all the above, NOx has been identified as being harmful to air quality, which can cause negative health effects.

Utilising Dotz Nano’s unique patent pending GQD tagging technology, manufacturers can safeguard themselves not only by combating counterfeiters, but by limiting their exposure and protecting themselves from counterfeit product liability litigation.

DEF/ADBlue™ Market

According to available market research, the Global Diesel Exhaust Fluid market is expected to grow from US$9.95 billion in 2016 to reach US$22.80 billion by 2023 with a CAGR of 12.5% reaching 16 billion liters of DEF/ADBlue™ per annum. Some of the factors driving the market include, growing adoption of DEF filing pumps and strict emission regulations are increasing the demand for diesel SCR Vehicles. In addition, varying prices of urea and diesel, growing demand for electric vehicles are restricting the market growth.

Some of the key players in the global DEF/ADBlue™ are BASF SE, Cummins Inc, Potashcorp, CF International Holdings, Inc, Royal Dutch Shell PLC, Graco Inc, Total S.A., Nissan Chemical Industries, Ltd, China Petrochemical Corporation (Sinopec), Air Liquide (Airgas), Yara International, Agrium Inc, Blue Sky, Downs Energy, Mitsui Chemicals Inc and GreenChem Solutions Ltd.

Commenting on the new development, Dotz Nano’s CEO Dr. Moti Gross, stated:

“I’m pleased to announce an additional step in the expanding commercialisation of our GQDs. This new subsidiary DotzBlue Ltd will focus primarily on the commercialisation of our GQDs for use in the automobile solvent market”.

“Manufacturers worldwide are suffering from counterfeiting of their products. While not being able to do something directly to stop counterfeiters from counterfeiting their products, by utilising our GQDs in an anti-counterfeiting tagging capacity, manufacturers can lower the damage done to their revenues and more importantly, implement protection from counterfeit product liability litigation, where the counterfeit product causes the damage, and the bona-fide manufacture pays the price”.

“This is a unique, profitable, mass application use of our GQDs and unique patent pending liquid technology which will be, my opinion, potentially one of the largest applications for our GQDs.”

“We are evaluating our GQDs for use in DEF/ADBlue™ with several main players in the US, Europe, Asian and Australia/NZ markets and have established DotzBlue to implement direct commercialisation in this market”.

“Future automobile solvent applications are being developed such as thermal lube oil reducers, leakage marking and more, which will also be commercialized by DotzBlue”.

“I look forward to informing the market of future developments of DotzBlue and GQDs in the DEF/ADBlue™market.”

Dotz Nano Limited ACN 125 264 575 T: +61 8 9486 7244 | A: 108 Outram Street, West Perth WA 6005

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About Dotz Nano

Dotz Nano Limited (ASX: DTZ) is a nano-technology company focusing on the development, manufacture and commercialization of GQDs. Its vision is to be the premier producer of GQDs by producing and supplying high quality GQDs for use in various applications including medical imaging, sensing, consumer electronics, energy storage, solar cells and computer storage.

To learn more about Dotz Nano please view the website and our corporate video via the following link: www.dotznano.com

For further enquiries, please contact:

Company Secretary

Mr. Peter Webse peter.webse@pcscorporate.com.au Telephone: +61 8 6377 8043

Corporate Advisors Otsana Capital 108 Outram Street West Perth WA 6005 Telephone: +61 8 9486 7244 Email: investors@dotznano.com

Dotz Nano Limited ACN 125 264 575 T: +61 8 9486 7244 | A: 108 Outram Street, West Perth WA 6005