DOTZ NANO LIMITED — Capital/Financing Update 2017

Sep 12, 2017

13 September 2017

==> picture [78 x 41] intentionally omitted <==

ASX ANNOUNCEMENT

DOTZ NANO SIGNS MOU WITH COLORPLASTIC FOR USE OF GQDS IN POLYMERS AND SURFACE MODIFICANTS

• Dotz Nano and Colorplastic of Switzerland sign non-binding memorandum of understanding (MoU) to implement GQDs into polymers and surface modificants.

• MoU calls for a 6 month pilot program to integrate GQDs into various polymers for use in OEM applications

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 is has signed a non-binding and non-exclusive MoU with Colorplastic SA, a polymer compounder located in Switzerland for the implementation of GQDs into the polymer and surface modificant market.

Colorplastic SA is a polymer compounder producing polymer compounds and plastics for a variety of OEMs including automobile and watch manufacturers. The GQDs would be used in automotive plastics and anticounterfeiting/brand protection applications.

The MoU calls for a 6-month pilot project in which GQDs will be supplied by Dotz to Colorplastic for integration into their products for use in the polymers and surface treatment being commercialized by Colorplastic for use by OEMs. The scope of the pilot is to be defined by the parties, but is to cover the technological development and adaptation of GQDs to Colorplastic's products, including production runs for validating commercial scale. The pilot can be extended an additional 3-months by mutual agreement if needed.

Culminating several months of testing and negotiations, the MoU provides that the parties agree to enter into a definitive agreement within 180 days of successful completion of the pilot project. Any intellectual property created or developed jointly by the parties is to be owned jointly with the terms to be negotiated and contained in the definitive agreement.

Commenting on the announcement, Dotz Nano’s CEO Dr. Moti Gross, stated: "As previously announced, Dotz Nano is expanding our commercialisation efforts for implementing our GQDs in various applications. This MoU is the start of our commercialisation efforts and brings into focus the process of integration of our GQDs into various applications and to being used by Tier 1, Tier 2 and OEM companies."

"After several months of testing, validation and negotiations, I'm proud to announce to our shareholders and the market that we have signed this MoU which is an important step in the commercialisation process. The pilot program with Colorplastic is an expansion of the testing and validation process performed during the last several months. A successful pilot project has the potential to see our GQDs used in polymers and materials by OEMs through the efforts of Tier 1 companies such as Colorplastic."

"Colorplastic is a supplier to the automotive plastic industry. Recent market research has shown that the global automotive plastics market is expected to reach USD 68.5 billion by 2025[1] . The shift in the trend

1 According to a new report by Grand View Research, Inc.

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

==> picture [78 x 41] intentionally omitted <==

towards high performance plastics to substitute conventional metals & rubber is expected to drive this high demand."

"This MoU shows that our GQDs can potentially be commercialized and used in production processes for a variety of polymers and applications. This is in addition to our commercialisation efforts with Strem Chemicals and Sigma Aldrich. Additional MoUs and agreements are being negotiated by Dotz Nano's Business Development staff, for GQD use in a multitude of applications."

"With this MoU, I foresee the use of our GQDs in a variety of applications and therefore future potential revenue for Dotz Nano".

"I look forward to continuing to notify our shareholders on the progression of our commercialisation efforts."

About Colorplastic SA

Incorporated in 2006, Colorplastic SA is a qualified partner in the production of masterbatch, for small quantities from 1 kg up, as well as in coloring (colored mass) of plastics. Their modern laboratory is used to color formulations and duplicates and their production site located in Préverenges (VD). Colorplastic AG has the knowhow of producing special effects in the Masterbatches and Compounds for Brilliance- and Metallic effects, but also mother of pearl, marble, glitter- and springe, nacre and wood effects are possible for a lot of different polymers. The company supplies a number of OEMs with plastic compounds for use in their end products.

About Dotz Nano

Dotz Nano Limited (ASX: DTZ) is a technology company focusing on the development, manufacture and commercialisation 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

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

==> picture [78 x 41] intentionally omitted <==

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

Investor Relations

F T I Consulting

Level 2, 2 Kings Park Rd West Perth WA 6005 +61 (0)8 9485 8888

Elodie.Castagna@fticonsulting.com www.fticonsulting.com

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