DOTZ NANO LIMITED — Capital/Financing Update 2017

Jul 3, 2017

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ASX ANNOUNCEMENT 4 July 2017

DOTZ NANO HALF YEAR 2017 GOALS

• Transition from the supply of small quantities of GQDs to supplying high volume GQDs to tier one companies

• Continuation of work in key markets, with the addition of bio-imaging

• Direct embedding of Dotz’s GQDs into end products for vertical integration

• Transition of tier one companies from testing and validation to purchasing

• Continuation of non-dilutive grant funding applications for further product and commercial development

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 provide the following update outlining the Company’s key objectives for the second half of 2017.

In the first half of 2017, Dotz Nano focused its efforts on achieving significant R&D breakthroughs for its graphene quantum dots, and establishing distribution partnerships, which led to the Company’s first sales, whilst providing samples of GQDs to a wide range of companies. So far, Dotz Nano has shipped samples of its GQDs to tier one and tier two companies in the USA, China, South Korea, Germany, Japan, France, Singapore, Malaysia and India.

Objectives for Half Year 2017

• I. Throughout the second half of 2017, Dotz Nano will work on transforming the testing and validation processes that have begun during the first half of the year, into collaboration/commercial agreements based on the various modifications completed on our GQDs for use in applications such as optical brighteners and brand protection solutions. Transitioning from supplying small quantities for validation and testing programs to supplying high volume serial manufactured GQDs is a growing process requiring precision production and maximum quality assurance actions for integration into the interested parties’ supply chains . In each market, many 1[st] tier multi-national participants have been approached by Dotz Nano, with testing and validation programs established. Dotz Nano will continue to work together with tier one companies with the aim of sealing commercial agreements.

• II. Concurrently, Dotz Nano will actively operate in attaining additional exposure to the global market for utilization of our GQDs in additional areas such as LEDS, in-vivo Bio-imaging and energy applications. Bio-imaging is the most advanced form of the non-invasively visualised biological process of living objects or systems. This industry adds onto the key verticals Dotz Nano is already focusing on: anti-counterfeiting, optical brighteners and displays.

• III. Dotz Nano’s business model is one of manufacturing GQDs both as an additive to various end products/materials and in some cases, supplying material with GQDs already embedded. Based on market inquiries and demands, Dotz Nano has developed the necessary manufacturing protocols for direct embedding of our GQDs into end products for vertical integration. End products such as plastics/polymers that have GQDs embedded into them for

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

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use at customers’ production sites, will allow Dotz Nano to expand its product portfolio and initiate commercial sales which will have a higher revenue value. Many of these end products are anticipated to lead Dotz Nano into new intellectual property submissions for patent protection.

Commenting on the Company’s Goals, Dotz Nano’s CEO Dr. Moti Gross, stated: “ As we have announced in the past, our goal is to integrate our GQDs into a number of solutions and end products in various applications. This is an extremely careful process that is being pursued in a number of phases, starting from small quantity lab testing, changes in specification required by the relevant firms, validation programs, pilot programs and finally direct manufacturing. Dotz Nano is involved in all levels of the above actions to facilitate our penetration of the Quantum Dot market.

Until now, Dotz Nano has continued interacting with over 30 different 1[st] tier participants and an additional 10-15 2[nd] tier participants, who are all testing our GQDs, and our aim is to seal commercial contracts as quickly as possible.

An additional area of much interest is for our GQDs to be embedded in certain plastics and polymers. Materials such as plastics, polymers and resins can all be supplied with GQDs already added, and this will facilitate direct use of our GQDs in many applications.

Dotz Nano continues to operate to bring added value to our shareholders and I look forward to notifying the market on achieving our listed goals.”

		Dotz Nano Goals Half Year 2017	Dotz Nano Goals Half Year 2017
		Goals	Purpose
	Corporate	Conclude relevant regulatory	To allow a seamless transition into sales for
	goals	registration	currentproducts beingvalidated for GQDs.
		Establishment of bio-imaging	Expansion into the imaging market for using
		research facilities	GQDs both_in-vitro and in-vivo_applications.
		Expand submission for additional	Will assist with funding of a large portion of
		non-dilutive grant funding	additional R&D needed both for new
			customers/products and maintenance of
			current uses of GQDs.
		Expand intellectual property	Expand and guards the use of Dotz Nano’s
		patents in various applications	intellectualproperty.
	Sales	Transition current validation	Establish long term commercial contracts
	goals	programs to commercial contracts	with 1sttier participants in different target
			markets.
		Continuing supply of GQDs to the	Expands the use of GQDs for R&D and is
		research market	based on high sales price, allowing
			maximum revenue value.
		Expand manufacturing facilities to	Demonstrates to potential customers that
		higher production levels	Dotz Nano has the required manufacturing
			capability.
		Expand revenue potential with new	Diversify target markets for use of GQDs
		customers	allowingfor maximum application spread.
		Transition collaboration contracts	By actively collaborating on R&D, Dotz Nano
		into commercial sales	can transition to commercial contracts.

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

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Customer Goals Successfully transition one 1sttier and one 2ndtier customer into collaboration/commercial contracts. Proves that Dotz Nano can successfully supply a complex development solution and transition customers from a development, validation and testing phase to a more lucrative commercial phase. Additionally, provides reference point to secure future business. Expand number of 2ndtier firms to commercial contracts Due to their faster turnaround time, 2ndtier firms can decide quicker on the use of Dotz Nano’s GQDs.

About Dotz Nano

Dotz Nano Limited (ASX: DTZ) is a technology company focusing on the development, manufacture and sale 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, anti-counterfeiting, 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

Investor Relations

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

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