DOTZ NANO LIMITED — Capital/Financing Update 2019

May 5, 2019

ASX and MEDIA RELEASE

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6 May 2019

Dotz conducts successful in-plant tagging POC to address cannabis tracing

• Dotz has successfully used its BioDotz™ security markers in an in-plant tracing and anticounterfeiting proof of concept ( “POC” ) that has the potential to revolutionise the cannabis market’s tracing ability

• BioDotz™ were added to plants during final growing stages and did not affect their examined properties or appearance

• Company filed a patent application for use of BioDotz™ in-plant tagging, including cannabis, to enable increased levels of security and supply-chain monitoring

• Dotz’s eco-friendly markers were detected and authenticated in the plant on-site and in real time using the company’s smartphone app-based Inspec™ readers

Dotz Nano Limited (ASX:DTZ) (“Dotz” or “Company”) an advanced technology company developing, manufacturing and commercialising tagging, tracing and verification solutions, has successfully embedded its BioDotz™ security markers into plants with a close biological structure to cannabis.

Dotz’s eco-friendly BioDotz™ markers were added to the plants at the company’s research facility in Israel. POC results showed BioDotz™ did not affect the basic properties or appearance of the plants and were detectable with Dotz Inspec™ detector days after being added (see picture below).

Plants with a close biological structure to cannabis were used for the testing as for legal reasons cannabis plants could not be used. The next stage of tests will be done on cannabis strains with licenced growers.

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Dotz lodged a patent application ( # 266444) with the Patent Bureau for the use of BioDotz™ direct tagging of cannabis and other high-value or restricted plants to enhance the security, production, processing and supply chain.

BioDotz™ markers feature multiple layers of security and are designed to continue working in elevated temperatures over extended periods. The markers were identified in real time on plant leaves and after drying, using Dotz’s secure on-site app-based InSpec readers.

The successful POC allows Dotz to conduct confirmation tests on cannabis strains with licenced growers and commence discussions within the global legal cannabis market, which is experiencing rapid growth of 30% CAGR and is projected to be worth more than US$146 billion by 2025[i] . If fully proven in cannabis plants, Dotz could offer a complete end-to-end anti-counterfeiting solution that would prevent illegal cannabis from being introduced into the legal market as well as legal cannabis from being diverted to the illegal market.

Commenting on the successful POC, Dotz CEO, Uzi Breier said: “Like most high-value industries, cannabis is increasingly being targeted by counterfeiters. To date, cannabis producers and manufacturers have had to rely on barcode or RFID tags to comply with track-and-trace requirements. However, these existing measures are not sufficing and can be circumvented. Dotz has conceptually demonstrated a unique end-to-end in-plant tagging solution, which is extremely difficult to remove or replicate, to allow the industry to better comply with State and Federal regulations[ii] .”

“Israel is the cannabis research capital of the world. The next-stage tests will be done with licensed growers. While additional development is needed and we don’t expect immediate cannabis related revenues, this successful POC demonstrates the versatility of our anti-counterfeiting technology, particularly in high-growth markets such as cannabis and high-value crops such as Saffron[iii] . As far as we know we are the first company to successfully mark and authenticate cannabis-like plants with our BioDotz™ markers, which provides Dotz with a sizeable market opportunity to revolutionise the cannabis marketplace by allowing growers and producers to implement customised unique tracing codes.”

-ENDS-

Further information:

Investor Enquiries:

Ian Pamensky Company Secretary E: ian@cfo2grow.com.au P: +61 414 864 746

Media Enquiries:

Tristan Everett Market Eye E: tristan.everett@marketeye.com.au P: +61 403 789 096

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About Dotz Nano Limited

Dotz Nano Limited (ASX: DTZ) is a technology leader in research, production and marketing of anticounterfeiting, authentication and tracing solutions. Dotz established distributors in North America, Europe and Japan, as well as scientific collaborations and partnerships with leading academic institutes.

Its unique products ValiDotz, BioDotz, Fluorensic and InSpec are exceptional solutions for numerous applications, such as: anti-counterfeiting, brand & reputation protection, oil & gas industry, liquids tagging, lubricants and DEF authentication, polymers tagging and bio-imaging.

About BioDotz™

BioDotz are the most recent addition to the Dotz family of unique markers. This market-specific solution was developed to address the tagging challenges in the Bio-Imaging, Agriculture (e.g. seeds, plants) and Food sectors. Like ValiDotz, it is also an end-to-end solution composed of markers and customized detectors.

To learn more about Dotz, please visit the website and corporate video via the following link www.dotz.tech

i https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market Ii https://cannabis.ca.gov/track-and-trace-system/

iii - http://www.crocus sativus.com/fakes.html