DOTZ NANO LIMITED — Capital/Financing Update 2020

Aug 27, 2020

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ASX and MEDIA RELEASE

28 August 2020

Dotz signs significant agreement for face mask authentication with TT Medical

• Dotz has entered into a 3 year three Tranche A$2.2 million[1] (US$1.6 million) commercial agreement with TT Medical Group in Turkey to supply its advanced “Secured by Dotz” authentication solution for respiratory face masks, with Tranche 1 and 2 purchase orders for A$974,000[2] (US$700,000) received

• TT Medical Group supplies high-quality PPE to the Turkish Ministry of Health as well as private markets in Africa, Europe and the Middle East

• As part of the agreement, TT Medical has become the sole distributor of the “Secured by Dotz” solution for face masks in the Turkey, Italy, Cyprus and Ghana PPE markets for three years

• Dotz has also signed a three-year distribution agreement with a strategic partner, TT Medical UAE, led by Mr Khaled Al Khoori, to cover the UAE, Qatar, Saudi Arabia and Egypt PPE markets

• “Secured by Dotz” authentication includes ValiDotz™ security taggants, dedicated Inspec™ readers and smart traceable QR codes

• Solution provides TT Medical with end-to-end supply chain integrity through to the end-user, enhancing consumer safety

• This agreement is a stepping-stone for a collaboration between TT Medical Group and Dotz, and the parties expect to enhance their collaboration through additional commercial agreements

• Follows recent PPE authentication orders and distribution agreements with UEG in Hong Kong, and V2Tech in Australia

Dotz Nano Limited (ASX:DTZ) (“Dotz” or “The Company”) an advanced technology company developing, manufacturing and commercialising marking, tracing and verification solutions has signed its third PPE authentication agreement in three months by entering into a three-year commercial agreement with TT Medical Group (“ TT Medical ”), a specialist manufacturer and distributor of medical protection equipment.

Under the agreement, Dotz will supply its anti-counterfeiting and tracing capabilities for face masks and other PPE equipment in eight countries in the European and African markets (“ Agreement ”). Countries covered by the agreement are Turkey, Italy, Cyprus, Ghana, UAE, Qatar, Saudi Arabia and Egypt.

TT Medical will pay an initial A$348,000 (US$250,000) for the first tranche order of the “Secured by Dotz” marking units, used for authentication of face masks in the health sector, government, wholesalers and retailers in eight countries. This initial order will be delivered in Q4 2020. “Secured by Dotz” authentication solution includes ValiDotz™ security taggants coupled with Inspec™ readers and smart trackable QR codes.

A$1 = US$0.718 -The Agreement’s pricing is in USD1 A$1 = US$0.718 T -he Agreement’s pricing is in USD2

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Under the three-tranche agreement, TT Medical has placed a A$626,000 (US$450,000) follow-up order, which is expected to be delivered in Q1 2021. Timing for delivery of the third tranche of security taggants, QR codes and readers will be determined according to customer demand. TT Medical will pay Dotz an initial down-payment of 5% on the first and second tranche contract values within 30 days. Additional payments will be made against purchase orders.

As part of the commercial agreement, TT Medical Group will become the sole distributor of the “Secured by Dotz” authentication solution for face masks in Turkey, Italy, Cyprus and Ghana PPE markets for three years, provided agreed annual sales targets are met.

Dotz has also signed a three-year distribution agreement with, TT Medical UAE, whereby the UAE entity will become the sole distributor of the “Secured by Dotz” authentication solution for face masks in the UAE, Egypt, Qatar and Saudi Arabia PPE markets, provided agreed annual sales targets are met. TT Medical UAE will be responsible for developing the Middle Eastern PPE market for Dotz, driving new business for the company in the region.

As an incentive for the Middle East distribution agreement, Dotz will grant TT Medical UAE four million unquoted options with an exercise price at a 40% premium to the closing Dotz share price on 25 August 2020, vesting on a pro-rata quarterly basis over the three-year period, provided performance targets are met, with an expiry term of three and a quarter years from the date of the Agreement ( “Options” ). The issue of Options is subject to shareholder approval.

Dotz CEO Uzi Breier said: “This third international agreement in three months means that health workers in over 11 countries now have access to the extra security and peace-of-mind that authenticated face masks provide as they carry out their essential work.”

“Dotz’s anti-counterfeiting technology combines the physical and digital domains to provide TT Medical with a safe, easy to implement, cost-effective, on-site detection system to mark, identify, verify and trace quality face masks across its entire supply chain – even across international borders.

“With the increasing prevalence of fake, low quality masks and PPE available in the market, Dotz’s authentication technology protects the reputation of PPE providers and assists in preventing the spread of COVID-19.

“Our industry-leading and end-to-end anti-counterfeiting technology will allow TT Medical to demonstrate to its customers and end-users that they are using authentic, high quality face masks able to perform at the high standards they were designed for.”

TT Medical Group CEO Tarhan Telli, said: “As a key supplier to the health and government sectors that serves 315 million people in eight countries, TT Medical is pleased to collaborate with Dotz following the unrivalled success and testing of our masks with 99.9%[3] BFE results. We will continue to explore all opportunities to further develop our activities and investments with Dotz within our global partner network. We are particularly excited to further explore and test Dotz’s solution for verifying surface sanitation of public spaces. With the COVID-19 pandemic increasing the need for

FOOD AND ENVIRONMENTAL ANALYSIS LABORATORY (Çevre Gıda Analiz Laboratuvarı) - https://www.cevreanaliz.com/ 3 https://www.fesclabs.com/surgical-mask-and-general-mask( Results obtained by TT Medical)

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PPE equipment, we are very keen to ensure that we protect the reputation of our products and our entire supply chain with strategic and reputable partners.”

TT Medical UAE CEO Khaled Al Khoori, said: “The COVID-19 pandemic has highlighted the genuine need for safe, functional face masks and other PPE globally. Quality is being compromised at present with unaudited supply chains and sub-standard counterfeit products risking the health and welfare of healthcare providers and other essential workers. Our partnership with Dotz will enable us to improve the transparency of our supply chain and verify our products on-site and in real-time. This partnership provides significant opportunities to further develop the market and lead the distribution of verified essential healthcare products to the region.”

This announcement has been authorised for release by the Board of Dotz Nano Limited.

- ENDS-

For further information, contact:

Dotz Nano Limited

Investor Enquiries: Media Enquiries: Ian Pamensky Tristan Everett Company Secretary Market Eye E: ian@cfo2grow.com.au E: tristan.everett@marketeye.com.au P: +61 414 864 746 P: +61 403 789 096

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 has strong, established distributors in North America, Europe, Japan, China and Australia 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, polymers tagging and bio imaging.

Recently the company has harnessed its technology to mark personal protective gear including face masks

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

About TT Medical

TT Medical Group combined over 15 years of expertise in medical sector producing and distributing medical equipment and materials leading the domestic market with innovation and manufacturing standards dedicated to supply of the most needed protective equipment. TT Medical Group is a partner supplier to the Turkish Ministry of Health during the pandemic period and continues to expand supply and distribution in international territories with established JV partnerships in the United Kingdom, UAE, Cyprus and with further partnerships in the Middle East and Europe to follow. Investment into extending our core product lines into sanitizing systems

For more information www.ttmedicalgroup.com & info@ttmedicalgroup.com

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About TT Medical UAE

TT Medical UAE is a newly established distribution firm targeting the Middle East for PPE sales.

The company’s CEO and co-founder Mr. Khaled Al Khoori having served as the CEO of Al Hilal Bank, Deputy Chairman of Abu Dhabi investment Bank, Chairman of join Arab investment corporation, Board member of the Qatar First Bank.

TT Medical UAE is determined to make available the supply of protective equipment and masks of the highest performance and quality to those who need it most whether frontline health workers or the general public in the UAE and neighbouring countries in the region.