DOTZ NANO LIMITED — Capital/Financing Update 2020

May 10, 2020

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ASX and MEDIA RELEASE

11 May 2020

Dotz signs A$1.5M Commercial Agreement to mark medical face masks used in the fight against COVID-19

• Dotz has signed a US$1,000,000 (A$1.53m) commercial agreement for supplying its ValiDotz™ security markers. The markers will be applied to 100 million medical face masks to ensure quality and authenticity

• Phase-I of the Agreement calls for an immediate supply of ValiDotz™ for 30 million such masks, and the balance at Phase-II, pending customers demand

• 15% of the value of Phase-I to be paid upon signing the Agreement

• The face masks are designated for Government stock piles and National Health Services (“NHS”) use

• This Dotz’s non-toxic security marking solution includes also encrypted QR codes that can be read with a smartphone application, and are virtually impossible to reverse engineer

Dotz Nano Limited (ASX:DTZ) (“Dotz” or “The Company”) an advanced technology company developing, manufacturing and commercialising marking, tracing and verification solutions has entered into an agreement with Universal Exports Group (“UEG”), a Hong Kong based corporation specializing in wholesale distribution to supply anti-counterfeiting and tracing capabilities to face masks required for Government stock piles and NHS. (“Agreement”).

UEG is contracted to purchase 100,000,000 of Dotz’ unique anti-counterfeiting, tracing and authenticating ValiDotz™ products. The initial order is for the ValiDotz™ products to be applied to 30,000,000 masks with a follow up order of up to 70,000,000 masks (subject to customer demand).

As part of the agreement, UEG to become the sole and exclusive distributor for Dotz in the South Africa and China markets for a period of 2 years, for the following items: Face masks, Medical gowns, Medical gloves, and other Medical protective gear. As per the Agreement, Dotz shall grant UEG 3,000,000 unquoted options with exercise price of A$0.048 vesting on a pro-rata quarterly basis over the 2 years term of the Agreement, with a term of 3 years from the date of the Agreement (“Options”). The Options to be granted are subject to shareholder approval as required.

Dotz unique Tag, Trace and Verify solution provides a safe, easy to implement, cost effective, on site detection system to mark, identify, verify and trace quality facemasks from original and reliable manufacturers.

Dotz is expected to receive A$1.53m in revenue over the term of the Agreement.

Commenting on the Agreement, Dotz’s Chairman, Bernie Brookes said: “This significant agreement for the company is a direct outcome of the recent strategic focus and efforts initiated by the Board and Management. It clearly demonstrates the strong relevance and business potential of Dotz’s unique technological solutions, aimed at improving worldwide trade, during and post the COVID-19 pandemic. “

Commenting on the Agreement, Dotz’s CEO Uzi Breier said: “I am excited to sign this significant commercial agreement not only due to its noticeable monetary size, but also as Dotz’s contribution to the fight against this COVID-19 pandemic. With our anti-counterfeiting, tracing and authentication technology, customers can verify that they are using a genuine face mask and avoid risking medical personnel, patients and the general public.”

In parallel to the effort to harness its technology used for authenticating face masks, Dotz is in the final stages of developing a COVID-19 Disinfection Verification System (“DVS”) where the disinfection fluid applied on any surface, can be verified to ensure that there are no blind spots or neglected areas. The DVS uses a Dotz detector to visualise the proper application of the disinfection liquids on the surface. The DVS can be used on any surface including in planes, trains, buses, hospitals and any buildings or offices.

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As a leader in the research and development of Carbon Dots technology, Dotz’s R&D team are also researching various additional applications to fight the COVID-19 pandemic, including in the area of diagnostics.

This announcement has been authorised for release by the Board.

• 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 and DEF authentication, polymers tagging and bio imaging.

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

About Universal Export Group

Universal Exports Group (“UEG”) Is a Hong Kong based holding company with subsidiaries specialising in product design and engineering, manufacturing, supply chain management and China import and export trading.

Since its inception in 2009, UEG has evolved into a dynamic & forward-thinking organisation that today encompasses manufacturing facilities and offices in countries across the globe, including Hong Kong, China, South Africa, Mauritius & the United Kingdom.