DOTZ NANO LIMITED — Capital/Financing Update 2020

Mar 25, 2020

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ASX and MEDIA RELEASE

26 March 2020

Dotz secures A$166,000 Purchase Order from a leading plastic compounder

• Dotz has received a US$100,000 order for its ValiDotz™ plastic security markers from a Switzerland-based plastic compounder.

• The compounder will on-sell Dotz’s ValiDotz™ security markers to its customers as an anticounterfeiting solution inserted during the plastic compounding process.

• The company has already received pre-orders from several customers and will pay Dotz a 10% advance payment.

• Customers include major Swiss luxury watch, medical equipment, car parts and safety component manufacturers.

• Dotz’s non-toxic security markers do not affect the properties or appearance of the plastic and its four-layers of security 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 signed a two-year US$100,000 (A$166,000*) frame purchase order to supply its ValiDotz™ security markers to a Switzerland-based plastic compounder.

The compounder will on-sell Dotz’s non-toxic security markers to its customers in the luxury watches, medical equipment, automotive and safety component industries as an anti-counterfeiting measure inserted during the plastic manufacturing process.

The well-known plastic compounder, which remains undisclosed for security reasons, has already received pre-orders for Dotz’s security markers to be inserted by several of its customers. To secure the agreement, the compounder will pay Dotz a 10 percent advance payment. Additional instalments will be paid to Dotz with each order with a ratio of 30 percent on order and 70 percent on delivery.

Dotz’s proprietary markers can be cost-effectively embedded directly into polymers, including darkcoloured polymers, during the compounding or injection molding process and do not affect the appearance or properties of the product.

The markers utilise molecular, non-toxic, carbon-based security tagging materials to create a unique fingerprint inside the final product, which can then be easily authenticated on-site and in real-time using Dotz’s InSpec™ detector.

Dotz’s security markers are virtually impossible to reverse engineer and feature multiple layers of security, rather than the common ones.

Commenting on the agreement, CEO of Dotz, Uzi Breier said: “While our go-to-market strategy over the past year has focused on end-customers in our three key markets of anti-counterfeiting, product liability and oil and gas, we have also been actively engaging with compounders to have our end-toend authentication technology included during the plastic manufacturing process.

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“This strategy provides us with access to a greater number of companies and brands that have a genuine need for our end-to-end authentication technology. High-value plastic parts, where quality and product verification are paramount, are used in many industry sectors including automotive, electronics, medical devices, luxury goods and safety equipment.

“As counterfeit products often closely resemble the genuine product, it’s almost impossible to visually identify if a plastic product is a counterfeit, particularly if only a few of the product components are fake.

“Our non-toxic security markers can be cost-effectively embedded during the manufacturing process and are compatible with multiple types of thermoplastic materials, enabling brands and manufacturers to verify their products on-site and in real time throughout the supply chain.”

“The Dotz manufacturing process to fulfil these orders is unaffected by the COVID-19 pandemic. However, like many listed entities, Dotz has also undertaken cost reduction measures to minimise the impact of the pandemic on business operations. These actions include reducing staff, minimising expenses and utilising technology to continue valuable communications with our potential partners and customers.

“We will do our utmost to continue our Research and Development work during this time, which further enhances our product offering moving forward.”

This announcement has been authorised for release by the Board.

* Based on exchange rate of 0.60

-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