DOTZ NANO LIMITED — Capital/Financing Update 2021

Jul 13, 2021

14 July 2021

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ASX and MEDIA RELEASE

Dotz signs Dotz Test Kits distribution agreement with UAE-based Hygiene Links in the UAE, Egypt and Sudan; receives initial US$2.1 million purchase order

Key highlights

• Dotz has entered into a distribution agreement granting UAE-based Hygiene Links the exclusive right to sell the Dotz Test Kits in the UAE, Egypt and Sudan for an initial two-year term (subject to minimum purchase order requirements).

• Under the distribution agreement, Dotz has received a US$2.1 million initial purchase order from Hygiene Links for its Dotz Test Kits (payment terms are summarised below).

• Delivery to Hygiene Links is expected to occur over the next six months with the first Dotz Test Kits being shipped in August 2021.

• Dotz has obtained CE Mark authorisation for its nasopharyngeal swab and the saliva-based Dotz Test Kits and is awaiting US FDA Emergency Use Application approval for its nasopharyngeal swab and salivabased Test Kits[1] .

• Dotz has entered into a non-exclusive manufacturing agreement with USA based Systaaq Diagnostic Products to manufacture its nasopharyngeal swab and saliva-based Test Kits.

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 a distribution agreement with, and received an initial US$2.1 million (A$2.8 million) purchase order from, UAE-based Hygiene Links International General Trading LLC (" Hygiene Links ”) for its SARS-CoV-2 virus detection technology (the “ Dotz Test Kits ”). Hygiene Links is a leading and reputable chemical, plastics and consumables manufacturer and distributor across the Middle East with a large customer base within the healthcare market (further information about Hygiene Links is included at the end of this announcement).

The distribution agreement is for an initial two-year term and grants Hygiene Links the exclusive right to sell the Dotz Test Kits in the UAE, Egypt and Sudan, subject to Hygiene Links satisfying a minimum order of 50,000 units per month for a six-month period for each country (equating to at least US$2.1 million for the three countries over each six month period). Under the distribution agreement, Hygiene Links may appoint sub-distributors subject to Dotz’s approval. Either party can terminate the distribution agreement on 90 days notice, and the distribution agreement includes an option to extend the agreement for additional one-year terms, subject to the agreement of both parties.

The US$2.1 million purchase order is for the supply of Dotz’s saliva-based and nasopharyngeal swab Dotz Test Kits for the next six months for use in the UAE, Egypt and Sudan. Dotz Test Kits will be shipped monthly with 50% of each monthly shipment fee paid upfront and the remaining 50% on delivery.

Headquartered in Dubai, Hygiene Links is increasing its offering to include health care and personal protective equipment (PPE) products. The Dotz Test Kits are expected to be among the first of Hygiene Links’ new product offering.

1 Dotz updated its existing FDA EUA application in May 2021 to also cover its saliva-based Dotz Test Kits.

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Based on Hygiene Links’ reputation, Dotz’s due diligence and present business dealings with the company, Dotz is confident with the financial and other capacity of Hygiene Links to meet its obligations under the distribution agreement. As part of its due diligence, Dotz has obtained various references in relation to Hygiene Links, its management team and key shareholders and has also undertaken certain KYC verification requirements. Dotz has also considered the sanctions in place for Sudan by Australia (and other relevant countries) and is satisfied that the sanctions do not impact the distribution agreement, noting Hygiene Links is UAE based.

The purchase order and distribution agreement follow a successful blind clinical trial of the nasopharyngeal swab Dotz Test Kits in the USA. Refer to the Company’s ASX announcement on 7 April 2021 for further information about this clinical trial, and the Company’s ASX announcements on 1 and 22 March 2021 for a summary of the features of the nasopharyngeal swab and saliva-based sampling Dotz Test Kits.

The Dotz Test Kits have obtained CE Mark authorisation for both nasopharyngeal swab and saliva-based samples, which clears it for sale in the European Union[2] and to the private sector in the UAE, Egypt and Sudan (there being no other regulatory requirements or export permits required for Hygiene Links’ to permit the sale of the Dotz Test Kits to the private sector in the UAE, Egypt or Sudan). However, certain regulatory requirements still need to be satisfied before the Dotz Test Kits can be sold to the public sector in the UAE, Egypt and Sudan. As previously announced, Dotz has also applied for a FDA Emergency Use Application for its nasopharyngeal swab Dotz Test Kits. Dotz also updated its existing FDA EUA application in May 2021 to also cover its saliva-based Dotz Test Kits.

Dotz’s nasopharyngeal swab and saliva-based Test Kits are being manufacturered in Virginia, USA by Systaaq Diagnostic Products (“ Systaaq” ) in accordance with a non-exclusive manufacturing agreement. The manufacturing agreement has a five-year term and satisfies the manufacturing requirements of the FDA and EU for the Dotz Test Kits. As part of the manufacturing agreement, Systaaq will export the Dotz Test Kits to Hygiene Links in the UAE (noting Systaaq has the relevant export permits to do so). Under the manufacturing agreement, Systaaq has agreed to have capacity to manufacture at least three million Dotz Test Kits in the first 12 months to the extent required by Dotz.

Dotz Chairman and Interim CEO Bernie Brookes said, “Our first commercial order within the diagnostic domain is a significant achievement for Dotz. It reflects the versatility of our technology, which has applications within almost every industry. We believe our virus detection technology is truly industry-leading, providing a method to accurately identify the SARS-CoV-2 virus at scale and in a cost-effective and timely manner. While we are awaiting FDA regulatory approval for the nasopharyngeal swab and saliva-based Dotz Test Kits, our successful clinical trial of the nasopharyngeal swab Dotz Test Kits and CE Mark authorisation has enabled us to start to engage with a number of potential customers. At the same time we are continuing to commercilise our anticounterfeiting technology, and applying for regulatory approval for the Dotz Test Kits in other markets.”

-ENDS-

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

For further information, please contact:

Investors: Media: Eric Kuret Tristan Everett Market Eye Market Eye E: eric.kuret@marketeye.com.au E: tristan.everett@marketeye.com.au P: +61 3 9591 8904 P: +61 403 789 096

2 Some countries in the European Union have additional import regulatory requirements that Dotz will need to comply with if it intends to sell the Dotz Test Kits in those countries.

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About Dotz Nano Limited

Dotz Nano Limited (ASX: DTZ) is a technology leader in research, production and marketing of anti-counterfeiting, authentication and tracing solutions.

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

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

About Hygiene Links International General Trading LLC

Incorporated in 2006, Hygiene Links is a chemical, plastics and consumables manufacturer and distributor across the Middle East with a large customer base within the healthcare market and offices in four countries across the Middle East. Hygiene Links is based in Dubai and is privately owned by UAE nationals.To learn more about Hygiene Links, please visit the website via the following link www.hygienelinks.com

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