DOTZ NANO LIMITED — Capital/Financing Update 2021

Apr 25, 2021

ASX and MEDIA RELEASE

26 April 2021

Dotz and Zohar Dalia sign supply and distribution agreements for anti-viral disinfectant with verifiable surface sanitation

Key highlights

• Dotz has entered into the following agreements with Zohar Dalia Professional LP (“ Zohar Dalia ”), a subsidiary of Israel’s largest manufacturer and supplier of detergent intermediates and cleaning products:

• an exclusive Supply Agreement , whereby Dotz will supply Zohar Dalia with its nontoxic molecular markers and detectors for Zohar Dalia to use with its slow-release disinfectant, exclusively licensed from the Israel Ministry of Defense, for the purposes of Zohar Dalia creating its new active surface sanitation solution – Active V-SRD®; and

• a non-exclusive Distribution Agreement , granting Dotz the right to promote and sell Zohar Dalia’s Active V-SRD® solution in multiple approved markets, including the UK, India, Italy, France, Australia, Germany, Spain and throughout Africa.

• Zohar Dalia’s Active V-SRD® is a hydrogen peroxide-based active disinfectant that provides anti-viral protection and uses Dotz’s security markers to verify proper surface sanitation in real time.

• Follows successful pilot where Dotz marked 1,000 litres of Zohar Dalia’s unique disinfectant with its taggants to trace and verify proper surface sanitisation within Tel Aviv Ben Gurion Airport as well as other public areas.

• Potential to implement the solution in airports, hospitals, hotels, public transportation, manufacturing facilities and other public spaces requiring verified disinfection.

• The agreements with Zohar Dalia are not expected to have an immediate material impact on Dotz’s revenue, however Dotz believes that the agreements have significant potential based on the large addressable global market.

Dotz Nano Limited (ASX:DTZ) (“Dotz” or “The Company”) , a technology leader in authentication and tracing solutions, has entered into a supply agreement and a distribution agreement with Zohar Dalia Professional LP, a subsidiary of Zohar Dalia Cooperative Agricultural Association Ltd - Israel’s largest manufacturer supplier of detergent intermediates and cleaning products, in connection with Zohar Dalia’s anti-viral disinfectant that utilises Dotz’s security markers to verify surface sanitation in realtime.

Zohar Dalia’s Active V-SRD® product uses Dotz’s non-toxic molecular markers and detectors to enable real-time verification of proper surface sanitation, and combines this with Zohar Dalia’s slow-release disinfectant, exclusively licensed from the Israel Ministry of Defense, which provides effective antiviral protection.

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Attached as Annexure A to this announcement is a copy of the independent laboratory results conducted by System Laboratories in Israel in respect of the anti-viral protection efficacy of the Active V-SRD® product over specific time periods. Specifically, System Laboratories tested the effect of the Active V-SRD® product in experimental conditions that reflected as much as possible real conditions over the following key time periods: after 24 hours, 48 hours and 72 hours.

However, depending on the jurisdiction, in order to include the anti-viral protection efficacy of Active V-SRD® over specific time periods as part of any product marketing , certain regulatory requirements and/or permits will need to obtained. Dotz and Zohar Dalia intend to work together to satisfy such regulatory requirements in each of the markets that Dotz will promote and sell the Active V-SRD® product, in accordance with the new non-exclusive distribution agreement between the two companies (as described below). There is no certainty that such regulatory requirements will be satisfied.

Under the exclusive supply agreement, Dotz will provide its non-toxic molecular markers and detectors to Zohar Dalia to be used by Zohar Dalia to create its Active V-SRD® product. Dotz’s security markers are invisible to the naked eye and do not affect the properties or appearance of tagged products. Its ValiDotz taggants are ideal for use in long shelf life products, remaining stable in high temperatures and harsh conditions for two years. These characteristics align with the requirements of Zohar Dalia’s disinfection materials. The supply agreement grants Zohar Dalia an initial exclusivity period of six months in connection with products that compete with its Active V-SRD® product, and thereafter such exclusivity is subject to Zohar Dalia satisfying certain conditions still to be agreed between the parties.

The non-exclusive distribution agreement enables Dotz to promote and sell Zohar Dalia’s Active V- SRD® solution in multiple approved markets, including the UK, India, Italy, France, Australia, Germany, Spain and throughout Africa (subject to any necessary regulatory approvals required in each market to be sought together by the parties as required).

The agreements follow a successful free pilot in Tel Aviv Ben Gurion Airport, where Dotz inserted its markers into 1,000 litres of the Zohar Dalia disinfectant to provide real-time verification of proper surface sanitation in commercial passenger airplanes.

The supply and distribution agreements are each for initial five-year periods (unless terminated earlier in accordance with their terms). The agreements are not expected to have an immediate material impact on Dotz’s revenue, however Dotz believes the agreements have significant potential based on the large addressable global market and subject to customer demand for Zohar Dalia’s Active VSRD® sanitation solution. The supply and distribution agreements contain standard commercial terms relating to pricing, marketing, warranties, and termination usually found in contracts of this nature.

Commenting on the agreements Dotz Chairman and Interim CEO Bernie Brookes AM said, “Our supply and distribution agreements with Zohar Dalia further highlight the broad applicability of Dotz’s authentication technology, and the Board believes increases our value proposition even further. It enables us to enter a new sector in several markets with what the Board believes to be a superior solution both in terms of effectiveness and the unique ability to verify proper surface sanitation.

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“As the world adapts to the new normal from the COVID-19 pandemic, it is more important than ever before that public spaces are properly sanitised to a high standard. The ability to verify effective surface sanitisation, made possible by Dotz’s ValiDotz taggants, will provide additional peace of mind to consumers.

“The Board believes that the success of the volume pilot at Tel Aviv Ben Gurion Airport validates the effectiveness of Zohar Dalia’s Active V-SRD® sanitation solution and Dotz’s ValiDotz taggants, and provides a large addressable global market, including public transport providers, hospitals and healthcare facilities, as well as hotels, universities and sporting venues.”

-ENDS-

This announcement was approved by Board of Dotz Nano Limited.

For further information, contact:

Dotz Nano Limited Investor Enquiries:

Media Enquiries: 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

About Dotz Nano Limited

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

Its unique products ValiDotz, BioDotz, Fluorensic and InSpec are exceptional solutions for numerous applications, such as anti-counterfeiting, Diagnostics, 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

Annexure A

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