DXN LIMITED — Capital/Financing Update 2019

Oct 10, 2019

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11 October 2019

Dear Option Holder,

DXN Limited – pro-rata non-renounceable rights issue

As announced on 9 October 2019, DXN Limited (ACN 620 888 548) ( DXN or the Company ) is undertaking a 1 for 4 pro-rata non renounceable rights issue ( Rights Issue or Offer ) of approximately 90,567,933 fully paid ordinary shares ( New Shares ) to raise approximately $4,981,236.

The price of the New Shares under the Offer is 5.5 cents per New Share ( Issue Price ). The Company will also issue 1 free attaching listed option ( New Option ) for every 1 New Share subscribed for and issued, exercisable at 10 cents per New Option on or before the date which is 12 months from the date of issue. The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 11 October 2019 and the Prospectus be despatched to all Eligible Shareholders on 21 October 2019. The Prospectus will be available on the ASX website (company announcements section, ASX code: DXN).

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5:00pm WST on 17 October 2019 ( Record Date ), whose registered address is in Australia, New Zealand or Singapore.

Under the terms of the options you currently hold, there is no entitlement to participate in the Entitlement Issue, unless you exercise your options and are entered onto the register as an Eligible Shareholder on or before the Record Date. Under the terms of your options you are entitled to receive notice of the record date set for the purposes of determining entitlements to any new issue of capital. The purpose of this letter is to give you that notice in order to permit you to participate in the Rights Issue, should you wish to do so.

If you are not a shareholder and wish to participate in the Rights Issue, or if you are already a shareholder but also wish to participate in the Entitlement Issue in respect of your option holdings, it will be necessary for you to exercise all or part of your options, and the shares in respect of those options must have been issued to you before the Record Date. If you wish to do so, you should complete a Notice of Exercise of Options and lodge it with the Company, together with your payment for the number of options you wish to exercise. If the Notice of Exercise of Options together with payment in full for the relevant number of options being exercised is not received by 17 October 2019, you will not be able to participate in the Rights Issue in respect of the shares to be issued upon exercise of those options.

If you do not wish to participate in the Rights Issue (in respect of your options), you do not need to take any action.

This letter is only intended to inform you of your rights in relation to your options. This letter is not an offer or an invitation to acquire shares in DXN or to participate in the Rights Issue.

If you require further information, please contact your financial adviser or George Lazarou, DXN’s Company Secretary, on +61 8 9288 1870.

DXN Limited ABN: 46 620 888 548

9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W: dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions

Yours sincerely,

Douglas Loh Chairman

DXN Limited ABN: 46 620 888 548 9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W: dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions