ECHOIQ LIMITED — Investor Presentation 2015

Dec 14, 2015

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ASX ANNOUNCEMENT

15 DECEMBER 2015 ASX: PML

COMPANY UPDATE – VERILUMA CORPORATE PRESENTATION

_____________

Further to the ASX announcement of 8 December 2015, regarding the signing of a binding Heads of Agreement with the major shareholders ( Major Shareholders ) of Veriluma Pty Ltd (ACN 117 490 785) ( Veriluma ), Parmelia Resources Limited ( PML or the Company ) is pleased to provide a copy of the latest Veriluma corporate presentation.

For further information concerning Parmelia’s activities, please contact Nigel Gellard, Executive Chairman at:

Phone +61 (0)8 6141 3500 Fax +61 (0)8 6141 3599 www.parmeliaresources.com

Nigel Gellard

Executive Chairman

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December 2015

DISCLAIMER

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This Presentation has been prepared by Veriluma Pty Ltd (Company) solely for summary information purposes only. It is not a prospectus or an offer document and does not constitute an invitation or offer of securities for purchase or subscription in any jurisdiction.

The information contained herein is a summary about Veriluma only, general in nature and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Parmelia Resources Limited (Parmelia) has not been involved in the preparation of this Presentation and makes no representation or warranty whatsoever as to the accuracy or completeness of this information and disclaims and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of Veriluma. This information included in this Presentation may contain certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management of Veriluma concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to the Company.

This Presentation may contain “forward looking statements.” Forward looking statements are subject to risk factors associated with the business of the Company, many of which are beyond the control of the Company. The expectations reflected in these statements are considered to be reasonable, but may be affected by a variety of factors and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes or future results will not materially differ from these statements. You should not place undue reliance on forward looking statements and the Company and Parmelia, nor any of their directors, employees or advisers, assume any obligation to update such information.

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COMPANY OVERVIEW

Veriluma’s software ‘Intelfuze’ takes into account quantitative and qualitative information and uses a patented Collaborative Decision Making engine to assess likely outcomes with degrees of certainty whilst identifying contributing risks. Intelfuze helps individuals, businesses, governments and their agencies reduce the margin of error in critical decisions by ensuring the available facts, logic and reasoning are objective and transparent.

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BOARD AND MANAGEMENT

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Elizabeth Whitelock Chief Executive Officer

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Rick Anstey
Chairman
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• Experienced in start-up & turn around

• More than 28 years building and managing technology companies

• Strong leader who builds committed, capable teams

• Corporate Advisor

• Early stage/seed VC fund manager

  • Client centric with success in direct and indirect software sales and services

• Independent Director:

• Technology One

• (ASX300: TNE)

• Data, analytics, business intelligence background

• Pioneer Mortgages

• Ingres

• Non Executive Director:

• SAS

• Concept Safety

  • IBM

• Hoodlum

• Board Member

• Microstrategy

• Australian Centre for Entrepreneurship at QUT

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Craig Aspinall Chief Technical Officer

• 18 years professional software development

• Five years leading and managing software development team

• Founder and CTO of technology solutions companies

• Seven years experience leading and managing teams

• Five years coaching development teams and leaders

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BOARD AND MANAGEMENT

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Aaron Birkby Advisor

Roger Bradbury Advisor

• Entrepreneur In Residence for River City Labs Accelerator

• Professor, National Security College, ANU, Canberra

• Research at the interface of science, technology and national security, particularly in cyberspace

• Co-founder and CEO of Silicon Lakes, a not-for-profit startup incubator

• Founded and built a software company to six million users in nine countries over eight years

• Works in the Australian Intelligence Community on the strategic analysis of international science and technology issues

• Developed and exited an IoT remote telemetry solution for coin-operated machines

• Fellow of the CSIRO Centre for Complex Systems Science

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Di Girvin Financial Controller

• Bachelor of Commerce, Graduate Diploma of Chartered Accounting, Certificate of Public Practice

• Private Enterprise Practice, KPMG

• Wealth of experience in small business

• Strategically and operationally focused

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POWERFUL DECISIONS.

Intelfuze has been used by Australian intelligence agencies since 2012.

Intelligence analysts need to rapidly assess threats in order to deliver timely, objective, reliable insights which can be acted upon with certainty.

Intelfuze helps analysts rapidly assess threats from global security, foreign military, transnational terrorism and provides accurate assessments for decision makers.

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WHEN FACED WITH COMPLEX VARIABLES How do you reach a decision?

Intelfuze provides greater insight to the risks and opportunities faced by decision makers, despite the quantity or quality of information available.

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WHY VERILUMA WORKS

• Considers all factors without emotion, bias or prejudice

• Weights factors appropriately according to their level of importance

• Assesses and track problems over time as information changes

• Identify risks which companies can take action to mitigate

• Increases the chances of a successful outcome

COLLABORATIVE DECISION MAKING DEFINED

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Gartner defines Collaborative Decision Making:

“Platforms combine business intelligence and other sources of information used for decision making with social and collaboration capabilities and decision support tools and methodologies.”

“Brings the right decision makers and information together with decision tools to analyze data, examine an issue, brainstorm and evaluate options, agree on a course of action, and then capture the process to audit and mine for best practices.”

Independent research shows that organisations with collaborative technologies respond to business threats and complete key projects more rapidly. They also experience decreased time to market for new products and increased employee satisfaction.

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HOW WE HELP CREATE BETTER DECISIONS

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1[st] Step: Question or Hypothesis Identify the primary ‘question’ we wish to solve; Identify the ‘issues’ that might provide insight or evidence in reaching the answer

2[nd] Step: Relationships Describe the relationships between the ‘issues’ ie how they interact, influence or drive one another

3[rd] Step: Inform

Add information, evidence, opinions or assumptions to ‘inform’ the identified ‘issues’

4[th] Step: Assess Produce the ‘answer’ ie the outcome with likelihood and certainty for the question posed

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HOW VERILUMA WORKS COLLABORATIVE DECISION PROCESS

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Veriluma’s predictive intelligence software is designed to help organisations gain greater insight into problems, questions and hypotheses leading to better decisions in shorter timeframes.

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Intelfuze
or API
Models
Patented
Engine
Collaborative
Decision
Process
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• First, the problem is dissected and the factors affecting the outcome understood

• The Intelfuze application provides an analyst workbench where the problem is mapped and information added

• Models can be built by clients, partners or by Veriluma consultants in collaboration with the client/partner

• The engine is called from within Intelfuze to run assessments of the modelled problem ie. the outcome

• The likelihood of the outcome and the level of certainty (confidence of the result) are calculated. In addition, the assessment shows the factors contributing to the outcome with risks , missing information and conflicts highlighted

• Assessments can be executed at any time but most often when data is added or changed

• The engine can also be called from within client/partner’s technologies, applications or processes

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HOW VERILUMA WORKS COLLABORATIVE DECISION PROCESS

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What
question(s)
do we need
to answer?
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How do
the factors
influence
or drive
the
answer?
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What factors might influence that answer?

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Add information, evidence, opinions, assumptions

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Generate the
answer to our
question(s)
using all or
some of the
information
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Add new sources of information or make changes to existing

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Likelihood & certainty of outcome, risks

Assess and track situations over time as information changes.

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HOW VERILUMA WORKS THE DECISION TREE

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What contributed to the result
44%
likelihood of
success
72% certainty
Cultural
compatibility is
one of the red
flags (or risks)
to the success
of this
acquisition
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Organisational behaviour contributes in a negative way
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$2 BILLION GLOBAL MARKET

• IDC in 2014 estimated global revenues of $2 billion with 38.2% compound annual growth in the last five years

• “Collaborative Decision Making is rising with at least five years from mainstream adoption. There is a viable market today for vendors in this zone.” - Gartner 2013

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GLOBAL APPLICATIONS

• Government Departments

• Defence Agencies

• Policing

• Counter Terrorism

• Merger and Acquisition

• Legal Outcomes

• Mining

• Banking and Finance

• Insurance

• Healthcare

• Environmental Agencies

• Education

 Marketing

 Research

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MULTIPLE INDUSTRIES & APPLICATIONS

INDUSTRY

FINANCIAL SERVICES

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• Mergers & Acquisitions: Harvard Business Review valued global M&A at $US3.6 trillion in Q4 2014 with 70-90% failure rate

• Criticality of parts within a production line/mining operation

• Risks and threats to future development sites:

  • Political/Cultural

• Risk Mitigation

• Environmental

• Credit Risk Rating

• Financial

• Fraud Detection

• Project Management – risks obstructing successful delivery

• Wealth Management

• Asset Management

• Strategic Planning

• Strategic planning & competitive positioning

• Track and predict market trends: likelihood of property bubbles bursting

• Predicting impacts of weather, politics, crises

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PROFESSIONAL SERVICES

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• Assess and analyse complex cases with multiple lists of suspects and multilayered evidence

• Track long term operations for example organised crime, requiring transparency and oversight

• Criminal law – strategy tool for prosecution or defence

• Assessing success of personal injury, family law and estate claims

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POST M&A CASE STUDY EXAMPLE: SUCCESS OF COMBINED FIRMS

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What contributed to the result
44%
likelihood of
success
72% certainty
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Cultural compatibility is one of the red flags (or risks) to the success of this acquisition

Organisational behaviour contributes in a negative way

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FURTHER CASE STUDIES

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Avian Flu: the likelihood of a flu virus becoming a pandemic

• Result achieved in two days with the input of six medical and veterinary experts

• Same threat assessment took the US Government scientists and mathematicians six months

Stuxnet: determining the origins of a cyber attack on the Iranian nuclear facility

• In 2010, a Veriluma assessment predicted the US Government with Israel was most likely the developer of the Stuxnet Trojan

• In 2012, President Obama admitted US Government were behind the attack

Iraq: what is the political future of the country?

• In 2013, Veriluma was asked by a European intelligence agency, to assess whether Iraq would become a democracy, revert to dictatorship or partition

• Assessment determined that Iraq was highly likely to partition

Retrospective assessments

• Should the Netherlands have known earlier during WWII that Germany would invade?

• Should the USA have known Russia would deploy missiles in Cuba in 1962?

Further case studies can be found in the Appendices.

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COMPETITION

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Business Intelligence and Analytics Vendors

• Despite increasing investment in Business Intelligence many organisations continue to make poor decisions

• A few Business Intelligence vendors are providing ‘optional add-ons’ for Collaborative Decision Making to facilitate better and faster decisions

• Analysis of data collated remains at the heart of the offering and cannot consider ‘unknowns’ or subjective input

Specific Collaborative Decision Making Offerings

• A handful of vendors offer tools for decisions within specific parameters eg industry focus

• Each handles the decision making process differently

Veriluma’s Point of Difference

• Complementary to big data and analytics

• Patented approach is unique

• Veriluma determines outcome despite the quantity or quality of information available

• Known, unknown, uncertain, unreliable

• Subjective opinions

• Global application across industries

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UNIQUE DIFFERENCE

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• At the core of the patented engine is a mathematical calculus based on Subjective Logic

• Subjective Logic is suitable for analysing situations involving uncertainty and incomplete knowledge

• Our engine can deal with what we know AND can also consider what we don’t know

• Known can be an opinion - a belief about something

• Intelfuze can take a feed of quantifiable data (known and historical) and combine it with an expert’s prediction (his subjective opinion)

• Assessments provide insight of the likely outcome (with confidence) about a situation based on the information available at that time

• Assessments can be repeatedly executed - as new information or opinions arrive or change

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PARTNERSHIPS

Global Defence Contractor

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Application vendor to asset-intensive industries such as mining, oil, gas, exploration and utilities

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Peer-to-Peer lending platform for the SME market

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Disruptive Vendors/Technologies: Financial Services including M&A Professional Services/Consulting

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Represents Veriluma primarily within the Defence and Intelligence agencies in Canberra.

Veriluma’s engine assesses the criticality of parts and their business impact to minimise production downtime for Oniqua clients.

Marketlend is a peer to peer lender using an independent trustee and securitisation methods. Marketlend uses the Veriluma engine to assess the likelihood and certainty of an applicant repaying the loan.

A Joint Venture to create disruptive legal applications for a global market initially with a focus on Personal Injury which is typically ‘No win, no fee’.

Discussions underway with services/application vendors to embed Veriluma’s engine within their technology/service offerings to new and existing clients.

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PATENTS

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Registered patents protect Veriluma products:

• United States Patent - 7720787 issued 18 May 2010

• Australian Patent - 2006202485 issued 12 July 2010

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COMMERCIALISATION

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COMMERCIALISING THE FIVE ‘EYES’

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The FIVE ‘Eyes’

• An intelligence alliance between USA, Canada, UK, Australia, New Zealand

• Defence intelligence is our heritage - we will continue to focus on this sector, leveraging our existing client base to expand into other agencies and jurisdictions

Next steps

• Secure the Australian Intelligence community

• Recruit an Account Executive with defence/intelligence background

  • Strong contacts into the sector

  • Based in Canberra

  • Penetrate federal agencies beyond defence

  • Works directly

  • Works indirectly by securing partnerships with system integrators and defence contractors

• Secure international partnerships to leverage and penetrate the FIVE ‘Eyes’

• Leveraging the Australian client base and partnerships

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THE PATH TO COMMERCIALISATION

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People

• Technical expertise to develop and maintain

• Product specialists for pre and post sales support

• Sales capability for direct sales (Federal Government)

• Sales capability for indirect sales (Channels Management)

• Advisory Board

• Marketing and communications

Sourcing and developing vertical solutions

• In the first instance with partners using their domain expertise

Engage Gartner

• 12 month program

• To build company profile

• Who, where and when to target

• Increased global awareness

• Geographic expansion and visibility

• Analyst engagement

Re-architecture of current application to a hosted platform

• Device and data agnostic

• Highly scalable

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COMMERCIALISATION STREAMS

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Subscription Per Analyst/Project Horizontal Consulting Solution Education Support

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SaaS White Label On Premise Vertical Subscription Subscription Solutions Consumption Per Analyst/Project Consulting Consulting Subscription Education Education Volume/Value Rates Support Support

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SUMMARY

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• Patented Collaborative Decision Making software

• Intelfuze delivers clear forecast outcomes to individuals, businesses and governments with degree of certainty and risks

• Intelfuze currently helps Australian intelligence agencies to assess global security, foreign military, transnational terrorism threats and provides accurate assessments for defence decision makers

• Targeting what is currently a $2 billion market with 38.2% compound annual growth

• Multiple global applications across banking and finance, M&A, government departments, legal and insurance industries already identified

• Commercialisation strategy underway with international patents secured

• ASX listing in first quarter 2016

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PREDICTIVE INTELLIGENCE FOR COMPLEX DECISIONS.

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Contact

Suite 105, 48 Atchison Street St Leonards NSW 2065 Rick Anstey, Chairman e: rick.anstey@veriluma.com m: +61 416 260 600 Elizabeth Whitelock, CEO e: izzy@veriluma.com m: +61 411 544 711

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Paul Hart, Corporate Advisory e: phart@insynces.com.au m: +61 421 051 474 Peter Taylor, Investor Relations e: peter@nwrcommunications.com.au Mobile: +61 412 036 231

APPENDICES

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The Collaborative Decision Making Process

Intelfuze Approach

Case Study Snapshots

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COLLABORATIVE DECISION PROCESS

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Inform,
Question / Evidence, Answer &
Issues Relationships
Hypothesis Assumption, Assessment
Opinion
New
Information,
Iteration:
Evidence,
Current Likelihood
Assumptions of Outcome
& Opinions
Assess and track situations over
time as information changes.
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INTELFUZE AND THE

COLLABORATIVE DECISION PROCESS

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• Designed for analysts to create greater insight and results, for problems, hypotheses and questions

• The user interface provides analysts with a workbench to build models of problems, add data and assess the likelihood and certainty for the modeled problem

• Models can be built by clients or partners or by Veriluma using the client/partner’s domain expertise

• Patented engine is based on Subjective Logic - the engine is called when an assessment is run

• From within Intelfuze, the analyst can execute an assessment at any time but most often when data is added or changed

• The patented engine can also be called by an external process (or application), execute an assessment and return the results without the Intelfuze interface (headless)

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Intelfuze
Models
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Engine
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Process
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INTELFUZE

COMPLEMENTS DATA ANALYTICS

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Rear Vision Mirror Consider only the past?

Foresight Consider the unknown?

‘Traditional’ Analytics

Intelfuze

Predictive Intelligence

• Best for Data-Rich problems

• Requires large amounts of data

• Does not gracefully cope with unreliable or missing information

• Typically slow to build models and derive results

• Best for Data-Poor problems

• Works with the data that is available

• Handles uncertain, unreliable and unknown information

• Fast to build models and derive results

Best for problems when you are not time-bound and when large amounts of data are available

Best for problems when you need answers fast or when data availability or quality is variable

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CHINA PROPERTY FAILURES $33 BILLION DUE

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BLOOMBERG NEWS 20 JUNE 2014:

“Chinese property trusts face record repayments next year as the real-estate market cools, fueling speculation among bond funds that more developers will collapse.

The trusts, which channel money from wealthy individuals to smaller builders that have trouble obtaining financing elsewhere, must repay 203.5 billion yuan ($32.7 billion) in 2015 , according to Use Trust , a Chinese research firm. That’s almost double the 109 billion yuan due this year. New issuance of the products slumped to 40.7 billion yuan this quarter, the least in more than two years,

“Trust loan defaults will rise substantially,” said Fiona Cheung, head of Asia credit at Manulife Asset Management’s fixed-income team which oversees $44 billion globally. “It won’t be surprising if there are more collapses of China ’s property companies. Those companies that suffer from weak sales, that bought land too aggressively last year funded by debt and that have poor access to capital markets will potentially experience cash flow pressure.”

Collapse of the Chinese Property Market

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Chinese property
market will not
collapse
Chinese property
market will
collapse
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JPMorgan Chase & Co. says the real-estate industry poses the biggest near-term risk to growth in the world’s second-largest economy after new home prices dropped in the most cities in two years last month. China’s banking regulator said on June 6 it will monitor developer finances, a sign of concern defaults may spread after the March collapse of Zhejiang Xingrun Real Estate Co., a builder south of Shanghai.”

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IRAQ’S POLITICAL FUTURE

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August 2014

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With an objective assessment, decisions to act can be taken sooner or different decisions can be made.

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CYBER ATTACK ON IRANIAN NUCLEAR PLANT

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In 2010, who created the Stuxnet Worm that shut down Iran’s nuclear plant?

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MH370 – MISSING FLIGHT

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Sector for search

Where is the aircraft?

• Could a state actor be

• - possibilities where to - where specifically involved? search should we search?

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