ENTROPY NEURODYNAMICS LIMITED — Capital/Financing Update 2018

Dec 17, 2018

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ASX Announcement

CORPORATE DIRECTORY

Chairman MR JASON WATSON

Founder, Managing Director DR IAN DIXON

Non-Executive Director and Company Secretary MR DAVID PARKER

CORPORATE INFORMATION

Issued Capital: 80.5m FPO Market Cap: $16.1m (at 20 cents per share)

Exopharm Limited Closes Initial Public Offering Fully Subscribed and Lists on the ASX

• Exopharm raises $7m through a fully subscribed Initial Public Offering (IPO).

• Exopharm aims to be a leader in the field of clinical human therapeutics using exosomes as regenerative medicine products to treat health span related conditions.

• Funding from the IPO will be used to fund a Development Program and accordingly the development and commercialisation of the LEAP technology, Plexaris and Exomere products, as well as IPO listing costs.

• The Company has initiated the Development Program with testing of Plexaris and Exomere product in animal models of wound healing underway at a contract research organisation (CRO).

ASX Initial Public Offering

CONTACT DETAILS

Level 17, 31 Queen Street MELBOURNE VIC 3000

info@exopharm.com t. +61 (0)3 9111 0026 exopharm.com

ASX CODE: EX1 ACN: 163 765 991

EXTENDING HEALTH SPAN THROUGH CELL FREE REGENERATIVE MEDICINE

Exopharm Limited (‘Exopharm’ or the ‘Company’) is pleased to announce that it has closed the Offer under the Prospectus dated 6 November 2018 fully subscribed. The Company raised the maximum amount available under the Offer, being $7,000,000 through the issue of 35,000,000 shares at $0.20. The Company was officially admitted to the Official List of the ASX on 14 December 2018 and trading is scheduled to commence on the Australian Securities Exchange on Tuesday, 18 December 2018 at 1:30 EST. The Company would like to thank all involved in the Initial Public Offering and welcomes new shareholders to the Company. Furthermore, please see Appendix A for a shareholder letter that is currently being mailed to shareholders.

As its primary focus, Exopharm aims to be a leader in the field of clinical human therapeutics using exosomes as regenerative medicine products. Exopharm is an Australian regenerative medicine biopharmaceutical company seeking to develop and commercialise exosomes as therapeutic agents – initially a product called Plexaris™ and later as a product called Exomeres™. These products are exosomes that are derived from human platelets in relation to Plexaris, and adult stem cells in relation to Exomeres, and purified using the LEAP Technology and referred to as biologic products. Exopharm’s Development Program has an ultimate aim to establish both Plexaris and Exomeres as leading regenerative medicines to treat health span related medical conditions.

Initiation of the Development Program

The Company has commenced activities described by the Development Program in the Prospectus which includes initiating testing of Plexaris and Exomere products in animal models of wound healing at a contract research organisation (CRO). The aim of the study is to look at issues of safety and efficacy, using simple dosing and normal readouts. This initial non-clinical animal study forms part of the overall staged Development Program which is geared towards the Company’s planned first initial human small-scale clinical studies of autologous Plexaris product in wound healing in CY 2019. Exopharm has plans for further human clinical studies in using Plexaris in wound healing and in two other medical indications – dry age-related macular degeneration (dry-AMD) and osteoarthritis (OA). The Company anticipates results from the initial non-clinical animal study to be released early in the first quarter CY 2019.

Further information regarding the Development Program will be released as required, investors should refer to the Prospectus for full details of this planned program.

ENDS.

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ASX Announcement

ABOUT EXOPHARM

Exopharm Limited (“Exopharm” or the “Company”) (ASX:EX1) is an Australian regenerative medicine biopharmaceutical company seeking to develop and commercialise exosomes as therapeutic agents – initially a product called Plexaris™ and later as a product called Exomeres™.

These products are exosomes that are derived from human platelets in relation to Plexaris, and adult stem cells in relation to Exomeres, and purified using the LEAP Technology and referred to as biologic products.

As its primary focus, Exopharm aims to be a leader in the field of clinical human therapeutics using exosomes as regenerative medicine products for heath span related conditions.

The Initial Development Program: The Company’s main objectives for the next 12 months are to complete the following stages of its Development Program using the funds raised from the Prospectus Offer:

• manufacturing - make and supply clinical grade autologous Plexaris product and development of the Exomere manufacturing process;

• clinical use - completing animal studies, pre-clinical testing and initial small-scale human clinical studies of autologous Plexaris in wound healing;

• supporting research and development activities - conducting research activities to support the ongoing Development Program and the development of related intellectual property; and

• to investigate other LEAP Technology Opportunities.

An investment in Exopharm includes several risks, not limited to Technology Risk; Clinical Trial risks; Future Capital Requirements; Access to stem cells, blood and blood platelets; Patents and trade secrets; Third party infringement; Reliance on key personnel; Partnership and service provider risks; Changes in legislation and government regulation; Liquidity and volatility; Competition; No profit to date and limited operating history; and the Emerging exosomes market, as described in the Prospectus dated 6 November 2018.

Exopharm Limited is listed on the Australian Securities Exchange (ASX:EX1).

For more information please visit: https://exopharm.com or contact Dr Ian Dixon on +61 (0)3 9111 0026 or via email: info@exopharm.com.

Dated: 18 December 2018

FORWARD LOOKING STATEMENTS

Exopharm Limited (“Exopharm” or the “Company This announcement contain forward-looking statements which incorporate an element of uncertainty or risk, such as ‘intends’, ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘aims’, ‘plans’ or ‘expects’. These statements are based on an evaluation of current corporate estimates, economic and operating conditions, as well as assumptions regarding future events. These events are, as at the date of this announcement, expected to take place, but there cannot be any guarantee that such events will occur as anticipated or at all given that many of the events are outside of Exopharm’s control or subject to the success of the Development Program.

EXOPHARM LIMITED ACN: 163 765 991 ASX:EX1 Address: Level 17, 31 Queen Street Melbourne 3000 Telephone: +61 (0)3 9111 0026 Email: info@exopharm.com Web: www.exopharm.com

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APPENDIX A: SHAREHOLDER CORRESPONDANCE

Pursuant to ASX Listing Rule 3.17.1, please see attached a copy of correspondence that is being mailed to shareholders.

Exopharm Limited Level 17, 31 Queen Street Melbourne 3000 Phone +61 (0)3 9111 0026 www.exopharm.com (ASX-EX1)

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EXOPHARM LTD SHAREHOLDER NOTE – DECEMBER 2018

On Tuesday, 20[th] December 2018, Exopharm commenced trading on the Australian Stock Exchange under the code EX1.

Exopharm is the first company in the emerging field of exosome treatment to list on the ASX.

As part of the Initial Public Offering (IPO), Exopharm raised $7m by the issue of 35m shares at $0.20 – the maximum amount permitted under the Prospectus, which was managed by the Lead Manager, Alto Capital. Exopharm now has over 500 shareholders including a mixture of superannuation funds, corporate entities and individuals.

Over the past months we have been able to meet some of you and share the Exopharm story. Into 2019 we plan to hold various meetings open to shareholders and also communicate with you via our website and other channels, although the main form of communication will be through the ASX announcements. Please join our mailing list via our web site (exopharm.com) for all shareholder communications.

The Exopharm team encourages you to follow our progress and learn more about how exosome products might become an important part of cell-free regenerative medicine to treat health span related medical conditions.

We have initiated the Development Program which is described in the Prospectus. This includes an initial non-clinical animal study utilising Plexaris and Exomere products in wound healing by a contract research organisation, with results of this initial study due in early first quarter CY 2019. These results are part of the planned staged Development Program as we plan to progress into our first human clinical study of autologous Plexaris product in the first half of 2019 in wound healing. Exopharm has plans for further human clinical studies in using Plexaris in wound healing and in two other medical indications – dry agerelated macular degeneration (dry-AMD) and osteoarthritis (OA), as described by the Prospectus dated 6 November 2018.

The proceeds of the IPO is being invested into our Development Program as described in detail in the Prospectus – essentially three core areas :-

• manufacturing (Plexaris and Exomeres);

• clinical studies (Plexaris and Exomeres); and

• research programs and building international credibility.

The Exopharm Board is comprised of Mr Jason Watson (Non-Executive Chairman), Dr Ian Dixon (Founder and Managing Director) and Mr David Parker (Non-Executive Director and Company Secretary).

Our successful listing is the result of the efforts of many people – too many to list by name. But special thanks needs go to Alto Capital, Participating Brokers, Jackson McDonald, FPA Patent Attorneys and our Auditors William Buck.

Dr Gregor Lichtfuss (COO of Exopharm) and the other Exopharm team members have been working in the background to make progress across all areas of our business – and we expect a busy 2019.

Exopharm is a company built upon the core LEAP Technology and is breaking new ground – yet, at its core, Exopharm aims to transform cell-free regenerative medicine and solve a range of important health span medical problems.

Our mission is to make Exopharm an admired leader in this field.

The Board appreciates your support - Jason Watson, Ian Dixon and David Parker.

For further enquiries please contact: Dr Ian Dixon; +61(0)3 9111 0026; info@exopharm.com.