ENTROPY NEURODYNAMICS LIMITED — Capital/Financing Update 2018

Dec 13, 2018

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12 December 2018

Mr Dale Allen Senior Adviser, Listings Compliance (Perth) ASX Compliance Pty Ltd Level 40, Central Park 152-158 St Georges Terrace PERTH WA 6000

By Email: Dale.Allen@asx.com.au

Dear Mr Allen

Exopharm Limited – Updated statement of commitments and pro-forma statement of financial position

We refer to ASX’s letter to Jackson McDonald dated 4 December 2018 pursuant to which ASX provides conditional approval for the admission of Exopharm Limited’s ( Company ) shares to official quotation on ASX ( Approval Letter ) and confirm the following:

1. Paragraph 2.2.7: Updated statement of commitments

• (a) An updated statement of commitments based on the actual amount of funds raised under the Prospectus:

Exopharm intends to use funds of approximately $400,000 cash on hand as at the Prospectus Date, and the actual funds raised from the Offer of $7,000,000, as detailed in: Appendix A

2. Paragraph 2.2.8: Updated pro-forma statement of financial position

• (a) An updated pro-forma statement of financial position based on the actual amount of funds raised under the Prospectus

An updated statement of commitments based on the actual amount of funds raised under the Prospectus is detailed in: Appendix B

Yours faithfully

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David Parker Non-Executive Director and Company Secretary Exopharm Limited

EXOPHARM LIMITED ACN: 163 765 991 ASX:EX1 Address: Level 17, 31 Queen Street Melbourne 3000 Telephone: 03 9111 0026 Email: info@exopharm.com Web: www.exopharm.com

Appendix A: Updated statement of commitments

	Actual Funds	Actual Funds	Actual Funds	Actual Funds	% Based
	Raised of	Raised of		Raised of	on Actual
	$7,000,000	$7,000,000		$7,000,000	Funds
	Year 1	Year 2		TotalYear 1 and 2	Raised of$7,000,000
Funds
available
Cash on hand	$400,000		-	$400,000	5.4%
Funds from the	$7,000,000		-	$7,000,000	94.6%
Offer
Total funds	$7,400,000		-	$7,400,000	100%
available
Use of funds
Development
Program
Manufacture	$1,120,000	$724,000		$1,845,000	24.9%
Clinical	$722,000	$1,250,000		$1,973,500	26.7%
programs
Supporting	$285,000	$645,000		$927,000	12.5%
research
and
development
activities
Other LEAP	$145,000	$105,000		$250,000	3.4%
Technology
Opportunities
Reimbursement	$250,000		-	$250,000	3.4%
of prior LEAP
Technology
expenses
Costs of the	$654,000		-	$654,000	8.8%
Offer
General	$870,000	$630,000		$1,500,000	20.3%
working capital
Total	$4,046,000	$3,354,000		$7,400,000	100%

The above should be read in conjunction with the Prospectus dated 6 November 2018.

Appendix B: Updated pro-forma statement of financial position

Exopharm Limited

As at 30 June 2018

As at 30 June 2018
CURRENT ASSETSCash and cashequivalentsTrade and otherreceivablesTOTAL CURRENTASSETSNON-CURRENTASSETSProperty and equipmentIntangible assetsTOTAL NON-CURRENT ASSETSTOTAL ASSETSCURRENT LIABILITIESAccounts payable andother current liabilitiesTOTAL CURRENT LIABILITIESNON-CURRENTLIABILITIESOther non-currentliabilitiesTOTAL NON-CURRENTLIABILITIESTOTAL LIABILITIESNETASSETS/(LIABILITIES)EQUITYIssued capitalAccumulated lossesTOTAL EQUITY/(DEFICIENCY)	AuditedHistoricalSubsequentEventsProformaAdjustments($7,000,000funds raised)ReviewedProforma($7,000,000funds raised)$$$$
	52,401500,0006,096,0006,648,40160,38060,000-120,380
	112,781560,0005,162,0006,768,781
	20,47880,000-100,478175,000(100,000)250,000325,000
	195,478(20,000)250,000425,478
	308,259540,0005,412,0007,194,259
	215,527(145,127)-70,400
	215,527(145,127)-70,400
	100,000(100,000)--
	100,000(100,000)--
	315,527(245,127)-70,400
	(7,268)785,1275,412,0007,123,859
	169,0901,125,0006,346,0007,640,090(176,358)(339,873)-(516,231)
	(7,268)785,1275,412,0007,123,859

The above should be read in conjunction with the accompanying notes detailed in the Prospectus dated 6 November 2018.