ENTROPY NEURODYNAMICS LIMITED — Capital/Financing Update 2021

Sep 7, 2021

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ASX ANNOUNCEMENT

Exopharm’s LEAP Technology Generates Second Commercial Collaboration

• Exopharm and Showa Denko sign Feasibility Study Agreement – the second commercial industry collaboration for Exopharm’s foundation technology

• Showa Denko is a global manufacturer and regenerative medicine company

• Evaluation of Exopharm’s LEAP™ technology at Showa Denko’s Yokohama R&D facility

• Exopharm’s LEAP technology is the only established process for high-scale exosome purification

8 September 2021, Melbourne, Australia :

Exopharm Limited (ASX:EX1), a clinical-stage, global leader in exosome medicines, has reached an agreement to conduct a research collaboration with Showa Denko Materials Co., Ltd. (SDMC), a subsidiary of Showa Denko Group KK (Tokyo, Japan; TYO: 4004), a world leading international chemicals manufacturing group.

Under the Feasibility Study Agreement, SDMC will evaluate the LEAP™ technology platform within its regenerative medicine business unit at its Yokohama facility. This evaluation will allow Exopharm’s patent-protected LEAP technology and know-how to be studied within SDMC’s Yokohama facility and by its experts – assisted by Exopharm.

If the research project is successful there is potential for a further future commercial agreement.

The present Feasibility Study Agreement has a small upfront payment (US$10,000 and monthly payments of US$5,000) during the study period, during which Exopharm will provide technical support to Showa Denko. The study period is expected to run for around 6 months.

“Showa Denko is an established international supplier of drug and other chemical substances. If this feasibility study is successful, exosomes purified using LEAP could be yet another valuable product in their portfolio,” said Dr Chris Baldwin, Chief Commercial Officer of Exopharm. “This collaboration follows the work we are doing with the Finnish Red Cross Blood Service. As the number of collaborations build, our confidence that LEAP could become the global standard for purifying exosome medicines continues to grow.”

Dr Ian Dixon, founder and CEO, said, “We are honoured to collaborate with one of Japan’s leading chemical companies and a leader in regenerative medicine. An initial

feasibility study is a good way to de-risk a potential future commercial use of our LEAP technology to purify exosomes. Showa Denko’s regenerative medicine business in Japan is a strategic, next-generation category, now accounting for the second highest number of cellular medicine product orders in the world. This is a great advance with a wellrespected company and we are hopeful it develops further over time.”

Exopharm’s objective is to build multiple streams of revenue from licensing and partnerships to fund the development of novel exosome medicines.

By the Chairman - this announcement has been authorised for release by the Chairman.

Company and Media Enquiries:

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Rudi Michelson Monsoon Communications Tel: +61 (0)3 9620 3333

ABOUT EXOPHARM

Exopharm (ASX:EX1) is a clinical-stage biopharmaceutical company using exosomes to deliver a new class of transformative medicines funded with near-term revenue generated via partnerships and technology licensing.

As nature’s delivery platform for DNA, RNA, and proteins, exosomes are highlydifferentiated from synthetic drug delivery systems such as lipid nanoparticles (LNPs). The drug delivery industry is growing at an annual growth rate (CAGR) of 5% and currently valued at around US$175 billion.

Exosomes are an alternative means of drug delivery inside the body, alongside technologies such as lipid nanoparticles (LNP), cell penetrating peptides, viral vectors and liposomes. In some uses, exosomes have superiority, including delivering DNA and other medicines into the nucleus of the cell, as is required for the rapidly advancing gene therapy market.

Exopharm’s LEAP technology solves the challenge of purifying clinical-grade exosomes at large scale and low cost.

Exopharm also has two exclusive proprietary technologies that allow advanced customisation of exosomes – the LOAD technology improves loading of nucleic

medicines into exosomes and the EVPS technology allows exosomes to be directed towards selected cell types.

Exopharm uses variations and combinations of LOAD and EVPS to enable its Biopharma partners to improve delivery of their drug candidates and help them design and test new exosome medicines aimed at treating a wide scope of medical problems including neurological disease, infectious disease, cancer, and fibrosis.

FORWARD LOOKING STATEMENTS

This announcement contains 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. Furthermore, the Company is subject to several risks as disclosed in the Prospectus dated 6 November 2018.