ENTROPY NEURODYNAMICS LIMITED — Capital/Financing Update 2022

Jul 27, 2022

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ASX ANNOUNCEMENT

Exopharm to receive a further $0.48 million in prepayment of R&D Tax Incentive claim

28 July 2022, Melbourne, Australia

Exopharm Limited (ASX:EX1) is pleased to advise that it has entered into a second non-dilutive cash loan agreement with Radium Capital (Radium), providing early access to the balance of the Research and Development (R&D) tax incentive for FY22.

On 16 June 2022, EX1 announced the initial cash advance of $2,729,305, which reflected funds equivalent to 80% of its accrued R&D Tax Incentive for the period 1 July 2021 – 30 April 2022.

The second Radium cash facility provides Exopharm with immediate funds equivalent to 80% of its accrued R&D Tax Incentive for the period 1 May 2022 – 30 June 2022. The cash advance of $482,602 was based on eligible R&D Tax Incentive expenditure that has been verified by an independent accounting firm.

Dr Ian Dixon, CEO & Managing Director of Exopharm said “This second cash advance provides the Company with additional runway. Furthermore, both cash advances are for only 80% of the accrued R&D tax incentive for the period 1 July 2021 – 30 June 2022, with the balance of 20% still receivable through the normal R&D Tax Incentive process later in the year.”

The advance from the Radium facility is expected in the next week, with the facility accruing interest at the compounded rate of 1.17% per month, and repayment timed to coincide with the receipt of the Company’s 2022 R&D Tax Incentive refund, expected by 30 September 2022.

This announcement has been authorised for release by the Board of Exopharm.

Company and Media Enquiries:

Join our mailing list to receive updates: http://exo.ph/ExoMails www.exopharm.com P: +61 (0)3 9111 0026

Ian Dixon Managing Director Tel: +61 418 561 907 ian.dixon@exopharm.com

EXOPHARM LIMITED ACN: 163 765 991 ASX:EX1 Address: Suite 201, 697 Burke Road Camberwell 3124 Email: info@exopharm.com Web: www.exopharm.com

ABOUT EXOPHARM

Exopharm (ASX:EX1) is at the forefront of transformative medicines using exosomes or extracellular vesicles (EVs) and is pursuing a product pipeline-driven platform strategy. Exosomes can be loaded with a variety of active pharmaceutical ingredients (APIs) and can be targeted to selected cell-types and tissue types, improving the safety-profile of the APIs and providing better treatments. Exosome delivery of DNA and other gene therapies into the nucleus of the patient’s cells can improve treatment of inherited medical conditions. Exosomes can also be used to deliver small molecule drugs, mRNA and other modern medicines.

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. Exopharm’s exosome technologies solve important needs for the success of exosome medicines – LEAP manufacturing technology, LOAD API loading technologies and EVPS tropism technologies.

Exopharm technology platforms will underpin its own pipeline of exosome medicines – each aimed at delivering a transformative medicine for an unmet medical need.

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.