EXCITE TECHNOLOGY SERVICES LTD — Capital/Financing Update 2018

Sep 6, 2018

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

COVATA LIMITED

ABN

61 120 658 497

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	(a) Loan Plan Shares (b) Employee Incentive Options
	(a) 32,392,800 (b) 19,523,000
	(a) Ordinary shares issued under the Company’s Loan Share Plan with underlying loan of $0.028 per share. (b) Options to acquire ordinary shares, issued under the Company’s Option Plan. Exercise price $0.028, expiry date 6 September 2023.

• See chapter 19 for defined terms.

Appendix 3B Page 1

04/03/2013

Appendix 3B New issue announcement

4 Do the+securities rank equally in all respects from the+issue date with an existing+class of quoted +securities? If the additional+securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of+securities issued without security holder approval under rule 7.1	(a) Yes, subject to terms of Loan Plan which require underlying loan to be repaid prior to quotation. (b) Share issued upon exercise of options will rank equally with the Company’s existing ordinary shares.
	(a) $0.028 per share issued under terms of Loan Share Plan. (b) Nil, employee incentive option.
	(a) and (b) Employee incentives under the terms of the Company’s Loan Share Plan and Option Plan.
	Yes.
	22 November 2017.
	Nil

• See chapter 19 for defined terms.

Appendix 3B Page 2

04/03/2013

Appendix 3B New issue announcement

6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of+securities issued under an exception in rule 7.2 6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation. 6h If+securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.	Nil.
	Nil.
	51,915,800
	Not applicable.
	Not applicable.
	Current capacity: LR 7.1 – 78,696,792 LR7.1A – 16,826,219
	7 September 2018.

• See chapter 19 for defined terms.

Appendix 3B Page 3

04/03/2013

Appendix 3B New issue announcement

8 Number and +class of all +securities quoted on ASX (_including_the +securities in section 2 if applicable)	Number	+Class
	650,043,765 10,000,000 12,977,400 23,361,798	Ordinary shares (excludes employee share loan plan shares – see item 9). Ordinary shares subject to voluntary escrow until 31 January 2019. Ordinary shares subject to voluntary escrow until 19 July 2019. Options exercisable at $0.055 (5.5 cents) and expiring on 6 June 2020. Includes options referred to in item 1, and 17,857,127 options already on issue.

9 Number and +class of all +securities not quoted on ASX (_including_the +securities in section 2 if applicable)	Number	+Class
	93,569,289 6,828,816 5,000,000 1,237,500 231,400	Employee share loan plan shares (ordinary, employee incentive scheme shares) (CVTAG). Options exercisable at USD$0.1467 expiring 31 October 2019 (CVTAH/AF). Options exercisable at AUD$0.20 expiring 31 October 2019 (CVTAF). Options exercisable at AUD$0.20 expiring 22 December 2019 (CVTAH). Options exercisable at $0.33, expiring 12 March 2020 (CVTAH).

• See chapter 19 for defined terms.

Appendix 3B Page 4

04/03/2013

Appendix 3B New issue announcement

	38,240,979 300,000 490,669 400,000 3,000,000 840,000 1,000,000 11,064,000 5,569,583 19,523,000	Warrants exercisable at $0.274 (27.4 cents) expiring 25 March 2020. The warrants are subject to the vesting conditions outlined in the Company’s announcement to ASX on 20 March 2015. (CVTAK) Options exercisable at $0.24, expiring 2 November 2020. Options exercisable at $0.33 and expiring on 17 December 2020. Options exercisable at $0.195 and expiring on 20 July 2021. Options exercisable at $0.20 and expiring on 4 May 2022. Options exercisable at $0.05 (5 cents) and expiring on 21 June 2022. Options exercisable at $0.05 (5 cents) and expiring on 17 August 2022. Options exercisable at $0.05 5 cents) and expiring on 22 November 2022. Options exercisable at $0.045 (4.5 cents) and expiring on 22 November 2022. Options exercisable at $0.028 (2.8 cents) and expiring on 6 September 2023.

• See chapter 19 for defined terms.

Appendix 3B Page 5

04/03/2013

Appendix 3B New issue announcement

10 Dividend policy (in the case of a Not applicable. trust, distribution policy) on the increased capital (interests)

Part 2 - Pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has security holders who will not be sent new offer documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.

• See chapter 19 for defined terms.

Appendix 3B Page 6

04/03/2013

Appendix 3B New issue announcement

22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders 25 If the issue is contingent on security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and offer documents will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do security holders sell their entitlements_in full_through a broker? 31 How do security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do security holders dispose of their entitlements (except by sale through a broker)? 33 +Issue date	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.
	Not applicable.

• See chapter 19 for defined terms.

Appendix 3B Page 7

04/03/2013

Appendix 3B New issue announcement

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of[+] securities ( tick one )

• (a) +Securities described in Part 1

• (b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

To be provided at time of issue, if applicable.

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

• 1 - 1,000

1,001 - 5,000

5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which +quotation is sought

39 +Class of +securities for which quotation is sought

• See chapter 19 for defined terms.

Appendix 3B Page 8

04/03/2013

Appendix 3B New issue announcement

40 Do the[+] securities rank equally in all respects from the[+] issue date with an existing[+] class of quoted +securities? If the additional[+] securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another[+] security, clearly identify that other[+] security)

Number +Class 42 Number and +class of all +securities quoted on ASX ( including the[+] securities in clause 38)

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• See chapter 19 for defined terms.

Appendix 3B Page 9

04/03/2013

Appendix 3B New issue announcement

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

==> picture [112 x 40] intentionally omitted <==

Date: 7 September 2018

Print name: Patrick Gowans ( ~~Director/~~ Joint Company Secretary)

• See chapter 19 for defined terms.

Appendix 3B Page 10

04/03/2013

Appendix 3B New issue announcement

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Calculations reflect current capacity, to be updated at the time of issue.

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

alculations reflect current capacity, to be updated at the time of issue. art 1	alculations reflect current capacity, to be updated at the time of issue. art 1
Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnumber of fully paid+ordinary securities on issue 12 months before the +issue date or date of agreement to issue	563,638,021
Addthe following: • Number of fully paid+ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid+ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid+ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	• 34,835,163 shares issued under Share Purchase Plan on 22 November 2017. • 10,352,298 shares issued with shareholder approval on 22 November 2017. • 19,182,000 shares issued under shareholder approved Loan Share Plan on 22 November 2017. • 10,000,000 shares issued with shareholder approval on 31 January 2018. • 4,085,000 shares issued under shareholder approved Loan Share Plan on 6 March 2018. • 16,513,792 shares issued under Rights Issue completed on 12 July 2018. • 12,977,400 share issued with shareholder approval to CipherPoint vendors on 20 July 2018. • 32,392,800 shares issued under Share Purchase Plan on 7 September 2018.
Subtractthe number of fully paid+ordinary securities cancelled during that 12 month period	Nil
“A”	703,976,474

• See chapter 19 for defined terms.

Appendix 3B Page 11

04/03/2013

Appendix 3B New issue announcement

Step 2: Calculate 15% of “A”
“B”	0.15 [Note: this value cannot be changed]
Multiply“A” by 0.15	105,596,471
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	• 8,510,638 shares issued under placement on 7 November 2017. • 531,914 shares issued under placement on 22 November 2017. • 17,857,127 options issued on 6 June 2018.
“C”	26,899,679
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	105,596,471
Subtract“C” Note: number must be same as shown in Step 3	26,899,679
Total[“A” x 0.15] – “C”	78,696,792 [Note: this is the remaining placement capacity under rule 7.1]

Insert number of[+] equity securities issued • 8,510,638 shares issued under or agreed to be issued in that 12 month placement on 7 November 2017. period not counting those issued: • 531,914 shares issued under • Under an exception in rule 7.2 placement on 22 November 2017. • Under rule 7.1A • 17,857,127 options issued on 6 June 2018. • With security holder approval under rule 7.1 or rule 7.4 Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items “C” 26,899,679 Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1 “A” x 0.15 105,596,471 Note: number must be same as shown in Step 2 Subtract “C” 26,899,679 Note: number must be same as shown in Step 3 Total [“A” x 0.15] – “C” 78,696,792 [Note: this is the remaining placement capacity under rule 7.1]

• See chapter 19 for defined terms.

Appendix 3B Page 12

04/03/2013

Appendix 3B New issue announcement

Part 2

• Rule 7.1A – Additional placement capacity for eligible entities

• Step 1: Calculate “A”, the base figure from which the placement capacity is calculated “A” 703,976,474 Note: number must be same as shown in Step 1 of Part 1 Step 2: Calculate 10% of “A” “D” 0.10 Note: this value cannot be changed

• Multiply “A” by 0.10 70,397,647 Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used Insert number of[+] equity securities issued • 53,571,428 shares issued on 6 or agreed to be issued in that 12 month June 2018. period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities

• • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed

• • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained

• • It may be useful to set out issues of securities on different dates as separate line items

• “E” 53,571,428

Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used

• See chapter 19 for defined terms.

Appendix 3B Page 13

04/03/2013

Appendix 3B New issue announcement

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	70,397,647
Subtract“E” Note: number must be same as shown in Step 3	53,571,428
Total[“A” x 0.10] – “E”	16,826,219 Note: this is the remaining placement capacity under rule 7.1A

• See chapter 19 for defined terms.

Appendix 3B Page 14

04/03/2013

==> picture [109 x 40] intentionally omitted <==

==> picture [191 x 23] intentionally omitted <==

==> picture [133 x 23] intentionally omitted <==

==> picture [79 x 15] intentionally omitted <==

==> picture [146 x 21] intentionally omitted <==

==> picture [119 x 15] intentionally omitted <==

==> picture [63 x 15] intentionally omitted <==

==> picture [287 x 15] intentionally omitted <==

==> picture [30 x 14] intentionally omitted <==

==> picture [315 x 14] intentionally omitted <==

==> picture [15 x 15] intentionally omitted <==

==> picture [82 x 15] intentionally omitted <==

==> picture [93 x 15] intentionally omitted <==

==> picture [6 x 15] intentionally omitted <==

==> picture [109 x 15] intentionally omitted <==

==> picture [96 x 15] intentionally omitted <==

==> picture [73 x 15] intentionally omitted <==

==> picture [73 x 15] intentionally omitted <==

==> picture [112 x 15] intentionally omitted <==

==> picture [15 x 15] intentionally omitted <==

==> picture [26 x 15] intentionally omitted <==

==> picture [226 x 15] intentionally omitted <==

==> picture [12 x 15] intentionally omitted <==

==> picture [14 x 14] intentionally omitted <==

==> picture [303 x 15] intentionally omitted <==

==> picture [164 x 14] intentionally omitted <==

==> picture [15 x 15] intentionally omitted <==

==> picture [310 x 15] intentionally omitted <==

==> picture [129 x 15] intentionally omitted <==

==> picture [120 x 14] intentionally omitted <==

==> picture [12 x 14] intentionally omitted <==

==> picture [374 x 14] intentionally omitted <==

==> picture [94 x 15] intentionally omitted <==

==> picture [14 x 14] intentionally omitted <==

==> picture [323 x 14] intentionally omitted <==

==> picture [56 x 14] intentionally omitted <==

==> picture [147 x 15] intentionally omitted <==

==> picture [350 x 15] intentionally omitted <==

==> picture [123 x 14] intentionally omitted <==

==> picture [293 x 14] intentionally omitted <==

==> picture [81 x 15] intentionally omitted <==

==> picture [205 x 15] intentionally omitted <==

==> picture [148 x 14] intentionally omitted <==

==> picture [111 x 44] intentionally omitted <==

==> picture [68 x 15] intentionally omitted <==

==> picture [106 x 14] intentionally omitted <==

==> picture [53 x 12] intentionally omitted <==

==> picture [62 x 12] intentionally omitted <==

==> picture [67 x 12] intentionally omitted <==

==> picture [10 x 12] intentionally omitted <==

==> picture [25 x 12] intentionally omitted <==

==> picture [71 x 12] intentionally omitted <==

==> picture [63 x 12] intentionally omitted <==