FIRST LITHIUM LIMITED — Interim / Quarterly Report 2018

Jul 25, 2018

ACN: 009 081 770

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LIMITED

ENGINE COMPO

ASX ANNOUNCEMENT

26 July 2018

ACTIVITIES REPORT FOR THE QUARTER ENDED 30 JUNE 2018

Highlights

• Software architecture and business analysis scoping exercise with NCX completed

• Ookami reaches agreement with Paid By Coins to provide and implement its secure cryptocurrency to BPAY/Bank account technologies as Payment Gateway solution

• Brontech Pty Ltd partners with Pureprofile Limited

• Formal agreement with Brontech to integrate its personal identity technology and solutions

• Akela secures allocation for Kleos Space SA and upcoming Identitii Limited Initial Public Offerings

Ookami Limited (ASX:OOK) ( OOK or the Company ) provides the following update on the Company’s activities during the quarter ended 30 June 2018.

Ookami’s business model is to develop an ecosystem of advanced technology solutions encompassing ‘smart contracts’ and blockchain technologies, secure identity management and verification (‘Know Your Client’) (KYC) and anti-money laundering (AML) applications, data markets, advertising analytics, digital asset wallets and exchange platforms, digital asset solutions and security and encryption applications.

The Directors of Ookami continue to consider technologies and solutions deemed complementary to the Ookami ecosystem and are continuing exploring such opportunities brought about via their deep industry connections.

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LIMITED
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National Currency eXchange

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ACN: 009 081 770
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During the quarter ended 30 June 2018, the Company announced that a software architecture and business analysis scoping exercise for a Payment Gateway conducted with NCX was complete. During the scoping, a third-party Payment Gateway solution was identified as a more feasible and robust alternative to developing the system internally and could provide the same seamless integration of the Payment Gateway solution within the Ookami ecosystem. On this basis, the parties agreed not to proceed with an “in-house” build of the Payment Gateway solution, which was expected to allow for a more cost effective and rapid roll out of the Payment Gateway. As a result, the parties agreed to cancel the proposed issue of 5,000,000 OOK shares to NCX on completion of the Payment Gateway. All other aspects of the agreement with NCX remain in place and ongoing to implement the various requirements of the shared verification functionality and preferred client model within the Akela-Brontech-NCX ecosystem.

Paid by Coins

Ookami has engaged Paid By Coins to provide its secure cryptocurrency to BPAY/Bank account technologies as the Payment Gateway solution to Akela. The Company intends to further update the market on the anticipated launch date once the implementation timelines are finalised.

Brontech Pty Ltd

During the period, the Company entered into a formal agreement with Brontech to integrate its personal identity technology and solutions. This will be implemented via Brontech’s bronID API allowing clients such as Akela and NCX (and others) to onboard users in a seamless manner by instantaneously extracting their identity information and verifying this information across different data sources for KYC/AML purposes. Once users are onboard any platform (e.g. Akela), they can reuse the same verified credentials for other partner platforms (e.g. NCX or Paid By Coins). Additionally, the usage of the bronID API for identity verification will also overcome the compatibility issues in regard to identity verification requirements for compliance purposes between the different participants in the ecosystem. This is expected to strengthen the relationship between all the stakeholders in the Ookami’s ecosystem and further accelerate the growth of the ecosystem’s verified user base.

As announced on 27 June 2018, Brontech Pty Ltd partnered with Pureprofile Limited, a company that delivers next-generation marketing solutions for more than 700 brands, publishers and research groups worldwide. The partnership will begin in Q1FY19. Pureprofile members will be able to connect their Brontech transactional data to their profile. This will allow research to be targeted to members based on their purchase history and also allow this data to be appended to existing research. Pureprofile’s survey feed will also be embedded in Brontech’s consumer app, enabling Brontech users to answer research questionnaires.

Akela Platform

During the quarter, the Company’s wholly owned Akela (Software as a Service “SaaS”) Platform secured allocations in the Initial Public Offerings (IPO or Offer) for both Kleos Space SA (Kleos) and upcoming Identitii Limited Initial Public Offering (Identitii) .

Further information on Kleos and the IPO can be found on Kleos’ website: www.kleos.space

Further information on Identitii and their upcoming IPO can be found at their website www.identitii.com

Corporate

As announced on 18 June 2018, the Company executed an exclusive Corporate Advisory Mandate with Otsana Capital.

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ACN: 009 081 770
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Outlook

As per the Company’s diversified investment and acquisition growth strategy outlined in its listing prospectus released on ASX in November 2015, the Directors of Ookami continue to consider technologies and solutions deemed complementary to the Ookami ecosystem, and are continuing to explore such opportunities brought about via their deep industry connections and are currently evaluating a number of additional complementary business acquisitions that may have the potential to create additional shareholder value. The Board is currently considering various opportunities deemed strategic to the technological and commercial partnerships in place with Brontech and NCX.

-Ends-

For further information, please contact:

Corporate Advisors Otsana Capital 108 Outram Street West Perth WA 6005 Telephone: +61 8 9486 7244 www.otsana.com

About Ookami Limited

Ookami has a portfolio of synergistic companies that disrupt data and advertising markets, investment platforms, software as a service (SaaS) and digital asset applications.

Ookami is developing an ecosystem of advanced technology solutions encompassing ‘smart contracts’ and blockchain technologies, secure identity management and verification (‘Know Your Client’) (KYC) and anti-money laundering (AML) applications, data markets, advertising analytics, digital asset wallets and exchange platforms, digital asset solutions and security and encryption applications.

About Akela

Akela’s proprietary financial services software and transaction management platform provides Australian Financial Services Licence (AFSL) holders a streamlined total management solution to capital raisings and distribution of public and private offerings. Akela is a unique ‘Service Platform’ with Peer-to-Peer (P2P) community, Business-to-Business (B2B), KYC) and compliance and data collection & analytics capabilities.

Individuals and entities can continue to register on the platform and gain access to current and future offerings at www.akela.vc

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About Akela Mobile App

iOS and Android users have access to the Akela Platform mobile app via the App Store and Google Play. The app will be initially free for all users, but will require a membership with the Akela Platform to use. Once logged into the app, investors will be linked with their account. Your investment progress will be linked across any device that you log in from. The mobile app is another tool that the Akela Platform provides to give you the best investment experience on the web.

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About Brontech

Brontech is Sydney based company that is pioneering a blockchain backed platform for data exchange and identity management. The company is also building complementary proprietary applications to extract data from various sources and pack them into anonymized data products that are sold to corporations and SMEs as insights and research tools. In its diverse data product offering is also included the bronID and MyBron API that enables individuals and companies to exchange verified information in a Peer-to-Peer manner where the data is verified through the company’s proprietary identity verification protocol that pulls data from diverse set of sources.

Individuals and entities can find more information on Brontech’s products at www.bron.tech

National Currency eXchange (NCX)

NCX's vision is to be the worlds trusted digital asset exchange addressing many of the problems and risks evident in existing digital asset exchanges. NCX aims to promote a trusted, secure and robust digital asset exchange solution following “bank-like” checks and processes, adhering to strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, including verification of customer ID prior to trading, whilst also providing exceptional customer service and user experience.

NCX's expertise lies in its ability to rapidly and securely utilise cutting edge technology development and infrastructure to greatly improve the current digital asset currency technology platform to add new features, rollout rapidly in multiple countries and maintain a secure and scalable operation.

NCX aims to operate a series of locally based crypto-currency exchange solutions in various jurisdictions commencing with Australia, Singapore and Hong Kong. Following the successful initial launch, NCX is poised to continue its global roll-out of locally based crypto-currency exchange solutions in Malaysia, Croatia and elsewhere.

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

OOKAMI LIMITED (OOK)

ABN Quarter ended (“current quarter”)	ABN Quarter ended (“current quarter”)	ABN Quarter ended (“current quarter”)	ABN Quarter ended (“current quarter”)
67 009 081 770		30 June 2018
Consolidated statement of cash flows		Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development -technology expense (b) business development and marketing (d) leased assets (e) staff and board remuneration (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (Legal fees and facilitation fees in relation to Brontech acquisition) 1.9 Net cash (used in) operating activities		- (156) (53) - (20) (48) - - 2 - - -	73 (335) (80) - (77) (323) - - 10 - - (72)
		(275)	(804)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments in financial assets (d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment		(4) - - - - -	(4) - (1,189) - - -

• See chapter 19 for defined terms

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

(b) businesses (see item 10) (c) investments - shares (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	(4)	(1,193)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash (used in) financing activities	- - - - - - - - -	500 - 116 (22) - - - - -
	-	594
4. Net (decrease) in cash and cash equivalents for the period	(279)	(1,403)
4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	1,540 (275) (4) - -	2,664 (804) (1,193) 594 -
	1,261	1,261

• See chapter 19 for defined terms

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,241 20 - -	1,520 20 - -
	1,261	1,540

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	20
6.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in items 6.1
	and 6.2

Payment for non-executive director fees.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	20
	-

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Payment for office rent for quarter and payment to technology consultant.

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• See chapter 19 for defined terms

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development – technology expense 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff and board remuneration 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows	156 - 17 - 36 100 -
	309

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	-	-
10.2 Place of incorporation or registration	-	-
10.3 Consideration for acquisition or disposal	-	-
10.4 Total net assets	-	-
10.5 Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

26 July 2018 Sign here: ............................................................ Date: ............................................. ( ~~Director/C~~ ompany secretary)

Print name: SHANNON COATES

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms

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