FIRST LITHIUM LIMITED — Interim / Quarterly Report 2018

Jan 30, 2018

31 January 2018

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LIMITED
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ACN: 009 081 770

ASX ANNOUNCEMENT

ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2017

Highlights

• Ookami to acquire strategic stake in blockchain company, ‘Brontech’; acquisition approved by shareholders and Ms Emma Poposka appointed as Director post quarter end

• Akela Platform continued to generate revenue and secure quality offerings for its retail and sophisticated (s708) investors

Ookami Limited (ASX: OOK) provides the following update on the Company’s activities during the quarter ended 31 December 2017.

Strategic Stake in Brontech Pty Ltd

The Company announced on 11 December 2017 that it had entered into an agreement to acquire a strategic equity holding of 18.23% in award-winning blockchain company, Brontech Pty Ltd ( Brontech ) for A$933,240. The acquisition was conditional upon obtaining shareholder approval pursuant to Chapter 11.1.2 of the Listing Rules as required by the ASX.

The Brontech acquisition was approved at a general meeting of shareholders held on 30 January 2018. The Company will confirm when the acquisition is completed. Shareholders also approved the appointment of Brontech Founder and CEO, Ms Emma Poposka, to the Board of Ookami as a nonexecutive Director. Emma’s appointment was effective at the close of the general meeting on 30 January 2018.

The Company identified the Brontech technology as having key strategic synergies that complements its Akela Platform as well as allowing for mass adoption by third parties within 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 analytics, cryptocurrency solutions and security and encryption applications.

It is expected that integration of Brontech’s technology in the Akela Platform will:

• Provide an additional layer of verification utilising blockchain technology to Akela’s existing KYC/AML processes enabling the platform to confidently scale, as well as enter into new third-party partnerships and product offerings.

• Allow the verification of individual’s bank accounts, social media accounts and other professional and personal information data sets thereby allowing for up to 10,000 additional data points per customer.

• Provide data portability compatible with the EU GDPR Directive and identity solutions across the entire Akela ecosystem as well as to third party clients and partners of Akela, delivering higher net value per customer, and data integrity and acceptance across partners.

108 Outram Street, West Perth, WA 6005 PO Box 1974, West Perth, WA 6872 Tel: (08) 9486 7244 Fax: (08) 9463 6373

LIMITED

ACN: 009 081 770

• Increase the Akela user base by providing a channel to access to the ~9000 current users and future users in the Brontech’s Ecosystem.

• Via the Brontech data marketplace, provide Akela unparalleled access to customer insights.

• Allow Brontech clients with verified bank accounts to be instantly verified for Akela and seamlessly partake in offerings on the Akela platform.

• Significantly enhance Akela’s marketing reach through Brontech’s smart marketing strategies and analytics to acquire 'look-alike' customers from LinkedIn, Facebook, and other social media platforms, thus enabling better targeting of existing and new potential customers.

• Provide Akela the technology ‘know how’ and exposure to superior personal identity verification and management, advanced data analytics, as well as new revenue opportunities via access to purchasers within the data marketplace.

It is also envisioned that verification of individuals will be done utilising Brontech’s blockchain backed identity protocol. This means that the Akela database as well as other Brontech client databases of verified individuals, with their approval, can be easily on-boarded to other financial providers. This eliminates the need for repeated verification and allows effective, safe and securely encrypted transfer of customer identity information to other investment firms, which will grow the Akela platform with network partners.

Brontech has developed a ubiquitous data marketplace and digital identity platform that collects data directly from its users, built on blockchain ‘lossless’ technology by empowering people to capture the monetary value of their personal information, and empowering users to have a higher level of control over how their personal data (anonymised or including Personally Identifiable Information-PIIs) is shared with third parties.

Brontech’s data exchange platform can incorporate Facebook, Twitter, LinkedIn and Google+ identity data feeds with up to 10,000 unique data points per customer. The company is actively working to incorporate additional data sources such as bank feeds, shopping accounts, governmental sources etc.

This unparalleled clustering of data creates the basis for the development of future business models that will unleash a new wave of technologies driven by big data, machine learning & artificial intelligence (ML/AI) and smart personalisation.

To make the process secure, resilient and reliable, Brontech is developing unique IP for blockchain backed decentralised data storage and management. Brontech’s solutions are fully compliant and are leveraging the new local and global legislation changes regarding consumer privacy and data ownership such as General Data Protection Regulation ( GDPR ) in EU and Data Portability Initiative by the Productivity Commission in Australia.

Brontech’s Ecosystem counts ~9000 users to date and is growing on daily basis with more than 2 million attributes in the data pool and established pilot and commercial client contracts with Tier 1 bank, global insurance and accounting firms as well as SMEs.

Brontech supplies its corporate and SME clients with unique data products that are used for advanced analytics and market research. The company is also expanding its offerings of data products for the purposes of training Machine Learning algorithms to further appeal to its data buyers. Furthermore, the company has developed API to cater for clients that need to seamlessly extract data on individual level with explicit consent from the wallet holders. The API enables streamlined and instantaneous identity verification with zero friction. The platform is governed by strict Privacy Policy rules in compliance with the Privacy Act 1998 and the upcoming changes in regard to data portability.

108 Outram Street, West Perth, WA 6005 PO Box 1974, West Perth, WA 6872 Tel: (08) 9486 7244 Fax: (08) 9463 6373

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LIMITED
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ACN: 009 081 770

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With the investment backing of Ookami and its other equity partners, Brontech is rapidly expanding its blockchain based technology, cultivating one of the first ‘Big Data’ marketplaces where personal and identity data will be accessed, integrated, authorised and accepted in anonymised form by third-party purchasers and as consented identifiable set by platform developers for frictionless on-boarding and verification.

108 Outram Street, West Perth, WA 6005 PO Box 1974, West Perth, WA 6872 Tel: (08) 9486 7244 Fax: (08) 9463 6373

LIMITED

ACN: 009 081 770

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Brontech’s blockchain powered ID verification and data marketplace with a digital wallet rewards program, enables users to benefit from their data and to share it on their terms. Known as MyBron, this twosided data marketplace matches data sellers and buyers and pays its users with rewards directly into their digital wallet.

Akela Capital Pty Ltd

During the quarter, Ookami’s wholly owned Akela Platform continued to generate revenue and secure quality offerings for its retail and sophisticated (s708) investors. Offers successfully completed include the s708 placement for Vector Resources Limited (ASX: VEC) and the prospectus capital raising for South East Asia Resources Limited (to be renamed Jadar Lithium Limited (ASX: JDR)), with both offers closing heavily oversubscribed.

Akela also secured an allocation in the prospectus capital raising for Raiden Resources Limited (proposed ASX code: RDN).

For further information, please contact: Shannon Coates Tel: (08) 9322 1587

108 Outram Street, West Perth, WA 6005 PO Box 1974, West Perth, WA 6872 Tel: (08) 9486 7244 Fax: (08) 9463 6373

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 67 009 081 770 31 December 2017

Quarter ended (“current quarter”)

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 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 (provide details if material) 1.9 Net cash (used in) operating activities	- (65) - - (16) (72) - - 3 - - -	13 (131) - - (34) (153) - - 7 - - -
	(150)	(298)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets	- - - - -	- - - - -

• See chapter 19 for defined terms

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2.2 Proceeds from disposal of: (a) property, plant and equipment (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	- - - - - - - -	- - - - - - - -
	-	-
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	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net (decrease) in cash and cash equivalents for the period	(150)	(298)
4.1 Cash and cash equivalents at beginning of quarter/year to date 2,516 2,664 4.2 Net cash (used in) operating activities (item 1.9 above) (150) (298) 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) - -

• See chapter 19 for defined terms

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

4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	-	-	-
	2,366	2,366
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)	2,346 20 - -		2,496 20 - -
	2,366		2,516

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	16
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	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	28
7.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in items 7.1
	and 7.2

Payment for office rent and technology consultant fee.

• See chapter 19 for defined terms

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

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.

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) Equity acquisition of Brontech subject to shareholder approval 9.8 Total estimated cash outflows	58 - 5 - 18 64 933
	1,079

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	-	-

• See chapter 19 for defined terms

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

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.

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Sign here: ............................................................ Date: 31 January 2018 (Director/Company secretary)

Print name:

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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