FIRST LITHIUM LIMITED — Interim / Quarterly Report 2018

Jan 29, 2019

ACN: 009 081 770

30 January 2019

==> picture [179 x 37] intentionally omitted <==

==> picture [37 x 7] intentionally omitted <==

----- Start of picture text -----

LIMITED
----- End of picture text -----

ASX ANNOUNCEMENT

ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2018

Ookami Limited (ASX:OOK) ( OOK or the Company ) provides the following update on the Company’s activities during the quarter ended 31 December 2018.

Outlook

Ookami’s business model is to develop an ecosystem of advanced Fintech and Software as a Service (SaaS) 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.

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.

The Board wishes to update its shareholders that it has progressed to advanced discussions with a company deemed technologically and commercially strategic to OOK’s existing portfolio and technological ecosystem. The company is an Australian based fintech business with a focus on payments and e- commerce solutions. Currently in their fourth year of operation, they have built an extensible technology platform backed by national infrastructure and have signed several top tier clients leading to strong yearon-year revenue growth. Future opportunities include international expansion alongside continued domestic development.

While the Company is confident of concluding these advanced discussions, the Company cautions that its evaluation of this and other potential opportunities remains incomplete and confidential and there can be no certainty that any agreement or agreements can be reached or that any transaction will eventuate. No binding commercial terms have been agreed with this aforementioned party or any other prospective party. The Company will provide updates in accordance with its continuous disclosure obligations.

==> picture [286 x 198] intentionally omitted <==

T: +61 (0)8 9486 7244 | F : (08) 9463 6373 | A: 108 Outram Street, West Perth WA 6005

Akela Platform & bronID Integration

During the quarter, Akela has released a new update of the Akela Platform ( Akela or Platform ) and completed the second phase of integrating Brontech’s “bronID” identity verification solution.

==> picture [511 x 257] intentionally omitted <==

The platform’s architecture has been improved to allow for continued growth, scale and efficiency.

A new user interface (UI) has also been implemented which now includes a revamped user dashboard and the addition of the cryptocurrency payments option with Paid By Coins (PBC). The PBC API is fully integrated with Akela and enabled for use.

With the integration of the bronID identity solution, the identity of the Akela customers are verified with the bronID background check API for KYC/AML/CTF purposes. Last year, Akela also finished the integration with the bronID personal identity solution within the Onboarding and Login Pages of the Akela platform that enabled users to use their bronID to login to Akela.

Page 2 of 7

==> picture [372 x 248] intentionally omitted <==

==> picture [139 x 247] intentionally omitted <==

About bronID

The bronID is an identity solution that financial services companies can use to comply with the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and other global AML regulation such as the 5th EU Anti-Money Laundering Directive and the Bank Secrecy Act (BSA) in the US. The bronID identity suite provides an API that companies can use to instantly verify their customers by automatically checking various government and financial background data sources as well as a digital identity solution that individuals can use to store their sensitive identity attributes and securely exchange them with various financial services.

The bronID API allows partners such as Akela, NCX and others to onboard users seamlessly by extracting their identity information and verifying this information across different data sources for KYC/AML purposes. bronID services can cover up to 180 countries for simple ID verification and up to 50 countries for full AML check, which enables companies that integrate with it to easily scale and provide their services globally in a compliant manner.

On the other hand, the customers that already have a bronID can onboard and be verified on the Akela platform. Furthermore, once users are on one platform (e.g. Akela), they will be able to reuse the same verified credentials for all other partner platforms within the Ookami Ecosystem (e.g. NCX), as well as other parties (institutions, technology providers etc.) utilising the bronID technology. bronID users will not have to complete an ID verification process with another partner platform and will be able to simply use their existing bronID profile. If the client does not have a bronID, then they will complete one single ID verification process within Akela, which will use the bronID API, and at the end of the process they will be offered to save their digital profile in the bronID app.

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 within both Ookami’s ecosystem and Brontech technology partners and make the network more attractive for new participants.

Page 3 of 7

==> picture [471 x 296] intentionally omitted <==

Recently Brontech published a stand-alone ID Verification Portal for low volume customers. The bronID Portal can be used in conjunction with the bronID app or separately, and it allows businesses to instantly verify their customers through the portal by checking more than 20 government and commercial databases in Australia. The solution will be extended to cover international AML/CTF compliance and ID verification in multiple jurisdictions, starting with a feature to verify Chinese residents that will be added to the portal in the upcoming weeks. These planned upgrades of the platform will provide an integrated AML/CTF solution that can be marketed globally.

Brontech is pursuing leads and is onboarding new financial services customers to use the bronID app, API or portal. On the data supply side, the company is integrating additional international identity data sources to obtain broader geographical coverage and superior accuracy. The company is also in the final stages of the discussion with a major bank to gain access to banking data that will supplement the customers' bronID profiles.

Download bronID

bronID can be downloaded via the following App stores:

https://itunes.apple.com/au/app/bronid/id1406109476 https://play.google.com/store/apps/details?id=tech.bron.bronid

For more information about the bronID Identity Suite for businesses please visit:

https://bronid.com/

Page 4 of 7

National Currency eXchange (NCX) Token Generation Event (TGE)

The National Currency eXchange (NCX), in which OOK holds an equity interest, is an international cryptocurrency exchange group which currently operates in Australia and Singapore, plans for additional exchanges in Thailand, Croatia and Hong Kong. Each NCX subsidiary is locally registered and managed, offering local fiat currency trading against a number of popular cryptocurrencies.

Via a related entity, The NCX Foundation, NCX is planning a TGE with the issuance of NCX Credit token (NCXC token) commencing in Q4 2018. These tokens will be distributed between users, investors, and strategic partners of NCX, with all proceeds going toward platform development.

Via its equity arrangement with NCX, Ookami will receive 3,333 NCX Private pre-sale tokens and an additional 3,333 NCX Crowd sale tokens (total 6,666 NCXC Tokens). Further details of the NCXC TGE will be available at www.ncxc.io

Soar Token Generation Event

As announced on 10 April 2018, Akela secured an allocation for its clients under Soar’s pre-sale TGE Offer, with boutique technical venture capital investment firm Lateral Capital Ventures closing the oversubscribed pre-sale of ~$19.1M. Soar’s Public TGE (‘Skymap’ Utility Token (SKYM)) has now closed, with the token listing on the NCX eXchange as well as other exchanges, with further details and dates to be announced via Soar’s website.

Akela will receive an additional fee of $5,000 in SKYM tokens for marketing services rendered for Soar’s TGE.

Soar is seeking to develop the world’s first decentralised global platform for the distribution and monetisation of drone data and content. The technology behind Soar was developed as a parallel system for the standardisation of drone data in tactical applications for the United States military. Further details are available at www.soar.earth

New Akela web User Interface (UI)

The new web UI includes a new look design and an investor dashboard that allows for investors to easily manage their investments and communication on the Akela platform.

-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

Page 5 of 7

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

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.

==> picture [86 x 28] intentionally omitted <==

==> picture [84 x 27] intentionally omitted <==

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 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. Brontech is also developing the bronID digital identity platform that helps organizations to comply with the AML/CTF regulatory requirements.

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

Page 6 of 7

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.

Page 7 of 7

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 2018

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	42 (76) - - (36) (193) - - 1 - - -	56 (137) - - (66) (214) - - 2 - - 12
	(262)	(347)
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

Page 1

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	- - - - - - - - -	- - - (3) - - - - -
	-	(3)
4. Net (decrease) in cash and cash equivalents for the period	(262)	(350)
4.1 Cash and cash equivalents at beginning of quarter/year to date 1,162 1,250 4.2 Net cash (used in) operating activities (item 1.9 above) (262) (347) 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) - (3)

• See chapter 19 for defined terms

Page 2

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	-	-	-
	900	900
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)	880 20 - -		1,142 20 - -
	900		1,162
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 36 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
		Current quarter $A'000
		36
		-
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	40
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 by Ookami for office rent for quarter and corporate advisory to Otsana Capital. Payment by subsidiary Akela to Otsana capital for AFSL Authorised Representative License.

• See chapter 19 for defined terms

Page 3

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) 9.8 Total estimated cash outflows	33 - 8 - 36 97 -
	174

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

Page 4

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.

Sign here: ............................................................ (Company secretary)

30 January 2019 Date: .............................................

Print name: Stephen Buckley

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

Page 5