HYDROCARBON DYNAMICS LIMITED — Capital/Financing Update 2020

May 6, 2020

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7 May 2020

Rights Issue Allotment and Share Placement

Hydrocarbon Dynamics Limited ( ASX: HCD ) (“ HCD ” or “ the Company ”) advises the allotment 62,985,808 fully paid ordinary shares at an issue price of $0.015 under the Right Issue, Rights Issue Shortfall and a Private Placement.

The Company completed a Right Issue at an issue price of $0.015 per share which closed on 28 April 2020 raising $846,237 for a total of 56,415,808 new shares. Subsequent to this the Company approved a Private Placement of 6,570,000 fully paid ordinary shares at an issue price of $0.015 per share to sophisticated investors raising $98,550.

The placement will be issued under the existing capacity of listing rule 7.1 to unrelated parties, no broker was engaged for this placement.

HCD advises that the allotment 62,985,808 fully paid ordinary shares at an issue price of $0.015 under the Right Issue, Rights Issue Shortfall and Private Placement:

1. Were issued without disclosure to investors under Part 6D.2 of the Corporations Act; and

2. As at the date of this notice:

   • (a) the Company has complied with the provisions of Chapter 2M of the Corporations Act;

   • (b) the company has complied with Section 674 of the Corporations Act; and

   • (c) there is no information of the type referred to in sections 708AA(8) and 708AA(9) of the Corporations Act.

Yours faithfully

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Julie Edwards Company Secretary

For further information please contact:

Stephen Mitchell Chairman

Julie Edwards Company Secretary

Telephone: +61 3 9642 2899

Website: www.hydrocarbondynamics.com

ASX code: HCD

ABN: 75 117 387 354 Tel: +61 3 9642 2899 | Fax: +61 3 9642 5177 Level 6, 412 Collins Street, Melbourne VIC 3000 Australia