JATCORP LIMITED — Capital/Financing Update 2018

Dec 5, 2018

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JATENERGY LIMITED ABN 31 122 826 242

ASX CODE: JAT

AUSTRALIAN REGISTERED OFFICE

ASX ANNOUNCEMENT

6 December 2018

Exclusive Distribution Agency Agreement with Ocker Products

Office B, Suite C303, 521 Toorak Road TOORAK VIC 3142 AUSTRALIA

CONTACT DETAILS Telephone +61 488 248 138 Email admin@jatenergy.com Web www.jatenergy.com

JAT and Ocker Products Pty Ltd (OPP) have signed an Exclusive Distribution Agency Agreement wherein OPP will distribute JAT products through Beijing Grain Group Co Ltd and Beijing JingLiang Logistics Co Ltd (together, BGG) distribution channels in China.

OPP (based in Australia) has a strategic partnership with BGG with regard to the procurement of food and farm produce on behalf of BGG.

BGG, a large state-owned company, was established by the Beijing Municipal People's Government in 1999 to provide food security and distribution for China’s capital city. Since then BGG has developed and launched a wide range of consumer brands and associated food products.

The agreement grants exclusive distribution rights to OPP to distribute 900g tins of Golden Koala Full Cream Milk Powder in the People’s Republic of China for an initial period of five years. This exclusivity is subject to OPP meeting a Minimum Quantity Order of one hundred and fifty thousand tins per annum. Should OPP fail to meet the Minimum Quantity Order, JAT may extinguish the exclusivity so that OPP would become a non-exclusive distributor. This exclusivity excludes E-commerce and Television shopping.

• The agreement: (a) requires JAT to provide a minimum of 30 days’ notice for price adjustments;

• (b) has no conditions precedent;

• (c) warrants that JAT has obtained all required Chinese regulatory consents, approval and permits; and

• (d) has a general termination clause for a breach of the agreement and no other specific termination clauses.

JAT expects the first shipment under the agreement to take place before the end of December 2018.

“We are delighted to be working with OPP,” Mr. Yao said. “Beijing Grain Group offers JAT products excellent profile and credibility in and around China’s capital.”

Wilton Yao Managing Director

www.jatenergy.com