JATCORP LIMITED — Capital/Financing Update 2019

Dec 4, 2019

JAT is a specialist in Australia-China trade, focused on growth within the Australian health and wellness consumer goods export industry.

ASX RELEASE 5 December 2019

JAT signs first distributor for its plant-based meat products

JAT has signed its first distributor in China for its new plant-based meat products.

As announced on 22 November 2019, JAT has established a joint venture with leading Australianbased food manufacturer, Oppenheimer Pty Ltd, to develop plant-based meat substitute products to be sold worldwide.

Distribution agreement

A distribution agreement has been signed with Shanghai Gurun Wanfeng Catering Co. Ltd (“Shanghai Gurun”). Under the agreement, Shanghai Gurun has the non-exclusive right to distribute in China all of JAT’s plant-based meat products under the Vmeat label, as well as any other products developed by JAT.

Shanghai Gurun specialises in catering and restaurant operations and management in China. The company operates fast food restaurants in A-class office buildings, it manages restaurants at large commercial and industrial parks and provides catering services for large enterprises. It’s team of chefs have been largely recruited from 5-star hotels and major restaurants.

The distribution agreement requires Shanghai Gurun to purchase a minimum of A$2 million of products in the first year of the two-year agreement.

Shanghai Gurun will use the plant-based meat products in their own facilities as well as distributing the products to other restaurants in China. It will, through its team of chefs, provide valuable input on further plant-based products to be developed by JAT for the China market.

JAT’s CEO Wilton Yao stated that:

“This is our first plant-based meat substitute order received by our new business. Shanghai Gurun will use a large proportion of the products purchased in its own operations, which are very significant in size and spread over various facilities such as in-house dining and public restaurants. The expected first year sales of $2 million to a single food group in Shanghai indicates the potential revenue to be generated from our new business.

We expect to ship our first products to Shanghai Gurun in January 2020.”

Further promotion of JAT’s plant-based meat products in China

JAT has two further initiatives to promote its range of plant-based meat products in China:

1. JAT has entered into an arrangement with a retailer in the “Shanghai First Foodhall” to display JAT’s products starting in early 2020. Shanghai First Foodhall is a well-known

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retail landmark located on Shanghai’s famous retail and walking strip, Nanjing Road. The massive foot traffic in that location will provide exposure of the JAT products to the masses of shoppers passing through that location.

1. JAT’s newly recruited brand ambassador, Christopher Pang, will undertake a number of promotions of the plant-based food products. Christopher is a world-famous Australian actor of Chinese descent. Christopher is best known for his role as Colin Khoo in Crazy Rich Asians (2018) and Lee Takkam in Tomorrow, When the War Began (2010).

The promotions by Christopher will be focused on the Chinese market and will include personal appearances, photo sessions and endorsement activities on behalf of JAT for all of its products, including the plant-based meat products.

Terms of distribution agreement

The terms of the distribution agreement include the following:

1. The agreement is for sales of products in China only.

2. The agreement is non-exclusive basis.

3. The term of the agreement is for two years, renewable on terms to be mutually agreed.

4. Shanghai Gurun has agreed to purchase a minimum of A$2 million in the first year of the

   • agreement.

5. Full payment is to be received by JAT prior to shipping of the products.

6. There are no specific termination provisions in the agreement and there are no conditions precedent.

Wilton Yao Managing Director Ph: +61 3 9090 7592

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