JATCORP LIMITED — Capital/Financing Update 2019

Nov 6, 2019

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

ASX RELEASE 6 November 2019

New China distribution agreement for a single NEURIO product line

At the second China International Import Expo in Shanghai today, Jatenergy signed a distribution agreement with Kigobaby, a distributor of consumer products throughout China.

The distribution agreement provides for Kigobaby to be the exclusive distributor in China of a single NEURIO product line, being NEUIRO Formulated Milk Powder with Lactoferrin + Sialic Acid (“NEURIO Sialic Acid Formula”).

The NEURIO product range consists of 12 separate products. The NEURIO Sialic Acid Formula which Kigobaby will distribute is a brand-new product which has recently been developed, it has not previously been distributed. Kigobaby has no rights in relation to the other 11 NEURIO products.

Jatenergy CEO, Wilton Yao, stated “Kigobaby is a trusted distributor and we believe will achieve very significant sales with our new NEURIO Sialic Acid Formula. We are delighted to enter into this important agreement which has very significant minimum monthly sales requirements.

The NEURIO Sialic Acid Formula to be shipped to Kigobaby will be manufactured in-house at our new ANMA facility using the new production equipment which is to be installed and operational in February 2020. Being able to manufacture in-house ensures that we are in control of production, we can meet the very significant minimum sales requirements and can capture the manufacturer’s margin.”

The material terms of the agreement are as follows:

• Kigobaby will be the exclusive distributor of NEURIO Sialic Acid Formula in China.

• The agreement is for two years, commencing immediately, which is automatically extended for an additional two years provided there are no breaches.

• Kigobaby must pay an initial deposit of A$100,000 within three days of signing the agreement.

• From the fourth month of the agreement (March 2020), Kigobaby must purchase product of an amount of CNY4,650,000 per month. At current exchange rates, the minimum purchase requirement is approximately A$960,000 per month.

If the minimum purchase requirement is not met for three consecutive months, the exclusive distribution rights can be terminated and Kigobaby can continue as a nonexclusive distributor.

• There are no conditions precedent in the agreement.

• The agreement has the standard termination clauses which could be expected in a commercial agreement of this kind including termination for insolvency and for not remedying a breach within a reasonable period.

Wilton Yao

Managing Director

Jatenergy Limited | ABN 31 122 826 242 Suite 306, 521 Toorak Road, Toorak VIC 3142 Phone 03 9090 7592 admin@jatenergy.com | jatenergy.com

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About Jatenergy Limited

Jatenergy Ltd (ASX: JAT) is an Australian manufacturer and develops and markets a portfolio of in-house branded FMCGs, focusing on growth opportunities in dairy products.

JAT has positioned itself as a major player in the flourishing Australian consumer goods export industry, offering Chinese retail presence, online sales to Chinese consumers through offshore platforms, and high-volume wholesaling to daigou groups and other distribution channels.

JAT’s extensive network of Chinese business affiliations is a substantial source of opportunities, both for the company and for its Australian business partners.

Jatenergy Limited | ABN 31 122 826 242 Office B, Suite C303, 521 Toorak Road, Toorak VIC 3142 admin@jatenergy.com | jatenergy.com