MAGONTEC LIMITED — Capital/Financing Update 2021

Jan 19, 2021

Suite 1.03, Level 1 46A Macleay St Potts Point, NSW 2011 Australia Ph +61 2 8084 7813 Fx: +61 2 9252 8960

20 January 2021

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney, NSW, 2000

Dear Sir/Madam,

MAGONTEC LIMITED – Lapse of Performance Rights

1. Prior to the action described at point 3 of this notice, the number of Performance Rights on issue to Executives of the Company were 55,286,691 as per Table 1.

Table 1

Table 1
Performance Period Granted 1 Jan 2018 to 31 Dec 2020 23 Jan 2018 1 Jan 2018 to 31 Dec 2020 10 May 2018 1 Jan 2019 to 31 Dec 2021 24 Jan 2019 1 Jan 2019 to 31 Dec 2021 3 Jul 2019 1 Jan 2020 to 31 Dec 2022 1 Jan 2020 1 Jan 2020 to 31 Dec 2022 29 July 2020 Total	Issued To Executive Chairman Issued To Other Executives 12,681,612 4,500,000 4,500,000 13,001,610 1,466,345 3,272,727 14,637,124 1,227,273	Total No. Issued
		12,681,612
		4,500,000
		17,501,610
		1,466,345
		17,909,851
		1,227,273
	13,500,000 41,786,691	55,286,691

1. The Performance Rights in respect of the performance period 1 January 2018 to 31 December 2020 had the capacity to partially or fully vest as/convert to, ordinary shares if the closing share price on 31 December 2020 of the Company’s shares was at or above $0.064.

2. That criterion was not satisfied and therefore, Performance Rights to the extent of 17,181,612 lapsed on 31 December 2020 leaving residual Performance Rights on issue of 38,105,079.

3. Following that change the Company’s securities on issue at 31 December 2020 is summarised in Table 2.

Table 2 Securities on issue 31 December 2020

Ordinary shares on issue	1,150,924,806
Performance Rights on issue	38,105,079
Total Securities on Issue	1,189,029,885

Yours sincerely,

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John Talbot, Company Secretary of Magontec Limited has authorised the release of this document to the market on 20 January 2021