MAGONTEC LIMITED — Share Issue/Capital Change 2020

Jan 28, 2020

Suite 1.03, Level 1 46A Macleay St Potts Point, NSW 2011 Australia Ph +61 2 8005 4109 Fx: +61 2 9252 8960

29 January 2020

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

Dear Sirs,

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 51,770,713 as per Table 1.

Table 1

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----- Start of picture text ----- Issued To Issued ToExecutive Other Total No.Performance Period Granted Chairman Executives Issued1 Jan 2017 to 31 Dec 2019 19 May 2017 4,275,488 11,345,658 15,621,1461 Jan 2018 to 31 Dec 2020 23 Jan 2018 12,681,612 12,681,6121 Jan 2018 to 31 Dec 2020 10 May 2018 4,500,000 4,500,0001 Jan 2019 to 31 Dec 2021 24 Jan 2019 4,500,000 13,001,610 17,501,6101 Jan 2019 to 31 Dec 2021 3 Jul 2019 1,466,345 1,466,345Total 13,275,488 38,495,225 51,770,713----- End of picture text -----

1. The Performance Rights in respect of the performance period 1 January 2017 to 31 December 2019 had the capacity to partially or fully vest as/convert to, ordinary shares if the closing share price on 31 December 2019 of the Company’s shares was at or above $0.062.

2. That criterion was not satisfied and therefore, Performance Rights to the extent of 15,621,146 lapsed on 31 December 2019 leaving residual Performance Rights on issue of 36,149,567.

3. Following that change the Company’s securities on issue at 31 December 2019 is summarised in Table 2.

Table 2 Securities on issue 31 December 2019

Ordinary shares on issue 1,140,073,483 Performance Rights on issue 36,149,567 Total Securities on Issue 1,176,223,050

Yours sincerely,

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John Talbot, Company Secretary of Magontec Limited has authorised the release of this document to the market on 29 January 2020