MEMPHASYS LIMITED. — Capital/Financing Update 2016

Jan 10, 2016

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ASX Release

COMPLETION OF PRIVATE PLACEMENT AND ANTICIPATION OF FUTURE RIGHTS ISSUE

Sydney, Monday 11 January 2016

NuSep Holdings Limited (ASX:NSP) advises that it has engaged Transocean Securities Pty Ltd ( Transocean ) and Dr Robert Gilmour to collectively provide strategic and fund raising services. Transocean focuses on small, emerging companies with high potential. Dr Gilmour provides technical and strategic advisory services. He has founded a number of successful medical device companies and has an industry specific network in the US and Australasia.

Dr Gilmour has joined NuSep’s Scientific Advisory Board which is chaired by Professor John Aitken.

As part of the Company’s corporate turnaround, the Company has signed a two-year mandate with Transocean and a consultancy agreement with Dr Gilmour. As part of these engagements, the Company has put in place an initial fund raising program with the advice and assistance of Transocean.

The strategy is to recapitalise the company, create a greater depth of shareholders to improve liquidity in the stock and to provide funding to position the company for its next phase of growth through the further development of the SpermSep and associated membrane technologies.

The Company will also undertake a review of all commercial agreements to ensure a clear strategy can be adopted to ensure maximum benefits can be extracted from the efforts of our team and the new capital.

As the first stage, Transocean is completing a private placement to raise $371,240 before costs for the Company by placing 37,123,956 shares at a price of $0.01 under the Company’s 15% capital raising capacity. The placement is anticipated to be completed by Tuesday 12 January. Subject to shareholder approval, an additional 37,123,956 options, with an exercise price of $0.016 and an expiry date of 30 November 2016, are also to be issued under the terms of the placement.

In addition, the Company is currently proposing to undertake a non-renounceable rights issue to raise a minimum of $2.8 million before costs on substantially the same terms as the placement, details of which will be announced to the market in due course. This will give existing shareholders in Australia and New Zealand an opportunity to acquire additional shares in the Company on substantially the same terms as investors under the placement.

For further information please contact:

Alison Coutts Executive Chairman +61 2 8415 7300 alison.coutts@nusep.com

NuSep Holdings Ltd 30 Richmond Rd Homebush NSW 2140

Contact Details Telephone +61 2 8415 7300 Facsimile +61 2 8415 7399

Email info@nusep.com Web www.nusep.com ABN 33 120 047 556

Postal Address P.O. Box 2202 Homebush West NSW 2140