MEMPHASYS LIMITED. — Capital/Financing Update 2018

May 24, 2018

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ASX Release

Memphasys raises $1.0m via a strategic investment from prominent horse ownerbreeder to advance human and equine fertility commercialisation activities

Highlights

• Leading Australian horse owner-breeder Bob Peters invests A$1m in MEM

• Mr Peters has 40 + years’ experience as an owner and breeder of horses

• Horse fertility issues pose a significant global commercial opportunity for MEM[1]

• Funds will be used to advance work in fertility outcomes for both humans and horses

Sydney, 25 May 2018 : Memphasys Limited (ASX: MEM) (“Memphasys” or “The Company”) is pleased to announce that Peters Investments Pty Ltd, an investment company headed by prominent Australian horse owner-breeder Bob Peters has agreed to invest A$1 million into the Company to advance its work in fertility outcomes for both humans and horses.

The investment is via a placement of 1 billion shares at 0.1c per share (“Placement”). Peters Investments Pty Ltd (“Peters Investments”), has been involved in the horse industry over many decades both in racing and breeding. The Company will issue a total of 650,000,000 shares ($650,000) under its existing placement capacity pursuant to ASX Listing Rule 7.1, with the balance of 350,000,000 shares ($350,000) to be issued subject to the receipt of shareholder approval at a General Meeting of shareholders to be convened around mid-July 2018.

Following completion of the Placement, Peters Investments will have a relevant interest in 18.32% of the Company’s issued shares.

Memphasys Executive Chairman Alison Coutts commented:

“We welcome the involvement of Peters Investments into Memphasys.”

“Horses are well known to have a high rate of pregnancy failure due to sperm quality issues among stallions, with both natural and assisted reproductive technologies.

“This lack of equine fertility success causes emotional distress to horses as well as significant economic losses for their owners. We see a significant commercial opportunity that is not only beneficial to MEM, but also to owners and veterinarians in their endeavor to achieve pregnancy with horse breeds that allow artificial insemination.

Memphasys – which has developed unique, patented IP for separating the best quality sperm from semen samples - is applying its core bio-separation technology to assist with animal reproduction in horses and other animals where sperm processing and quality is an issue.

1No assisted reproduction technologies “ART”, including artificial insemination, “AI”, in-vitro fertilisation, “IVF” and intracellular sperm injection, “ICSI”, can be used with thoroughbreds for the racing industry. Despite this limitation there is a large demand for equine ART in many other horses, especially high value horses such as show jumpers, polo ponies, quarter horses and standard- bred horses, which are used for harness racing

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This work is being carried out in conjunction with Newcastle University’s Pro Vice Chancellor of the Faculty of Health and Medicine, Professor John Aitken, and his Newcastle University research team.

The funding secured from Peters Investments will be used to advance these activities.

For further information please contact:

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

About Memphasys:

Memphasys Limited (ASX: MEM) specialises in biological separations for high value commercial applications. The Company’s patented membrane processes in combination with electrophoresis, the application of an electrical potential difference across a fluid, enable the separation of high value substances or contaminants from the fluid in which they are contained.

The main application of the technology is the separation of the most viable sperm cells for artificial reproduction, most particularly for human IVF.

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