NANOLLOSE LIMITED — Capital/Financing Update 2021

Apr 22, 2021

Proposed issue of securities

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Announcement Summary

Entity name

NANOLLOSE LIMITED

Announcement Type

New announcement

Date of this announcement

Friday April 23, 2021

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

Maximum Number of ASX +security code +Security description +securities to be issued NC6 ORDINARY FULLY PAID 1,000,000

Proposed +issue date

Wednesday June 9, 2021

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

NANOLLOSE LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

13601676377

1.3 ASX issuer code

NC6

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Friday April 23, 2021

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or ** Approval actual? received/condition met? +Security holder approval Friday June 4, 2021 Estimated

Comments

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

NC6 : ORDINARY FULLY PAID

Number of +securities proposed to be issued

1,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? Yes

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In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.10000

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 7C - Timetable

7C.1 Proposed +issue date Wednesday June 9, 2021

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? Yes 7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1 Friday June 4, 2021

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes 7E.1a Who is the lead manager/broker?

Peak Asset Management

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7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

A 6% capital raising fee on all funds raised under the offer (excluding GST) and, subject to shareholder approval, 7,500,000 options exercisable at $0.15 each, with an expiry date of three years from the date of issue. These options are the subject of a separate Appendix 3B released by the Company on 19 April 2021.

7E.2 Is the proposed issue to be underwritten?

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No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Costs of convening a shareholder meeting for the purpose of approving the issue of free-attaching options and of preparing a prospectus for the purpose of seeking quotation of the free-attaching options. Refer below for further information.

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

The proceeds of the placement will further strengthen the Company's balance sheet, placing Nanollose in a strong position to further advance the development and commercialisation of its nullarbor lyocell fibre.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

Following announcement of the capital raising on 19 April 2021, the Company is proposing to accept an additional $100,000 on the same terms as the capital raising, but which will be subject to shareholder approval.

Recipients of the shares the subject of this Appendix 3B will also be entitled, subject to shareholder approval, to be issued 1 option for every 2 shares issued, exercisable at $0.15 each, with an expiry of three years from the date of issue. The Company intends to seek quotation of the options and will therefore issue these options under a Prospectus to be prepared in due course.

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