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13 November 2012

Company Announcements Office ASX Limited

EXERCISE AND LAPSE OF OPTIONS

We wish to advise that 45,000 Options (NANAF) under the Nanosonics Employee Share Option Plan have been exercised. A total 45,000 shares have been issued. We also wish to advise that 557,483 Options and 1,220,000 Performance Rights have been issued under the Nanosonics Employee Share Option Plan. We also wish to advise that 195,000 Options have been issued under the Nanosonics General Share Option Plan There remain 5,269,095 unlisted Options on issue. These movements in options are detailed in the attached Appendix 3B.

Notice under Section 708A(5)(e)

Nanosonics (the Company) advises that, on 12 November 2012, the Company issued 45,000 ordinary shares in respect of share options exercised as described above.

As at 12 November 2012, Nanosonics Limited gives notice under section 708A(5)(e) of the Corporations Act 2001 (Corporations Act) that:

The Company issued the securities without disclosure to investors under Part 6D.2 of the Corporations Act.
The Company has complied with the provisions, as they apply to the Company, of Chapter 2M of the Corporations Act and with Section 674 of the Corporations Act; and
There is no information:
a. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
b. which investors and their professional advisors would reasonably require for the purpose of making an informed assessment of the assets and liabilities, financial performance, profits and losses and prospects of Nanosonics, or the rights and liabilities attaching to Nanosonics ordinary shares.

Nanosonics Limited

McGregor Grant Company Secretary

Nanosonics Limited ABN 11 095 076 896 Unit 24 566 Gardeners Road Alexandria NSW 2015 Australia Tel: +61 2 8063 1600 Fax: +61 2 9317 5010 Email: [email protected] w: www.nanosonics.com.au

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Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Nanosonics Limited

ABN

11 095 076 896

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be issued 1. Ordinary Fully Paid Shares

2. Options

3. Performance Rights (Director Issue) 4 . Options

2 Number of[+] securities issued or to be issued (if known) or 1. 45,000 maximum number which may 2. 557,483 be issued 3. 1,220,000 4. 195,000
See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

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3 Principal terms of the 1. Ordinary shares issued in accordance with the terms of +securities (eg, if options, the Nanosonics Employee Share Option Plan (ESOP) exercise price and expiry date; if partly paid 2. Options issued in accordance with the terms of the +securities, the amount Nanosonics Employee Share Option Plan (ESOP) outstanding and due dates for payment; if[+] convertible 3. Performance Rights issued in accordance with the terms securities, the conversion of the Nanosonics Employee Share Option Plan (ESOP) price and dates for conversion) 4. Options issued in accordance with the terms of the Nanosonics General Share Option Plan (GSOP)

4 Do the+securities rank equally in all respects from the date of allotment with an existing +class of quoted+securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	1.Yes. The shares issued rank equally in every respect with, and are included with, quoted ordinary shares (ASX code NAN) – see note 8 below. 2.N/A 3.N/A 4,N/A

	1.45,000 shares at prices $0.30 (45,000 NANAD), which raised $13,500 2.NIL 3.NIL 4.NIL

	1.Exercised under the terms and conditions of the Nanosonics Employee Share Option Plan 2.Issued under the terms and conditions of the Nanosonics Employee Share Option Plan 3.Issued under the terms and conditions of the Nanosonics Employee Share Option Plan 4.Issued under the terms and conditions of the Nanosonics General Share Option Plan

See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 2

Appendix 3B New issue announcement

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6a Is the entity an+eligible entity that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the+securities the subject of this Appendix 3B, and comply with section 6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued without security holder approval under rule 7.1 6d Number of+securities issued with security holder approval under rule 7.1A 6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of securities issued under an exception in rule 7.2 6g If securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. 6h If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements 6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements	No

See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 3

Appendix 3B New issue announcement

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7 Dates of entering[+] securities into uncertificated holdings or despatch of certificates

12 November 2012

8 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 2 if applicable)

Number +Class 261,180,643 Ordinary (NAN)

9 Number and +class of all +securities not quoted on ASX ( including the securities in section 2 if applicable)

Number	+Class
0	ASX Code NANAD – Unquoted Employee Options, with exercise price of A$0.30, expiring on 19 November 2012.
442,100	ASX Code NANAF – Unquoted Employee Options, with exercise price of A$0.345, expiring on 26 June 2013.
43,450	ASX Code NANAH – Unquoted General Options, with exercise price of A$0.345, expiring on 26 June 2013.
50,000	ASX Code NANAJ – Unquoted General Options, with exercise price of A$0.55, expiring on 5 January 2014.
700,000	ASX Code NANAL – Unquoted Employee Options, with exercise price of A$0.556, expiring on 19 July 2014.
100,000	ASX Code NANAM – Unquoted General Options, with exercise price of A$0.784, expiring on 1October 2014.
30,000	ASX Code NANAN – Unquoted Employee Options, with exercise price of A$0.918 expiring on 23 February 2015.
1,400,000	ASX Code NANAO – Unquoted Employee Options, with exercise price of A$0.85 expiring on 28 April 2016.
195,000	ASX Code NANAP – Unquoted Employee Options, with exercise price of A$0.5320 expiring on 21 November 2015.
315,757	NANAR – Unquoted Employee Options, with exercise price of A$0.00 expiring on 1 April 2013
20,305	NANAS – Unquoted Employee Options, with exercise price of A$0.00 expiring on 1 April 2015
557,483	Proposed Code NANAY – Unquoted Employee Options, with exercise price of A$0.00 expiring on 1October 2013

See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 4

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Appendix 3B New issue announcement

1,220,000	Proposed Code NANAZ – Unquoted Performance Rights, with exercise price of A$0.00 expiring on 30 September 2015
195,000	Proposed Code NANAA – Unquoted General Options, with exercise price of A$0.5133 expiring on 21 November 2016.
1	NANAT - 6% Tranche A Convertible Note with a face value of $4,000,000 maturing on 28 June 2016
1	NANAU - 6% Tranche B Convertible Note with a face value of $3,500,000 maturing on 28 June 2016

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Not Applicable

Part 2 - Bonus issue or pro rata issue

Questions 11 to 33

Not Applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities ( tick one )
(a)[Securities described in Part 1 ]
(b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders
36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000
See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 5

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