ONE CLICK GROUP LIMITED — Management Reports 2018

May 10, 2018

ASX Release

11 May 2018

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CEO’s Letter to Shareholders

Sydney, Australia and Fall River, Massachusetts, USA – Whitney Million, the Chief Executive Officer of UUV Aquabotix Ltd (ASX:UUV) (together with its subsidiary Aquabotix Technology Corporation (“ATC”), “Aquabotix” or the “Company”) today released the following letter to shareholders.

Following my appointment as Chief Executive Officer of the Company and corresponding management restructure, announced to the market on 21 March 2018, the new management team has been working on a plan to increase the pace of the development of the Company’s business. The Company holds valuable intellectual property and physical assets, and draws on valuable human capital; however, these are not being utilized to their full potential. This letter outlines the steps that the Company is taking to address this.

SWARMDIVER: To that end, a month ago, on 9 April 2018, the Company announced the release of SwarmDiver[TM] , a hybrid micro unmanned surface vehicle (“USV”) and unmanned underwater vehicle (“UUV”). SwarmDivers[TM] operate in a swarm. This means that multiple SwarmDivers[TM] can function simultaneously as a single coordinated entity, be easily controlled via one operator on the surface, and perform dives on command. Footage of SwarmDivers[TM ] in operation can be viewed from the following link: https://www.aquabotix.com/micro-usvs.html.

The release of SwarmDiver[TM] exceeded the Company’s expectations in the level of interest that it generated from potential customers and from credible industry and governmental partners. Over the month since the release of that product, the Company has fielded dozens of enquiries from various U.S. and other government agencies, larger defence companies, and others, about the product’s uses, functionality and applications, potential sales and co-operation, and nondilutive funding options. We have also been utilising our experience, reputational capital and defence industry network to educate decision-makers in the U.S. defence industry on what the Company has to offer. SwarmDiver[TM] has been successfully demonstrated and has the potential to fill a number of military and other customer needs. While deployable in its current format, the product can be applied for a wide variety of additional uses with a small amount of development tailored to specific applications.

UNIQUE POSITIONING: SwarmDiver[TM] is substantially differentiated from the Company’s existing suite of unmanned underwater vehicle products – its Endura[TM] and Integra[TM] lines (the “underwater vehicles”). In offering the underwater vehicles in the past, the Company was one of a limited number of companies offering such vehicles, but it is not the only such company. In contrast, the Company is fortunate in that no other micro hybrid USV/UUV or other swarming unmanned vehicle with diving capabilities is, to the best of the Company’s knowledge, commercially available to corporate and governmental users. In addition, SwarmDiver[TM] is surfzone operable , meaning it mechanically fills a historically difficult area to address for vehicles of any class or size.

In addition to this competitive advantage, the Company has taken note of the positioning of the product towards higher growth market opportunities. The industry fundamentals for autonomous UUVs remain strong with estimates at a CAGR of 24% from 2017 to 2022, according to Markets and Markets. The swarm intelligence market also has a large anticipated growth in coming years, growing at a CAGR of 40% from 2020 to 2030, as estimated by Markets and Markets. We see the pivoting of efforts and resources towards the high growth prospects in autonomous and

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swarming products, especially where limited competition exists as being fundamental to the Company’s trajectory moving forward.

DEFENCE EMPHASIS: The Company is also fortunate in that SwarmDiver[TM] addresses several unmet needs of the United States and allied defence communities. Among the product’s many uses, without limitation, SwarmDiver[TM] could deliver to these communities: surf break zone operations support, enhanced navigational capabilities, explosive ordnance disposal, and mine countermeasures.

As a result, user interest in SwarmDiver[TM] from potential large users is not only real, but urgent and sizable. After having assessed the short-term opportunities available to Aquabotix, the management team has determined that Aquabotix’s focus for the next several weeks and months will be on capitalizing on the interest in SwarmDiver[TM] , particularly in the defence market. That does not, at all, mean that the Company is abandoning its underwater vehicle products or technology. However, we believe that there is a good probability that we will be able to secure meaningful short-term wins for our SwarmDiver [TM] , which will cement our current lead in this space. Naturally, we cannot assure you that such wins will be secured, but that’s what we will be laser focused on in the near term.

IMPROVED FOCUS: In the past, the Company was spread thin, participating in multiple verticals – defence, oil and gas, aquaculture, marine inspections, and many others. The Company’s products and technology continue to be relevant to all of these; however, if we are to remain agile and competitive in this space, we must focus. We believe that the shorter-term wins and more sizable end-user demand can be captured in the defence industry, where the current management team has demonstrated experience, a solid reputation, and the appropriate networks. Consequently, in the near term, defence development, sales, and partnerships will be our main focus.

AGILITY AND SCALABILITY: A fundamental part of this strategy is cooperation and partnership with government and larger defence companies (prime defence contractors) for product development to meet specific user challenges. Accordingly, the Company must remain light enough at the core to be cost competitive and flexible. The Company is also cognizant of the need to manage its capital prudently and reduce its cash “burn.” In this regard, and given the objectives laid out above, the Company has today undertaken a reduction in its workforce by approximately 40% (including ATC’s Chief Operating Officer Derek Daly and Chief Development Officer Ted Curley). In doing this we have, however, retained the key personnel necessary to implement our strategic plans. These changes leave the company well positioned to quickly adapt and scale to meet the many opportunities identified.

INTELLECTUAL PROPERTY EXPLOITATION: Separately, our discussions with sophisticated counterparties have demonstrated that there is likely to be an international market for the technology underlying our existing underwater vehicle lines . I am referring to out-licensing of the technology to multiple industry participants (as opposed to relying on direct sales of the physical product) – a substantially less capital-intensive activity. While we continue to offer these product lines, we will be focusing on such out-licensing, as a secondary line of focus, short-term.

The above is by no means an exhaustive description of our strategy. Rather, it should provide you with a description of the path forward short-term, and the very active and finite plan that your Company’s management team is working to execute with the full support of the board.

With the new team in place, Aquabotix is now run differently from how it was run in the past. I believe that the Company has a bright future and is in a truly unique position to be “where the puck is going” – at the forefront of a growing and nascent industry.

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We expect to update the market on developments in this context in the next several weeks.

Whitney Million Chief Executive Officer

Further Information:

Brendan Martin Executive Director Email: investors@aquabotix.com Tel: +61 (0)2 8294 5360

ENDS

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