ORTHOCELL LIMITED — Capital/Financing Update 2016

Dec 12, 2016

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Placement Completed

Perth, Australia; 13 December 2016 : Regenerative medicine company Orthocell Limited (Orthocell or the Company) is pleased to announce that it has, today, issued 10,000,000 shares at $0.40 per share raising $4 million, on completion of the placement announced on 7 December 2016. Details of the issue are set out in the Appendix 3B lodged today.

Orthocell provides the following information pursuant to Listing Rule 3.10.5A:

1. 8,332,500 Shares have been issued pursuant to Orthocell’s Listing Rule 7.1A capacity. The Shares to be issued represent 8.21% of the post placement capital in the Company. Preplacement shareholders overall interests will therefore be diluted by 8.21% following the placement (however some existing shareholders have participated in the placement so their particular interests may have increased or been diluted to a lesser extent).

The remaining 1,667,500 Shares were issued pursuant to Orthocell’s Listing Rule 7.1 capacity.

Further details of the approximate percentage of the issued capital post the Listing Rule 7.1 and 7.1A placement held by pre-placement registered holders are as follows:

Post placement issued capital held by pre-placement registeredholders who did not participate in the 7.1A placement	89.47%
Post placement issued capital held by pre-placement registeredholders who did participate in the 7.1A placement	4.52%
Post placement issued capital held by participants in the 7.1Aplacement who were not registered holders at the time of theplacement	6.01%

1. Orthocell issued the Shares by way of the placement under ASX Listing Rule 7.1A and not by way of a pro-rata offer as it considers this to be the quickest, most efficient and most certain method for raising funds in the circumstances.

2. The Placement was not underwritten. The Company will pay a 5% placement fee and has agreed to issue 600,000 options with an exercise price of $0.55 with a 3 year term. Orthocell has also incurred miscellaneous expenses including legal and listing fees in connection with the placement.

-ENDS

Ph: +61 8 9360 2888 Fax: +61 8 9360 2899 www.orthocell.com.au

For more information, please contact:

General enquiries

Investor and Media enquiries

Paul Anderson

Orthocell Limited, Managing Director

Ben Walsh WE Buchan

P: +61 8 9360 2888

E: paulanderson@orthocell.com.au

P: + 61 411 520 012 E: bwalsh@buchanwe.com.au

About Orthocell Limited

Orthocell is a regenerative medicine company focused on regenerating mobility for patients and our ageing population by developing products for a variety of tendon, cartilage and soft tissue injuries. Orthocell’s portfolio of products include TGA-approved stem cell therapies Autologous Tenocyte Implantation (OrthoATI®) and Autologous Chondrocyte Implantation (Ortho-ACI®), which aim to regenerate damaged tendon and cartilage tissue. The Company’s other major product is Celgro®, a collagen medical device which facilitates tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications and is being readied for first regulatory approvals.

Ph: +61 8 9360 2888 Fax: +61 8 9360 2899 www.orthocell.com.au