ORTHOCELL LIMITED — Capital/Financing Update 2016

Dec 6, 2016

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Orthocell Announces $4 million Capital Raising

Perth, Australia; 7[th] December 2016: Regenerative medicine company Orthocell is pleased to announce that it has secured commitments from new and existing professional and sophisticated investors in Australia and Hong Kong to raise $4 million (“Placement”).

The Placement will comprise the issue of 10,000,000 fully paid ordinary shares at an issue price of $0.40 per share, being a 10% discount to the 5 day VWAP of the Company’s shares traded on ASX in the 5 trading days prior to 02 December, 2016. The funds raised from the Placement (after costs) will be used to progress the Company’s portfolio of products and for working capital purposes.

Managing Director Mr Paul Anderson said “the Company is pleased to have been able to successfully raise $4 million which will assist us to continue the development of our unique tendon and soft tissue regeneration products and we welcome these new investors onto the register.”

“We would like to welcome all new investors and thank our existing investors who participated in the Placement for their support and commitment to our vision of becoming the leading regenerative medicine company for soft tissue repair and regeneration”.

Receipt of funds and issue of the shares is expected to be on or about 12 December 2016 upon the finalisation of the capital raising. No shareholder approval is required prior to the issue of the shares under the Placement which will be made from the Company’s existing Listing Rule capacities.

The sole lead manager of the Placement was Argonaut Securities Pty Ltd (“Argonaut”).

The Company’s products include its Autologous Tenocyte Implantation (Ortho-ATI®) cell therapy for tendon regeneration and its other major product, Celgro®, a collagen based medical device which can be used for tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications. Orthocell is undertaking clinical studies comparing Ortho-ATI® to surgery and using CelGro® to augment repair of the rotator cuff tendon within the shoulder, as an augment to guide and promote bone regeneration, as well as an augment to cartilage repair within the hip joint and peripheral nerve repair.

Orthocell has submitted CelGro® for regulatory approval in Europe for ‘Guided bone regeneration and soft tissue reconstruction’. Receipt of this approval will enable sales of CelGro® to commence in Europe, and trigger applications for other regulatory approvals in the United States, Australia and Japan in 2017.

-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 commercial-stage, 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 (Ortho-ATI™) 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