ORTHOCELL LIMITED — Capital/Financing Update 2018

Dec 17, 2018

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Placement Completion

Perth, Australia; 18 December 2018 : Regenerative medicine company Orthocell Limited (Orthocell or the Company) is pleased to announce that it has, today, issued 9,709,656 shares at $0.17 per share together with one option for each share issued exercisable at $0.25 on or before 31 December 2021 in respect of the placement announced on 11 December 2018.

The Company is awaiting cleared funds from an overseas investor in relation to a further 882,353 shares which will be issued, with the attaching options, when funds have cleared utilising the Company’s available Listing Rule 7.1 capacity.

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

1. The 9,709,656 shares have been issued pursuant to Orthocell’s Listing Rule 7.1A capacity. The Shares issued represent 8.10 % of the post placement capital in the Company. Preplacement shareholders overall interests will therefore be diluted by 8.10% 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).

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 registered holders who did not participate in the 7.1A placement	79.0%
Post placement issued capital held by pre-placement registered holders who did participate in the 7.1A placement	16.7%
Post placement issued capital held by participants in the 7.1A placement who were not registered holders at the time of the placement	4.3%

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 6% placement fee on the funds rasied and has issued 3.6 million broker options on the same terms and conditions as the attaching options. Orthocell has also incurred miscellaneous expenses including legal and listing fees in connection with the placement.

Details of the issues are set out in the Appendix 3B lodged today.

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

For more information, please contact:

General enquiries Investor enquiries Media enquiries Paul Anderson Joel Seah Haley Chartres Orthocell Limited Vesparum Capital Hales[2 ] Communications Managing Director P: +61 8 9360 2888 P: +61 3 8582 4800 P: +61 423 139 163 E: paulanderson@orthocell.com.au E: orthocell@vesparum.com E: haley@h-squared.com.au

About Orthocell Limited

Orthocell is a regenerative medicine company focused on regenerating mobility for patients by developing products for the repair of a variety of soft tissue injuries. Orthocell’s portfolio of products include TGA-licensed 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. Orthocell recently received European regulatory approval (CE Mark) for CelGro®. The collagen medical device can now be marketed and sold within the European Union for a range of dental bone and soft tissue regeneration procedures and is being readied for market authorisation in the US.

For more information on Orthocell, please visit www.orthocell.com.au or follow us on Twitter @Orthocellltd and Linkedin www.linkedin.com/company/orthocell-ltd =