PACIFIC EDGE LIMITED — Capital/Financing Update 2018

Dec 10, 2018

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Dear Shareholder

PACIFIC EDGE CAPITAL RAISING TO SUPPORT GROWTH

On behalf of the Board, I am pleased to offer you this opportunity to subscribe for new shares in Pacific Edge.

The details of the Share Purchase Plan (SPP) are enclosed.

The funds raised will be in addition to the approximately $7 million already raised by Pacific Edge under the recent placement which concluded successfully on 30 November 2018. This saw a number of new local and international investors join Pacific Edge’s register and reflects the growing interest in our company from institutional investors and fund managers.

OUR COMMERCIAL PROGRESS

We are seeking to position Cxbladder, our bladder cancer diagnostics tests, as the preferred choice for physicians, patients and healthcare providers, particularly in the USA, which is the world’s largest healthcare market. We are also focused on our home market of New Zealand, as well as South East Asia and Australia.

Pacific Edge commenced its commercial journey in the USA in 2014 and we have reached a number of significant milestones which brings us closer to achieving our goals. In particular:

• Awareness and adoption of Cxbladder is growing and commercial sales are increasing, with a 43% comparative increase in our most recent tests sales.

• New Zealand’s public healthcare providers are leading the way and approximately 62% of New Zealand’s population now have access to Cxbladder and this is expected to increase further.

• In the USA, we have achieved two of the three national reimbursement milestones and are progressing the third (being inclusion of Cxbladder in the LCD for the Centers for Medicare and Medicaid Services (CMS)).

Many of the foundations for commercial success have now been completed. We have a proven business model and are focusing on large institutional healthcare organisations in the USA, including Kaiser Permanente, and in the South East Asia and Australasian markets. While these customers can take longer to bring to completion, once commercial agreement is reached, they can provide significant volume, and deliver more sustainable, longer term growth opportunities.

We are looking forward to successfully executing on the next phase of our global growth plan as we continue to progress our objective of taking Cxbladder to the world. The funds being raised will provide extra capital resources to assist the company to progress its commercial objectives and become cash flow positive as soon as possible.

Further details about the SPP and the terms and conditions are set out in the enclosed information booklet and application form.

To apply for your new Pacific Edge Limited shares, you should complete and return the Application Form and return with payment to Pacific Edge’s share registrar, Link Market Services Limited, in plenty of time to be received by 5.00pm on the closing date of 25 January 2019. You can also apply online at www.pacificedgeshareoffer.co.nz.

On behalf of the Board, I invite you to consider this opportunity and thank you in advance for your ongoing support of Pacific Edge.

Yours faithfully

Chris Gallaher Chairman Pacific Edge