PAINCHEK LTD — Capital/Financing Update 2017

Jul 23, 2017

Improving the quality of life for people in pain through novel, cost effective pain assessment tools

ASX Release 24[th] July 2017

ePAT Technologies Limited ABN 21 146 035 127 Suite 401, 35 Lime Street, Sydney, NSW, 2000 Registered Office: Suite 5, 95 Hay Street Subiaco WA 6008 Phone +61 8 9388 8290

nViso agrees perpetual global license, takes strategic stake in ePAT

Highlights:

• ePAT has reached a key agreement with nViso for a perpetual, exclusive, global license to use nViso Artificial Intelligence (AI) technology for pain assessment in healthcare

• ePAT welcomes new strategic investor to the share register, nViso* who are recognised internationally for their expertise in artificial intelligence and micro expression analysis

• Partnership between the two parties will accelerate the development and commercialisation of AI in innovative mobile applications

• Payment to nViso will be shares and cash, aligning the parties to commercialisation success

Australian Health app company ePAT Technologies (ASX: EPT) (“ePAT” or “the Company”) has reached a key agreement with nViso which will see ePAT secure a perpetual, exclusive, global license for the Pain Assessment Software Development Kit (SDK) for use in the field of pain assessment and pain monitoring for mobile applications. At the same time nViso will become a strategic investor in ePAT.

nViso are a key partner of ePAT and have been assisting ePAT with the prototype App development. They have collaborated over the past three years under a non-exclusive 5-year license to develop a specific SDK version for use in the ePAT pain assessment App.

The prototype App has successfully been trialed for people with dementia in Australian Resident Aged Care and a beta version IOS App has been completed for market introduction in Q4 2017.

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ePAT members together with the nViso team for a strategy meeting in Switzerland during June 2017

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PO Box 226, Subiaco WA 6904 | Email: ianhobson@bigpond.com | www.epattechnologies.com

Under the terms of the agreement, ePAT has agreed to pay AUD$392,500 cash (split AUD$300,000 on signing the agreement and AUD$92,500 by December 31[st] 2018), which will be funded from existing cash reserves. In addition, ePAT will issue 31,250,000 fully paid ordinary shares – escrowed until December 31[st] 2018.

The benefit to ePAT includes moving to an exclusive, perpetual relationship with nViso for the pain assessment SDK and it removes the need to pay any future royalties to nViso on sales.

“In the past two months, ePAT has finalized the IOS commercial version dementia App, had our clinical work accepted for peer reviewed publication and received regulatory clearance in Australia and Europe. This new agreement provides ePAT with long term access to and development of unique Artificial Intelligence technology with real time pain assessment, plus introduces a key strategic investor to our business,” said ePAT Managing Director, Philip Daffas.

“It also provides ePAT with the platform to build our own capability in visual pain assessment and continue making the facial visual component an even stronger element of the pain assessment process in the future”.

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ePAT artificial intelligence assesses facial microexpressions that are indicative of the presence of pain

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The ePAT App six domains of pain assessment that calculates pain severity score

“With ePAT now deploying Artificial Intelligence in commercial healthcare applications this agreement supports further collaboration and R&D opportunities for both companies to provide personalized, safe, and secure healthcare solutions that are unique in their market” says Tim Llewellynn, CEO of nViso.

ePAT’s technology, a mobile application (ePAT App), uses cameras in smartphones and tablets to capture a brief video of the person, which is analysed in real time using facial recognition software to detect the presence of facial micro- expressions that are indicative of the presence of pain.

This data is then combined with other indicators of pain, such as vocalisations, behaviours and movements captured through the ePAT App to calculate a pain severity score. Due to its ease of use and its reproducibility, the ePAT App will be able to be used in the first instance to detect and measure a person’s pain, and then further measurements can be used to monitor the effectiveness of pain management provided to the person.

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The ePAT App will be rolled out globally in two phases: first, the ePAT App for Dementia for people who are unable to communicate effectively with their carers, and the second, the ePAT App for Children who have not yet learnt to speak.

*nViso SA is a Swiss based market leader who develops award-winning artificial intelligence technologies to capture and measure real-time facial expressions and precisely decode and convert facial, head and eye movements into the underlying emotions and behaviors. http://www.nviso-insights.com/en

For further information, please contact:

Ian Hobson Philip Daffas Company Secretary Managing Director Tel: +61 8 9388 8290 Tel: +61 406-537-235

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