PAINCHEK LTD — Capital/Financing Update 2018

Sep 9, 2018

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10[th] September 2018

PainChek Ltd 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 ianhobson@bigpond.com

Allity Aged Care partners with PainChek to bring pain monitoring technology

to its residents

PainChek Limited (ASX: PCK), a leading digital health company developing smart device applications for pain assessment and monitoring, and Allity Aged Care (“Allity”), a leading Australian Residential Aged Care (“RAC”) provider are pleased to announce the execution of a one-year PainChek® licence agreement (“the licence” or “agreement”). The PainChek® App will be accessible to Allity’s nursing and care staff to assess their residents’ clinical pain levels across two of their New South Wales RAC homes covering 239 residents.

PainChek’s app uses facial recognition to assess pain through micro-facial expressions in residents unable to communicate with their carers. Carers use the software to take a threesecond video of the resident's face. The app then analyses the facial 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 to calculate a pain severity score. The technology allows residents who are having trouble verbalising pain, such as those living with dementia, to access appropriate treatment and management more quickly.

The agreement enables Allity to extend the licence across their network of 45 RAC facilities and 4,000 beds. During this period and or any subsequent licence term PainChek® will receive additional fees with projected revenue ranges expected from this contract consistent with the standard PainChek® annual subscription license agreements[1] . PainChek Ltd will commence the Allity staff training and PainChek technology roll-out from November 2018.

“We are delighted to be working with the Allity team. Our common goal is to continue to improve pain assessments and pain management for the Allity residents including those

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people living with dementia. We see this as a very positive first step in building a long-term relationship.” Philip Daffas, CEO and Managing Director of PainChek Ltd, commented.

Allity Aged Care Chief Operating Officer Glen Hurley said technology could help maintain the highest level of care for its residents.

“Investing in innovative and world leading technology like The PainChek App will support our residents and our carers alike. Rolling out the PainChek technology will mean we can better assess pain for our residents unable to communicate, giving them access to appropriate treatment more quickly,” Mr Hurley said.

About Allity:

Allity has a network of 45 Residential Aged Care homes, covering more than 4,000 aged care beds, located across Queensland, NSW, Victoria and South Australia with a collective experience of management that makes Allity one of the most respected and established providers within the Australian aged care industry.

About PainChek Ltd:

PainChek™ 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.

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

PainChek™ six domains of pain assessment that calculates pain severity score

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This data is then combined with other indicators of pain, such as vocalisations, behaviours and movements captured to calculate a pain severity score. Due to its speed, ease of use and its reproducibility, PainChek™ will be able to be used to detect and measure a person’s pain, and then further measurements can be used to monitor the effectiveness of pain management. PainChek™ has received TGA and CE Mark clearance as a class 1 medical device.

PainChek™ will be rolled out globally in two phases: first, PainChek™ which is designed for adults who are unable to effectively verbalise their pain such as people with dementia, and second, PainChek™ for Children who have not yet learnt to speak.

• (1) The PainChek monthly Average Revenue per Licensed Bed (ARLB) across the RAC customers based on the agreements signed to date is $5 per month, and the Average Revenue per Active Resident (ARAR) is in the range of $10 per month based on actual resident usage. See ASX release dated 31 July 2018.

For further information contact:

Ian Hobson Philip Daffas Company Secretary Managing Director Tel: +61 8 9388 8290 Tel: +61 406537235

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