PENTANET LIMITED — Capital/Financing Update 2021

Apr 22, 2021

23 APRIL 2021

ASX: 5GG | ASX ANNOUNCEMENT PENTANET ACQUIRES HIGH BAND 5G SPECTRUM

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PENTANET ACQUIRES HIGH BAND 5G SPECTRUM

Pentanet Limited ( ASX:5GG , Pentanet or Company ) is pleased to announce that it has been successful in securing a 15 year licence for high band 5G spectrum in the 26 GHz April Auction conducted by the Australian Communications and Media Authority (ACMA).

The licence is for 200 MHz of 5G millimetre wave (mmWave) spectrum covering the Greater Perth area in Western Australia including Perth, Mandurah, Bunbury and Margaret River (see Figure 1). The licence fee of $8.0 million will be able to be paid in equal instalments over a 5 year period, with $1.6 million paid in FY 2021 out of existing cash reserves.

Identified as optimal for the delivery of 5G wireless broadband services, the 26 GHz band allows for significantly increased spacing between transmission towers and equipment, providing scope for Pentanet to increase network coverage and backhaul more quickly and at reduced cost.

The 26 GHz band, being 24.25–27.5 GHz, is a finite resource at the forefront of the delivery of millimetre wave fifth generation (5G) wireless broadband services, and is a critical pillar in the deployment of 5G services both nationally and globally. The acquisition of spectrum in this band significantly increases the capability of Pentanet's Fixed Wireless business, enabling the delivery of multi-gigabit speeds anywhere in the service areas, accelerating the deployment phase and capability of the Terragraph network. The extended reach of bandwidth from towers utilising 5G means Terragraph will be able to be deployed simultaneously at greater scale, and from anywhere within a 5Km radius from an existing tower, instead of at only 250m a time outward from the existing tower footprint, as initially planned.

Exclusive access to 5G spectrum also allows Pentanet to maintain the high-performance and high-capacity of its network, providing a future upgrade path for the Company's current Fixed Wireless network as utilisation of towers increases over time.

Pentanet Managing Director, Mr Stephen Cornish , said that the acquisition of 5G spectrum will result in significant acceleration in the deployment of Pentanet’s Terragraph, and network coverage in greater Perth.

"Having access to our own 5G licensed spectrum elevates us to a new height as a telecommunications carrier. We went into the auction unsure if we would be able to compete with the larger players, but our team was able to strategically secure a meaningful allocation at a price point that made sense for our use-case." he said.

"We now have exclusive access to the 5G spectrum for at least 15 years so this is truly a once in a generation opportunity that we have been able to secure. It provides us with a tremendous opportunity to accelerate and optimise our network deployment, particularly deploying our Terragraph network technology at a far more rapid scale."

In a statement released this morning[1] , ACMA Chair Nerida O’Loughlin said this outcome represents another significant milestone for 5G in Australia.

“The successful allocation of this spectrum will support high-speed communications services in metropolitan cities and major regional centres throughout Australia. This auction is one among a suite of licensing approaches that the ACMA has introduced in the 26 GHz and 28 GHz bands to encourage a wide range of innovative communications uses,” said Ms O’Loughlin.

Unit 2, 8 Corbusier Place, Balcatta WA 6021

ABN: 29 617 506 279

investors@pentanet.com.au +61 8 9466 2672

Figure 1: Greater Perth Area spectrum licence

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1 Source: https://www.acma.gov.au/media-releases-0

Investor Briefing

Pentanet Managing Director, Mr Stephen Cornish, will conduct an Investor Briefing later today followed by Q&A session to discuss the 5G spectrum win, and the recent quarterly activities release. The briefing will be held at 11am AEST (Sydney) time / 9am AWST (Perth) time, via Zoom webinar.

Participants may register and join the briefing at the following link: - https://zoom.us/webinar/register/WN_aab DdWiSrS5Nosa9LVMBg

Questions may be submitted via the Q&A function in the Zoom platform.

This announcement has been authorised for release by the Managing Director of Pentanet Limited, Mr Stephen Cornish.

For further information, please contact:

Mr. Stephen Cornish	Mr. Patrick Holywell	Mr. Shane Murphy
Managing Director	Company Secretary	Media Relations, FTI Consulting
+61 8 9466 2672	+61 (0) 401 407 357	+61 (0) 420 945 291
investors@pentanet.com.au	patrick.holywell@pentanet.com.au	shane.murphy@fticonsulting.com.au

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investors@pentanet.com.au Unit 2, 8 Corbusier Place, +61 8 9466 2672 Balcatta WA 6021

ABN: 29 617 506 279

About Pentanet

Pentanet is a Perth-based, growth-focused telco delivering high-speed internet to a growing number of subscribers by providing them with next-generation internet speeds. This is achieved through Pentanet’s market-leading private fixed-wireless network, the largest in Perth, as well as reselling fixed-line services such as NBN, where its wireless is not yet available.

Pentanet’s flagship fixed wireless network has benefits for both customers and investors, offering an outstanding customer experience and a fixed-wireless product that is technically superior to most of the NBN – with attractive margins for investors. This sets Pentanet apart from most broadband providers, which only resell the NBN.

Pentanet will also be part of the rollout of the next wave of subscription-based entertainment services – cloud gaming. The Company’s Alliance Partner Agreement with NASDAQ listed NVIDIA – one of the world’s largest producers of specialised graphic chips used in gaming – allows Pentanet to be the first to bring their GeForce NOW technology to Australia in 2021.

Pentanet was listed as #28 in the Deloitte Technology Fast 500[TM] Asia Pacific 2020, a ranking of the region’s 500 fastest growing technology companies. On top of the Company's #28 overall ranking, Pentanet also ranked #3 for Australian companies on the list.

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investors@pentanet.com.au Unit 2, 8 Corbusier Place, +61 8 9466 2672 Balcatta WA 6021

ABN: 29 617 506 279