PEPPERMINT INNOVATION LIMITED — Capital/Financing Update 2017

Nov 26, 2017

ASX ANNOUNCEMENT

Peppermint restructures strategic placement at a premium

• On 4 September 2017 Peppermint announced a placement agreement with Smidge Digital Unit Trust which provided for $1,000,000 to be completed within 30 days via the placement of 50,000,000 shares at 2 cents per share, a significant premium to the share price at the time.
• Peppermint has received $300,000 of that placement and agreed to vary its agreement with Smidge so the balance of $700,000 can be raised in instalments or sooner. The outside dates for payments by instalments will be 18 December 2017 and 18 January 2018.
• On 4 September 2017 Peppermint also announced a right to place with Smidge shares to the value of another $1,000,000 at 25% premium to 5 day VWAP within 60 days.
• Peppermint has agreed with Smidge to vary that right in such a way that it now has the option to place a further $1,000,000 at a 25% premium to 5 day VWAP or a minimum of 2.3 cents (whichever is the higher) before the end of the 1st Quarter of 2018 (31 March 2018).
• Peppermint is working closely with Smidge which are important advisers Peppermint at this time. Smidge contains investors which include significant influencers in Asian markets, like Albert Cheok, the former Deputy Commissioner of Banking in HK, General Manager Reserve Bank of Australia and Chairman of 5GNetworks (*see below).

PERTH, AUSTRALIA 27 November 2017: Peppermint Innovation Ltd (ASX: PIL) (Peppermint) is pleased to provide an update on the strategic placement agreement with the Smidge Digital Unit Trust (an Australian special purpose investment vehicle that subscribes for minority positions in innovative fintech, and enterprise data analytics companies). The agreement has been restructured in the following ways:

• 1. The initial commitment announced 4 September 2017 to invest $1,000,000 at 2 cents per share via a placement of 50,000,000 shares in Peppermint within 30 days has been varied. $300,000 of the $1,000,000 has been invested at this point and the parties have agreed that the remaining $700,000 will be paid as soon as possible with the right to pay those funds in equal instalments on or before 18 December 2017 and 18 January 2018.
• 1. The parties have also agreed to vary the placement agreement so that Peppermint's option to place shares with Smidge worth $1,000,000 (at a premium of 25% to the 5 day VWAP) within 60 days, has been amended. Under the variation Peppermint now has the option to place shares with Smidge worth $1,000,000 at a 25% premium to the

5 day VWAP or a minimum of 2.3 cents (whichever is the higher), before 31 March 2018.

Chris Kain, Managing Director & CEO comments: We are pleased that despite some challenges presented by the market since we announced this strategic placement, Smidge remains enthusiastic to fulfil their financial obligations to the Company. A continued readiness to provide funding at a premium underlines Smidge's commitment to Peppermint and is clear recognition of the current value, and opportunities to create value, that present for our company.

Andrew Smith, trustee Director of Smidge Digital Unit Trust comments: We remain committed and motivated to provide strategic funding and offer our advice and knowledge base, to assist Peppermint harness the opportunities, and achieve the potential that clearly exists for the company.

Our pledge to Peppermint has not diminished, and is in fact reinforced by our continued commitment to not only complete the initial placement of $1,000,000 at the premium price of 2 cents in the current market, but then also to place a further $1,000,000 at the higher price of either 2.3 cents or 25% premium to 5 day VWAP on or before 31 March 2018."

Our unit holders are significant influencers in many Asian markets, and will be offering the Company all assistance they can to accelerate the Company's growth. Amongst this investor and advisor team is Mr. Albert Saychuan Cheok, CA(M). Mr Cheok has been a Special Advisor of Export & Industry Bank, Inc. (EIB) since January 27, 2006 and serves as a Special Advisor to the Asia Commercial Bank in Hong Kong. He is a banker with over 35 years of experience in banking in the Asia-Pacific Region, particularly in Australia, Hong Kong, Thailand and Malaysia and is the senior representative of the Lippo Group in the Philippines. Mr Cheok is also Chairman of ASX listed 5GNetworks Limited.

Mr. Cheok was named 'the top REIT fund manager in Asia for 2016" by Singaporean Fortune Times magazine.

-Ends-

For more information, please contact:

Chris Kain Managing Director & CEO Peppermint Innovation info@pepltd.com.au

About Peppermint Innovation Ltd

Peppermint provides mobile banking, payments and remittance services to banks and non-bank payment agents, with a particular focus on the developing world. Peppermint has an established operations and business the Philippines and is expanding internationally, starting with an international fund remittance business in Australia.