PPK GROUP LIMITED — Capital/Financing Update 2021

Aug 2, 2021

==> picture [141 x 49] intentionally omitted <==

ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

PPK GROUP LIMITED – ASX Code: PPK

3 August 2021

BNNT Supply and Distribution Agreement - Filgen

PPK Group Limited (ASX Code: PPK) is pleased to announce that its 51% owned subsidiary, BNNT Technology Limited (‘BNNTTL’), has entered into a non-exclusive Supply and Distribution Agreement for the sale and international distribution of high purity Boron Nitride Nanotubes (BNNT), partnering with Japan-based Filgen Inc (Filgen).

High purity BNNTs are produced by BNNTTL using patented Deakin University technology. Deakin University and PPK are joint venture partners in BNNTTL.

Filgen has been in operation since 2004 and is one of Japan's leading specialists in the sale of science research equipment. More importantly, it is a specialist distributor of nanomaterials in Japan and has an extensive network of international customers.

Effective immediately, the key terms of the Agreement are as follows:

• Filgen is granted non-exclusive rights to market and sell BNNT products worldwide until BNNTTL appoints exclusive agents in particular regions/countries;

• • An initial 12month term; and

• Excludes marketing and sale of BNNT for any applications related to the development of lithium-sulphur batteries, for which exclusivity is held by Li-S Energy Limited.

This agreement is expected to extend BNNTTL’s reach to new markets such as international R&D centres and industries employing nano-materials in composite manufacturing, into which it will be able to supply the highest grade BBNT.

In anticipation of increasing demand for its high purity BNNT from this relationship as well as other commercial activities, BNNTTL is substantially scaling up its production capacity. Having recently added a second 4 furnace module production unit the Company intends to deploy two new larger 6 furnace module production units. This will substantially increase total BNNT production capability from 2kg per week to as much as 8kg per week.

Robin Levison, PPK Executive Chairman commented:

“This is a landmark deal for BNNTTL, being its first distribution agreement with an international company. As a major shareholder in BNNTTL, PPK is highly cognisant of the potential for this relationship to broaden awareness of BNNTTL’s unique high purity BNNT in international markets. As we have previously highlighted, there is potential to employ BNNT in a revolutionary manner as a component of multiple other commercial products beyond its existing applications in lithium-sulphur batteries, ballistic protection and metal alloys to name just a few of its current uses. We expect partnering with Filgen will accelerate BNNTTL’s penetration into new industries.”

PPK GROUP LIMITED

ABN: 65 003 964 181

Level 27, 10 Eagle St, Brisbane QLD 4000 GPO Box 754, Brisbane Qld 4001 Tel: +61 7 3054 4500 Fax: +61 7 3054 4599

This announcement has been made and authorised by the PPK Group Board.

For further information contact:

Robin Levison

Executive Chairman of PPK Group Limited PH: 07 3054 4500.