RECCE PHARMACEUTICALS LTD — Capital/Financing Update 2017

Feb 22, 2017

ASX Announcement

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Recce to suspend anti-cancer program and focus on commercialising synthetic lead compound against resistant bacteria and viruses

SYDNEY, Australia 23[rd] February 2017: Recce Limited (ASX: RCE), a pre-clinical-stage pharmaceutical company engaged in the development of a new class of antibiotics, today announced it would halt further investment in its anti-cancer program and focus on commercialising its lead synthetic compound RECCE[®] 327 to address drug resistant bacteria and viruses.

Recce said the decision was formalised as Recce received notice that the company’s patent family 3, relating to its synthetic technology aimed at drug resistant bacteria and viruses, had advanced from provisional to a patent pending status across all jurisdictions party to the International Patent Cooperation Treaty (PCT).

The patent family was filed in a PCT application relating to using an anti-viral agent and methods for treatment of viral infection.

Recce Limited Executive Chairman Dr Graham Melrose said, “In light of recent progress and good invivo and in-vitro results for our synthetic antibiotic and anti-viral program, we will focus on our three patent families for treatment of bacterial and viral infection relating to superbug germs.”

The progress of its patent application assumes a greater strategic importance to Recce as it progresses towards its first Investigational New Drug (IND) submission to the United States Food & Drug Administration (FDA) and considers potential corporate partnerships to expedite the commercialisation of its lead compound RECCE[®] 327 as a potential therapy for drug resistant bacteria and viruses.

Recce would possibly revisit its cancer program but it was considered prudent to now focus on the optimum path to market for its technology.

The patent family underpins the many broad commercial opportunities of using Recce's synthetic technology for the treatment of a range of drug resistant bacteria, superbugs, as well as drug resistant viral infections that affect millions of people worldwide.

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Building upon and continuing to expand a broad based international patent portfolio is fundamental to the commercial objectives of Recce, particularly in executing future strategic business transactions in the area of new therapies against drug resistance.

The progress of its patent family into formal patent pending status confers further certainty and significantly increases the commercial value of Recce’s synthetic technology.

Peter Williams

CFO & Company Secretary

For further information please visit www.recce.com.au or contact:

Investor Relations

Peter Williams CFO & Company Secretary Recce Ltd Tel: (08) 9253 9800

Media (Australia)

Andrew Geddes CityPR Tel: (02) 9267 4511

Media (International)

Sue Charles/Daniel Gooch Instinctif Partners Tel: +44 (0)20 7866 7905 E: recce@instinctif.com

About Recce Ltd

Recce Ltd (ASX: RCE) is a world-leader in synthetic-polymer compounds, particularly against all bacteria, and viruses.

The RECCE[®] polymers have been synthesized by an extremely economic method.

RECCE[®] polymers have shown in laboratory tests that they have continued activity against bacteria, including superbugs, even after repeated use.

Recce is positioned to achieve milestones in both pre-clinical trials for FDA purposes, and the development of the manufacture of RECCE[®] 327.

Recce has granted patents in Australia, United States, Europe, Japan and China – giving it legal monopolies, and potential financial returns, from manufacture and distribution of its products in about 80% of the world’s pharmaceutical markets for antibiotics.

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