RECCE PHARMACEUTICALS LTD — Capital/Financing Update 2018

Nov 22, 2018

ASX Announcement

Funding Update

Sydney, Australia, 23 November 2018: Recce Pharmaceuticals Ltd (ASX: RCE) ( Company ), the company developing a new class of synthetic antibiotics, today announced it had received an advance payment from Radium Capital ( Radium ) against future research and development tax incentive funds.

The agreement with Radium, as originally announced to the ASX on 13 September 2018 ( Agreement ), sees of the Company receive payment of A$256,000, representing up to 80 per cent of anticipated R&D Refund resulting from expenditure on R&D programs during the last quarter. Fees payable to Radium include a small upfront fee, plus a reduced 1.16 per cent per month carry rate on funds received, by way of offset against R&D refunds.

The funds will be used to advance the Company’s antibiotic development program.

The Agreement avoids diluting current shareholders, while confirming cashflows against R&D applicable expenditure. The Company will repay the funds once received from the Australian Government.

Radium supports private and listed companies by paying R&D refunds in advance at a minimal cost.

About Recce Pharmaceuticals Ltd

Recce Pharmaceuticals Ltd (ASX: RCE) is pioneering the development and commercialisation of a new class of synthetic antibiotics with broad spectrum activity designed to address the urgent global health problem of antibiotic resistant superbugs. Its patented lead candidate known as RECCE[®] 327 has been developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria – including their superbug forms. Pre-clinical testing in laboratories and animal models, in Australia and overseas has demonstrated positive results. Recce has a manufacturing facility in Australia and is developing clinical research partners in the USA. The Company has developed an automated process to manufacture its lead compound ahead of first-in-human clinical trials.

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

Investor Relations James Graham Executive Director Recce Pharmaceuticals Ltd Tel: +61 (02) 8075 4585

Media (Australia) Andrew Geddes CityPR Tel: +61 (02) 9267 4511

Media (International) Sue Charles/Gemma Harris Instinctif Partners Tel: +44 (0)20 7866 7860 E: recce@instinctif.com

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