REDCASTLE RESOURCES LIMITED — Interim / Quarterly Report 2017

Oct 23, 2016

ASX: TTL 24 October 2016

TRANSENDENCE TECHNOLOGIES LIMITED SEPTEMBER 2016 QUARTERLY ACTIVITIES REPORT

The Board of Transcendence Technologies Limited ('Transcendence' or 'the Company') provides the following report on its activities and operations for the quarter ended 30 September 2016.

E-Collate

During the quarter, the Company made progress in the delivery of the E-Collate software product which aims to streamline administration of the growing Self-Managed Superannuation Funds (SMSF) market.

Testing of prototype software is almost complete, following extensive scoping and design on a technical and industry level to ensure the highest quality product is delivered to market. Final development of the E-Collate software will be undertaken following completion of prototype testing.

The Company's management has conducted an international selection process of leading software development houses throughout Australia and Asia to participate in the final development of E-Collate. The Company has been pleased by the significant interest in the project, and will conclude the selection process shortly.

In parallel with the development process, the Company is developing its sales strategy targeting both the B2C and B2B markets. The Company plans to include industry participants during the testing phase of the product to continually build its relationships with potential customers.

Corporate

During the quarter, in recognition of the ongoing support of Shareholders, the Company completed a pro rata non-renounceable entitlement offer of one loyalty option (exercisable at $0.05 on or before 11 August 2019) (Loyalty Options) for every five fully paid ordinary shares held by eligible shareholders at an issue price of $0.002 per Loyalty Option (Entitlement Offer). The Entitlement Offer was fully underwritten by Patersons Securities Limited.

The Company received applications from Shareholders subscribing for 23,220,949 New Options in the Company totalling $46,442, that were issued on 11 August 2016. A further $22,666 was raised from the issue of the remaining 11,333,323 shortfall loyalty options on 12 August 2016.

In addition, the Company issued 24,000,000 Listed Options to the Underwriter pursuant to the Prospectus lodged with ASX on 13 July 2016.

On 31 August 2016 the Company released its Annual Report for the financial year ended 30 June 2016.

On 3 October 2016, the Company held its Annual General Meeting of Shareholders. All resolutions were passed on a show of hands.

During the quarter and up to the date of this quarterly report, there were 14,260,078 fully paid ordinary shares released from escrow.

‐ Ends‐

For and on behalf of the Board,

Sarah Smith Company Secretary

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Transcendence Technologies Limited

ABN Quarter ended ("current quarter")

57 096 781 716 30 September 2016

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)research and development	-	-
	(b)product manufacturing and operatingcosts	-	-
	(c)advertising and marketing	-	-
	(d)leased assets	-	-
	(e)staff costs	(39)	(39)
	(f)administration and corporate costs	(132)	(132)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	7	7
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(164)	(164)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(1)	(1)
	(b)businesses (see item 10)	-	-
	(c)investments	-	-
	(d)intellectual property	-	-
	(e)other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a)property, plant and equipment	-	-
	(b)businesses (see item 10)	-	-
	(c)investments	-	-
	(d)intellectual property	-	-
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	(1)	(1)

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from issue of loyalty options	69	69
3.4	Transaction costs related to issues ofshares, convertible notes or options	(384)	(384)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	(315)	(315)

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofquarter/year to date	3,481	3,481
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(164)	(164)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(1)	(1)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(315)	(315)
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofquarter	3,001	3,001

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	3,001	3,481
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	3,001	3,481

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 34

• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

• 6.1 All transactions involving Directors and associates were on normal commercial terms.

$A'000

7.	Payments to related entities of the entity and theirassociates	Current quarter$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	39
7.2	Aggregate amount of cash flow from loans to these parties includedin item 2.3	-
7.3	Include below any explanation necessary to understand the transactions included initems 7.1 and 7.2
7.1	Company secretarial fees paid to associated entities.

8.	Financingfacilities available
	Add notes as necessary for an
	understanding of the position

8.	Financingfacilities availableAdd notes as necessary for anunderstanding of the position	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-
8.3	Other (please specify)	-	-

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter	$A'000
9.1	Research and development	-
9.2	Product manufacturing and operating costs	-
9.3	Advertising and marketing	-
9.4	Leased assets	-
9.5	Staff costs	15
9.6	Administration and corporate costs	91
9.7	Other (provide details if material)	-
9.8	Total estimated cash outflows	106

10.	Acquisitions and disposals ofbusiness entities(items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1	Name of entity	N/A	N/A
10.2	Place of incorporation orregistration
10.3	Consideration for acquisition ordisposal
10.4	Total net assets
10.5	Nature of business

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Company Secretary

Sign here: Date: 24 October 2016

Print name: Sarah Smith

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.