REDCASTLE RESOURCES LIMITED — Interim / Quarterly Report 2017

Apr 27, 2017

ASX: TTL 28 April 2017

TRANSCENDENCE TECHNOLOGIES LIMITED MARCH 2017 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 31 March 2017.

E-Collate

The Company is currently developing a product (E-Collate) for use in the individual Self-Managed Superannuation Funds (SMSF) industry. The SMSF industry alone controls over $500 billion in assets and is a sector of the wider heavily regulated super fund industry which holds over $2 trillion in assets.

E-Collate is an innovative product for document aggregation to streamline the administration of individual Self-Managed Superannuation Funds. E-Collate utilises unique proprietary software and interfaces to enable rapid arrangement, secure storage and efficient export of compliance sensitive documentation.

Work carried out during the reporting quarter includes:

- Modularisation of Web Platform

A highly modular web platform suitable to be used on an ongoing basis and flexible enough to snap in and out revisions of the major functionality of the E-Collate app has been developed. Work on the Web Platform began toward the end of CY2016 and is a core element of the system that will enable the Company to rapidly build out E-Collate's industry specific features.

- User Experience Improvement

Customer experience in the E-Collate app has been improved, adding help functionality, feedback and bug reporting. In addition, user control and streamlining for common actions in the app has been achieved. This has included copywriting and partial restructuring of the app to align with required optimisations.

- Prototype Testing and Product Optimisation

Simultaneous with technical development, the underlying E-Collate app functionality has been extensively tested and simulated for audit and

accounting documentation collections using manual and semi-automatic methods. Further, as the software systems have been improving, they have been tested by current and former SMSF trustees and members at each stage.

- App Development Resource Selection

Communication with major software houses has been maintained to ensure that they are aware of the initial development of the product and the Company selects the optimal partner to assist with the development of generation 2 of the product, as it is commercialised.

Post the end of the reporting quarter, work on the secure back-end database with the Microsoft login system and the E-Collate front-end web app has been completed. These major parts are now fully functional on the live website which means that live field trials can now take place.

Accordingly, the Company is now primed to launch a strategy for connecting with accounting and auditor providers in parallel to the ongoing technology development. It is estimated that surveys and presentations to smaller accounting providers will occur during the following quarter. From there, it is anticipated that formal arrangements concerning the deployment of the app will be entered into.

Corporate

During the quarter, the half-year review for the six months ended 31 December 2016 was completed and the Company lodged its interim report with ASX on 24th February 2017. The Company continues to manage its cash reserves carefully and in a manner that matches the commercialisation phase of E-Collate.

• 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 31 March 2017

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9months)$A'000
1.	Cashflowsfromoperatingactivities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)research and development	(2)	(10)
	(b)product manufacturing and operatingcosts	-	-
	(c)advertising and marketing	-	-
	(d)leased assets	-	-
	(e)staff costs	(13)	(83)
	(f)administration and corporate costs	(142)	(435)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	6	13
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	(151)	(515)
1.2(e)	Staff costs include the salary of the Chief Executive Officer of the Company who ispredominately working on the development of the software.

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	-	(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)

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 options	29	128
3.4	Transaction costs related to issues ofshares, convertible notes or options	-	(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	29	(256)

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofquarter/year to date	2,831	3,481
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(151)	(515)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	-	(1)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	29	(256)
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofquarter	2,709	2,709

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	2,709	2,831
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)	2,709	2,831

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 (29)

• 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

Current quarter $A'000

7. Payments to related entities of the entity and their associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2 (61)
• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3
• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
• 7.1 Company secretarial and legal fees paid to associated entities.
• 8. Financing facilities available Add notes as necessary for an understanding of the position

8.	Financing facilities 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	(25)
9.2	Product manufacturing and operating costs	(10)
9.3	Advertising and marketing	(25)
9.4	Leased assets	-
9.5	Staff costs	(90)
9.6	Administration and corporate costs	(100)
9.7	Other (provide details if material)	-
9.8	Total estimated cash outflows	(250)

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

• See chapter 19 for defined terms

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: 28 April 2017

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.